ADVANCED ORGANIZATIONAL BEHAVIOR

CHAPTER 1: WELCOME TO THE WORLD OF

ORGANIZATIONAL BEHAVIOR

The study of Organizational Behavior began in 1890's, following the industrial

relation movement
Why OB started?
1. To improve interpersonal skills to attract and keep high- performing employees.
2. To help transform a workplace from good to great, with a positive impact on
everyone.
3. To assess the quality of workplace relationships and employee job satisfaction,
stress, and turnover.
4. To foster Corporate Social Responsibility or CSR awareness.

MANAGEMENT AND ORGANIZATIONAL BEHAVIOR

Managers plus Skills
Manager - Someone who gets things done through other people in the organization.
Organization - a consciously coordinated social unit composed of two or more people that
functions on a relatively continuous basis to achieve a common set of goals.
Organizational Behavior
➢ A field of study that investigates the impact that individuals, groups, and structure
have on behavior within organizations to apply such knowledge toward improving an
organization’s effectiveness.
➢ The scientific study of employee behavior and productivity in the workplace. OB
serves as a way for employees and supervisors to have clear expectations in the
workplace and also helps maximize productivity and success.
➢ The study of what people do in an organization and the way their behavior affects the
organization’s performance. Because OB is concerned specially with employment-
related situations, it examines behavior in the context of job satisfaction,
absenteeism, employment turnover, productivity, human performance, and
management.
Four Core Elements of Organizational Behavior
1. Technology
2. People
3. External Environment
4. Structure
These factors work into the two different perspectives of Organizational Behavior
 • Internal perspective - Views the thoughts, experiences, and feelings of an individual
as the largest influencing factors on that individual's performance.
• External perspective - Views the environment and associated factors of the
organization as the influencing factors on an individual's performance.
COMPLEMENTING INTUITION WITH SYSTEMATIC STUDY

• Systematic Study of Behavior - We look at relationships, attempting to attribute

causes and effects, and basing our conclusions on scientific evidence—that is, on
data gathered under controlled conditions and measured, and interpreted, in a
rigorous manner.
• Evidence-Based Managment (EBM) - Complements systematic study by basing
managerial decisions on the best available scientific evidence.
• Intuition - Systematic study and EBM add to intuition, or those “gut feelings” about
what makes others (and ourselves) “tick”. If we make all decisions with intuition or gut
instinct, we’re likely working with incomplete information that might lead us to risk.

“We need DATA to make a decision”

Big Data - is the extensive use of statistical compilation and analysis—didn’t become
possible until computers were sophisticated enough to both store and manipulate large
amounts of information.

DATA Current Usage

• The foundation of EBM • The reasons for data analytics

• It is used to evaluate behavior • Forecasting possible risk
• Facts and statistics are collected • Preventing catastrophes
together for reference or analysis.

NEW TRENDS LIMITATIONS

• Change is inevitable, so in order to • As technological capabilities for

innovate data is needed. handling big data have increased,
• Employees expect the next so have issues of privacy and
transformation in the way people appropriate application.
work will rely more on technological • Data has limitations.
advancements than on any other
factor, such as demographic
changes.
Identify the Major Behavioral Science Disciplines that Contribute to OB
Organizational behavior is an applied behavioral science built on contributions from several
behavioral disciplines.

PSYCHOLOGY - Psychology seeks to measure, explain, and sometimes change the

behavior of humans and other animals.
SOCIAL PSYCHOLOGY - Social psychology, generally considered a branch of
psychology, blends concepts from both psychology and sociology to focus on
people’s influence on one another.
SOCIOLOGY - Sociology studies people in relation to their social environment or
culture.
ANTHROPOLOGY - Anthropology is the study of societies in order to learn about
human beings and their activities.
Few Absolutes Apply to Organizational Behavior

• Human beings are complex, and few, if any, simple and universal principles explain
human behavior.
 • Contingency Variables situational factors or variables that moderate the relationship
between two or more variables.
CHALLENGES AND OPPORTUNITIES FOR ORGANIZATIOANAL BEHAVIOR
1. Continuing Globalization
➢ Effective managers anticipate and adapt their approaches to global issues
➢ Working with people from different cultures
o To work effectively with people from different cultures, you need to
understand how their culture and background have shaped them and
how to adapt your management style to fit any differences. What
motivates you might not motivate them.
➢ Adapting to different cultural and regulatory norms
o To be effective, managers need to know the cultural norms of the
workforce in each country where they do business.
2. Workforce Demographics
➢ Workforce has to adapt to variations in the economy, birth rates and socio-
economic conditions.
3. Workforce Diversity
➢ Workforce diversity acknowledges the following;
o workforce of men and women
o many racial and ethnic groups individuals with a variety of physical or
psychological abilities
o people who differ in age and sexual orientation
4. Social Media
➢ Despite its pervasiveness, many organizations continue to struggle with
employees’ use of social media in the workplace.
5. Working in Network Organization
➢ Network organizations are becoming more pronounced.
➢ A manager’s job is fundamentally different from networked organizations.
➢ Challenges of motivating and leading ONLINE require different techniques.
6. Improving Customer Service
➢ Today the majority of employees in developed countries work in service jobs.
➢ Employee attitudes and behavior are associated with customer satisfaction.
7. Improving People Skills
➢ Employee skills are essential to managerial effectiveness.
➢ Organizational behavior provides the concepts and theories that allow
managers to predict employee behavior in given situations.
8. Stimulating Innovation and Change
➢ Successful organizations must foster innovation and master the art of change.
➢ Employees can be the impetus for innovation and change or a major
stumbling block.
➢ Managers must stimulate employees’ creativity and tolerance for change.
9. Coping with TEMPORARINESS
➢ Organizations must be flexible and fast to survive Managers and employees
must learn to cope.
➢ Learn to live with flexibility, spontaneity & unpredictability.
➢ OB provides help in understanding the work world of continual change, and
how to overcome resistance to change.
10. Helping Employees Balance Work-Life Conflicts
 ➢ Balancing work and life demand now surpasses job security as an employee
priority.
➢ Employees are working longer hours per week
11. Improving Ethical Behavior
➢ Ethical dilemmas are situations in which an individual is required to define
right and wrong conduct.
➢ Good ethical behavior is not so easily defined. Organizations are distributing
codes of ethics to guide employees through ethical dilemmas.
➢ Managers need to create an ethically healthy climate.
Employee Well-Being at Work
Employee wellbeing encompasses mental, physical, emotional, and economic health,
influenced by workplace relationships, resources, and decisions.
It's enhanced by a positive culture prioritizing wellbeing, clear tasks, motivation, and
benefits like financial support, health aids, and work-life balance measures.
Positive Work Environment
Workplaces where there is trust, cooperation, safety, risk-taking support,
accountability, and equity.
Positive organizational scholarship. An area of OB research that concerns how
organizations develop human strengths, foster vitality and resilience, and unlock
potential
Ethical Behavior
It is characterized by honesty, fairness and equity in interpersonal, professional and
work relationships.
Ethical behavior respects the dignity, diversity and rights of individuals and groups of
people.
Ethical dilemmas and ethical choices situations in which individuals are required to
define right and wrong conduct.
DEVELOPING AN ORGANITIONAL BEHAVIOR MODEL
MODEL is an abstraction of reality, a simplified representation of some real-world
phenomenon.
Inputs
are the variables like personality, group structure, and organizational culture that led
to processes.
Group structure, roles, and team responsibilities are typically assigned immediately
before or after a group is formed.
Processes
are actions that individuals, groups, and organizations engage in as a result of inputs
and that lead to certain outcomes.
If inputs are like the noun in organizational behavior, processes are like the verbs.
Outcomes
are key variables that you want to explain or predict, and that are affected by some
other variables.
Variables of interest
✓ Attitudes and Stress
➢ Attitudes-Evaluative statements or judgments concerning objects, people, or
events.
➢ Stress-An unpleasant psychological process that occurs in response to
environmental pressures.
✓ Task performance
➢ The combination of effectiveness and efficiency at doing core job tasks.
✓ Organizational citizenship behavior (OCB)
➢ Discretionary behavior that contributes to the psychological and social
environment of the workplace.
✓ Withdrawal behavior
➢ The set of actions employees take to separate themselves from the
organization.
✓ Group cohesion
➢ The extent to which members of a group support and validate one another
while at work.
✓ Group functioning
➢ The quantity and quality of a group’s work output.
✓ Productivity
➢ The combination of the effectiveness and efficiency of an organization.
✓ Effectiveness
➢ The degree to which an organization meets the needs of its clientele or
customers.
✓ Efficiency
➢ The degree to which an organization can achieve its ends at a low cost.
✓ Organizational survival
➢ The degree to which an organization is able to exist and grow over the long
term.
 ADVANCED ORGANIZATIONAL BEHAVIOR
CHAPTER 2: ATTITUDES

ATTITUDES
✓ Attitudes are evaluative statements or judgements concerning objects, people or
events.
✓ It reflects how we feel about something.
✓ Attitudes in the workplace refers to the feelings and belief concerning the workplace.
A person’s attitude about their workplace can affect how they feel about themselves
inside and outside the workplace.

THREE COMPONENTS OF AN ATTITUDE

TYPES OF ATTITUDES

ATTITUDES BEHAVIOR
Attitude refers to an expression of the way Behavior is the way that someone acts
one feels

Although the two are related, they are distinct from one another as
attitude focuses on how one feels, and behavior deals with one's actions.
However, one's attitude is often expressed through their behavior.
Attitudes are internal and subjective, existing within the individual's mind and influencing
their thoughts and evaluations.
Behavior is external and observable, visible to others, and influenced by both internal
factors (such as attitudes) and external factors (such as social norms or situational cues).

COGNITIVE DISSONANCE
✓ It is any incompatibility between two or more attitudes or between behavior and
attitudes
✓ People seek consistency among their attitudes, and between their attitudes and their
behavior.

THEORY OF COGNITIVE DISSONANCE

CONSONANCE

• Thoughts and action coincide.

Ex. A person who wishes to protect others and believes that the COVID-19 pandemic
is real might wear a mask in public.
DISSONANCE

• Thoughts & action are opposite.

Ex. A person believes the COVID-19 pandemic is real but refuses to wear a mask,
their values and behaviors would contradict each other.

The most powerful moderators of the attitude-behavior relationship are:

o IMPORTANCE OF ATTITUDE. Important attitudes have a strong relationship to
behavior.
o CORRESPONDENCE TO BEHAVIOR. The closer the match between attitude and
behavior, the stronger the relationship:
✓ Specific attitudes predict specific behavior
 ✓ General attitudes predict general behavior
o ACCESIBILITY. The more frequently expressed attitude is, the better predictor it is.
o EXISTENCE OF SOCIAL PRESSURES. High social pressures reduce the
relationship and may cause dissonance
o PERSONAL & DIRECT EXPERIENCE. Attitudes based on personal experience are
stronger predictors.
JOB ATTITUDES
Job Attitude is defined as an employee’s set of evaluations about their job, focusing on their
work environment, colleagues, supervisors, and job satisfaction.
It encapsulates both cognitive and affective components and influences the performance
and satisfaction levels in the workplace.
MAJOR JOB ATTITUDES
JOB SATISFACTION
A positive feeling about the job resulting from evaluation of its characteristics
JOB INVOLVEMENT
Degree of psychological identification with the job where perceived
performance is important to self-worth.
PSYCHOLOGICAL EMPOWERMENT
Belief in the degree of influence over the job, competence, and job
meaningfulness.
ORGANIZATIONAL COMMITMENT
Identifying with a particular organization and its goals, while wishing to maintain membership
in the organization.
• Three Dimensions:
- Affective commitment - emotional attachment
- Continuance commitment - economic value of staying
- Normative commitment - moral and ethical obligations
• It has some relation to performance, especially for new employees.
• Less important now than in the past, now perhaps more of occupational commitment,
loyalty to profession rather than a given employer.
PERCEIVED ORGANIZATIONAL SUPPORT
• The degree to which employees believe the organization values their contribution
and cares about their well-being.
• Higher when rewards are fair, employees are involved in decision-making, and
supervisors are seen as supportive.
EMPLOYEE ENGAGEMENT
• The degree of involvement with, satisfaction with, and enthusiasm for the job.
• Engaged employees are passionate about their work and company.
MEASURING JOB SATISFACTION
Job Satisfaction is the positive feeling about a job
• It isn’t just about doing what is expected from you, it also requires interacting with co-
workers, following rules, meeting performance standards, adjusting to working
conditions, and adapting to new technologies.
How do we measure Job Satisfaction?
• Single global rating - one question / one answer
• Summation score - many questions / one average (overall score)
Job Satisfaction Levels - Are people satisfied in their jobs?
• Results depend on how job satisfaction is measured
• Pay and promotion are most problematic elements

JOB SATISFACTION
Job Conditions are important predictors of Job Satisfaction
• Generally, interesting jobs that provide training, variety, independence, and control
satisfy most employees.
• Independence, feedback, social support and interaction with co-workers outside the
workplace are also strongly related to job satisfaction.
Personality can influence job satisfaction
• Negative people are usually not satisfied with their jobs
• Those with positive core self-evaluation are more satisfied w/ their jobs
Pay influences job satisfaction only to a point
• Pay does correlate with job satisfaction and overall happiness for many people, but
the effect can be smaller once an individual reaches a standard level of comfortable
living
• Money does motivate people, but what motivates does not necessarily the same as
what makes us happy.
Corporate Social Responsibility
• An organization’s commitment to CSR, or its self-regulated actions to benefit society
or the environment beyond what is required by law, increasingly affects employee job
satisfaction.
• Employees whose personal values fit with the organization’s CSR mission are often
more satisfied.
• CSR allows workers to serve a higher purpose or contribute to a mission
• CSR can also lower job satisfaction if not managed well – pressuring people to go
“above and beyond” in ways that are not natural for them can burn them out.

OUTCOMES OF JOB SATISFACTION

JOB PERFORMANCE ORGANIZATIONAL CITIZENSHIP

BEHAVIOR

Happy workers are more likely to be a Job satisfaction is moderately correlated

productive worker. with OCB; people who are more satisfied
Organizations with higher number of with their jobs are more likely to engage in
satisfied employees tend to be more citizenship behavior.
effective than those with fewer

CUSTOMER SATISFACTION LIFE SATISFACTION

For service organizations, employee For most individuals, work is an important

satisfaction is related to positive customer part of life, and therefore it makes sense
outcomes. that our overall happiness depends on our
Satisfied employees appear to increase happiness in our work – our job satisfaction.
customer satisfaction and loyalty.
IMPACT OF JOB DISSATISFACTION

• What happens when an employee dislikes their jobs? The theoretical model is
helpful to understand the consequences of dissatisfaction.
• Exit and neglect behaviors are linked to performance variables – productivity,
absenteeism and turnover.
RESPONSES TO JOB DISSATISFACTION
Counterproductive Employee
• Is the employee’s behavior that go against the legitimate interests of the
organization.
• This behavior can harm the organization, other people within, and other people
(suppliers, clients).
• Substance abuse, stealing at work, undue socializing, gossiping, absenteeism, and
tardiness.
Absenteeism
• There is a consistent negative relationship between satisfaction and absenteeism,
but relationship is moderately weak.
• Organizations that provide leave benefits are encouraging all their employees –
including those who are highly satisfied – to take days off.
Turnover
• Relationship between turnover and job satisfaction is stronger
 • Lowered job satisfaction is the best predictor of intent to leave
• Workplace environment is a key factor too
• Alternative job prospects also have effect in turnovers
IMPACT OF JOB SATISFACTION

✓ Employee Retention – satisfied workers want to stay

✓ Talent attraction – employee satisfaction is essential in attracting the best talents

especially nowadays

✓ Brand image – people want to be part of and support organizations with good image
(CSR / people-focused)

✓ Engagement – happy workers are motivated to contribute to the growth of the

organization

✓ Productivity – job satisfaction leads to better performance

✓ Employee Well-Being – key aspect to lower absenteeism

✓ Organizational Culture – developing a positive culture improves satisfaction

SUMMARY:
Managers should watch employee attitudes

▪ Attitude influence behavior and indicate potential problems.

Managers should try to increase job satisfaction and generate positive attitude

▪ Evidence strongly suggests that this will likely result in positive outcomes – greater
organizational effectiveness, higher customer satisfaction and increased profit.
IMPLICATIONS FOR MANAGERS
Among the major job attitudes, remember that employee’s job satisfaction level is the
best predictor of behavior.
Pay attention to your employee’s job satisfaction levels as determinants of their
performance, turnover, absenteeism and withdrawal behaviors.
Measure employee job attitudes objectively and at regular intervals to determine how
are they reacting to their work.
Raise employee satisfaction by evaluating the fit between the employee’s work
interest and the intrinsic parts of the job; then create a challenging and interesting
work.
Also consider the fact that high pay alone is unlikely to create a satisfying work
environment.
 ADVANCED ORGANIZATIONAL BEHAVIOR
CHAPTER 3: EMOTIONS

WHAT ARE EMOTIONS AND MOODS?

A. AFFECTS - Defined as a broad range of feelings that people experience. Affect can
be experienced in the form of emotions or moods.

B. EMOTIONS
➢ Caused by specific event
➢ Very brief in duration (seconds or minutes)
➢ Specific and numerous in nature (many specific emotions such as anger, fear,
sadness, happiness, disgust, surprise)
➢ Usually accompanied by distinct facial expressions
➢ Action oriented in nature

C. MOODS
➢ Cause is often general and unclear
➢ Last longer than emotions (hours or days)
➢ More general (two main dimensions— positive affect and negative affect that
are composed of multiple specific emotions)
➢ Generally, not indicated by distinct expressions
➢ Cognitive in nature
EMOTIONS: CHARACTERISTICS
o Short in duration
o Has a beginning and end
o Related to specific stimuli: emotions are directed at something or someone
o Physiological symptoms (i.e., blushing, perspiring, increase or decrease of the
heart rate)
o Social meanings (anger, guilt)
o Intense
MOODS: CHARACTERISTICS
o Duration: moods last longer than emotions.
o More diffuse: less related to specific stimuli.
o Less intense.
o Moods can influence our thought
THE BASIC EMOTIONS
There are dozens, including anger, contempt, enthusiasm, envy, fear, frustration,
disappointment, embarrassment, disgust, happiness, hate, hope, jealousy, joy, love, pride,
surprise, and sadness. Numerous researchers have tried to limit them to a fundamental set.
Other scholars argue that it makes no sense to think in terms of “basic” emotions, because
even emotions we rarely experience, such as shock, can have a powerful effect on us. It’s
unlikely psychologists or philosophers will ever completely agree on a set of basic emotions,
or even on whether there is such a thing. Still, many researchers agree on SIX UNIVERSAL
EMOTIONS.
SIX UNIVERSAL EMOTIONS:
WE CAN CORRECTLY GUESS THESE FACIAL EXPRESSIONS: THEY ARE UNIVERSAL
(CULTURALLY SPECIFIC).
•SIX ESSENTIALLY UNIVERSAL EMOTIONS

CULTURAL DIFFERENCES REGARDING EMOTIONS CAN BE APPARENT BETWEEN

COUNTRIES THAT ARE INDIVIDUALISTIC AND COLLECTIVISTIC-BROAD
TERMS THAT DESCRIBE THE GENERAL OUTLOOK OF PEOPLE IN A SOCIETY.
Individualistic
➢ countries are those in which people see themselves as independent and desire
personal goals and personal control. Individualistic values are present in North
America and Western Europe, for example.
Collectivistic
➢ countries are those in which people see themselves as interdependent and seek
community and group goals. Collectivistic values are found in Asia, Africa, and South
America, for example.
MORAL EMOTIONS
That is, emotions that have moral implications because of our instant judgment of the situation
that evokes them.
- Examples of moral emotions include sympathy for the suffering of others, guilt
about our own immoral behavior, anger about injustice done to others, and contempt for those
who behave unethically.
-Another example is the disgust we feel about violations of moral norms, called
moral disgust.
THE BASIC MOODS: POSITIVE AND NEGATIVE AFFECT
Positive affect
➢ A mood dimension that consists of specific positive emotions such as excitement, self-
assurance, and cheerfulness at the high end and boredom, sluggishness, and
tiredness at the low end.
Negative affect
➢ A mood dimension that consists of emotions such as nervousness, stress, and anxiety
at the high end and relaxation, tranquility, and poise at the low end.
Moods are broken down into a 2-dimensional typology:
➢ Positive Affect: extent to which a person feels enthusiastic, active, alert.
➢ Negative Affect: extent to which a person feels distressed or fearful.
➢ Moods impact how employees perceive reality; thereby, they can impact the work of
employees.
➢ At zero input, most people experience a mildly positive mood. This is referred to as
positivity offset.
What Are Emotions Made of?
Emotion is a four-part process:
1. Physiological arousal
2. Subjective feelings
3. Cognitive interpretation
4. Behavioral expression
THE FUNCTIONS OF EMOTIONS
DO EMOTIONS MAKE US IRRATIONAL?
How often have you heard someone say,
“Oh, you’re just being emotional? ”You might have been offended. Observations like this
suggest that rationality and emotion are in conflict, and by exhibiting emotion, you are acting
irrationally. The perceived association between the two is so strong that some researchers
argue displaying emotions such as sadness to the point of crying is so toxic to a career that
we should leave the room rather than allow others to witness it. This perspective suggests the
demonstration or even experience of emotions can make us seem weak, brittle, or irrational.
However, this is wrong.

DO EMOTIONS MAKE US ETHICAL?

A growing body of research has begun to examine the relationship between emotions and
moral attitudes. It was previously believed that, like decision making in general, most ethical
decision making was based on higher-order cognitive processes, but the research on moral
emotions increasingly questions this perspective.
SOURCES OF EMOTIONS AND MOODS
Personality
➢ Moods and emotions have a trait component.
➢ Affect intensity: how strongly people experience their emotions
Time of Day
➢ Happier in the midpoint of the daily awake period.
Day of the Week
➢ Happier toward the end of the week.
Weather
➢ Illusory correlation – no effects.
Sleep
➢ Poor sleep quality increases negative affect.
➢ It is important to get enough and high-quality levels of sleep.
Exercise
➢ Does somewhat improve mood, especially for depressed people
Age
➢ Older people experience fewer negative emotions
Sex
➢ Women tend to be more emotionally expressive.
➢ They feel emotions more intensely, have longer-lasting moods, and express emotions
more frequently than men.
➢ Research has shown that this is due more to cultural socialization than to biology.
EMOTIONAL LABOR
➢ A situation in which an employee expresses organizationally desired emotions during
interpersonal transactions at work.
Controlling Emotional Display
➢ The way we experience an emotion is obviously not always the same as the way we
show it.
Felt emotions
➢ An individual’s actual emotions.
Displayed emotions
➢ Emotions that are organizationally required and considered appropriate in a given job.
Surface acting
➢ Hiding one’s inner feelings and forgoing emotional expressions in response to display
rules.
Deep acting
➢ Trying to modify one’s true inner feelings based on display rules.
Emotional Dissonance and Mindfulness
Emotional dissonance
➢ Inconsistencies between the emotions people feel and the emotions they project.
Mindfulness
➢ Objectively and deliberately evaluating the emotional situation in the moment.
AFFECTIVE EVENTS THEORY
➢ A model that suggests that workplace events cause emotional reactions on the part of
employees, which then influence workplace attitudes and behaviors.
EMOTIONAL INTEALLIGENCE
The ability to detect and to manage emotional cues and information.
o Intelligence about one’s social environment
o A person’s ability to:
o Perceive emotions in the self and others.
o Understand the meaning of these emotions.
o Regulate one’s (and other’s) emotions accordingly
o Related to successful social interactions and empathy
EMOTION REGULATIONS
➢ The process of identifying and modifying felt emotions.
Emotion Regulation Influences and Outcomes
➢ The workplace environment has an effect on an individual’s tendency to employ
emotion regulation. In general, diversity in work groups increases the likelihood that
you will regulate your emotions.
Emotion Regulation Techniques
➢ Researchers of emotion regulation often study the strategies people employ to change
their emotions. One related technique of emotion regulation is emotional suppression,
literally suppressing blocking or ignoring initial emotional responses to situations.

Ethics of Emotion Regulation

➢ Emotion regulation has important ethical implications. On one end of the continuum,
some people might argue that controlling your emotions is unethical because it
Requires a degree of acting.
OB APPLICATIONS OF EMOTIONS AND MOODS
Our understanding of emotions and moods can affect many aspects of OB. Let’s think through
some of them.
A. Decision Making
Moods and emotions have effects on decision making that managers should under-
stand. Positive emotions and moods seem to help people make sound decisions.
Positive emotions also enhance problem-solving skills, so positive people find better
solutions.74

B. Creativity
As we see throughout this text, one goal of leadership is to maximize employee
productivity through creativity. Creativity is influenced by emotions and moods, but
there are two schools of thought on the relationship.

C. Motivation
Several studies have highlighted the importance of moods and emotions on motivation.
Giving people performance feedback whether real or fake influences their mood, which
then influences their motivation.

D. Leadership
Leaders who focus on inspirational goals generate greater optimism, cooperation, and
enthusiasm in employees, leading to more positive social interactions with coworkers
and customers.

E. Customer Service
Workers’ emotional states influence the level of customer service they give, which in
turn influences levels of repeat business and customer satisfaction. This result is
primarily due to emotional contagion the “catching” of emotions from others.

F. Job Attitudes
The relationship between moods and job attitudes is reciprocal the way our workday
goes colors our moods, but our moods also affect the way we see our jobs.

G. Deviant Workplace Behaviors

Anyone who has spent much time in an organization realizes people can behave in
ways that violate established norms and threaten the organization, its members, or
both.

H. Safety and Injury at Work

Research relating negative affectivity to increased injuries at work suggests employers
might improve health and safety (and reduce costs) by ensuring workers aren’t
engaged in potentially dangerous activities when they’re in a bad mood.

Emotions and moods are similar in that both are affective in nature. But they’re also different
moods are more general and less contextual than emotions. The time of day, stressful events,
and sleep patterns are some of the many factors that influence emotions and moods. OB
research on emotional labor, affective events theory, emotional intelligence, and emotional
regulation helps us understand how people deal with emotions. Emotions and moods have
proven relevant for virtually every OB topic we study, with implications for managerial
practices.
 ADVANCED ORGANIZATIONAL BEHAVIOR
CHAPTER 4: PERSONALITY FACTORS
WHAT IS PERSONALITY?
The sum total of ways in which an individual reacts to and interacts with others.
Personality traits Enduring characteristics that describe an individual’s behavior.
PERSONALITY DETERMINANTS
A. HEREDITY
Factors determined at conception; one’s biological, physiological and inherent
psychological makeup.
PERSONALITY FRAMEWORKS
The Myers-Briggs Type Indicator
1. Extraverted (E) versus Introverted (I). Extraverted individuals are outgoing,
sociable, and assertive. Introverts are quiet and shy.
2. Sensing (s) versus Intuitive (N). Sensing types are practical and prefer routine and
order, and they focus on details. Intuitives rely on unconscious processes and look at
the “big picture.”
3. Thinking (T) versus Feeling (F). Thinking types use
reason and logic to handle problems. Feeling types rely on their personal values
and emotions.
4. Judging (J) versus Perceiving (P). Judging types want control and prefer order and
structure. Perceiving types are flexible and spontaneous.
The Big Five Personality Model
1. Conscientiousness. The conscientiousness dimension is a measure of reliability.
2. Emotional stability. The emotional stability dimension taps a person’s ability to
withstand stress. People with emotional stability tend to be calm, self-
confident, and secure.
3. Extraversion. The extraversion dimension captures our comfort
level with
4. relationships.
5. Openness to experience. The openness to experience dimension addresses
6. the range of a person’s interests and their fascination with novelty.
7. Agreeableness. The agreeableness dimension refers to an individual’s
propensity to defer to others.
PERSONALITY FRAMEWORKS
The Dark Triad
1. Machiavellianism - The degree to which an individual is
pragmatic, maintains emotional distance, and believes that ends can justify means.
2. Narcissism - The tendency to be arrogant, have a grandiose sense of self-
importance, require excessive admiration, and have a sense of entitlement.
3. Psychopathy - The tendency for a lack of concern for others and a lack of
guilt or remorse when actions cause harm.
4. Judging (J) versus Perceiving (P). Judging types want control and prefer order
and structure. Perceiving types are flexible and spontaneous.

How Do the Big Five Traits Predict Behavior at Work?

OTHER PERSONALITY ATTRIBUTES RELEVANT TO OB

1. Core Self-Evaluation (CSE)
2. Self-monitoring – It describes an individual’s ability to adjust behavior to
external, situational factors.
3. Proactive personality - People who identify opportunities, show initiative,
take action, and persevere until meaningful change occurs.
PERSONALITY AND SITUATIONS
Situation Strength Theory
o A theory indicating that the way personality translates into behavior depends on the
strength of the situation.
COMPONENTS OF SITUATION STRENGTH
1. Clarity, or the degree to which cues about work duties and responsibilities are
available and clear jobs high in clarity produce strong situations because individuals
can readily determine what to do.
 2. Consistency, or the extent to which cues regarding work duties and responsibilities
are compatible with one another—jobs with high consistency represent strong
situations because all the cues point toward the same desired behavior.
3. Constraints, or the extent to which individuals’ freedom to decide or act is
limited by forces outside their control—jobs with many constraints represent
strong situations because an individual has limited discretion.
4. Consequences, or the degree to which decisions or actions have important
implications for the organization or its members, clients, supplies, and so on
jobs with important consequences represent strong situations because the
environment is probably heavily structured to guard against mistakes.
PERSONALITY AND SITUATIONS
Trait Activation Theory
o A theory that predicts that some situations, events, or interventions “activate” a trait
more than others.
VALUES
o Basic convictions that a specific mode of conduct or end-state of existence is
personally or socially preferable to an opposite or converse mode of conduct or end-
state of existence.
Value System
A hierarchy based on a ranking of an individual’s values in
terms of their intensity.
Terminal versus Instrumental Values
1. Terminal values - Desirable end-states of existence; the goals a person would like to
achieve during his or her lifetime.
2. Instrumental values - Preferable modes of behavior or means of
achieving one’s terminal values.
Generational Values

LINKING AN INDIVIDUAL’S PERSONALITY AND VALUES TO THE WORKPLACE

Person–Organization Fit
o A theory that people are attracted to and selected by organizations that match their
values, and leave when there is not compatibility.
Person–Job Fit
o A theory that identifies six personality types and proposes that the fit between
personality type and occupational environment determines satisfaction and turnover.
 Holland’s Typology of Personality and Congruent Occupations

CULTURAL VALUES
Hofstede’s Framework
Five Value Dimensions of National Culture
1. Power Distance - A national culture attribute that describes the extent to which a
society accepts that power in institutions and organizations is distributed unequally.
2. Individualism versus Collectivism - A national culture attribute that describes
the degree to which people prefer to act as individuals rather than as
members of groups. Collectivism emphasizes a tight social framework in which
people expect others in groups of which they are a part to look after them and protect
them.
3. Masculinity versus Femininity - Hofstede’s construct of masculinity is the degree to
which the culture favors traditional masculine roles such as achievement, power, and
control, as opposed to viewing men and women as equals. A high femininity
rating means the culture sees little differentiation between male and female roles
and treats women as the equals of men in all respects.
4. Uncertainty avoidance - The degree to which people in a country prefer structured
over unstructured situations defines their uncertainty avoidance.
5. Long-term versus Short-term orientation - This typology measures a society’s
devotion to traditional values. People in a culture with long-term orientation look to
the future and value thrift, persistence, and tradition. In a short-term orientation,
people value the here and now; they also accept change more readily and don’t see
commitments as impediments to change.
 ADVANCED ORGANIZATIONAL BEHAVIOR
CHAPTER 5: PERCEPTUAL PROCESS

WHAT IS PERCEPTION?

▪ a process by which individuals organize and interpret their sensory impressions in

order to give meaning to their environment.
Factors That Influence Perception

▪ Perceiver - When you look at a target, your interpretation of what you see is
influenced by your personal characteristics—attitudes, personality, motives, interests,
past experiences, and expectations.
▪ Target - The "target" refers to the object or person we are observing or perceiving.
▪ Context/Situation - The time at which we see an object or event can influence our
attention, as can location, light, heat, or situational factors.
PERSON PERCEPTION: MAKING JUDGMENTS ABOUT OTHERS
Attribution Theory
tries to explain the ways we judge people differently, depending on the meaning we
attribute to a behavior.
DISTINCTIVENESS
is about noticing if someone acts differently in different situations.
CONSENSUS
means everyone in a similar situation acts the same way.
CONSISTENCY
means seeing if a person acts the same way over time.
Common Shortcuts in Judging Others
This allows us to make accurate perceptions rapidly and provide valid data for
making predictions and we have 4 examples.
1. SELECTIVE PERCEPTION - refers to the tendency of individuals to notice certain
things while ignoring others. This happens because our brains can't handle all the
information around us, so we filter what we pay attention to.
2. THE HALO EFFECT - happens when we judge someone based on just one
characteristic, like intelligence or friendliness, and then assume other things about
them because of it.
3. THE CONTRAST EFFECT - occurs when our perception of something is influenced
by what we've experienced just before it. Similarly, people can seem more or less
impressive depending on who they're compared to.
4. STEREOTYPING - refers to the tendency of individuals to notice certain things while
ignoring others. This happens because our brains can't handle all the information
around us, so we filter what we pay attention to.
THE LINK BETWEEN PERCEPTION ANDINDIVIDUAL DECISION MAKING
Individuals make decisions based on their perceptions, which are influenced by how
they see and interpret the world around them. Decision making usually happens when
there's a problem - when there's a gap between what's happening now and what we want to
happen.
THE RATIONAL DECISION-MAKING MODEL
Suggests that the best decisions are made by carefully weighing all options and
choosing the one that maximizes value while considering all available information and
constraints. This model involves six steps to ensure a logical and systematic decision-
making process.
Steps in the rational decision-making model
1. Define the problem
2. Identify the decision criteria
3. Allocate weights to the criteria
4. Develop the alternatives
5. Evaluate the alternatives
6. Select the best alternative
BOUNDED RATIONALITY
- recognizes that we don't always make decisions in a perfectly rational way because
our brains can't handle all the information available. Instead, we simplify complex
problems and make decisions based on what seems good enough given the
limitations of our knowledge and processing abilities.
INTUITION
- is like making decisions based on gut feelings or instinct rather than logical thinking.
It's a process that happens automatically and quickly, drawing on our past
experiences and emotions. Even though it's not rational, it doesn't mean it's always
wrong.
Common Biases and Errors in Decision Making
1. OVERCONFIDENCE BIAS - means we tend to think we're better at things than we
actually are, and we often don't even realize we're doing it.
2. ANCHORING BIAS - when we get stuck on the first piece of information we receive
and don't properly consider new information that comes later.
3. CONFIRMATION BIAS - when we look for and focus on information that supports
what we already believe, while ignoring or dismissing information that goes against
our beliefs. It's like wearing glasses that only let in what we want to see.
4. AVAILABILITY BIAS - happens when we make judgments based on information
that's easy to remember or that stands out in our minds, rather than on actual
probabilities or facts.
5. ESCALATION OF COMMITMENT - when people stick to a decision even if it's
clearly not working out, often because they feel personally responsible for the
outcome and are afraid of failure.
6. RANDOMNESS - when we mistakenly believe we can predict or control random
events, like thinking we have control over winning a coin toss or predicting when
good or bad luck will happen.
7. RISK AVERSION - means that most people prefer to avoid taking risks, even if the
potential rewards are higher.
8. HINDSIGHT BIAS - after something happens, we wrongly believe that we
would have predicted it correctly beforehand. It's like looking back at past events
and thinking, "Oh, I knew that was going to happen!"
INFLUENCES ON DECISION MAKING: INDIVIDUAL DIFFERENCES AND
ORGANIZATIONAL CONSTRAINTS
INDIVIDUAL DIFFERENCES
- can be broadly defined as the combination of traits that make you unique and create
deviations from the rational model.

1. PERSONALITY - refers to the characteristic patterns of thoughts, feelings, and

behaviors that distinguish one individual from another.
2. GENDER – in less stressful situations, both men and women tend to make decisions
of similar quality.
3. GENERAL MENTAL ABILITY - refers to how well someone can process information,
solve problems, and learn quickly. You might think that people with higher GMA would
make fewer mistakes when making decisions, but that's not always the case.
INFLUENCES ON DECISION MAKING: ORGANIZATIONAL CONSTRAINTS
1. PERFORMANCE EVALUATION SYSTEMS
➢ affect how managers behave because they focus on specific criteria for
assessment. For example, if a division manager thinks their plants perform
well only when they don't hear any bad news, the plant managers might hide
negative information to make themselves look better.
2. REWARD SYSTEMS
➢ in organizations affect how decision-makers behave by indicating which
choices lead to better personal rewards.
3. FORMAL REGULATIONS
➢ are like a set of instructions or rules that tell people what they can and cannot
do in their jobs.
 4. SYSTEM-IMPOSED TIME CONSTRAINTS
➢ refer to deadlines or time limits that are set for making important
decisions.
5. HISTORICAL PRECEDENTS
➢ refer to past decisions or actions that influence current choices. For instance,
in budgeting, the size of this year's budget is often determined largely by the
budget from the previous year. This means that decisions made today are
heavily influenced by decisions made in the past.
THREE ETHICAL DECISION CRITERIA
Utilitarianism
This ethical criterion focuses on making decisions based on the outcomes that provide the
greatest good for the greatest number of people.
Fundamental liberties and privileges
This criterion emphasizes making decisions that uphold the basic rights and freedoms of
individuals, such as privacy, free speech, and due process.
Justice
Making decisions based on principles of fairness and impartiality, ensuring that benefits and
costs are distributed equitably.

CREATIVITY, CREATIVE DECISION MAKING,AND INNOVATION IN ORGANIZATIONS

Three-Stage Model of Creativity in Organizations

1. Intelligence and Creativity. Smart individuals tend to be more creative because
they can solve complex problems and recall relevant information.
2. Personality and Creativity. Personality traits like openness to experience, proactive
personality, self-confidence, risk-taking, and tolerance for ambiguity are associated
with creativity.
3. Expertise and Creativity. Expertise in a particular field is crucial for creative work.
Those with extensive knowledge and experience in their domain are more likely to
come up with innovative ideas.
4. Ethics and Creativity. While creativity is desirable, it is not necessarily correlated
with ethical behavior.
1. Motivation. Being motivated to be creative is crucial, with intrinsic motivation, driven
by interest and challenge, strongly linked to creative outcomes.
2. Recognition and Reward. Organizations should reward and recognize creative work
to encourage innovation, as seen in a study where team creativity led to innovation
when the climate supported it.
3. Idea Flow. Environments that encourage the free exchange of ideas and provide fair
feedback foster creativity, while excessive rules can stifle it.
4. Empowerment. Both structural empowerment (allowing freedom within the work
unit) and psychological empowerment (enabling individuals to feel personally
empowered to make decisions) are associated with employee creativity, as found in
studies in China.
5. Competitive Climate. creating a competitive environment where achievement is
valued above all else can inhibit creativity, as shown by research in Slovenia
 ADVANCED ORGANIZATIONAL BEHAVIOR
CHAPTER 6: VALUING DIVERSITY

Valuing diversity is what institutions and members of a community do to acknowledge the

benefits of their differences and similarities. They intentionally work to build sustainable
relationships among people and institutions with diverse membership.
Diversity means differences among groups of people and individuals based on race, ethnicity,
socioeconomic status, gender, language, exceptionalities, religion, sexual orientation, and
geographic region in which they live.
Levels of Diversity
1. Surface - Level Diversity refers to a sort of diversity in which the features are observable
and palpable. Age, colors, sex, gender balance, visible disability, and physical size are just a
few examples. Surface-level diversity in office activities refers to the disparities that can be
seen merely by glancing at them or talking to them once or twice.

2. Deep Level Diversity refers to non-observing qualities, or not apparent features. Opinions,
beliefs, and religious affiliations are among them. They are related to hidden diversity in that
they’re difficult to spot. Deep-level diversity increases engagement and productivity.
Diversity Levels Within the Organization
Internal Diversity features are those that are tied to the circumstances in which an individual
is born. (Age, identified sex, sexual orientation, ethnicity, origin, physical aptitude, mental
proficiency, identity in terms of culture)

External Diversity it is ultimately something that a person can modify and frequently does
over s period. (Personal preferences, education, nationality, religious convictions, location,
socioeconomic status, experiences in life, ideology)
Organizational Diversity also known as functional diversity. These are all the traits that
separate one staff member from another within the workplace.
( job purpose, place of employment, status of management, employment, career, membership
in a labor
Worldview Diversity a worldview is a term used to describe the fourth category of diversity.
Our internal, external and organizational diversity features are combined to construct our
worldview. (Political convictions, perimeter of morality, perspective on life, ideology)
Discrimination in the Workplace
Type of Discrimination
1. Discriminatory policies or practices
2. Sexual harassment
3. Intimidation
4. Mockery and Insults
5. Exclusion
6. Incivility
Workplace Diversity
Five benefits of workplace diversity
1. Increased productivity
2. Increased creativity
3. Improved cultural awareness
4. A positive reputation
5. Increase in marketing opportunities
 ADVANCED ORGANIZATIONAL BEHAVIOR
CHAPTER 7: BASIC MOTIVATION

WHAT IS MOTIVATION?
- as the processes that account for an individual’s intensity, direction, and persistence
of effort toward attaining a goal.
Intensity
- describes how hard a person tries.
Direction
- Measures how a person should have a consistent goal
Persistence
- This measures how long a person can maintain effort.

Early Theories of Motivation

HEIRARCHY OF NEEDS THEORY

1. Physiological Needs - Includes hunger, thirst, shelter, sex, and other bodily needs.
2. Safety & Security - Security and protection from physical and emotional harm.
3. Love & Belongingness - Affection, belongingness, acceptance, and friendship.
4. Self Esteem - Internal factors such as self-respect, autonomy, and achievement, and
external factors such as status, recognition, and attention.
5. Self-actualization - Drive to become what we are capable of becoming; includes
growth, achieving our potential, and self-fulfillment.

Two-Factor Theory
- also called motivation-hygiene theory
- A theory that relates intrinsic factors to job satisfaction and associates extrinsic
factors with dissatisfaction. Also called motivation-hygiene theory.

McClelland’s Theory of Needs

- A theory that achievement, power, and affiliation are three important needs that
help explain motivation.
- As opposed to Maslow’s hierarchy, these needs are more like motivating factors
- than strict needs for survival. There are three:
CONTEMPORARY THEORIES OF MOTIVATION
a. Difficulty and Feedback Dimensions
b. Goal Commitment, Task Characteristics, National Culture Factors

Self-Determination Theory
A theory of motivation that is concerned with the beneficial effects of intrinsic motivation and
the harmful effects of extrinsic motivation.
Self-concordance
The degree to which people’s reasons for pursuing goals are consistent with their interests
and core values.
Cognitive Evaluation Theory
A version of self-determination theory in which allocating extrinsic rewards for behavior that
had been previously intrinsically rewarding tends to decrease the overall level of motivation if
the rewards are seen as controlling.
Goal Setting Theory
- A theory that specific and difficult goals, with feedback, lead to higher performance.
- Goal commitment. Goal-setting theory assumes an individual is committed to the
goal and determined not to lower or abandon it.
- Task characteristics. Goals themselves seem to affect performance more strongly
when tasks are simple rather than complex, well-learned rather than novel
independent rather than interdependent, and on the high end of achievable
- National characteristics. Goals may have different effects in different cultures. In
collectivistic and high power-distance cultures, achievable moderate goals can be
more motivating than difficult ones
GOAL-SETTING IMPLEMENTATION: Management by Objectives
- A program that encompasses specific goals, participatively set, for an explicit period
and including feedback on goal progress.
GOAL SETTING AND ETHICS
- The relationship between goal setting and ethics is quite complex: If we emphasize
the attainment of goals, what is the cost?
INDIVIDUAL AND PROMOTION FOCI
PROMOTION FOCUS
- A self-regulation strategy that involves striving for goals through advancement and
accomplishment.
PREVENTION FOCUS
- A self-regulation strategy that involves striving for goals by fulfilling duties and
obligations.

SAMPLE ILLUSTRATIONS FROM GOAL-SETTING THEORY BY MBO

OTHER CONTEMPORARY THEORIES OF MOTIVATION
1. SELF-EFFICACY THEORY
o An individual’s belief that he or she is capable of performing a task.
o INCREASING SELF-EFFICACY IN YOURSELF:
▪ Enactive mastery.
▪ Vicarious modeling.
▪ Verbal persuasion.
▪ Arousal.

2. REINFORCEMENT THEORY
o A theory that behavior is a function of its consequences.
o
o OPERANT CONDITIONING/BEHAVIORISM AND REINFORCEMENT
▪ probably the most relevant component of reinforcement theory for
management, argues that people learn to behave a certain way to
either get something they want or to avoid something they don’t want.
▪ BEHAVIORISM - A theory that behavior follows stimuli in a relatively
unthinking manner.
o SOCIAL-LEARNING THEORY AND REINFORCEMENT
▪ The view is that we can learn through both observation and direct
experience.

3. EXPECTANCY THEORY
o A theory that the strength of a tendency to act in a certain way depends on
the strength of an expectation that the act will be followed by a given outcome
and on the attractiveness of that outcome to the individual.
 4. EQUITY THEORY/ORGANIZATIONAL JUSTICE
o A theory that individuals compare their job inputs and outcomes with those of
others and then respond to eliminate any inequities.
o ORGANIZATIONAL JUSTICE
▪ An overall perception of what is fair in the workplace, composed of
distributive, procedural, informational, and interpersonal justice.
o Informational justice - The degree to which employees are provided truthful
explanations for decisions.
o Interpersonal justice -The degree to which employees are treated with
dignity and respect.
o ENSURING JUSTICE - How can an organization affect the justice
perceptions and rule adherence of its managers? This depends upon the
motivation of each manager.
o CULTURE AND JUSTICE - Across nations, the same basic principles of
procedural justice are respected, in that workers around the world prefer
rewards based on performance and skills over rewards based on seniority.

Job engagement
➢ The investment of an employee’s physical, cognitive, and emotional energies into job
performance
INTEGRATING CONTEMPORARY THEORIES OF MOTIVATION
 ADVANCED ORGANIZATIONAL BEHAVIOR
CHAPTER 8: APPLIED MOTIVATION

MOTIVATING BY JOB DESIGN: THE JOB CHARACTERISTICS MODEL (JCM)

Job Design
➢ Job design refers to the process of organizing and arranging tasks, duties, and
responsibilities of a job in a way that maximizes employee motivation, satisfaction,
and performance
Importance of Job Design

• Enhances employee motivation and productivity

• Improves job satisfaction and reduces turnover
• Increases employee engagement and commitment
• Fosters a positive work environment and culture

Job Characteristics Model (JCM)

▪ Skill variety: The degree to which a job requires different activities using specialized
skills and talents
▪ Task identity: The degree to which a job requires completion of a whole and
identifiable piece of work
▪ Task significance: The degree to which a job affects the lives or work of other
people
▪ Autonomy: The degree to which a job provides the worker freedom, independence,
and discretion in scheduling work and determining the procedures for carrying it out
▪ Feedback: The degree to which carrying out the work activities required by a job
result in the individual obtaining direct and clear information about the effectiveness
of his or her performance
Motivating Potential Score (MPS)
▪ MPS = Skill variety + Task identity + Task significance * Autonomy * Feedback
▪ Jobs with high MPS have high motivating potential and lead to increased motivation,
performance, and satisfaction, and reduced absenteeism and turnover
Job Redesign
➢ Job redesign is the process of changing the structure, content, and organization of
work to improve employee motivation, satisfaction, and performance
Importance of Job Redesign

▪ Enhances employee motivation and productivity

▪ Improves job satisfaction and reduces turnover
▪ Increases employee engagement and commitment
 ▪ Fosters a positive work environment and culture
Ways to Redesign Jobs
▪ Job rotation: Employees rotate between different jobs to gain new skills and
experiences
▪ Job enlargement: Employees are given additional tasks and responsibilities to
increase job variety and challenge
▪ Job enrichment: Employees are given more autonomy, control, and feedback to
increase their motivation and job satisfaction
▪ Job sharing: Two or more employees share the responsibilities and hours of one full-
time job
▪ Telecommuting: Employees work remotely from home or other locations
Alternative Work Arrangements
➢ Alternative work arrangements refer to flexible work arrangements that allow
employees to adjust their work schedules and work locations to better meet their
personal and professional needs
Types of Alternative Work Arrangements
▪ Flextime: Allows employees to adjust their work hours within a certain range while
maintaining a core set of hours
▪ Job sharing: Allows two or more employees to share the responsibilities and hours of
one full-time job
▪ Telecommuting: Allows employees to work remotely from home or other locations
Benefits of Alternative Work Arrangements
▪ Increased job satisfaction and employee engagement
▪ Improved work-life balance
▪ Reduced absenteeism and turnover
▪ Increased productivity and performance
Challenges of Alternative Work Arrangements
▪ Difficulty in managing and supervising remote workers
▪ Potential for decreased collaboration and communication
▪ Possible feelings of isolation and disconnection
▪ Need for clear guidelines and policies
Flexible Work Hours
➢ Flexible work hours, also known as flextime, is a type of alternative work
arrangement that allows employees to adjust their work hours within certain limits
while still meeting the required number of hours per week.
Benefits of Flexible Work Hours
▪ Increased job satisfaction and employee engagement
▪ Improved work-life balance
▪ Reduced absenteeism and turnover
▪ Increased productivity and performance
Types of Flexible Work Hours
▪ Flextime: Allows employees to choose their start and end times within a certain range
while still working a set number of hours per day
▪ Compressed workweek: Allows employees to work longer days in exchange for
shorter workweeks
▪ Job sharing: Allows two or more employees to share the responsibilities and hours of
one full-time job
Examples of Flexible Work Hours
❖ Susan's schedule in the resource is an example of flextime, with a common core of 6
hours and a flexibility band surrounding it
❖ Flextime is popular in many countries, including the United States, Germany, and
Japan, and is often used as a work-life balance strategy
Job Sharing
➢ Constructing jobs so employees see the positive difference they can make in
the lives of others directly through their work.
Relational job design holds intriguing possibilities for Corporate Social Responsibility
(CSR) initiatives.
Employees are motivated by CSR efforts through volunteering, which enhances the
JCM dimensions of meaningfulness and task significance.
Employees can interact with the beneficiaries of their efforts, leading to increased
motivation and job satisfaction.
CSR efforts through volunteering are not the same as on-the-job work, but they can
still have a significant impact on employee motivation and engagement.
Variable-Pay Programs
➢ Variable-pay programs, also known as pay-for-performance, base a portion of an
employee's pay on individual and/or organizational performance measures
Types of Variable-Pay Programs
▪ Piece-rate pay: Workers are paid a fixed sum for each unit of production completed,
motivating higher productivity and wages
▪ Merit-based pay: Compensation is tied to individual performance evaluations and
merit assessments.
▪ Bonus programs: Offer additional compensation based on achieving specific goals or
targets.
 ▪ Profit-sharing plans: Distribute compensation based on a company's profitability,
fostering higher levels of profitability and employee commitment
▪ Employee stock ownership plans (ESOP): Employees acquire company stock as part
of their benefits, potentially increasing satisfaction and innovation
Global Adoption of Variable-Pay Programs
▪ Around 80% of companies globally offer some form of variable-pay plan, with 91% of
U.S. companies providing such programs
▪ Latin American companies allocate nearly 18% of total payroll to variable pay, while
European and U.S. companies allocate around 12
Job Sharing: A Flexible Work Arrangement
Job sharing allows two or more individuals to split a traditional full-time job.
Benefits:
▪ Allows time for family commitments.
▪ Draws on talents of multiple individuals.
▪ Increases motivation and satisfaction for employees.
▪ PowerPoint Slide 2:
▪ Challenges and Adoption Rates
Challenges:
▪ Difficulty finding compatible partners.
▪ Negative perceptions of commitment.
▪ Adoption Rates:
▪ Only 18% of US organizations offered job sharing in 2014.
▪ Decreased by 29% since 2008.
▪ PowerPoint Slide 3:
▪ Economic Factors and National Policies
Economic Factors:
▪ Cost-effective due to reduced salary and benefits for part-time employees.
▪ Training, coordination, and administrative costs can be high.
▪ National Policies:
▪ The Affordable Care Act incentivizes job sharing to avoid healthcare requirements
for full-time employees.
▪ Germany's Kurzarbeit program utilized job sharing to maintain employment levels
during economic crises.
Belgian Law:
▪ Limits working days to 11 hours and 50 hours per week.
▪ Flexi-time arrangements are common.
▪ Example:
▪ Employees present during "block time" but can make up hours through flexibility.
Conclusion
▪ Job sharing offers flexibility for both employees and employers.
▪ Despite challenges, it can be economically beneficial and align with national policies.
▪ Global examples like Belgium demonstrate successful implementation.
▪ Further exploration and adoption may benefit organizations and employees alike.
Telecommuting: Remote Work Trends and Considerations
➢ Telecommuting involves working remotely from home or any chosen location outside
the workplace, using a computer linked to the employer's office, for at least two days
a week.
Popularity:
▪ Almost 50% of managers in Germany, the UK, and the US have telecommuting
options.
▪ Growing trend in China and developing countries (10-20% telecommuting rate).
▪ Adopting Companies: Amazon, IBM, American Express, Intel, Cisco Systems, and
several US government agencies actively encourage telecommuting.
Employee Perspective:
▪ Potential feelings of isolation and reduced job satisfaction.
▪ Telecommuting may not reduce work-family conflicts due to extended work hours.
▪ Risk of being overlooked for promotions due to lack of "face time" and informal
interactions in the office.
▪ Environmental Impact: Contrary to CSR benefits, research suggests telecommuting
may increase personal trips, leading to higher car emissions.
▪ Note: Despite challenges, telecommuting remains a popular option for many
organizations and employees seeking flexibility and work-life balance.
Using Employee Involvement and Participation (EIP) to Motivate Employees
➢ Employee involvement and participation (EIP) is a process that utilizes employees'
input to enhance their commitment to organizational success.
Benefits:
▪ Increased motivation, commitment, productivity, and job satisfaction when employees
have autonomy and control over their work.
 ▪ Enhanced morale and performance within teams when given more control over their
tasks.
Cultural Considerations:
▪ Tailoring EIP programs to local and national norms is essential for success.
▪ Traditional cultures may initially undervalue EIP, but attitudes are evolving.
▪ Example: In China, employees are transitioning towards valuing participative
decision-making, leading to increased satisfaction and performance.
▪ Studies suggest that certain EIP programs, such as those emphasizing consultation
rather than direct decision-making involvement, yield higher job satisfaction.
▪ Note: EIP is a powerful tool for fostering employee motivation and organizational
success, but its effectiveness depends on cultural adaptation and the type of
involvement offered.
Forms of Employee Involvement Programs
Participative Management:
➢ Involves joint decision-making between subordinates and superiors, either formally or
informally, to enhance motivation, trust, and commitment.
Considerations:
▪ Requires trust and confidence in leaders.
▪ Avoids coercive techniques and emphasizes organizational consequences.
▪ Outcomes:
▪ Mixed findings on participation-performance relationship.
▪ Potential benefits include higher stock returns, lower turnover rates, and increased
labor productivity, albeit typically modest.
Representative Participation:
➢ Redistributes power within organizations by including a small group of employees in
decision-making processes, ensuring labor's interests are considered.
Forms:
▪ Works councils: Nominated or elected employees consulted on management
decisions.
▪ Board representatives: Employees on a company's board, representing employee
interests.
▪ Evolution:
▪ Originally formed in some countries to complement union agreements but now
includes both union and non-union representation.
Impact:
▪ Mixed influence on motivation, with effectiveness depending on employees feeling
well-represented and making a difference to the organization.
 ▪ Note: Both participative management and representative participation are crucial
forms of employee involvement, each with its own benefits and considerations
regarding motivation and organizational success.
Extrinsic Rewards
➢ Importance of pay in job satisfaction: Underestimated by many companies; vital for
retaining top talent.
➢ Study findings: 71% of top performers consider pay a foremost reason for job
satisfaction, compared to 45% of employers.
Establishing a Pay Structure
▪ Balancing internal and external equity: Setting pay levels based on job worth and
competitiveness in the industry.
▪ Benefits and considerations of competitive pay: Higher morale, productivity, and
customer satisfaction; strategic decision with trade-offs.
▪ Case study: Walmart vs. Costco illustrates the impact of strategic pay decisions on
organizational performance.
Rewarding Individual Employees through Variable-Pay Programs
▪ Overview of variable-pay programs: Piece-rate, merit-based, bonus, profit-sharing,
and employee stock ownership plans.
▪ Global prevalence and trends in variable-pay programs.
▪ Effectiveness and limitations of variable-pay programs: Influence on motivation and
productivity, connection to performance, and considerations for implementation.
▪ Note: Extrinsic rewards, such as pay and variable-pay programs, play a crucial role in
motivating employees and driving organizational success. Understanding their impact
and implementing effective strategies is essential for maximizing their benefits.
Types of Variable-Pay Programs
1. Piece-Rate Pay:
• Definition and examples: Compensating based on output quantity, such as
production workers or sales teams.
• Motivational potential and concerns: Higher productivity and wages; risk of
financial instability and quality reduction.
2. Merit-Based Pay:
• Definition and advantages: Rewarding individual performance based on
performance appraisal ratings.
• Limitations and challenges: Subjectivity in performance ratings, fluctuating
pay-raise pools, resistance from unions.
3. Bonus:
• Definition and significance: Rewarding recent performance with additional
compensation, motivating for employees.
• Downsides and challenges: Vulnerability to cuts, potential for entitlement
mindset, impact on organizational culture.
4. Profit-Sharing Plan:
• Definition and benefits: Distributing compensation based on company
profitability, linked to higher organizational commitment.
 •Effectiveness and considerations: Positive impact on profitability and
employee attitudes, especially in small organizations.
5. Employee Stock Ownership Plan (ESOP):
• Definition and objectives: Offering stock ownership to employees as part of
benefits, promoting satisfaction and innovation.
• Challenges and considerations: Need for psychological ownership, limited
impact on absenteeism and motivation.
• Note: Understanding the different types of variable-pay programs allows
organizations to tailor their compensation strategies to effectively motivate
employees and drive performance.
Using Benefits to Motivate Employees
▪ Benefits are both a provision and a motivator, catering to individual needs and
preferences.
▪ Example: Todd prioritizes medical coverage and life insurance for his family, while
Allison values extra vacation time and long-term financial benefits.
▪ Flexible benefits individualize rewards, aligning with expectancy theory by linking
rewards to each employee's goals and needs.
▪ Benefits serve as motivators for employees to choose one organization over another.
▪ Flexible benefits may enhance retention, job satisfaction, and productivity but may
not substitute for higher salaries in motivation.
▪ Challenges of flexible benefits include increased management costs and difficulty in
identifying motivational impact.
▪ Global adoption of flexible benefits varies, with significant uptake in the United States
and the United Kingdom but limited adoption in China and other Asian countries.
Using Intrinsic Rewards to Motivate Employees
▪ In addition to extrinsic rewards like pay and benefits, organizations can motivate
employees intrinsically.
▪ Example: Laura finds satisfaction in her fast-food job due to recognition from her
supervisor and being named Employee of the Month.
▪ Employee recognition programs encourage specific behaviors by formally
appreciating employee contributions.
▪ Recognition programs are increasingly recognized as powerful motivators, often
preferred over financial incentives in the long run.
▪ Studies show associations between employee recognition programs and self-esteem,
self-efficacy, and job satisfaction.
▪ Recognition programs are cost-effective and highly motivating, but critics caution
against potential political manipulation by management.
▪ Care must be taken to ensure fairness in the implementation of recognition programs
to avoid demoralizing employees.
 ADVANCED ORGANIZATIONAL BEHAVIOR
CHAPTER 9: COMMUNICATION

COMMUNICATION
➢ the transfer and the understanding of meaning.
➢ a process that involves sending and receiving messages through the verbal and non-
verbal methods
Functions of Communication
a) Managing Behavior
Communication acts to manage member behavior in several ways (formal or
informal)
b) Feedback
Communication creates feedback by clarifying to employees what they must do, how
well they are doing it, and how they can improve their performance
c) Emotional Sharing
Communication provides for the emotional sharing of feelings and fulfillment of social
needs.
d) Persuasion
Like emotional sharing, persuasion can benefit or harm an organization.
e) Information Exchange
The final function of communication use to facilitate decision making.
The Communication Process
➢ The steps between a source and a receiver that result in the transfer and
understanding of meaning.

✓ Formal Channels – communication channels established by an organization to

transmit messages related to the professional activities of members.
 ✓ Informal Channels – communication channels that are created spontaneously and
that emerge as responses to individual choices

Direction of Communication
a) Downward Communication
Communication that flows from one level of a group or organization to a lower level.
b) Upward Communication
Communication that flows to a higher level in the group or organization.
c) Lateral Communication
Communication occurs between members of the same workgroup, members at the
same level in separate workgroups, or any other horizontally equivalent workers.
The Grapevine
➢ The informal communication network in a group or organization.
➢ Grapevine or word-of-mouth information from peers about a company has important
effects on whether job applicants join an organization.
Modes of Communication
1) Oral Communication
➢ A primary means of conveying messages.
➢ Example: speeches, formal one-on-one and group discussions, and informal
rumor mill or grapevine
2) Written Communication
➢ A method that conveys written words or symbols
➢ Example: letters, e-mail, instant messaging, and organizational periodicals
3) Nonverbal Communication
➢ These are unspoken messages
➢ Example: body movements, facial expressions, and the intonation or
emphasis we give to words.
Channel Richness
➢ The amount of information that can be transmitted during a communication episode.
Choosing Communication Methods
Choosing Oral Communication
Choosing Written Communication
Choosing Non-Verbal Communication
Persuasive Communication
▪ Automatic Processing
➢ A relatively superficial consideration of evidence and information making use
of heuristics.
▪ Controlled Processing
➢ A detailed consideration of evidence and information relying on facts, figures,
and logic.
Types of Processing:
I. Interest Level
➢ It reflects the impact a decision is going to have on your life.
II. Prior Knowledge
➢ People who are well informed about a subject area are more likely to use
controlled processing strategies.
III. Personality
➢ A personality trait of individuals who are most likely to be persuaded by
evidence and facts (need for cognition)
IV. Message Characteristics
➢ Messages provided through relatively lean communication channels, with little
opportunity for user to interact with the content of the message.
V. Tailoring the Message
 ➢ The most important implication is to match your persuasive message to the
type of processing your audience is likely to use.
Barriers to Effective Communication
I. Filtering
➢ A sender’s manipulation of information so that it will be seen more
favorably by the receiver.
II. Selective Perception
➢ The receivers in the communication process respectively see and hear
based on their needs, motivations, experience, background and other
personal characteristics.
III. Information Overload
➢ A condition in which information inflow exceeds an individual’s processing
capacity.
IV. Emotions
➢ You may interpret the same message differently when you’re angry or
distraught than when you’re happy.
V. Language
➢ Even when we’re communicating in the same language, words mean
different things to different people.
VI. Silence
➢ It is defined by the absence of information. It can be the message to
communicate non-interest or inability to deal with a topic.
VII. Communication Apprehension
➢ Undue tension and anxiety about oral communication, written
communication, or both.
VIII. Lying
➢ Outright misrepresentation of information.
Cultural Barriers
1. Barriers caused by semantics.
2. Barriers caused by word connotations.
3. Barriers caused by tone differences.
4. Different in tolerance for conflict ad methods for resolving conflicts.
Cultural Context
▪ High- context cultures
Cultures that rely heavily on non-verbal and subtle
situational cues in communication.
• Low- context cultures
Cultures that rely heavily on words to convey meaning
in communication.
Cultural Guide
1. Know yourself.
2. Foster a climate of mutual respect, fairness and democracy.
3. State facts, not your interpretation.
4. Consider the other person’s viewpoint.
5. Proactively maintain the identity of the group.
 ADVANCED ORGANIZATIONAL BEHAVIOR
CHAPTER 10: BASICS OF GROUP BEHAVIOR
Understanding Groups

A group consists of two or more individuals, interacting and interdependent, who

have come together to achieve particular objectives.
Types of Groups:
Formal Groups: Defined by the organization’s structure, with designated work
assignments and established tasks. Behaviors are directed toward organizational
goals.
Example: Airline flight crew.
Informal Groups: Neither formally structured nor organizationally determined. Meet
the need for social contact.
Example: Employees from different departments who regularly have lunch or coffee
together.
Importance: Both formal and informal groups deeply affect individual behavior and
performance in the workplace.
Social Identity Theory
• Social identity theory explains our tendency to personally invest in the
accomplishments of a group.
• People's Strong Attachment to Groups
• Shared positive experiences enhance our bond with groups, while sharing painful
experiences also increases felt bond and trust with others.
• Example: Aftermath of a sports championship game:
• Fans of the winning team are elated, leading to increased sales of team-
related merchandise.
• Fans of the losing team may feel dejected or embarrassed, despite having
little influence on the game's outcome.
• Individuals develop multiple group identities over time, such as organizational,
cultural, professional, religious, ethnic, or gender identities.
• Some group identities may become more significant than others depending on the
context.
• In the workplace, identification with workgroups is often stronger than with
organizations, but both are crucial for positive outcomes in attitudes and behaviors.
Understanding Ingroups and Outgroups
 • Ingroup Favoritism: This occurs when we view members of our own group as
superior to others and people outside our group as all the same. People with low
openness and/or low agreeableness are more susceptible to ingroup favoritism.
• Definition of Outgroup: The outgroup is the opposite of the ingroup. It can refer to
anyone outside the group, but typically it is a specific group identified by the
members of the ingroup.
• Examples: In the context of U.S. politics, if someone identifies with the Republican
party, their outgroup might be other political parties like the Democrats. In religious
contexts, ingroups and outgroups can lead to animosity, discrimination, and even
aggression.
• Effects of Ingroup-Outgroup Dynamics: Research shows that heavily religious
groups can become discriminatory and aggressive towards outgroups, especially if
the outgroups have more resources. For example, a U.K. Muslim organization
supporting Al-Qaeda identified moderate Muslims as their outgroup and displayed
aggression towards them.
Punctuated-Equilibrium Model
A set of phases that temporary groups go through involving transitions between inertia and
activity.
Key Stages:
1. Establishment of Direction
1. General purpose and direction set.
2. Initial framework of behavioral patterns and assumptions formed.
2. Period of Inertia (First Half)
1. Direction solidified.
2. Minimal reexamination of initial patterns.
3. Group tends to remain fixed in its course of action.
3. Transition at Midpoint
1. Halfway between first meeting and deadline.
2. Acts as an alarm clock for members.
3. Heightens awareness of time constraints.
4. Characterized by concentrated burst of changes and adoption of new
perspectives.
4. Phase 2: New Equilibrium
1. Revised direction set.
2. Execution of plans from transition period.
3. Another period of inertia.
5. Final Burst of Activity
 1. Last meeting characterized by activity.
2. Efforts concentrated to finish work.

Group Property: Roles

Group Property 1: Roles
Definition:
A set of expected behavior patterns attributed to someone occupying a given position in
a social unit.
Shakespearean Perspective:
"All the world’s a stage, and all the men and women merely players."
Example - Bill's Roles:
• Bill, a plant manager at EMM Industries, fulfills multiple roles: employee, middle
management member, electrical engineer, husband, father, Catholic, tennis player,
member of Thunderbird Country Club, and president of his homeowners’ association.
• Each role presents different expectations and potential conflicts, such as balancing
religious beliefs with managerial decisions or reconciling career demands with family
needs.
Role Perception:
• Our view of how we’re supposed to act in a given situation.
• Example: Forming impressions of politicians from TV shows like "House of Cards" or
learning from experts in apprenticeship programs.
Role Expectations:
• How others believe a person should act in a given situation.
• Example: Expectations of propriety and dignity for a U.S. federal judge versus
aggression and inspiration for a football coach.
Psychological Contract:
• An unwritten agreement between employees and employers setting mutual expectations.
• Example: Management expected to provide fair treatment, acceptable working
conditions, and clear communication; employees expected to demonstrate a good
attitude, follow directions, and show loyalty.
Role Conflict and Interrole Conflict:
• When compliance with one role requirement makes it difficult to comply with another.
• Example: Conflict between managerial duties and mentoring relationships, or work-family
conflict like Bill's dilemma between career advancement and family stability.
Group Property: Norms
Norms are acceptable standards of behavior within a group that are shared by the group's
members.
Example - Golfers' Silence:
• Golfers refrain from speaking while their partners are putting, illustrating a norm within
the golfing community.
• Norms dictate appropriate behavior and guide interactions within groups.

Norms and Group Dynamics

Norms and Emotions:
• Strong emotions of one family member can influence the emotions of others, highlighting
the normative influence within families.
• Task groups working closely together can also develop strong norms due to frequent
communication.
Norms and Conformity:
Conformity- The adjustment of one’s behavior to align with the norms of the group.
• Group members often conform to group norms to gain acceptance.
• Asch's conformity experiments demonstrate how individuals may conform to group
consensus even when they know it's incorrect.
• Reference groups are important groups to which individuals belong or hope to belong
and with whose norms individuals are likely to conform.
Norms and Behavior:
• Workplace norms significantly influence employee behavior, as seen in the Hawthorne
Studies where group dynamics affected productivity more than environmental factors.
• Group norms dictate behavior and are enforced through social mechanisms within the
group.
Positive Norms and Group Outcomes:
• Organizations aim to instill positive norms to shape employee behavior positively.
• Strong positive norms can increase creativity and cooperation within groups, leading
to positive outcomes.
Negative Norms and Group Outcomes:
• Deviant workplace behavior, such as workplace incivility or counterproductive work
behavior, violates organizational norms and threatens well-being.
• Negative norms within groups can lead to harmful outcomes, including increased
turnover and negative health effects on employees.
Norms and Culture:
 • Norms vary across cultures, but individuals can adapt their orientation based on
exposure to different norms.
• Organizational role-playing exercises can influence individuals' motivation based on
primed norms.
Group property: Status
• Definition: Status refers to a socially defined position or rank given to groups or group
members by others. It permeates every society and influences individual behavior
and group dynamics.
• Determinants of Status:
• Power: Individuals who wield power over others and control group resources
are often perceived as having high status.
• Contributions: Those who make critical contributions to a group's goals tend
to have higher status within the group.
• Personal Characteristics: Individuals with positively valued attributes such as
good looks, intelligence, wealth, or a friendly personality are often accorded
higher status.
Status and Norms:
• High-status individuals may be more likely to deviate from group norms, particularly
when they have low identification with the group. They also exhibit greater resistance
to conformity pressures compared to lower-status peers.
Status and Group Interaction:
• Individuals seeking higher status tend to be more assertive in group settings,
speaking out more frequently and interrupting others. However, failure to fully utilize
insights from lower-status members can hinder group performance.
Introduction to Status
Status Inequity:
• Perceived inequity in the status hierarchy can lead to resentment among lower-status
group members and may result in poorer individual performance and intentions to
leave the group.
Stigmatization and Group Status:
• Affiliation with stigmatized individuals can negatively impact one's own status, leading
to "stigma by association." This phenomenon can result in negative evaluations of
individuals associated with stigmatized groups, even if the association is brief or
coincidental.
Group Status Dynamics:
• Group status dynamics often involve intergroup competition and discrimination.
Ingroup-outgroup distinctions can lead to polarization, with high-status groups
exhibiting bias against low-status outgroups, perpetuating cycles of discrimination
and conflict.
Group Property : Size
 Impact on Group Behavior:
• Group size plays a significant role in shaping the behavior and dynamics of a group.
• Larger groups, typically comprising a dozen or more members, excel in generating
diverse input and ideas, making them effective for tasks such as fact-finding or idea
generation.
• Smaller groups, typically consisting of around seven members, are better suited for
executing tasks and achieving productivity.
Social Loafing:
• Social loafing refers to the phenomenon where individuals exert less effort when
working collectively than when working alone.
• It challenges the assumption that group productivity should exceed the sum of
individual efforts, highlighting the need for managers to identify and address
individual contributions in collective work situations.
• Performance diversity within groups can exacerbate social loafing over time, leading
to decreased satisfaction and performance.
Cultural Variations:
• Social loafing appears to be more prevalent in individualistic cultures, such as the
United States and Canada, where self-interest dominates.
• In contrast, collectivistic societies, like China and Israel, show lower propensity for
social loafing as individuals are motivated by group goals.
Prevention Strategies:
1. Set Group Goals: Establish common objectives to foster a sense of purpose and
unity within the group.
2. Increase Intergroup Competition: Encourage competition among groups to focus on
achieving shared outcomes.
3. Peer Evaluations: Implement evaluations by peers to encourage accountability and
recognition of individual contributions.
4. Select Motivated Members: Choose individuals who are highly motivated and prefer
collaborative work environments.
5. Base Rewards on Contributions: Structure group rewards to reflect each member's
unique contributions, incentivizing individual effort.
Group Property 5: Cohesiveness
• Definition: Cohesiveness refers to the degree to which group members are attracted
to each other and motivated to stay in the group.
• Impact on Productivity:
• Cohesiveness affects group productivity based on performance-related
norms.
 • High cohesiveness with high-performance norms leads to increased
productivity.
• High cohesiveness with low-performance norms results in low productivity.
• Low cohesiveness with high-performance norms can increase productivity
moderately.
• Low cohesiveness with low-performance norms leads to low-to-moderate
productivity.
• Encouraging Group Cohesiveness:
1. Make the group smaller.
2. Encourage agreement with group goals.
3. Increase the time members spend together.
4. Increase the group’s status and the perceived difficulty of attaining
membership.
5. Stimulate competition with other groups.
6. Give rewards to the group rather than to individual members.
7. Physically isolate the group.
Group Property: Diversity
Definition: Group diversity refers to the degree of similarity or difference among
members based on various characteristics such as race, gender, and background.
Impact on Group Behavior:
• Diversity can lead to increased conflict, especially in the early stages of group
formation, which may lower morale and cohesion.
• Surface-level diversity, like race or gender, often cues team members to expect
differences in opinions and perspectives.
• Deep-level diversity, such as differences in values and attitudes, can impact group
dynamics and performance in complex ways.
Challenges and Opportunities:
• Diversity provides an opportunity for unique problem-solving approaches but may
initially lead to disagreement and tension.
• Research suggests that diverse teams deliberate longer, share more information, and
make fewer factual errors, enhancing decision-making processes.
• However, managing diversity requires effective leadership to mitigate conflicts and
harness the potential benefits of varied perspectives.
Example: A study comparing culturally diverse and homogeneous groups on a
wilderness survival test found that while diverse groups performed equally well, they
reported lower satisfaction, cohesion, and higher conflict levels.
Faultlines and Subgroup Dynamics:
 • Faultlines are perceived divisions within groups based on individual differences like
gender, age, or expertise.
• These faultlines can lead to the formation of subgroups, which may compete with
each other, hinder decision-making, and lower overall group satisfaction.
• Research suggests that addressing faultlines requires fostering collaboration and
focusing on common goals to transcend subgroup divides.
Managing Diversity:
• Encourage inclusiveness and stress the importance of shared goals to mitigate
conflict and enhance cooperation.
• Effective leadership can promote open dialogue, respect for diverse perspectives,
and a culture of inclusivity.
• Providing opportunities for diverse team members to learn from each other's
experiences and perspectives can foster innovation and creativity.
Example: In a diverse workplace, such as a multinational corporation, effective
management of diversity can lead to increased innovation and better decision-
making, despite initial challenges in navigating differences among team members.
Group Decision Making
• Group decision making is prevalent in organizations and legal systems worldwide.
• This presentation discusses the advantages, challenges, and techniques of group
decision making.
Advantages of Group Decision Making
1. More Complete Information: Groups aggregate resources and bring diverse
perspectives, enhancing information gathering.
2. Increased Diversity of Views: Group members offer varied viewpoints, leading to
more comprehensive consideration of alternatives.
3. Increased Acceptance of Solutions: Participation in decision-making fosters support
and implementation by group members.
Challenges of Group Decision Making
1. Time-Consuming: Group decisions typically take longer to reach a solution.
2. Conformity Pressures: Desire for acceptance can suppress dissenting opinions.
3. Dominance of Discussion: Few members may dominate, affecting overall
effectiveness.
4. Ambiguous Responsibility: Individual accountability may be diluted in group
decisions.
Considerations
• Effectiveness vs. Efficiency: Group decisions are generally more accurate and
creative but consume more time compared to individual decisions.
 • Assessment: Managers must weigh the effectiveness gains against efficiency losses
when considering group decision making.
Groupthink
What is Groupthink?
• Groupthink is a phenomenon where group pressures for conformity inhibit critical
appraisal of alternative views, leading to suboptimal decision-making.
Characteristics of Groupthink
• Norms within the group discourage dissenting opinions.
• Individuals may suppress, withhold, or modify their true beliefs to align with the
majority.
• Focus on maintaining group harmony and positive image rather than exploring
diverse perspectives.
Strategies to Minimize Groupthink
1. Monitor Group Size
1. Larger groups can lead to increased intimidation and hesitancy among
members.
2. While there's no specific threshold, groups larger than about 10 members
may diminish individual responsibility.
2. Promote Impartial Leadership
1. Encourage group leaders to facilitate discussions without expressing personal
opinions.
2. Leaders should actively seek input from all members to ensure diverse
perspectives are considered.
3. Appoint a Devil's Advocate
1. Designate a group member to challenge the majority position and offer
alternative viewpoints.
2. This role encourages critical thinking and prevents the suppression of
dissenting opinions.
4. Stimulate Active Discussion of Alternatives
1. Use exercises that encourage the exploration of diverse alternatives without
threatening group cohesion.
2. Start discussions by focusing on potential risks or drawbacks of each
alternative before discussing potential gains.
Groupshift or Group Polarization
• Definition: Groupshift refers to the tendency of group members to exaggerate their
initial positions when discussing alternatives, leading to a shift towards a more
extreme viewpoint.
 • Types: Groupshift can manifest as either a conservative shift, where caution
dominates, or a risky shift, where groups tend towards more daring decisions.
Differences from Group Decisions
• Individual Decisions vs. Group Decisions: In group settings, discussion often leads
members to adopt more extreme versions of their original positions. Conservatives
become more cautious, while more aggressive individuals take on greater risks.
• Special Case of Groupthink: Group polarization, a result of groupshift, reflects the
dominant decision-making norm that develops during discussion, akin to a special
case of groupthink.
Explanations for Group Polarization
• Increased Comfort Level: Group discussion fosters a sense of comfort among
members, leading them to express more extreme viewpoints than they initially held.
• Diffusion of Responsibility: Group decisions diffuse individual accountability, allowing
members to take more extreme positions without fear of personal repercussions.
• Desire for Differentiation: Some individuals may adopt extreme positions to
distinguish themselves from the outgroup or demonstrate commitment to a cause.
Group Decision-Making Techniques
Brainstorming is an idea-generation process that encourages the exploration
of all alternatives without criticism.
Process:
• Participants sit around a table, and the problem is clearly stated.
• Participants generate as many ideas as possible within a specified time
frame.
• No criticism is allowed, and all ideas are recorded for later discussion.
• Advantages:
• Encourages creativity and innovative thinking.
• Fosters a collaborative atmosphere.
• Limitations:
• Production blocking may hinder idea generation efficiency.
• Research suggests that individuals working alone generate more ideas than
groups in a brainstorming session.
Nominal Group Technique
• Definition: The nominal group technique restricts discussion and interpersonal
communication during decision-making.
• Process:
• Members independently write down ideas about the problem.
 • Each member presents one idea to the group without discussion.
• Ideas are discussed for clarity and evaluation.
• Members silently rank-order the ideas, and the idea with the highest ranking
determines the final decision.
• Advantages:
• Allows for independent thinking.
• Research suggests that nominal groups outperform brainstorming groups.
• Limitations:
• May not promote as much group cohesiveness as brainstorming.
• Requires structured facilitation to ensure each step is followed effectively.
 ADVANCED ORGANIZATIONAL BEHAVIOR
CHAPTER 12: CHARACTERISTICS OF
LEADERS

WHAT IS LEADERSHIP?
Leadership is the ability to influence a group toward the achievement of a vision or set of
goals.

Leaders and Managers

A Leader inspires, motivates and encourages people to achieve visionary goals.

o Focused on engaging, empowering and motivating people
o Have a growth mindset and continuous learning and coaching
A Manager deals with the day-to-day operations of the business
o Focused on efficiency and process improvements
o Well versed in the numbers, strategies and tactics

THEORIES OF LEADERSHIP

Trait Theory: extraversion, conscientiousness, openness and emotional intelligence

● Behavioral Theory: initiating structure and consideration
● Contingency Theory
○ The Fielder Model: leader - member relations, task structure and position power
○ Situational Leadership Theory - depends on followers’ readiness
○ Path Goal Theory - provide information, support or other resources necessary to
achieve goals
○ Leader - Participation Model - provide a set of rules to determine participative
decision
● Contemporary Theory
○ Leader - Member Exchange Theory - establish a special relationship with a small
group of followers
○ Charismatic Leadership - having heroic or extraordinary
○ Transactional Leadership - guide follower with rules and tasks
○ Transformational Leadership - inspire followers for the good of the organization
● Theories that consider personal qualities and characteristics that differentiate leaders
from non-leaders
○ Extroversion
○ Conscientiousness
○ Openness
○ Emotional Intelligence
○ Intelligence and action-oriented judgement
○ Eagerness to accept responsibility
○ Understanding their followers and their needs
○ People skills
○ Capacity to Motivate People
○ Courage and Resolution
○ Perseverance
○ Trustworthiness
○ Adaptability and Flexibility
● Traits can predict leadership but they are better at predicting leader emergence than
effectiveness

BEHAVIORAL THEORIES
● Theories proposing that specific behaviors differentiate leaders from non-leaders
○ Trait Theory - leadership is inherent, so we must identify the leader based
on his or her traits
○ Behavior Theory - leadership is a skill set and can be taught so we must
identify the proper behaviors to teach potential leaders
● Ohio State University Study
 ○ Initiating Structure - extend to which a leader is likely to define and structure
his or her role and those of the employees in the search for goal attainment
○ Consideration - extent to which a person’s job relationships are
characterized by mutual trust, respect for employee’s idea and regard for their
feelings
● University of Michigan Study
○ Employee-Oriented Leader - emphasized interpersonal relationship by
taking a personal interest in employees needs and accepting individual
differences among them
○ Production - oriented leader - emphasized technical or task aspects of jobs,
focusing on accomplishing the group's tasks

CONTINGENCY THEORY
● While trait and behavior theories do help us understand leadership, an important
component is missing: then environment in which the leader exists
● Contingency Theory adds this additional aspect to our understanding of leadership
effectiveness
● Four Key Theories
○ Fiedler’s Model
○ Situational Leadership Model
○ Path Goal Theory
○ Leader Participation Model

CONTINGENCY THEORY: Fiedler’s Model

● The Fielder Model proposes that effective
group performance depends on the proper
match between the leader’s style and the
degree to which the situation gives the leader
control
● Three Situational Factors
○ Leader Member relations - degree of
confidence in the leader
○ Task Structure - degree of structure in
the jobs
○ Position Power - leader’s ability to hire,
fire and reward
● For effective leadership: The leader must
change to fit the situation or change the
situation variables to fit the current leader
CONTINGENCY THEORY: Situational Leadership Model
A model that focuses on the follower “Readiness”
○ Followers can accept or reject the leader
○ Effectiveness depends on the follower’s response to the leaders actions
○ Readiness is the extent to which people have the ability and willingness to accomplish a
specific task

CONTINGENCY THEORY: PATH GOAL THEORY

● Leaders provide followers with information, support and resources to help them
achieve their goals
● Leaders help clarify the “path” to the workers goals
● Leaders can display multiple leadership styles
CONTINGENCY THEORY: LEADER PARTICIPATION MODEL
● A theory that provides a set of rules to determine the form and amount of participative
decision making in different situations
● The premise is that situational variables interact with leadership attributes to impact the
behavior of the leader
Contemporary Theories: Leader Member Exchange Theory (LMX)
● A theory that supports leaders’ creation of ingroups and outgroups
● Subordinates with ingroups status will likely have higher performance ratings; less turnover
and greater job satisfaction

In Groups Out Groups

● Members are similar to leader in age ● Managed via formal rules and policies
and other characteristics ● Receives less of the attention
● In the leaders inner circle of ● Experience stress since they are not
communication part of the in group
● Receive more time and attention from
the leader
● Given greater responsibilities, stress
and rewards

Contemporary Theories: Charismatic Leadership

● A theory that states that followers make attributions of heroic or extraordinary leadership
abilities when they observe certain behaviors
● Charismatic Leadership
○ Vision and Articulation - has a well communicated vision
○ Personal Risk - willing to take high risk to achieve the vision
○ Sensitivity to Follower needs - responsive to the needs and feelings of followers
○ Unconventional Behavior - engages in behavior that are counter to norms
● Why is Charismatic Leadership considered as the most dangerous?

Contemporary Theories: Transformational Leadership

● Transactional Leaders - leaders who guide or motivate their followers in the direction of
established goals by clarifying role and task requirements
● Transformation Leaders - leaders who inspire followers to transcend their own self-
interests and who are capable of having a profound and extraordinary effect on followers
Other Theories of Leadership
● Responsible Leadership
○ Authentic Leadership - leaders who know who they are, know what they believe
in and value and act on those values and beliefs openly and candidly
○ Ethical Leadership - a leadership concept that states that leaders convey values
that are other-centered versus self-centered
○ Servant Leadership - a leadership style marked by going beyond the leader’s own
self-interest and instead focusing on opportunities to help followers grow and
develop
● Positive Leadership
○ Trust - a positive expectation that another person will not act opportunistically
○ Mentoring - leaders take responsibility for developing future leaders

Leadership Challenges
● Over Control - Micromanaging
● Lack of Communication Skills
● Lack of Problem Solving and Negotiation Skills
● Assumed Collaboration
● Virtual Leadership
○ Agile Organizations
● Employee Engagement
● Leadership as an Attribution
● Substitutes for and Neutralizers of Leadership
○ Boss-less Organizations
● Multigenerational Workplace

● Leadership plays a central part in understanding group behavior because it’s

the leader who usually directs us toward our goals
● Knowing what makes a good leader should thus be valuable toward
improving group performance
 ADVANCED ORGANIZATIONAL BEHAVIOR
CHAPTER 13: POWER AND POLITICS IN
ORGANIZATIONS
WHAT IS POWER?
The capacity or ability to direct or influence the behavior of others or the course of events.
POWER VS. LEADERSHIP
• Power does not require goal compatibility, just dependence. Leadership requires some
congruence between the goals of the leader and those being led. A second difference
relates to the direction of influence. Leadership research focuses on the downward
influence on followers. It minimizes the importance of lateral and upward influence
patterns. Power research takes all factors into consideration. For a third difference,
leadership research often emphasizes style. It seeks answers to questions such as:
How supportive should a leader be? How much decision making should be shared with
followers? In contrast, the research on power focuses on tactics for gaining
compliance. Lastly, leadership concentrates on the individual leader’s influence, while
the study of power acknowledges that groups as well as individuals can use power to
control other individuals or groups.
DIFFERENT TYPES OF POWER
• COERCIVE POWER - It seeks to force or compel behavior rather than to influence
behavior through persuasion. Examples of coercive power include threats of write-
ups, demotions, pay cuts, layoffs, and terminations if employees don't follow orders
• REWARD POWER - is the ability to reward others when they follow your wishes or
instructions. For example, a manager may be able to reward raises, promotions,
bonuses or even simple compliments to sales employees who meet their quotas.
These rewards can increase employees' incentive to perform.
• LEGITIMATE POWER – arises when an individual derives authority from their
position or role within an organization, enabling them to influence others due too
their assigned status. This form of power is generally accepted by others because it
is based on established norms, values and structures.
• EXPERT POWER - is influence wielded as a result of expertise, special skills, or
knowledge. As jobs become more specialized, we become dependent on experts to
achieve goals. It is generally acknowledged that physicians have expertise and
hence expert power most of us follow our doctor’s advice. Computer specialists, tax
accountants, economists, industrial psychologists, and other specialists wield power
as a result of their expertise.
• REFERENT POWER - is a type of power that stems from a leader's ability to inspire
and influence others. This authority comes from the extent to which people admire,
respect, and like a specific leader.

POWER TACTICS
 • Legitimacy. Relying on your authority position or saying a request accords with
organizational policies or rules.
• Inspirational appeals. Developing emotional commitment by appealing to a target’s
values, needs, hopes, and aspirations.
• Rational persuasion. Presenting logical arguments and factual evidence to
demonstrate a request is reasonable.
• Consultation. Increasing support by involving the target in deciding how to
accomplish your plan.
• Exchange. Rewarding the target with benefits or favors in exchange for acceding to
a request.
• Personal appeals. Asking for compliance based on friendship or loyalty.
• Ingratiation. Using flattery, praise, or friendly behavior prior to making a request.
• Pressure. Using warnings, repeated demands, and threats.
• Coalitions. Enlisting the aid or support of others to persuade the target to agree.
Factors Contributing to Political Behavior
1. Individual factors
2. High self-monitors
3. Internal locus of control
4. High Mach personality
5. Organizational investment
6. Perceived job alternatives
7. Expectations of success
Factors Contributing to Political Behavior
1. Organizational factors
2. Reallocation of resources
3. Promotion opportunities
4. Low trust
5. Role ambiguity
6. Unclear performance
7. evaluation system
8. Zero-sum reward practices
9. Democratic decision making
10. High performance pressures
11. Self-serving senior managers
How Do People Respond to Organizational Politics?
For most people who have modest political skills or who are unwilling to play the politics game,
outcomes tend to be predominantly negative in terms of decreased job satisfaction, increased
anxiety and stress, increased turnover, and reduced performance. However, very strong
evidence indicates perceptions of organizational politics are negatively related to job
satisfaction. Politics may lead to self-reported declines in employee performance, perhaps
because employees perceive political environments to be unfair, which demotivates them. Not
surprisingly, when politicking becomes too much to handle, it can lead employees to quit.
 ADVANCED ORGANIZATIONAL BEHAVIOR
CHAPTER 14: CONFLICT IN ORGANIZATIONS

Conflict
➢ is a perception of differences or opposition.
➢ If no one is aware of a conflict, then it is generally agreed no conflict exists.
➢ Opposition or incompatibility, as well as interaction, are also needed to begin the
conflict process.
➢ as a process that begins when one party perceives another party has affected or is
about to negatively affect something the first party cares about.
➢ Conflict describes the point in ongoing activity when interaction becomes
disagreement.
People experience a wide range of conflicts in organizations over an incompatibility of goals,
differences in interpretations of facts, disagreements over behavioral expectations, and the
like.
Types of Conflict based on their effects
1. Functional Conflict
Supports the goals of the group and improves its performance, and is thus a
constructive form of conflict. For example, a debate among members of a work team
about the most efficient way to improve production can be functional if unique points
of view are discussed and compared openly.

2. Destructive/ Dysfunctional Conflict

A highly personal struggle for control that distracts from the task at hand in a team is
dysfunctional. Conflict that hinders group performance.
Types of Conflict/ Disagreement
1. Relationship Conflict
Studies demonstrate that relationship conflicts, at least in work settings, are almost
always dysfunctional. Why? It appears that the friction and interpersonal hostilities
inherent in relationship conflicts increase personality clashes and decrease mutual
understanding, which hinders the completion of organizational tasks. Of the three
types, relationship conflicts also appear to be the most psychologically exhausting to
individuals. Because they tend to revolve around personalities, you can see how
relationship conflicts can become destructive. After all, we can’t expect to change our
coworkers’ personalities, and we would generally take offense at criticisms directed at
who we are as opposed to how we behave.

2. Task Conflict
Early research suggested that task conflict within groups correlated to higher group
performance, but a review of 116 studies found that generalized task conflict was
essentially unrelated to group performance. However, close examination revealed that
task conflict among top management teams was positively associated with
performance, whereas conflict lower in the organization was negatively associated with
group performance, perhaps because people in top positions may not feel as
threatened in their organizational roles by conflict. This review also found that it
mattered whether other types of conflict were occurring at the same time. If task and
relationship conflict occurred together, task conflict more likely was negative, whereas
if task conflict occurred by itself, it more likely was positive. Other scholars have
argued that the strength of conflict is important: if task conflict is very low, people aren’t
really engaged or addressing the important issues; if task conflict is too high, infighting
will quickly degenerate into relationship conflict. Moderate levels of task conflict may
thus be optimal. Supporting this argument, one study in China found that moderate
levels of task conflict in the early development stage increased creativity in groups, but
high levels decreased team performance.
Finally, the personalities of the teams appear to matter. One study demonstrated that
teams of individuals who are, on average, high in openness and emotional stability are
better able to turn task conflict into increased group performance. The reason may be
that open and emotionally stable teams can put task conflict in perspective and focus
on how the variance in ideas can help solve the problem, rather than letting it
degenerate into relationship conflicts.

3. Process Conflict
Researchers found that process conflicts are about delegation and roles. Conflicts over
delegation often revolve around the perception that some members as shirking, and
conflicts over roles can leave some group members feeling marginalized. Thus,
process conflicts often become highly personalized and quickly devolve into
relationship conflicts. It’s also true, of course, that arguing about how to do something
takes time away from actually doing it. We’ve all been part of groups in which the
arguments and debates about roles and responsibilities seem to go nowhere.
Nearly all the literature on relationship, task, and process conflicts considers intragroup
conflict (within the group). That makes sense given that groups and teams often exist
only to perform a particular task. However, it doesn’t necessarily tell us all we need to
know about the context and outcomes of conflict. For example, research has found
that for intragroup task conflict to positively influence performance within the team, it
is important that the team has a supportive climate in which mistakes aren’t penalized
and every team member “[has] the other’s back.”
For a team to adapt and improve, perhaps a certain amount of intragroup conflict (but
not too much) is good for team performance, especially when the team members
support one another. But would we care whether members from one team supported
 members from another team? Probably not. In fact, if groups are competing with one
another so that only one team can “win,” conflict seems almost inevitable. Still, it must
be managed. Intense intergroup conflict can be quite stressful to group members and
might well affect the way they interact. One study found, for example, that high levels
of conflict between teams caused individuals to focus on complying with norms within
their teams
Altogether, understanding functional and dysfunctional conflict requires not only that
we identify the type of conflict; we also need to know where it occurs. It’s possible that
while the concepts of relationship, task, and process conflicts are useful in
understanding intragroup or even dyadic conflict, they are less useful in explaining the
effects of intergroup conflict. But how do we make conflict as productive as possible?
A better understanding of the conflict process, discussed next, will provide insight
about potential controllable variables.
3 Basic Types under Loci of Conflict
I. Dyadic Conflict - Conflict that occurs between two people
II. Intragroup Conflict - Conflict that occurs within a group or team
III. Inter Conflict - Conflict between different group or team
Conflict Process

Stage I: Potential Opposition or Incompatibility

The first stage of conflict is the appearance of conditions—causes or sources—that create
opportunities for it to arise. These conditions need not lead directly to conflict, but one of
them is necessary if it is to surface.
3 General Categories of the Conditions:
• Communication - Communication can be a source of conflict. There are opposing
forces that arise from semantic difficulties, misunderstandings, and “noise” in the
communication channel. These factors, along with jargon and insufficient information,
can be barriers to communication and potential antecedent conditions to conflict. The
potential for conflict has also been found to increase with too little or too much
communication. Communication is functional up to a point, after which it is possible to
overcommunicate, increasing the potential for conflict.
• Structure - The term structure in this context includes variables such as size of group,
degree of specialization in tasks assigned to group members, jurisdictional clarity,
member–goal compatibility, leadership styles, reward systems, and degree of
dependence between groups. The larger the group and the more specialized its
activities, the greater the likelihood of conflict. Tenure and conflict are inversely
 related, meaning that the longer a person stays with an organization, the less likely
conflict becomes. Therefore, the potential for conflict is greatest when group
members are newer to the organization and when turnover is high.
• Personal Variable - This includes personality, emotions, and values. People high in
the personality traits of disagreeableness, neuroticism, or self-monitoring are prone
to tangle with other people more often and to react poorly when conflicts occur.7
Emotions can cause conflict even when they are not directed at others. For example,
an employee who shows up to work irate from her hectic morning commute may
carry that anger into her workday, which can result in a tension-filled meeting.
Furthermore, differences in preferences and values can generate increased levels of
conflict.
Stage II: Cognition and Personalization
As we noted in our definition of conflict, one or more of the parties must be aware that
antecedent conditions exist. However, just because a disagreement is a perceived conflict
does not mean it is personalized. It is at the felt conflict level, when individuals become
emotionally involved, that they experience anxiety, tension, frustration, or hostility
This stage is important because it’s where conflict issues tend to be defined, where the
parties decide what the conflict is about.
Most evidence suggests that people tend to default to cooperative strategies in interpersonal
interactions unless there is a clear signal that they are faced with a competitive person.
Emotions play a major role in shaping perceptions. Negative emotions allow us to
oversimplify issues, lose trust, and put negative interpretations on the other party’s behavior.
In contrast, positive feelings increase our tendency to see potential relationships among
elements of a problem, take a broader view of the situation, and develop innovative
solutions.
Stage III: Intentions
Intentions intervene between people’s perceptions and emotions, and their overt behavior.
They are decisions to act in a given way.
Using two dimensions—assertiveness and cooperativeness we can identify five conflict
handling intentions:
a) Competing - When one person seeks to satisfy his or her own interests regardless of
the impact on the other parties in the conflict, that person is competing.
a) Avoiding - A person may recognize a conflict exists and want to withdraw from or
suppress it. Examples of avoiding include trying to ignore a conflict and keeping
away from others with whom you disagree
b) Compromising - In compromising, there is no winner or loser. Rather, there is a
willingness to ration the object of the conflict and accept a solution with incomplete
satisfaction of both parties’ concerns. The distinguishing characteristic of
compromising, therefore, is that each party intends to give up something
c) Collaborating - When parties in conflict each desire to fully satisfy the concerns of all
parties, there is cooperation and a search for a mutually beneficial outcome. In
collaborating, parties intend to solve a problem by clarifying differences rather than
by accommodating various points of view. If you attempt to find a win–win solution
that allows both parties’ goals to be completely achieved, that’s collaborating
d) Accommodating - A party who seeks to appease an opponent may be willing to place
the opponent’s interests above his or her own, sacrificing to maintain the relationship.
Intentions are not always fixed. During the course of a conflict, intentions might change if a
party is able to see the other’s point of view or to respond emotionally to the other’s
behavior. People generally have preferences among the five conflict-handling intentions. We
can predict a person’s intentions rather well from a combination of intellectual and
personality characteristics.
Stage IV: Behavior
Stage IV is a dynamic process of interaction is a dynamic process of interaction. For
example, you make a demand on me, I respond by arguing, you threaten me, I threaten you
back, and so on. At the lowest point are perceptions, misunderstandings, and differences of
opinions. These may grow to subtle, indirect, and highly controlled forms of tension, such as
a student challenging a point the instructor has made. Conflict can intensify until it becomes
highly destructive. Strikes, riots, and wars clearly fall in this upper range. Conflicts that reach
the upper ranges of the continuum are almost always dysfunctional. Functional conflicts are
typically confined to the lower levels.
In conflict, intentions are translated into certain likely behaviors. Competing brings out active
attempts to contend with team members, and greater individual effort to achieve ends
without working together. Collaborating efforts create an investigation of multiple solutions
with other members of the team and trying to find a solution that satisfies all parties as much
as possible. Avoidance is seen in behavior like refusals to discuss issues and reductions in
effort toward group goals. People who accommodate put their relationships ahead of the
issues in the conflict, deferring to others’ opinions and sometimes acting as a subgroup with
them. Finally, when people compromise, they both expect to (and do) sacrifice parts of their
interests, hoping that if everyone does the same, an agreement will sift out.
If a conflict is dysfunctional, what can the parties do to de-escalate it? Or, conversely, what
options exist if conflict is too low to be functional and needs to be increased? This brings us
to techniques of conflict management. We have already described several techniques in
terms of conflict-handling intentions. Under ideal conditions, a person’s intentions should
translate into comparable behaviors.
Stage V: Outcomes
The action–reaction interplay between conflicting parties creates consequences. As shown,
it the figure 1, these outcomes may be functional if the conflict improves the group’s
performance, or dysfunctional if it hinders performance.
Functional Outcomes
Conflict is constructive when it improves the quality of decisions, stimulates creativity and
innovation, encourages interest and curiosity among group members, provides the medium
for problems to be aired and tensions released, and fosters self-evaluation and change. Mild
conflicts also may generate energizing emotions so members of groups become more active
and engaged in their work.
Conflict is an antidote for groupthink. Conflict doesn’t allow the group to passively rubber-
stamp decisions that may be based on weak assumptions, inadequate consideration of
relevant alternatives, or other debilities. Conflict challenges the status quo and furthers the
creation of new ideas, promotes reassessment of group goals and activities, and increases
the probability that the group will respond to change. An open discussion focused on higher-
order goals can make functional outcomes more likely. Groups that are extremely polarized
do not manage their underlying disagreements effectively and tend to accept suboptimal
solutions, or they avoid making decisions altogether rather than work out the conflict.
Research studies in diverse settings confirm the functionality of active discussion. Team
members with greater differences in work styles and experience tend to share more
information with one another.
Dysfunctional Outcomes
The destructive consequences of conflict on the performance of a group or an organization
are generally well known: Uncontrolled opposition breeds discontent, which acts to dissolve
common ties and eventually leads to the destruction of the group. Among the undesirable
consequences are poor communication, reductions in group cohesiveness, and
subordination of group goals to the primacy of infighting among members. All forms of
conflict even the functional varieties appear to reduce group member satisfaction and trust.
When active discussions turn into open conflicts between members, information sharing
between members decreases significantly. At the extreme, conflict can bring group
functioning to a halt and threaten the group’s survival
Managing Conflict
One of the keys to minimizing counterproductive conflicts is recognizing when there really is
a disagreement. Many apparent conflicts are due to people using different verbiage to
discuss the same general course of action. For example, someone in marketing might focus
on “distribution problems,” while someone from operations talks about “supply chain
management” to describe essentially the same issue. Successful conflict management
recognizes these different approaches and attempts to resolve them by encouraging open,
frank discussions focused on interests rather than issues. Another approach is to have
opposing groups pick parts of the solution that are most important to them and then focus on
how each side can get its top needs satisfied. Neither side may get exactly what it wants, but
each side will achieve the most important parts of its agenda. Third, groups that resolve
conflicts successfully discuss differences of opinion openly and are prepared to manage
conflict when it arises. An open discussion makes it much easier to develop a shared
perception of the problems at hand; it also allows groups to work toward a mutually
acceptable solution. Fourth, managers need to emphasize shared interests in resolving
conflicts, so groups that disagree with one another don’t become too entrenched in their
points of view and start to take the conflicts personally. Groups with cooperative conflict
styles and a strong underlying identification with the overall group goals are more effective
than groups with a competitive style.
Cultural Influences
Differences across countries in conflict resolution strategies may be based on collectivistic
versus individualistic (see Chapter 3) tendencies and motives. Collectivistic cultures see
people as deeply embedded in social situations, whereas individualistic cultures see them as
autonomous. As a result, collectivists are more likely to seek to preserve relationships and
promote the good of the group as a whole, and they prefer indirect methods for resolving
differences of opinion. One study suggests that top management teams in Chinese high-
technology firms prefer collaboration even more than compromising and avoiding.
Collectivists may also be more interested in demonstrations of concern and working through
third parties to resolve disputes, whereas individualists will be more likely to confront
differences of opinion directly and openly.
Cross-cultural negotiations can create issues of trust. One study of Indian and U.S.
negotiators found that respondents reported having less trust in their cross-culture
negotiation counterparts. The lower level of trust was associated with less discovery of
common interests between parties, which occurred because cross-culture negotiators were
less willing to disclose and solicit information. Another study found that both U.S. and
Chinese negotiators tended to have an ingroup bias, which led them to favor negotiating
partners from their own cultures. For Chinese negotiators, this was particularly true when
accountability requirements were high. Having considered conflict—its nature, causes, and
consequences—we now turn to negotiation, which often resolves conflict.
NEGOTIATION
• A process in which two or more parties exchange goods or services and attempt to
agree on the exchange rate for them and decide how to allocate scarce resources.
• Negotiation permeates the interactions of almost everyone in groups and
organizations.
• Although we commonly think of the outcomes of negotiation in one-shot economic
terms, like negotiating over the price of a car, every negotiation in organizations also
affects the relationship between negotiators and the way negotiators feel about
themselves. Depending on how much the parties are going to interact with one
another, sometimes maintaining the social relationship and behaving ethically will be
just as important as achieving an immediate outcome of bargaining.
• Note that we use the terms negotiation and bargaining interchangeably.

2 Approaches to Negotiation

Distributive Bargaining
• Negotiation that seeks to divide up a fixed number of resources; a win–lose situation.
• The essence of distributive bargaining is negotiating over who gets what share of a
fixed pie.
• By fixed pie-the belief that there is only a set amount of goods or services to be
divvied up between the parties, we mean a set amount of goods or services to be
divvied up. When the pie is fixed, or the parties believe it is, they tend to bargain
distributive.
• When you are engaged in distributive bargaining, one of the best things you can do is
make the first offer and make it an aggressive one.
• Another reason this is a good strategy is the anchoring bias
Integrative Bargaining
• Negotiation that seeks one or more settlements that can create a win–win solution.
• In contrast to distributive bargaining, integrative bargaining assumes that one or
more of the possible settlements can create a win–win solution.
Choosing Bargaining Method
• In terms of intraorganizational behavior, integrative bargaining is preferable to
distributive bargaining because the former builds long-term relationships.
• Integrative bargaining bonds negotiators and allows them to leave the bargaining
table feeling they have achieved a victory. Distributive bargaining, however, leaves
one party a loser. It tends to build animosity and deepen divisions when people have
to work together on an ongoing basis.
The Negotiation Process
A. PREPARATION AND PLANNING
This may be the most important part of the process. Before you start negotiating, do
your homework. What’s the nature of the conflict? What’s the history leading up to
this negotiation? Who’s involved and what are their perceptions of the conflict? Then
consider your goals, in writing, with a range of outcomes from “most helpful” to
“minimally acceptable.”
Once you’ve gathered your information, develop a strategy. You should determine
your and the other side’s best alternative to a negotiated agreement, or BATNA. Your
BATNA determines the lowest value acceptable to you for a negotiated agreement.
Therefore, be equipped to counter arguments with facts and figures that support your
position. There is an interesting exception to this general rule—negotiators with
absolutely no alternative to a negotiated agreement sometimes “go for broke” since
they don’t even consider what would happen if the negotiation falls through.

B. DEFINITION OF GROUND RULES

Once you’ve done your planning and developed a strategy, you’re ready to define
with the other party the ground rules and procedures of the negotiation itself. Who
will do the negotiating? Where will it take place? What time constraints, if any, will
apply? To what issues will negotiation be limited? Will you follow a specific procedure
if an impasse is reached? During this phase, the parties will exchange their initial
proposals or demands.

C. CLARIFICATION AND JUSTIFICATION

When you have exchanged initial positions, you and the other party will explain,
amplify, clarify, bolster, and justify your original demands. This step needn’t be
confrontational. Rather, it’s an opportunity for educating each other on the issues,
why they are important, and how you arrived at your initial demands. Provide the
other party with any documentation that supports your position.

D. BARGAINING AND PROBLEM SOLVING

This is where both parties need to make concessions. Relationships change as a
result of negotiation, so take that into consideration. If you could “win” a negotiation
but push the other side into resentment or animosity, it might be wiser to pursue a
more compromising style. If preserving the relationship will make you seem easily
exploited, you may consider a more aggressive style.

E. CLOSURE AND IMPLEMENTATION

 The final step in the negotiation process is formalizing your agreement and
developing procedures necessary for implementing and monitoring it. For major
negotiations—from labor–management negotiations to bargaining over lease terms—
this requires hammering out the specifics in a formal contract. For other cases,
closure of the negotiation process is nothing more formal than a handshake.
INDIVIDUAL DIFFERENCES IN NEGOTIATION EFFECTIVENESS
Four factors influence how effectively individuals negotiate:
a) Personality
Most research has focused on the Big Five traits of agreeableness, for obvious
reasons— agreeable individuals are cooperative, compliant, kind, and conflict-
averse. We might think such characteristics make agreeable individuals’ easy prey in
negotiations, especially distributive ones. The evidence suggests, however, that
overall agreeableness is weakly related to negotiation outcomes.
Self-efficacy (see Chapter 7) is one individual-difference variable that consistently
seems to relate to negotiation outcomes.

b) Mood/Emotions
Do moods and emotions influence negotiation? They do, but the way they work
depends on the emotion as well as the context. A negotiator who shows anger can
induce concessions, for instance, because the other negotiator believes no further
concessions from the angry party are possible.
Another relevant emotion is disappointment. Generally, a negotiator who perceives
disappointment from his or her counterpart concedes more. Anxiety also may impact
negotiation.
Even emotional unpredictability affects outcomes; researchers have found that
negotiators who express positive and negative emotions in an unpredictable way
extract more concessions because this behavior makes the other party feel less in
control.

c) Culture
It appears that for successful cross-cultural negotiations, it is especially important
that the negotiators be high in openness. This suggests a good strategy is to choose
cross-cultural negotiators who are high on openness, and it helps to avoid factors
such as time pressure that tend to inhibit learning about the other party
Second, because emotions are culturally sensitive, negotiators need to be especially
aware of the emotional dynamics in cross-cultural negotiation.

d) Gender
There are many areas of organizational behavior (OB) in which men and women are
not that different. Negotiation is not one of them. It seems fairly clear that men and
women negotiate differently, that men and women are treated differently by
negotiation partners, and that these differences affect outcomes.
A popular stereotype is that women are more cooperative and pleasant in
negotiations than men.
Men tend to place a higher value on status, power, and recognition, whereas women
tend to place a higher value on compassion and altruism.
Moreover, women tend to value relationship outcomes more than men, and men tend
to value economic outcomes more than women.

NEGOTIATING IN A SOCIAL CONTEXT

We have mostly been discussing negotiations that occur among parties that meet only once,
and in isolation from other individuals. However, in organizations, many negotiations are
open-ended and public. When you are trying to figure out who in a work group should do a
tedious task, negotiating with your boss to get a chance to travel internationally, or asking for
more money for a project; there’s a social component to the negotiation. You are probably
negotiating with someone you already know and will work with again, and the negotiation
and its outcome are likely to be topics people will talk about. To really understand
negotiations in practice, then, we must consider the social factors of reputation and
relationships.
REPUTATION
• When it comes to negotiation, having a reputation for being trustworthy matters. In
short, trust in a negotiation process opens the door to many forms of integrative
negotiation strategies that benefit both parties.
• Sometimes we either trust or distrust people based on word-of-mouth about a
person’s characteristics.
• A combination of competence and integrity are characteristics that helps a person
develop a trustworthy reputation?
• Negotiators higher in self-confidence and cognitive ability are seen as more
competent by negotiation partners.
• Finally, individuals who have higher reputations are better liked and have more
friends and allies—in other words, they have more social resources, which may give
them more understood power in negotiations.
RELATIONSHIPS
• The social, interpersonal component of relationships with repeated negotiations
means that individuals go beyond valuing what is simply good for themselves and
instead start to think about what is best for the other party and the relationship as a
whole.
• Repeated negotiations built on a foundation of trust also broaden the range of
options
• Repeated negotiations also facilitate integrative problem solving.
• Repeated negotiations also make integrative approaches more workable because a
sense of trust and reliability has been built up.

THIRD-PARTY NEGOTIATIONS
3 Basic Third-Party Roles
Mediator
• A neutral third party who facilitates a negotiated solution by using reasoning,
persuasion, and suggestions for alternatives.
• It is are widely used in labor–management negotiations and in civil court
disputes.
Arbitrator
• A third party to a negotiation who has the authority to dictate an agreement.
• The big plus of arbitration over mediation is that it always results in a
settlement.
Conciliator
• This role was made famous by Robert Duval in the first Godfather film.
• A trusted third party who provides an informal communication link between
the negotiator and the opponent.
• Conciliators typically act as more than mere communication conduits. They
also engage in fact-finding, interpreting messages, and persuading disputants
to develop agreements.

While many people assume conflict lowers group and organizational performance, this
assumption is frequently incorrect. Conflict can be either constructive or destructive to the
functioning of a group or unit. Levels of conflict can be either too high or too low to be
constructive. Either extreme hinders performance. An optimal level is one that prevents
stagnation, stimulates creativity, allows tensions to be released, and initiates the seeds of
change without being disruptive or preventing the coordination of activities.
 ADVANCED ORGANIZATIONAL BEHAVIOR
CHAPTER 15: ORGANIZATIONAL STRUCTURE
AND DESIGN

ORGANIZATIONAL STRUCTURE
o The way in which job tasks are formally divided, grouped, and coordinated.
o It is the backbone of all the operating procedures and workflows at any company. It
determines the place and the role of each employee in the business, and is
key to organizational development
BASIC ELEMENT OF ORGANIZATIONAL STRUCTURE
1. Work Specialization
➢ also known as division of labor, is a process where work activities are
divided into separate tasks, allowing employees to specialize in specific
areas
2. Departmentalization
➢ is an organizational structure that involves dividing an organization into
smaller units or departments based on specific criteria. These departments
work together to complete tasks and achieve organizational goals.
TYPES OF DEPARTMENTALIZATION
a) FUNCTIONAL DEPARTMENTALIZATION
b) PRODUCT OR SERVICE DEPARTMENTALIZATION
c) GEOGRAPHICAL DEPARTMENTALIZATION
d) PROCESS AND CUSTOMER DEPARTMENTALIZATION

3. Chain of command
➢ refers to the hierarchy of authority and responsibility in which orders are
passed from top-level management to each employee at every level of the
organization. Each person in the chain reports to one superior and has
several subordinates. This structure ensures that decisions and instructions
flow systematically from higher to lower levels, and accountability flows
upward.

4. Span of control
➢ refers to the number of subordinates that a manager or supervisor can
effectively direct and oversee.
 5. Centralization and Decentralization
➢ in organizational structure it refers to how decision-making authority is
distributed within a company

6. Formalization
➢ in organizational structure it refers to how decision-making authority is
distributed within a company

7. Boundary of Spanning
➢ it refers to individuals who bridge the gap between an organization’s internal
networks and valuable external knowledge
SIMPLE STRUCTURE
➢ A simple structure is the most basic operating system that a business can use
to centralize its activities. Also known as the flat structure, the simple
organizational structure doesn't have multiple layers of management or formal
departments.
BUREAUCRACY STRUCTURE
➢ A bureaucratic organization is a company or institution with a rigid system for
making decisions and enacting changes. Bureaucratic structures are common
across public and private sectors, from nonprofits and governmental agencies
to large businesses and universities. By utilizing a bureaucratic system, large
organizations control decision-making from the top down by requiring all
proposals to pass through many layers of management for approval.
FUNCTIONAL STRUCTURE
➢ is a team structure that groups employees into different departments based
on areas of expertise. This type of structure is one of the most common types
in business, especially in larger companies, where groups of employees are
organized according to the function they perform.
DIVISIONAL STRUCTURE
➢ An organization structure that groups employees into units by product,
service, customer, or geographical market area.
MATRIX STRUCTURE
➢ Combines functional and project-based structures. Employees report to both
functional managers and project managers.
VIRTUAL STRUCTURE
➢ is an operation where all members of the company work in different
geographic locations while appearing as a single unit. It uses computers,
software, phones and other technology to work together and converse in real-
time, despite any physical distance.
TEAM STRUCTURE
➢ is a structure in which different work teams are created to achieve common
organizational goals. This structure emphasizes the creation of work teams
instead of departments.
CIRCULAR STRUCTURE
➢ are hierarchical, but rather than a straight ladder arrangement or pyramid,
they place high-level employees and leaders at the center and inner rings of a
circle and lower-level staff at the outer rings.
DOWNSIZING
➢ is a systematic effort to make an organization leaner by closing locations,
reducing staff, or selling off business units that don’t add value. Downsizing
doesn’t necessarily mean physically shrinking the size of your office, although
that’s been happening, too.
TWO EXTREME MODELS OF ORGANIZATIONAL DESIGN

FACTORS AFFECTING ORGANIZATIONAL STRUCTURE

a) ORGANIZATIONAL STRATEGY
b) TECHNOLOGY
c) ORGANIZATION SIZE
d) INSTITUTIONS
e) ENVIRONMENT
STRATEGY DIMENSIONS
a) INNOVATION
b) COST MINIMIZATION
c) IMITATION
 ADVANCED ORGANIZATIONAL BEHAVIOR
CHAPTER 16: CREATING AND MAINTAINING
ORGANIZATIONAL CULTURE

What is Organizational Culture??

➢ refers to the ensemble of beliefs, assumptions, values, norms, artifacts, symbols,
actions, and language patterns shared by all members of an organization.
Essentially, it’s the collective personality of an organization. Culture provides identity
and fosters a sense of shared purpose among its members.
➢ Organizational culture is like the invisible glue that binds an organization together.
It’s both an enabler and a constraint, impacting what the organization can achieve
Dominant culture - expresses the core values that are shared by a majority of the
organization’s members.
Core values are the primary or dominant values that are accepted throughout the
organization.
Subcultures- Mini cultures within an organization, typically defined by department
designations and geographical separation.

Culture Creates Climate

Organizational climate The shared perceptions organizational members have about their
organization and work environment.
Ethical work climate (EWC) The shared concept of right and wrong behavior in the
workplace that reflects the true values of the organization and shapes the ethical decision
making of its members
What is Ethics ?
➢ it is the moral principles and values that guides an individual’s choices and
behaviors.
How to Measure Ethical Dimensions in an Organization??
• Ethical Climate Theory (ECT)
• Ethical Climate Index (ECI)
ECT climate categories, five are most prevalent in organizations: {manager’s decision
making framework}
1. Instrumental, - assumption that employees are egoistic
2. Caring, - utilitarian perspective, emphasizing the well-being of others
3. Independence – individual personality
4. Law and code – external expectations
 5. Rules – internal expectations

Reminder: Culture must be Sustainable

Social Sustainability - practices address the ways social systems are affected by an
organization’s actions over time, and in turn, how changing social systems may affect the
organization.
Culture as an ASSET
Organizational Culture can provide a positive ethical environment and foster innovation.
Culture can also significantly contribute to an organization’s bottom line in many ways.
Creating a Culture
• First, founders hire and keep only employees who think and feel the same way they
do.
• Second, they indoctrinate and socialize employees to their way of thinking and
feeling.
• And finally, the behavior of the founder(s) encourages employees to identify with
them and internalize their beliefs, values, and assumptions. When the organization
succeeds, the personality of the founder(s) becomes embedded in the culture
• The original culture derives from the founders’ philosophy and strongly influences
hiring criteria as the firm grows.
How to Keep the Culture Alive
• Selection – hiring
• Top Management
• Socialization
• Socialization - A process that adapts employees to the organization’s culture

How to Keep the Culture Alive - Socialization

• Formal vs Informal
• Individual vs Collective
• Fixed vs Variable
 • Serial vs Random
• Investiture vs Divestiture
How Employees learn Culture
Culture is transmitted to employees in a number of forms, the most potent being stories,
rituals, material symbols, and language

How Employees learn Culture - Stories

Bill Bowerman (co-founder of NIKE) went to his workshop and poured rubber into a waffle
iron to create a better running shoe, they’re talking about Nike’s spirit of innovation
How Employees learn Culture - Rituals
Repetitive sequences of activities that express and reinforce the key values of the
organization, which goals are most important, which people are important, and which are
expendable.
How Employees learn Culture - Symbols
What conveys to employees who is important, the degree of egalitarianism top management
desires, and the kinds of behavior that are appropriate.
How Employees learn Culture - Language
Many organizations and subunits within them use language to help members identify with
the culture, attest to their acceptance of it, and help preserve it. Unique terms describe
equipment, officers, key individuals, suppliers, customers, or products that relate to the
business
How can Managers create a more Ethical Culture
• Be a visible role model
• Communicate ethical expectations
• Provide ethical trainings
• Visible reward ethical acts and punish unethical ones
• Provide protective mechanisms

Positive Organizational Culture

A culture that emphasizes building on employee strengths, rewards more than it punishes,
and encourages individual vitality and growth.
A Spiritual Culture
“Workplace spirituality is not about organized religious practices. It’s not about God or
theology. Workplace spirituality recognizes that people have an inner life that nourishes and
is nourished by meaningful work in the context of community”
Spiritual Organization’s Characteristics:
• Benevolence. value kindness toward others and the happiness of employees and
other organizational stakeholders.
• Strong sense of purpose. build their cultures around a meaningful purpose. “Not
always about profit”. •
• Trust and respect. by mutual trust, honesty, and openness. Employees are treated
with esteem and are valued, consistent with the dignity of each individual. •
• Open-mindedness. value flexible thinking and creativity among employees
Organization’s Culture’ impact on Employees:
 ADVANCED ORGANIZATIONAL BEHAVIOR
CHAPTER 17: ORGANIZATIOANL CHANGE

Organizational Change
➢ Refers to a modification or transformation of the organizations structure’s, processes,
or goods.
➢ Is defined as change that has impact on the way work is performed and has
significant effects on staff.
Can be:
➢ In the structure of organization
➢ In the structure of organizational operation and size of a workforce
➢ In working hours or practices
➢ In the way roles are carried out
➢ In the scope of a role that results in a change in the working situation, structure,
terms and conditions or environment.
Types of Changes

• Planned Change - Is resulting from a deliberate decision to alter the organization. It

is an intentional, goal-oriented activity.

• Unplanned Change - Imposed on the organization and is often unforeseen .

Organizational Development
➢ Is a planned approach to improve employee and organizational effectiveness by
conscious interventions in those processes and structures that have an immediate
bearing on the human aspect of the organization
Features of Organizational Development
1. Is an educational strategy that attempts to bring about a planned change
2. OD related to real organizational problems instead of hypothetical cases.
3. OD related uses sensitivity training methods and lay emphasis on the experiment of
based training.
4. It’s change agent are almost external consultants outside of the organization.
5. The external change agents and internal organizations executive establish a
collaborative relationship that involves mutual trust, influence and jointly determined
goals.
2 Forces for Change in Organization

External Forces Internal Forces

• Technological Change • Changes in managerial personnel
• Globalization • Declining effectiveness
• Social & Political Change • Changes in work climate
• Workforce diversity • Deficiencies in existing system
• Crisis
• Employee expectation

Process of Change

Change Agent
➢ Is anyone who has the skill and power to stimulate, facilitate, and coordinate the
change effort.
➢ Change agents may be either external or internal
Roles of Change Agent
o Consulting
o Training
o Research
Skills of Change Agent
o Empathy
o Linkage
o Proximity
o Structuring
o Openness
o Reward
Types of Change Agent
o Outside pressure type
o People-change-technology type
 o Analysis for the top type
o Organizational Development type
Resistance to change
▪ Individual Resistance
▪ Organizational Resistance
Reasons for Individual Resistance
▪ Economic Reason – the fear of technological unemployment, fear of demotion & thus
reduced pay and fear of reduced work hours & consequently less pay.
▪ Fear of Loss – fear to lose their job status particularly when an advance technology is
introduced.
▪ Security – people with high needs for security are likely to resist change because it
threatens their feeling of safety.
▪ Status Quo – change may pose disturbance to the existing comforts of status quo.
▪ Peer Pressure – individual employees may be prepared to accept change but refuse
to accept it for the sake of the group.
▪ Social Displacement – Introduction of change often results in disturbance of the
existing social relationships. Change may also result in breaking up of work groups. .
▪ Resource Constraint – resources are major constraints for many organizations. The
necessary financial, material & human resources may not be available to the
organization to make the needed changes.
▪ Structural Inertia – some organizational structure has in-built mechanism for
resistance to change.
▪ Threat to expertise – change in organizational pattern may threaten the expertise of
specialized groups. Therefore, specialists usually resist change.
▪ Politics – Organizational changes may also shift the existing balance of power in an
organization. Individual or groups who hold power under the current arrangement
may fear losing this political advantage.
Managing Resistance to Change
▪ Education and Communication – Communication about impending change is
essential if employees are to adjust effectively. The details of change should be
provided & it’s potential consequences. Educating employees on new work
procedures is often helpful.
▪ Empathy and support – Active listening is an excellent tool for identifying the reasons
behind the resistance. An expression of concerns about the change can provide
important feedback that managers can use to improve the change process.
▪ Negotiation – Another way to deal with resistance to change is to exchange
something of value for reduction of resistance.