CONCEPCION HOLY CROSS COLLEGE INC

SCHOOL OF BUSINESS
ADMINISTRATION AND ACCOUNTANCY

INSTRUCTIONAL MATERIAL
HUMAN BEHAVIOR IN ORGANIZATION

Compiled & Excerpted by:

Bro. Carlos B. David O.P

INTRODUCTION

Why do people behave a certain way in an organizational environment?

What factors affect job performance, employee interaction, job commitment,
leadership and managerial styles? Individuals have studied this very topic for
decades in order to find ways of increasing organizational performance. Human
Behavior in Organization is the study of both group and individual performance and
activity within an organization. This area of study examines human behavior in a
work environment and determines its impact on job structure, performance,
communication, motivation, leadership, etc. It gives insight on how employees
behave and perform in the workplace. It helps us develop an understanding of the
aspects that can motivate employees, increase their performance, and help
organizations establish a strong and trusting relationship with their employees.

TABLE OF CONTENTS

Chapter 1: What is Organizational Behavior? - 1

Chapter 2: Diversity in Organizations - 11
Chapter 3: Attitudes and Job Satisfaction - 16
Chapter 4: Emotions & Moods at Work - 24
Chapter 5: Personality and Values - 31
Chapter 6: Perception and Individual Decision Making - 41
Chapter 7: Motivation Concepts - 46
Chapter 8: Motivation from Concept - 52
Chapter 9: Foundations of Group Behavior - 57
Chapter 10: Understanding Work Teams - 63
Chapter 11: Communication - 69
Chapter 12: Leadership - 77
Chapter 13: Power and Politics - 82
Chapter 14: Conflict and Negotiation - 88
Chapter 15: Foundations of Organization Structure - 95
Chapter 16: Organizational Culture - 101
Chapter 17: Human Resource and Policies - 105
Chapter 18: Organizational Change and Stress Management - 112
References - 117

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Chapter 1: What is Organizational Behavior?

I. LEARNING OBJECTIVE / OUTCOME

At the end of this lesson you should be able to:

1. Understand the importance of interpersonal skills in the workplace.
2. Know the manager’s functions, roles, and skills.
3. Explain organizational behavior (OB).
4. Show the value to OB of systematic study.
5. Understand the major behavioral science disciplines that contribute to OB.
6. Demonstrate why few absolutes apply to OB.
7. Identify the challenges and opportunities managers have in applying OB concepts.
8. Compare the three levels of analysis in this text’s OB model.

II. INTRODUCTION

This chapter introduces the concept of organizational behavior. The focus of

the text is that coupling individual understanding of behavior gained through
experience with that gained through systematic OB analysis will help managers
become more effective.

Many of the important challenges being faced by today’s managers are

described, as are the three levels of OB study. The outline of the text is described
in relation to these three levels.

III. LESSON PROPER

Since the late 1980s, business schools have recognized the link between
understanding human behavior and managerial effectiveness.

Managers cannot succeed on technical skills alone. They also need good people skills.

1. The Importance of Interpersonal Skills

 Good people skills are important

 Good places to work have superior financial performance

Starbucks, Adobe Systems, Cisco, Whole Foods, Google, American Express,

Amgen, Pfizer, Facebook and Marriott (US)Smart, Globe, Jollibee (PH)

Olaq32looooooooooooooooooooo/Creating a pleasant workplace also appears

to make good economic sense, this companies with good reputations generates
superior financial performance.

 Developing managers’ interpersonal skills helps attract and keep high-

performing employees
 There is a strong association between the quality of workplace
relationships and employee job satisfaction, stress, and turnover

A survey of hundreds of workplaces showed the social relationships among

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co-workers and supervisors were strongly related to overall job satisfaction. Positive
social relationships also were associated with lower stress at work and lower
intentions to quit.

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  Increasing OB principles can foster social responsibility awareness

So, having managers with good interpersonal skills is likely to make the
workplace more pleasant, makes it easier to hire and keep qualified people. CSR of
each company

2. What Managers Do?

 Managers is an individual who achieves goals through other people.
 Get things done through other people.
 They allocate resources, and direct activities of others to attain goals.
 They do their work in an organization.
 The people who oversee the activities of others and who are responsible for attaining goals.
 Sometimes called administrators (non-profit organizations)

 Organization is a consciously coordinated social unit, composed of 2 or

more people that functions on a relatively continuous basis to achieve a
common goal or set of goals.

Examples are:
 manufacturing and service firms
 Schools
 Hospitals
 Churches
 Military units
 Police departments
 Retail stores
 Local, State Government agencies

 Management Functions
French industrialist Henri Fayol:All managers perform 5
management functions: Planning, Organizing, Commanding,
Coordinating & Controlling Presently condensed into 4:
1. Planning- a process that includes defining goals, establishing strategy, and
developing plans to coordinate activities.
2. Organizing- determining what tasks are to be done, who is to do them, how
the tasks are to be grouped, who reports to whom, and where decisions are
to be made.
3. Leading- a function that includes motivating employees, directing others,
selecting the most effective communication channels, and resolving conflicts.
4. Controlling- monitoring activities to ensure they are being accomplished as
planned and correcting any significant deviations.

Because organizations exist to achieve goals, ‘someone’ has to define those

goals and the means for achieving them; MANAGEMENT is that someone.So using
the functional approach, the answer to the question” WHAT MANAGERS DO?” is that
THEY PLAN, ORGANIZE, LEAD and CONTROL.

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  Management Roles
In the late 1960’s, Henry Mintzberg(graduate student of MIT) took a careful
study of 5 executives to determine WHAT THEY DID IN THEIR JOBS. He concluded 10
different interrelated roles or sets of behaviors which was categorized into 3:

Interpersonal – duties that are ceremonial and symbolic.

 Figurehead– ex: taking visitors to dinner and attending ribbon-cutting ceremonies.
when the president of the college hands out diplomas at commencement
factory supervisor gives a group of high school students a tour of the plant. 
Leadership – hiring, training, motivating and disciplining employees.
 Liaison – ex: a manager at Intel might be responsible for handling all price
negotiations with a key supplier at microchips. Sales manager who obtains
information from quality control manager in his/her own company has an
internal liaison relationship.

Informational – collect information from outside organizations and institutions.

 Monitor role – scanning the news media (including the internet) and talking with other
people to learn of changes in the public tastes, what competitors may be planning, and
the like.
 Disseminator – transmits info to org members.
 Spokesperson – managers represent the org to outsiders.
 Decisional – roles that require for making choices
 Entrepreneur – managers initiate and oversee new projects that will
improve their organization’s performance.
 Disturbance Handler – managers take corrective action in response to
unforeseen problems.
 Resource Allocator – responsible for allocating human, physical and
monetary resources.
 Negotiator – they discuss issues and bargain with other units to gain
advantages for their own unit contracts between management and labor
unions.

Decisional – roles that require for making choices

 Entrepreneur – managers initiate and oversee new projects that will improve their
organization’s performance.
 Disturbance Handler – managers take corrective action in response to unforeseen
problems.
 Resource Allocator – responsible for allocating human, physical and monetary
resources.
 Negotiator – they discuss issues and bargain with other units to gain advantages for
their own unit contracts between management and labor unions.

 Management Skills
Technical Skills- The ability to apply specialized knowledge or expertise.
ex: When you think of the skills of professionals such as civil engineers or oral surgeons,
you typically focus on the technical skills they have learned through extensive formal education.

Human Skills- The ability to work with, understand, and motivate other
people both
individually and in groups.
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ex: many people are technically proficient but poor listeners, unable to understand the

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needs of others, or weak at managing conflicts.

Conceptual/Diagnostic Skills- The mental ability to analyze and diagnose complex

situations. ex: decision-making requires managers to identify problems, develop alternative
solutions, and select the best one. After selecting, they must be able to organize a plan of action
and then execute it.The ability to integrate new ideas with existing processes and innovate on
the job are also crucial conceptual skills for today’s managers.

3. The Field of Organizational Behavior

Organizational behavior studies the influence that individuals, groups, and
structure have on behavior within organizations. Its chief goal is to apply that
knowledge toward improving an organization’s effectiveness

 Focal Points of OB
JOB mostly means paid work. – a piece of work, especially a specific task done as
part of the routine of one’s occupation or for the agreed price.
Ex – Myleen’s job is cleaning the university toilets.

WORK means exertion or effort directed to produce or accomplish

something. Ex– Mowing the lawn is work. Cleaning the toilet is work.

ABSENTEEISM is a measure of attendance. Some misses occasionally, some miss

far more than others. Some look for excuses to miss work and call in sick regularly
just for sometimes off Others miss work only when necessary.
Example- It is a failure to report to work, is a huge cost and disruption to employers.
TURN-OVER when a person leaves the organization. If the individual who leaves is a
good performer or if the organization has invested heavily in training for the person,
turnover can be costly.
Ex: Is voluntary or involuntary permanent withdrawal from an organization.
PRODUCTIVITY is a performance measure that includes effectiveness and efficiency.
Is an indicator of his/her efficiency, and is measured in terms of the products or
services created per unit of input?
Effectiveness – achievement of goals
Efficiency – the ratio of effective output to the input required to achieve it.

Ex: Bill makes 100 units of a product in a day and Sara makes only 90 units in a day, then
assuming that the units are of the same quality and that Bill and Sara make the same wages,
Bill is more productive than Sara.

Ex: A hospital is effective when it successfully meets the needs of its clientele. It is efficient
when it can do so at a low cost.

An organization is productive if it achieves its goals by transforming inputs into

outputs at the lower cost. Thus, it requires both effectiveness and efficiency.

PERFORMANCE – is made-up of all work-related factors.

For ex: Even though Bill is highly productive, it may also be that he refuses to work overtime,
expresses negative opinions about organization at every opportunity and will do nothing unless
it

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falls precisely within the boundaries of his job. Sara, on the other hand, may always be willing to
work overtime, is a positive representative of the organization, and goes out of her way to make
as many contributions to the organization as possible. Based on their behaviors, then, we might
conclude that Sara actually is the better performer.

MANAGEMENT are all the activities done by the manager for getting things done
through others. It also the art of getting things done through people

4. Complementing Intuition with Systematic Study

Intuition is your “gut feeling” explanation of behavior. Often our intuition
leads us in the decision-making process. Our intuition relies on gut feelings,
individual observation, and common sense. Although our intuition is extremely
useful in the decision-making process, it does not give us the complete picture. By
engaging in a systematic study of behavior we can enhance our effectiveness. It is
not an either/or relationship, rather intuition and systematic study can work
effectively together to predict behavior.

Systematic study improves ability to accurately predict behavior. When we

talk about engaging in a systematic study, we are talking about looking at
relationships, attempting to attribute causes and effects, and drawing conclusions
based on scientific evidence. By doing so, we can better determine cause and
effect, and then by applying scientific evidence to our conclusions, we are better
able to predict behavior.

Evidence-Based Management (EBM) complements systematic study by

applying scientific evidence to managerial decisions. The basing of managerial
decisions on the best available evidence.

Big Data is the extensive use of statistical compilation and analysis. It

Identifies Persistent and predictive statistics. It Creates targeted marketing
strategies.

Using big data for managerial practices:

 Define objectives, develop theories of causality, test the theories to see
which employee activities are relevant to the objectives

5. Contributing Disciplines to the OB Field

Organizational Behavior (OB) is interdisciplinary in nature as it is an applied
behavioral science. The theory in OB relies on contributions from multiple
behavioral disciplines. These disciplines include Psychology, Social Psychology,
Sociology, and Anthropology.

Psychology
-To measure, explain, and sometimes change the behavior of humans and other animals.
-Those who have contributed and continue to add to the knowledge of OB are
learning theorists, personality theorists, counseling psychologists, and most
important, industrial and organizational psychologists.
-Early industrial and organizational psychologists studied the problems of fatigue,
boredom, and other working conditions that could impede efficient work

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performance.
Recently, their contributions have expanded to include learning, perception,
personality, emotions, training, leadership effectiveness, needs and motivational
forces, job satisfaction,

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decision-making process, performance appraisals, attitude measurement,
employee-selection techniques, work design and job stress.

Social Psychology
-a branch of psychology blends concepts from both psychology and sociology to
focus on people’s influence on one another.
One major study area is – change how to implement it and how to reduce barriers to
its acceptance. Social psychologists also contribute to measuring, understanding,
and changing attitudes; identifying communication patterns; and building trust.
Finally, they have made important contributions to our study of group behavior, power and
conflict

Sociology
-studies people in relation to their social environment or culture.
Contributions of sociologists to OB are group behavior in organizations, particularly
formal and complex organizations.
The most important is organizational culture, formal organization theory and
structure, organizational technology, communications, power and conflict.

Anthropology
-study of societies to learn about human beings and their activities.
Anthropologists’ work on cultures and environments that has helped understand
differences in fundamental values, attitudes, and behavior between people in
different countries and within the organizations.
Understanding of organizational culture, organizational environments, and
differences among national cultures is a result of the work of anthropologists or
those using their methods.

 FEW ABSOLUTES IN OB
There are few absolutes (rules, principles, solutions, truths, fundamentals) in
organizational behavior. When making decisions you must always take into account
situational factors that can change the relationship between two variables.
For example, as seen in this chart one message from a boss in an American culture can mean a
completely different thing in another culture. It is always important to take context into account.

SITUATIONAL or CONTINGENCY VARIABLES – variables that moderate the relationship

between 2 or more variables.
The science of OB was developed by applying general concepts to a particular
situation, person, or group.
For ex: OB scholars would avoid stating that everyone likes complex and challenging work (the
general concept). Why? Because not everyone wants a challenging job. Some people prefer
routine over varied, or simple over complex. A job attractive to one person may not be to
another: its appeal is contingent (depends) on the person who holds it.

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Impossible to make simple and accurate Contingency Independent Dependent
generalizations Variable (Z) Variable (X) Variable (Y)

Human beings are complex and diverse

OB concepts must reflect situational In American Boss Gives Understood as
“Thumbs Up”
Culture Sign
Complimenting
conditions: contingency variables
In Iranian or Boss Gives Understood as
Australian “Thumbs Up” Insulting - “Up
Sign Yours!”
Cultures
In the workplace today there are many challenges and opportunities in the
area of Organizational Behavior. Understanding OB has never been more important
for managers as organizations are changing at a much more rapid pace than
historically seen.

 Challenges and Opportunities for OB

Responding to economic pressures-recession, lay-offs, job losses, accept pay cuts.

Effective managers emphasize different skills depending on the economic situation.
During ‘good’ times, managers focus on rewarding, satisfying, and retaining employees.
During ‘bad’ economic times, managers need skills that help them address stress,
decision making, and coping.

Responding to globalization- As foreign assignments increase, you will need to be

able to manage a workforce that is different than what you may be used to and may
bring different needs, aspirations, and attitudes to the workplace.

• Working w/ people from different culture- You will also have individuals
coming to work in your own country that come from different cultures, and
you will need to
find ways to accommodate their needs and help them assimilate to
your workplace culture.
• Overseeing movement of Jobs to countries with low-cost labor - You may also
need to do the difficult task of moving jobs outside of your country to a
country with lower labor costs. This is a difficult process logistically but
also emotionally for the workers who will be losing their jobs. You will need
to be aware of, and appreciate, the cultural norms in each country in
which you do business. In addition, it’s important to consider country and
local regulations that could affect how you do business.

Organizations now exist in an environment with no national borders. As a result, the

manager’s job has changed. They need to have a broader perspective when
making decisions.

Managing workplace diversity-the concept that organizations are becoming more

heterogeneous in terms of gender, age, race, ethnicity, sexual orientation, and
inclusion of other diverse groups.

• Diversity poses great opportunities and challenging questions for

managers and employees in all countries. Managers must recognize
differences and find ways to utilize those differences to improve
organizational performance.

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As the borders are disappearing, we are seeing more and more heterogeneity in the
workplace. Managers today need to embrace diversity and find ways to manage it
effectively. The changing demographics have shifted management philosophy in a
way that recognizes and utilizes differences to create productivity, profitability, and
welcoming cultures.

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Improving customer service- Most workers in developed nations will work in service-
oriented jobs. It is critical to organizational success that workers improve their
customer service and people skills.

• Service oriented jobs– tech support reps, fast food counter workers, sales
clerks, waiter and waitresses, nurses, automobile repair tech, consultants,
credit reps, financial planners and flight attendants.
• Management create a customer-responsive culture. – employees are friendly
and courteous, accessible, knowledgeable, prompt in responding to
customer needs, and willing to do what’s necessary to please the
customer.
Patagonia’s sample retail philosophy: “Our store is a place where the word “no” does not exist.”
– staff to use best judgment.

Improving people skills

• People Skills– learn ways to design motivating jobs, techniques for
improving your listening skills, and how to create more effective
teams.

Stimulating Innovation and Change-The challenge for managers is to stimulate their

employees’ creativity and tolerance for change. Success will be attained if
organizations maintain their flexibility, continually improve their quality and beat
their competition to the marketplace with a constant stream of innovative products
and services.

• Domino’s pizza – single-handedly

• Amazon.com – independent bookstore
• Boeing – change business model

Coping with Temporariness- Globalization, expanded capacity and advances in

technology have required organizations to be fast and flexible if they are to survive.
Worker must continually update their knowledge and skills to perform new job
requirements.
Working in networked organizations- As technology continues to become an integral
part of organizational effectiveness, workers will find that their communication
styles and needs will change as well. Managers must stay on top of what is needed
to motivate workers in this environment.

• Communication of employees even though they may be miles apart.

• Work from home / non-office locations.

Enhancing employee well-being at work- Recent studies suggest that employee want
jobs that give them flexibility in their work schedule so they can better manage
work-life conflicts. Most college and University students say attaining a balance
between personal life and work is a Primary Career Goal: they want a “LIFE” as well
as a “JOB”. Organizations that don’t help their people achieve work-life balance will
find it increasingly difficult to attract and retain the most capable and motivated
employees.

Creating a positive work environment- Positive organizational behavior is a growing

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interest in organizational behavior. It promotes the idea of exploiting employee
strengths rather than focusing on employee limitations or weaknesses.

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Improving ethical behavior- Managers facing ethical dilemmas or ethical choices are
required to identify right and wrong conduct. This can be difficult in a global
economy where different cultures approach decisions from different perspectives.
Companies promoting strong ethical missions:
• Encourage employees to behave with integrity. Provide strong leadership
that influence employee decisions to behave ethically

 Three Levels of OB Analysis

In Organizational Behavior (OB) we utilize the

representation of the world as broken down
into three levels. The first level of analysis we
will look at is the Individual level. At this level
we look at individuals’ behavior. Next,
recognizing that individuals make up groups,
we analyze how group behavior occurs.
Finally, organizations are made up of groups
of individuals, so we analyze the organization
at a systems level.

IV. ACTIVITIES / EXERCISES

I.Discuss a current event that was influenced by, or could have been positively
influenced by a clear understanding of OB. Prepare an essay that concisely
describes that current event and what you believe to be the impact of OB.
II. Choose an organization either local or abroad that you admire. Briefly describe
your chosen organization, discussing what goods or services are produced,
how many employees it has, what the structure looks like, and a general
overview of how the organization of study is managed. Explain why you
chose that organization.

Answer in an essay format.

What do you hope to gain from the study of OB? How well do you think you
currently understand human behavior in organizations? Have you ever been
surprised by the actions or reactions of another person? Why? Describe what
actually happened and what you were expecting to happen. What do you think may
have caused the difference?

V. ASSESSMENT

MODIFIED TRUE OR FALSE

1. There are 10 Challenges and Opportunities in OB.
2. Psychology, Social Psychology, Psychology and Anthropology
are the Contributing Disciplines to OB.
3. In the late 1960’s, Henry Mintzberg, he concluded 10 different
interrelated roles or sets of behaviors which was categorized into 3: Interpersonal,
Informational, and Decisional.
4. Sociology, studies people in relation to their social environment or culture.

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 5. French industrialist Henri Fayol: All managers perform 5
management functions that presently condensed into 4 namely; Planning,
Organizing, Commanding, and

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Controlling. profits

MULTIPLE CHOICE 5) There is a connection between companies which

have and the incorporation of
1) What are the three primary organizational behavior principles. A) high turnover
determinants of behavior in rates
organizations?
A) profit structure,
organizational complexity, and
job satisfaction
B) individuals, profit structure,
and job satisfaction
C) individuals, groups, and
job satisfaction
D) groups, structure, and profit
structure
E) individuals, groups, and
structure

2) Which of the following is not a core

topic of organizational behavior? A)
motivation
B) attitude development
C) conflict
D) resource allocation
E) work design

3) Until the late 1980s, business

school curricula emphasized the
aspects of management.
A) ethical
B) people
C) technical
D) human
E) global

4) Which of the following is not a

reason why business schools have
begun to include classes on
organizational behavior?
A) to increase manager
effectiveness in organizations
B) to help organizations attract top
quality employees
C) to expand organizations'
consulting needs
D) to improve retention of quality
workers
E) to help increase organizations'
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B) specialized technical processes possible B) the systematic approach
C) superior financial performance and the casual approach are one and
D) long-lasting CEO's the same
E) all of the above C) laboratory experiments on human
behavior often result in unreliable
findings D) the casual or common-
6) is the study of
the impact that sense approach to reading others can
individuals, groups, and often lead to erroneous predictions
structure have on E) behavior is unpredictable, hence
behavior within there is no accurate way to analyze it
organizations. A)
Leadership
B) Organizational strategy
C) Performance management
D) Employee relations
E) Organizational behavior

7) Which of the following

is not a topic or concern
related to OB? A) turnover
B) leader behavior
C) productivity
D) management
E) family behavior

8) In order to predict
human behavior, it is best
to supplement your
intuitive opinions with
information derived in
what fashion?
A) common sense
B) direct observation
C) systematic study
D) speculation
E) organizational theory

9) Arianna believes that it

is best to take the casual
or common-sense
approach to reading
others. She needs to
remember that
.

A) the casual approach is

nonsensical, and should
be avoided as much as

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10) Which of the following explains C) Human behavior is not consistent.
the usefulness of the systematic D) Human behavior is rarely predictable.
approach to the study of E) Human behavior is often not sensible.
organizational behavior?
A) Human behavior does not vary a
great deal between individuals and
situations. B) Human behavior is not
random.
VI. SUMMARY

1. Managers need to develop their interpersonal, or people, skills to be

effective in their jobs.
2. Organizational behavior (OB) investigates the impact that individuals,
groups, and structure have on behavior within an organization, and it applies
that knowledge to make organizations work more effectively.
3. Here are a few specific implications for managers:
• Resist the inclination to rely on generalizations; some provide valid
insights into human behavior, but many are erroneous.
• Use metrics and situational variables rather than hunches to explain
cause-and-effect relationships.
• Work on your interpersonal skills to increase your leadership potential.
• Improve your technical and conceptual skills through training and staying
current with organizational trends like big data.
• Organizational behavior can improve your employees’ work quality and
productivity by showing you how to empower your employees, design and
implement change programs, improve customer service, and address the
work-life balance conflict.
4. OB’s goal is to understand and predict human behavior in organizations.

Chapter 2: Diversity in Organizations

I. LEARNING OBJECTIVES / OUTCOME

After studying this chapter, you should be able to:

1. Understand the two major forms of workforce diversity and give examples of
how workplace discrimination undermines diversity effectiveness.
2. Explain the key biographical characteristics and describe how they are relevant to OB.
3. Understand intellectual ability and demonstrate its relevance to OB.
4. Know the difference between intellectual and physical ability.
5. Understand how organizations manage diversity effectively.
6. Show how culture affects our understanding of biographical characteristics
and intellectual abilities

II. INTRODUCTION

In this chapter, we look at the two major forms of workforce diversity,

identify the key biological characteristics, and describe their relevance to OB,
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define intellectual capability and explore its relevance in OB, and discuss how to
manage a diverse workforce effectively.

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III. LESSON PROPER

The demographics of the U.S. workforce has changed over the last thirty-plus
years. Today’s workforce is not only more ethnically and racially diverse, it also
includes more women and older workers. Wage gaps persist across genders and
racial and ethnic groups; however, the gaps have begun to shrink.

Levels of Diversity  Surface-level diversity - differences in age, race, gender, etc... Less
significant over time  Deep-level diversity - differences in personality and values.
More important in the long run

 DISCRIMINATION
Discrimination is one of the primary factors that prevent diversity, whether
the discrimination is overt or covert. Recognizing diversity opportunities can lead to
an effective diversity management program and ultimately to a better organization.
To discriminate is to note a difference between things. While this in and of itself
isn’t a bad thing, when we talk about discrimination, we’re usually referring to
stereotypes about groups of people and assumptions that everyone in a group is
the same. This type of discrimination can be harmful to organizations and
employees.

 BIOGRAPHICAL CHARACTERISTICS

1. Age
The relationship between age and performance is important because:
a. The workforce is aging
b. Mandatory retirement is outlawed
PHILS:
 Military personnel must leave the service on reaching 56 years of age. ...
 Under the Philippine Labor Code, the default mandatory retirement age
is at least 60 years but not over 65 years old

2. Gender
Do women perform as well on the job as
men?
Few, if any, important differences, but:
 Women in male domains are perceived as less
likeable, more hostile, and less desirable as
supervisors
  Women are less likely to be assigned challenging
positons  Women often earn less than men in the same
position  Women face maternal wall bias

3. Race and Ethnicity

U.S. Census Bureau:
a. Recognizes 7 racial groups
b. Distinguishes between native English speakers and
Hispanics Research shows that:
 Individuals slightly favor colleagues of their own race in performance
evaluations, promotion decisions, and pay raises
 Racial and ethnic minorities report higher levels of discrimination in the
workplace
 African Americans tend to fare worse than Whites in employment decisions 
Some industries are less racially diverse than others

4. Disability
Americans with Disabilities Act  requires employers to make
reasonable accommodations for people with physical or
mental disabilities
Philippines – Magna Carta for the Disabled  No disabled persons shall be denied
access to opportunities for suitable employment.  A qualified disabled
employee shall be subject to the same terms and conditions of
employment and the same compensation, privileges, benefits, fringe
benefits, incentives or allowances as a qualified able-bodied person

5. Other Biographical Characteristics

(1) Tenure expressed as work experience is a good predictor of employee

productivity. Seniority is negatively related to absenteeism. In addition, the longer
an individual has been in a job, the less likely the individual is to quit. Tenure and
job satisfaction is positively related.

U.S. law prohibits employers from discriminating against employees based on their
(2) religion. Even so, religion is still an issue in OB, especially when it comes to Islam.
Evidence shows that people are discriminated against for their Islamic faith.
Muslims are not respectful of women.
Many Christians believe they do not need to work on Sundays.
Also, conservative Jews believe they should not work on Saturdays. (7th day
Adventist) Religious individuals also believe they have an obligation to express their
beliefs in the workplace.

(3) Sexual Orientation is an inherent or immutable enduring emotional, romantic

or sexual attraction to other people. While federal law does not prohibit
discrimination against employees based on sexual orientation, many organizations
have implemented their own policies protecting employees on the basis of sexual
orientation. In addition, many states and municipalities also have laws to protect
employees based on their sexual orientation.
(4) Transgender - An umbrella term for people whose gender identity and/or
expression is different from cultural expectations based on the sex they were
assigned at birth. Being transgender does not imply any specific sexual orientation.
Therefore, transgender people may identify as straight, gay, lesbian, bisexual, etc.)
Companies are also beginning to establish policies
regarding transgender employees. Today’s global companies do well to understand
and respect the cultural identities of their employees, both as groups and as
individuals.

The assigned sex and gender do not match the person's (5) gender identity -One's
innermost concept of self as male, female, a blend of both or neither – how
individuals perceive themselves and what they call themselves. One's gender
identity can be the same or different from their sex assigned at birth.

A company seeking to be sensitive to the (6) cultural identities of its employees

should look beyond accommodating its majority groups and instead create as much
of an individualized approach to practices and norms as possible.

An act prohibiting discrimination on the basis of ethnicity, race, religion or belief, sex,
gender, sexual orientation, gender identity, gender expression, civil status and hiv status
Pending in the Committee (11/27/2017)
SOGIE Equality Act in the Lower House on its third and final reading (9/20/2017)

 ABILITY
An individual’s current
capacity to perform the
various tasks in a job
 Intellectual abilities:
Abilities needed to perform
mental activities

 Physical Abilities– the

capacity to do tasks that
demand stamina, dexterity
(skill, agility), and strength,
and similar characteristics.
Research on hundreds of jobs
has identified nine basic
abilities needed in the
performance of physical
tasks. Individuals differ in the
extent to which they have
each of these abilities.

 Implementing Diversity
Management Strategies
Diversity management: Makes
everyone more aware of and
sensitive to the needs and
differences of others.

 Attracting, Selecting, Developing, and Retaining Diverse Employees

To enhance workforce diversity, organizations should target underrepresented
groups through ads in publications geared toward certain demographic groups,
recruiting at universities and colleges with significant members of minorities, and forming
partnerships with associations that represent women and minorities.
Organizations should also take care to ensure that hiring decisions are bias free, and
that career advancement decisions are fair and objective. Research shows that
individuals who share personality traits with their co-workers are more likely to be
promoted, but that in collectivist societies, similarity to supervisors is very
important to career advancement, while in individualistic cultures similarity to peers
is more important.

Studies also show that a positive diversity climate is related to organizational

commitment (The degree of loyalty an individual feel toward the organization) and lower
turnover intentions among African American, Hispanic, and White managers.

 `Diversity in Groups
Does diversity help or hurt group performance? The answer is both– it
depends on the characteristic of interest. Diversity in some traits can hurt team
performance, but in other cases can facilitate it.

 Leverage differences for superior performance – The most important way is

to emphasize the higher-level similarities among members. It means that
groups of diverse individuals will be much more effective if leaders can
show how members can have a common interest in the group’s success.
 Transformational leaders are those who emphasize higher-order goals and
values in their leadership style are more effective at managing diverse
teams.

 Effective Diversity Programs

Have Three distinct components.
 Teach managers about the legal framework for equal employment
opportunity and encourage fair treatment of all people regardless of
their demographic characteristics
 Teach managers how a diverse workforce will be better able to serve a
diverse group of customers and clients
 Foster personal development practices that bring out the skills and
abilities of all workers

IV. ACTIVITIES / EXERCISES

1. Self-analysis. What is your position on diversity in the workplace?

How would you describe your attitude toward diversity? Be detailed in your
analysis.
2. Web Crawling. Find and present an online article on diversity in a country
other than the United States. What commonalities are exposed and what
differences are shown to exist?

V. ASSESSMENT

FILL IN THE BLANKS

1.Levels of Diversity
 •
• DEEP-LEVEL DIVERSITY
2.
• DISCRIMINATORY POLICIES OR PRACTICIES
 •
•
• MOCKERY AND INSULTS
•
•
3.Diversity in Groups
• LEVERAGE DIFF, FOR SUPERIOR PERFORMANCES
•
4.
• BIOGRAPHICAL CHARACTERISTICS
 AGE
 GENDER



VI. SUMMARY
• There are two Levels of Diversity (1) Surface-level diversity and (2) Deep-level diversity
• Discrimination is one of the primary factors that prevent diversity,
whether the discrimination is overt or covert.
• There are 6 types of Discrimination (1) Discriminatory policies or practices
(2) Sexual Harassment (3) Intimidation (4) Mockery and Insults (5) Exclusion
and (6) Incivility
• Biographical Characteristics covers Age, Gender, Race and Ethnicity and Disability
• Other biographical Characteristics covers tenure, religion, sexual orientation,
transgender, gender identity and cultural identities.
• Ability refers to an individual’s current capacity to perform the various tasks in a job
• It can be categorized as to Intellectual and Physical
• Diversity management means making everyone more aware of and sensitive
to the needs and differences of others.
• Having a Diverse population subjects the organization to an organization
commitment and lower turnover, done by Attracting, Selecting, Developing,
and Retaining Diverse Employees

• Diversity leverages differences for superior performance and Transformational Leaders

Chapter 3: Attitudes and Job Satisfaction

I. LEARNING OBJECTIVES / OUTCOME

At the end of this lesson you should be able to:

1. Understand the three components of an attitude.
2. Learn the relationship between attitudes and behavior.
3. Compare and contrast the major job attitudes.
4. Understand job satisfaction and show how we can measure it.
5. Summarize the main causes of job satisfaction.
6. Learn four employee responses to dissatisfaction.
7. Learn that job satisfaction is a relevant concept.
II. INTRODUCTION

In this chapter, we look at attitudes, their link to behavior, and how

employees’ satisfaction or dissatisfaction with their jobs affects the workplace.

III. LESSON PROPER

Attitude VS Behavior
Attitude is comparatively enduring organization of beliefs, feelings, and behavioral
tendencies towards socially important objects, groups, events or symbols" (Hogg &
Vaughan 2005) while Behavior is a manifestation or acting out of the attitudes an
individual has.

SALOOBIN PAG-UUGALI
Attitude = a settled way of thinking or Behavior = the way in which one acts
feeling about someone or something, or conducts oneself, especially toward
typically one that is reflected in a others. "good behavior“
person's behavior.
synonyms:
view, viewpoint, outlook, perspective, synonyms: conduct,
stance, st
andpoint, position, inclination, temper, deportment, bearing, actions, doings;
orientati
on, approach, reaction;

Note: VALUES are usually nouns, while VIRTUES are adjectives that describe positive
and desirable qualities which usually mirror a value it represents

VALUES are usually reflected through these VIRTUES, which in turn become
eminent in the attitude and behavior of a person.
 ATTITUDE is a predisposition or a
tendency to respond positively or
VALUES VIRTUES negatively towards a certain idea,
object, person, or situation. Attitude
influences an individual's choice of
LOVE Loving, caring,
action, and responses to challenges,
compassionate,
incentives, and rewards (together
called stimuli).
gentle, affectionate
RESPECT Respectful, civil There are three components or
structure of attitudes Affective,
INTEGRITY Reputable, Behavioral and Cognitive or also
known as the ABC Model of Attitude.
responsible, believable,
honest, trustworthy
BALANCE Fair, objective, harmonious
Affective Component this involves a
person’s feelings / emotions about
the attitude object. For example: “I
am scared of spiders”.

Behavioral Component the way the

attitude we have influences on how
we act or behave. For example: “I
will avoid spiders and scream if I see
one”.
Cognitive Component this
involves a person’s belief /
knowledge about an attitude
object. For
example: “I believe
spiders are dangerous”.

Moving forward with the lecture, in this part of the module you are to analyze
the relationship between attitudes and behavior. Supporting theory and
phenomenon will be discussed such as Theory of Planned Behavior and to further
elaborate the significance of the two to one another.

Attitudes Follow Behavior

Theory of Planned Behavior

The theory of planned behavior is a theory used to understand and predict behaviors, which
posits
that behaviors are immediately determined by behavioral intentions and under
certain circumstances, perceived behavioral control. Behavioral intentions are
determined by a combination of three factors: attitudes toward the behavior,
subjective norms, and perceived behavioral control.
Given a situation of wanting to become the employee of the month, so you started
surfing the internet about the tips and needed skill. You may talk to your
friends about their
recommendations. You may attend some seminars to enhance your skill or being
punctual at work. You may do all of this and at some point, and be the employee of
the month you desire. In this situation how can
we apply the theory? Look at the photo
on the right.

What the theory now predicts is that

positive attitude towards the act or
behavior, favorable social norms, and a
high level of perceived behavioral
control are the best predictors
performing a behavioral intention turned
into a display of behavior or act.

Behavior Follows Attitudes

Foot in the Door Phenomena assumes

agreeing to a small request increases
the
likelihood of agreeing to a second, larger request. The foot-in-the-door technique
works on the principle of consistency. This means that as long as the request in
consistent with or similar in nature to the original small request, the technique will
work.
For example, in employment, your co-worker asks you to photocopy a document for
him/her just for today and you said yes. A week later, the same co-worker asked
you to photocopy documents for your department and you agreed.

Summarize the relationship between attitudes

and behavior
Moderating Variables is the most powerful moderators
of the attitude-behavior relationships are:
 Importance of the attitude  Correspondence to
behavior  Accessibility of the attitude  Social
pressures  Direct personal experience  Knowing
attitudes helps predict behavior

Cognitive Dissonance
is any inconsistency between two or more
attitudes, or between behavior and attitudes.
Individuals seek to minimize dissonance
Desire to reduce dissonance is determined
by:
 The importance of the elements
creating the dissonance  The degree of
influence the individual believes he or she
has over the elements
 The rewards that may be
involved in dissonance

Cognitive dissonance is experienced on an immense

scale in a work environment. One example would be when a supervisor tells his
junior that he needs to get an almost impossible task done pronto, or he’ll basically
be replaced by some other subordinate. The worker now is caught between two
thoughts― he has an impossible task to finish instantly, which he knows he cannot,
or let the supervisor replace him with his co-worker, which would mean accepting
that the co-worker is better than him. This psychological restlessness is cognitive
dissonance. The worker now either will change his original belief about the difficulty
level of the task and try it or will stick to his belief and let himself get replaced by
his co-worker to reduce the psychological discomfort.

Compare and contrast the major job attitudes Major Job Attitudes
Job Satisfaction - Is the attitude of content an employee possesses in his or
her current position in an organization
Job Involvement - Identifying with the job, actively participating in it, and
considering performance important to self-worth.
Psychological Empowerment - “intrinsic task motivation reflecting a sense of
selfcontrol in relation to one’s work and an active involvement with one’s
work role”
Organizational Commitment – an individual's psychological bond to the
organization, including a sense of job involvement, loyalty and belief in the
values of the organization

Affective commitment - Refers to one’s

feelings of loyalty to a company or
organization because he or she
believes in the organization. They
typically identify with the
organizational goals, feel that they fit
into the organization and are satisfied
with their work. Employees who are
affectively committed feel valued, act
as ambassadors for their organization
and are generally great assets for
organizations.

Continuance commitment - an employee that has

already vested many years in a company building up
years of leave, employee benefits (such as pension)
and salary. If the employee were to leave to the
company, he/she may lose the time vested, as well as
seniority and pension loss. When employees feel the
need to stay with their organization because their
salary and fringe benefits won’t improve if they move
to another organization. Such examples can become
an issue for organizations as employees that are
continuance committed may become dissatisfied (and
disengaged) with their work and yet, are unwilling to
leave the organization.
 Normative commitment - an employee may feel a sense
of obligation to stay with their employer during its time
of need even though it is no longer advantageous to
do so. They may
fear the potential disappointment in their employer or teammates.

Perceived Organizational Support - discusses the employees’ perception

concerning the degree to which the organization values their involvement
and cares
 about their well-being. POS has been found to have important
significances to employee performance and well-being.

Employee Engagement - notion that employee engagement is a desirable

condition, has an organizational purpose, and connotes involvement,
commitment, passion, enthusiasm, focused effort, and energy, so it has
both attitudinal and behavioral components

Defining Job satisfaction and show how we can measure it

For this lecture you are to gain knowledge on the key elements in measuring of job
satisfaction. So why do employees need to be satisfied? According to the article
Why Job satisfaction is an Important Phenomenon of the Vicious Circle? a satisfied
employee helps promote the organization’s brand internally and externally.
Employees are more loyal to the organization’s objective and put an extra mile in
achieving goals.
Let us first define what is Job Satisfaction
Job satisfaction: a positive feeling about a job resulting from an evaluation of its characteristics.

Measuring job satisfaction:

 Single global rating method- the

single, global rating method is
nothing more than asking
individuals to respond to one
question such as; all things
considered, how satisfied are you
with your job?

• Only a few general questions

• Remarkably accurate

 Summation score method- It identifies key elements in a job and asks for the
employee’s feelings about each, nature of the work, supervision, present pay,
promotion opportunities, and relation with co-workers.

• Identifies key elements in the job and asks for specific feeling about them
 Average Job Satisfaction by
Facets Job Satisfaction by
Country Main causes of Job
Satisfaction What Causes Job
Satisfaction?

 The Work Itself – the

strongest correlation with
overall satisfaction
 Social Component – there
is a strong correlation with how
people view the social context
of their work
 Pay – not correlated after
individual reaches a
level of
comfortable living
 Personality – positive core
self-evaluations and negative
core
self-evaluations.

Identifying four employee responses to dissatisfaction

The Consequences of Dissatisfaction

When employees are dissatisfied with their jobs, they have four basic
responses they can utilize. These options are divided into active and passive
choices.

The active options are exit and voice:

 If employees select to exit, they choose to leave or move in a direction of
leaving the organization.
 In voice, the employees will work toward active and constructive attempts
to improve conditions.
The passive options are neglect and loyalty:
 Employees may choose to neglect their work and just allow conditions to worsen,
 Or they may choose to remain loyal to the organization and just wait for change.

The Benefits of Satisfaction

 Better job and organizational performance
 Better organizational citizenship behaviors
• (OCB – Discretionary behaviors that contribute to
organizational effectiveness but are not part of
employees’ formal job description)
 Greater levels of customer satisfaction
 Generally lower absenteeism and turnover
 Decreased instances of workplace deviance
Relevant concept of Job Satisfaction in countries other than the United States Are
Employees in Western Cultures More Satisfied with Their Jobs?
 Evidence suggests employees in Western cultures have higher levels of
job satisfaction than those in Eastern cultures. The report included 23
countries and the result appear the highest levels appear in the US and
Western Europe.
  Eastern individuals find negative emotions less aversive more than do
individuals in Western cultures, who tend to emphasize positive emotions
and individual happiness

IV. ACTIVITY / EXERCISES

Let’s see how the three components and see how these three works together.
I have written down an example on the left in showing how cognition, affect and
behavior are closely related. Now it’s your turn to reflect on the three components,
you may write it in the figures provided below.

V. ASSESSMENT
Answer the following:
1. A settled way of thinking or feeling about someone or something, typically
one that is reflected in a person's behavior.
2. A manifestation or acting out of the attitudes an individual has.
3. Any inconsistency between two or more attitudes, or between behavior and attitudes.
4. A positive feeling about a job resulting from an evaluation of its characteristics.
5. The attitude of content an employee possesses in his or her current
position in an organization.
6. Is the strongest correlation with overall satisfaction.
7. Is the sense of obligation to stay with their employer during its time of
need even though it is no longer advantageous to do so.
8. Refers to one’s feelings of loyalty to a company or organization because
he or she believes in the organization.
9. Identifying with the job, actively participating in it, and considering
performance important to self-worth
10.An individual's psychological bond to the organization, including a
sense of job involvement, loyalty and belief in the values of the
organization.
VI. SUMMARY
Implications for Managers
 Pay attention to your employees’ job satisfaction levels as determinants of
their performance, turnover, absenteeism, and withdrawal behaviors.
 Measure employee job attitudes objectively and at regular intervals in
order to determine how employees are reacting to their work.
 To raise employee satisfaction, evaluate the fit between the employee’s
work interests and the intrinsic parts of the job to create work that is
challenging and interesting to the individual.
 Consider the fact that high pay alone is unlikely to create a satisfying
work environment.
Keep in Mind…
 Individuals have many kinds of attitudes about their job
 Most employees are satisfied with their jobs, but when they are not, a
host of actions in response to the satisfaction might be expected
 Job satisfaction is related to organizational effectiveness

Chapter 4: Emotions & Moods at Work

I. LEARNING OBJECTIVE / OUTCOME

At the end of this lesson you should be able to:

1. Understand the difference between emotions and moods
2. Learn that emotions are rational and what functions they serve.
3. Know the sources of emotions and moods.
4. Know the impact emotional labor has on employees.
5. Learn the affective events theory and identify its applications.
6. Know the evidence for and against the existence of emotional intelligence.
7. Apply concepts about emotions and moods to specific OB issues.
8. Contrast the experience, interpretation, and expression of emotions across cultures

II. INRODUCTION

This chapter examines the effect of moods and emotions on the workplace.
Humans are emotional creatures, and to ignore this fact during work hours is
inappropriate in the study of organizational behavior. This chapter examines the
causes of, and influences on, emotion.
Emotional intelligence is explored, as are the various ways emotions play out in the
work environment.

III. LESSON PROPER

Why Were Emotions Excluded from OB Study?

Historically the study of organizational behavior has not given much attention
(detrimentalunfavorable/avoided) to emotions. Emotions were typically seen as
irrational, so managers tended to work to make the workplace emotion-free.
 Often managers viewed emotions as disruptive to the workplace and
therefore a hindrance to productivity. However, when thinking about emotions,
typically managers were focusing on negative emotions. Even though there are
some negative emotions that could hinder productivity, there is no doubt that
workers bring their emotions to the workplace. Therefore, any study in
organizational behavior would not be complete without considering the roles of
emotions in the workplace.

Affect, Emotions, and Moods

 Affect is a generic term that

covers a broad range of feelings
people experience. This includes
both emotions and moods. 
Emotions are intense feelings
that are directed at someone or
something.
 Moods are the feelings that tend
to be less intense than emotions
and that lack a contextual
stimulus.

Affect is the various emotional experiences such as emotions, moods and

affective traits. This is the emotion we express externally: can be a tone of voice,
smile, frown or any facial expression or body movements that indicates emotion.

Emotion
From the Latin verb “movare” means to move or be upset or agitated.
Defined by Smith (1973) referring to variations in level of arousal, affective state
or mood, expressive movements and attitudes.

As the brain releases neurotransmitters like dopamine and oxytocin, these

activates your emotions neurologically

• Neurotransmitter – a substance in the body that carries a signal from 1

nerve cell to another.
• Dopamine – a monoamine that is a decarboxylated form of dopa and
that occurs especially as a neurotransmitter in the brain
• Oxytocin- a pituitary octapeptide hormone that stimulates esp. the
contraction of uterine muscle and secretion of milk

The Basic Emotions

Six universal emotions
 Anger  Fear 
Sadness 
Happiness
  Disgust
 Surprise

Are feelings and emotions the same?

According to him, Dr. Antonio R. Damasio (2005) Neurologist, feeling arises from
the brain as it interprets an emotion, which is usually caused by physical
sensations experienced by the body as a reaction to a certain external stimulus
(event).

An example of this would be the emotion of being afraid, which produces a feeling of fear

The Basic Moods:

Positive affect: a mood dimension consisting of positive emotions such as

excitement, enthusiasm, and cheerfulness at the high end (high positive affect)
and boredom, sluggishness, and tiredness at the low end (low positive affect)

Negative affect: a mood dimension consisting of nervousness, stress, and

anxiety at the high end (high negative affect) and relaxation, tranquility and
serenity at the low end (low negative affect)

Experiencing Moods and Emotions

Positive moods are somewhat more common than negative moods

Positivity offset: at zero input, (when nothing in particular is going on) most
people experience a mildly positive mood

The Function of Emotions and Moods

 Emotions and Rationality

• Emotions are critical to rational thought: they help us understand
the world around us
 Emotions and Ethics
• New research suggests that ethical behavior may be based to
some degree on emotions and feelings

Strong emotion

The person’s physical responses including faster

heartbeat, profuse sweating and dilation of eye
pupils, higher blood pressure, and muscular
tremors affecting the nervous system in general.

Sources of Emotions and Moods

 Personality - Some people experience certain moods and emotions more

frequently than others. Affect intensity: experiencing the same emotions
with different intensities

 Time of day- People vary in their moods by time of day

Time-of-Day Effects on Moods of
U.S. Adults as Rated from Twitter
Postings

 Day of the week- People tend to be in their best mood on the weekend

Day-of-Week Mood Effects across Four Cultures

 Weather- No impact according to research

 Stress- Increased stress worsens moods
 Social Activities- Physical (hiking), informal (night party), and epicurean
activities (eat out with friends) increase positive mood
 Sleep- Lack of sleep increases negative emotions and impairs decision making
 Exercise - Mildly enhances positive mood
 Age- Older people experience negative emotions less frequently
 Gender - Women show greater emotional expression, experience emotions
more intensely, and display more frequent expressions of emotions. Could
 be due to socialization

 Emotional labor: an employee’s expression of organizationally desired

emotions during interpersonal transactions at work
  Emotional dissonance: when an employee has to project one emotion while
simultaneously feeling another (inconsistencies between the emotions
people feel and the emotions they project)

Felt vs. Displayed Emotions

 Felt Emotions: The individual’s actual emotions.

 Displayed Emotions: The learned emotions that the organization requires

workers to show and considers appropriate in a given job
• Surface Acting - hiding one’s true emotions. Deals with displayed emotions.
• Deep Acting- trying to change one’s feelings based on display rules.
Deals with felt emotions.

Affective Events Theory

Affective Events Theory (AET) demonstrates that employees react

emotionally to things that happen to them at work, and this reaction influences
their job performance and satisfaction. This provides us with valuable insights
into the role emotions play in primary organizational outcomes of job satisfaction
and job performance. The theory begins by recognizing that emotions are a
response to an event in the work environment.

The figure below is the framework of Affective Events Theory (AET):

This environment creates WORK

EVENTS that can be hassles or uplifting
events or both.

Ex. of hassles: colleagues who refuse to

carry their share of work; conflicting
directions from managers; and excessive
time pressures.

Ex. of uplifting events: meeting a goal, getting support from a colleague, and receiving
recognition for an accomplishment

Work events trigger positive or negative emotional reactions, to which employees’

personalities and moods predispose (influence) them to respond with greater or
lesser intensity.

Emotions influence performance and satisfaction variables such as

organizational citizenship behavior, organizational commitment, level of effort,
intention to quit, and workplace deviance.

Example scenario: Lay-off news in your company that may possibly include you.
Fear, insecurity and anxiety will affect performance and satisfaction.
Emotional Intelligence (EI)
 Emotional Intelligence (otherwise known as emotional quotient or EQ) is the
ability to understand, use, and manage your own emotions in positive ways to
relieve stress, communicate effectively, empathize with others, overcome
challenges and diffuse conflict. Emotional Intelligence helps you build stronger
relationships, succeed at school and work, and achieve your career and personal
goals. Individuals who are emotionally intelligent will have a strong sense of self-
awareness, recognizing their own emotions when experienced. By understanding
their own emotions and those of others, they can manage emotional cues and
information to make decisions. It can also help you connect with your feelings, turn
intention into action, and make informed decisions about what matters most to you.

OB Applications of Emotions and Moods

 Selection – Employers should consider EI a factor in hiring for jobs that

demand a high degree of social interaction.
 Decision Making – Positive emotions can increase problem-solving skills
and help us understand and analyze new information
 Creativity – Positive moods and feedback may increase creativity
 Motivation – Promoting positive moods may give a more motivated workforce
 Leadership – Emotions help convey messages more effectively
 Negotiation – Emotions may impair negotiator performance
 Customer Service – Customers “catch” emotions from employees,
called emotional contagion
 Job Attitudes – Emotions at work get carried home but rarely carry
over to the next day
 Deviant Workplace Behaviors – Those who feel negative emotions are
more likely to engage in deviant behavior at work
 Safety and Injury at Work – Bad moods can contribute to injuries on the job

How Managers can influence Moods?

• Managers can use humor and give their employees small tokens of
appreciation for work well done.
• When leaders are in good moods, group members are more positive,
and as a result they cooperate too.
• Selecting positive team members can have a contagion effect as positive
moods transmit from team member to team member.

Experience, Interpretation, and Expression of Emotions Across Culture

Emotions vary across culture. People in most cultures appear to experience certain
positive and negative emotions but the frequency and intensity varies in some
degrees. People from all over the world interpret negative and positive emotions in
much the same way. Though, it is easier for people to accurately recognize
emotions within their own culture than in others. Thus, cultural factors influence
what manager’s think is emotionally appropriate. Managers need to know the
emotional norms in each culture they do business in or they don’t send unintended
signals or misread the reactions of others.

IV. ACTIVITY / EXERCISES

Activity

1. Observe your own mood using the below table/format, wherein 10 is the most
positive and 1 is the least:
2. Identify if surface (Carlos) or deep (Girlie) acting (10)
a. Joseph offered help to Nathan though he’s not familiar with his work. (deep)
b. Dina congratulated Ted when he got the promotion, they both applied in. (deep)
3. Give a personal experience wherein you felt you had applied a high level of
emotional intelligence.
4. Search the internet for actual cases involving affect (mood or emotion)
Level of Mood

10
9
8
7
6
5
4
3
2
1

V. ASSESSMENT

1. Describe the three major emotional terms. How are they related and how do they differ?
2. List the basic emotions along a continuum. What are the difficulties of using this continuum?
3. Of the eight sources of emotions and moods identified in your text, which do you
feel is the most critical and why?
4. What are the sources of stress and emotional labor for employees?
5. How valid do you consider the concept of emotional intelligence to be?
Rationalize your answer.
6. Consider the impact of emotions on customer service. What is the effect of
emotions and moods on customer satisfaction, and how does the concept of
emotional contagion enter into this?
7. Are emotions universal? Why or why not? Give examples in your answer.

VI. SUMMARY

Implications for Managers

 Recognize that emotions are a natural part of the workplace and good
management does not mean creating an emotion-free environment
 To foster creative decision making, creativity, and motivation in employees,
model positive emotions and moods as much as is authentically possible
  In the service sector, encourage positive displays of emotion, which make
customers feel more positive and thus improve customer service interactions
and negotiations
 Managers who understand the role of emotions and moods will significantly
improve their ability to explain and predict their coworkers’ and employees’
behavior

Chapter 5: Personality and Values

I. LEARNING OBJECTIVE / OUTCOME

At the end of this lesson you should be able to:

1. Learn personality, describe how it is measured, and explain the factors
that determine an individual’s personality.
2. Know the key traits in the Big Five personality model.
3. Understand how the Big Five traits predict behavior at work.
4. Know the Myers-Briggs Type Indicator (MBTI) personality framework and
assess its strengths and weaknesses.
5. Learn other personality traits relevant to OB.
6. Know values, demonstrate the importance of values
7. Understand generational differences in values and identify the dominant
values in today’s workforce.

II. INTRODUCTION

Personality and values are major shapers of behavior. In order for managers
to predict behavior, they must know the personalities of those who work for them.
The chapter starts out with a review of the research on personality and its
relationship to behavior and ends by describing how values shape many of our
work-related behaviors.

III. LESSON PROPER

PERSONALITY

As June Peterson’s dilemma illustrates, different people behave differently in their

everyday lives. Personality, or personal style, is a very complex subject, yet in our
daily lives we use trait adjectives such as warm, aggressive, and easygoing to
describe people’s behavior. Personality is the word commonly used to describe an
individual’s collection (total person) of such behavioral traits or characteristics.
Personal style or personality is a relatively stable set of traits that aids in explaining
and predicting individual behavior. As noted, individuals are all different, yet similar,
in many ways.

In this section you will learn about personality and the personality classifications of
Type A and Type B; locus of control; the Big Five Model of Personality; and the MBTI.
Throughout this chapter and book, you will gain a better understanding of your
personality traits, which will help explain why you and others do the things you do
(behavior). Employers are checking social media sites, such as Facebook, to get a
feel for job candidates’ personality.

Personality Development and Classification Methods

Why are some people outgoing and others shy, some loud and others quiet, some
aggressive and others passive? This list of behaviors is made up of individual traits.
Traits are distinguishing personal characteristics. Personality development is based
on genetics and environmental factors. The genes you received before you were
born influence your personality traits. Your family, friends, school, and work also
influence your personality. In short, personality is the sum of genetics and a lifetime
of learning. Personality traits, however, can be changed, with work. For example,
people who are shy can become more outgoing.

Type A, Type B, and Locus of Control

Type A and Type B Personalities Let’s begin here with the simple two-dimensional
method Type A, Type B. A Type A personality is characterized as fast moving, hard
driving, time conscious, competitive, impatient, and preoccupied with work.
Because a Type B personality is the opposite of Type A, often it is called laid-back or
easygoing.

The Big Five Model of Personality

Let’s begin by completing Self-Assessment Exercise 1-2 to determine your

personality profile. The purpose of the Big Five model is to reliably categorize most,
if not all, of the traits that you would use to describe someone. The model is
organized into five dimensions, and each dimension includes multiple traits. The Big
Five Model of Personality categorizes traits into the dimensions of surgency,
agreeableness, adjustment, conscientiousness, and openness to experience. The
dimensions are listed and described below. Note, however, that the five dimensions
are sometimes published with slightly different descriptor names.

Surgency How strong is your desire to be a leader? The surgency personality

dimension includes leadership and extroversion traits. (1) People strong in
leadership, more commonly called dominance, personality traits want to be in
charge. They are energetic, assertive, active, and ambitious, with an interest in
getting ahead and leading through competing and influencing. The late Steve Jobs
had a high surgency personality type. People weak in surgency want to be followers,
and they don’t like to compete or influence. (2) Extroversion is on a continuum
between being an extrovert and being an introvert. Extroverts are outgoing,
sociable, and gregarious, like to meet new people, and are willing to confront
others, whereas introverts are shy.

Agreeableness How important is having good relationships to you? Unlike the

surgency behavior trait of wanting to get ahead of others, the agreeableness
personality dimension includes traits related to getting along with people. Agreeable
personality behavior is strong when someone is called warm, easy-going, courteous,
good-natured, cooperative, tolerant, compassionate, friendly, and sociable; it is
weak when someone is called cold, difficult, uncompassionate, unfriendly, and
unsociable. Strong agreeable personality types are sociable, spend most of their
time with other people, and have lots of friends.
Adjustment How emotionally stable are you? The adjustment personality dimension
includes traits related to emotional stability. Adjustment is on a continuum between
being emotionally stable and being emotionally unstable. Stability refers to self-
control, calmness—good under pressure, relaxed, secure, and positive—and a
willingness to praise others. Being emotionally unstable means being out of control
—poor under pressure, nervous, insecure, moody, depressed, angry, and negative
and quick to criticize others. Bill Gates is said to be more in
control of his emotions than Steve Jobs, who was sometimes emotional. People with
poor adjustment are often called narcissists and tend to cause problems.

Conscientiousness How strong is your desire to be successful? The

conscientiousness personality dimension includes traits related to achievement.
Conscientiousness is on a continuum between being responsible and dependable
and being irresponsible and undependable. Other traits of high conscientiousness
include persistence, credibility, conformity, and organization. This trait is
characterized as the willingness to work hard and put in extra time and effort to
accomplish goals to achieve success. Conscientiousness is a good predictor of job
success.

Openness to Experience How willing are you to change and try new things? The
openness to experience personality dimension includes traits related to being
willing to change and try new things. People strong in openness to experience are
imaginative, intellectual, open-minded, autonomous, and creative, they seek
change, and they are willing to try new things, while those who are weak in this
dimension avoid change and new things.

Personality Profiles

Personality profiles identify individual strong and weak traits. Defining your
personality can help you find the right career. Students completing Self-Assessment
Exercise 1-2 tend to have a range of scores for the five dimensions. Review your
personality profile. Do you have high scores (strong traits) and low scores (weak
traits) on some dimensions? Think about the people you enjoy being with the most
at school and work. Are their personalities similar to or different from yours?

The Big Five Model of Personality Has Universal Applications Across Cultures

Studies have shown that people from Asian, Western European, Middle Eastern,
Eastern European, and North and South American cultures seem to exhibit the same
five personality dimensions. However, some cultures do place varying importance
on different personality dimensions. Overall, the best predictor of job success on a
global basis is the conscientiousness dimension.

Using Behavior That Matches the Big Five Personality Types

We need to be able to work well with people that have different personalities than
ours. To improve our human relations, it is helpful for us to adjust our behavior
based on the other person’s personality type, especially our bosses, because they
evaluate our performance, which affects our career. That subject is what this
section is all about.

1. Determine Personality Type — First, we have to understand the personality

types and determine an individual’s personality profile. As you know, people are
complex, and identifying a person’s personality type is not always easy, especially
when they are between the two ends of the personality type continuum. However,
understanding personality can help you understand and predict behavior, human
relations, and performance in a given situation.

2. Match Personality Type—Next, we select the behavior we will use to match

the other person’s personality type. How to deal with each personality type is
presented below.
Surgency

Extroverts: They like to talk, so be talkative while showing an interest in them

and talking about things they are interested in. If you are not really talkative,
ask them questions to get them to do the talking.

Introverts: Take it slow. Be laid-back and don’t pressure them, but try to draw
them out by asking questions they can easily answer. Ask for ideas and
opinions. Don’t worry about moments of silence; introverts often like to think
before they respond.

Agreeableness

Agreeable: They are easy to get along with, so be friendly and supportive of
them. However, remember that they don’t tend to disagree with you to your
face, so don’t assume that just because they don’t disagree with you, it
means that they actually do agree with you. Asking direct questions helps,
and be sure to watch for nonverbal behavior that does not match a verbal
statement of “I agree with you.”

Disagreeable: Try not to do things that will get them upset, but don’t put up
with mistreatment; be assertive (you will learn how in Chapters). Be patient
and tolerant, because their behavior is sometimes defensive to keep them
from being hurt, but inside, they do want friends. So keep being friendly and
trying to win them over.

Adjustment

Emotionally stable: They tend to be easy to get along with.

Emotionally unstable: They tend to be highly emotional and unpredictable, so

try to be calm yourself and keep them calm by being supportive while showing
concern for them. Also, follow the guidelines of dealing with disagreeable
types. You will learn how to deal with emotions and emotional people in
Chapter 4.

Conscientiousness

Conscientious: They will come through for you, so don’t nag; be supportive and
thank them when the task is done.

Unconscientious: They tend to need prompting to complete tasks. Set clear

deadlines and follow up regularly; express appreciation for progress and task
completion.

Open to Experience
Open: They like change and trying new things. Focus on sharing information,
ideas, and creative problem solving.

Closed: They don’t want change and tend to focus on the short-term without
considering how things will be better in the long-term if they change now.
Focus on telling them what
 they have to lose and how they will benefit from the change, and use facts and
figures to support the need for change. You will learn how to overcome
resistance to change in other chapters.

The Myers-Briggs Type Indicator (MBTI)

Our fourth, and most complex, personality classification method is the Myers-Briggs
Type Indicator (MBTI). The MBTI model of personality identifies your personality
preferences. It is based on your four preferences (or inclinations) for certain ways of
thinking and behaving.

Big Five Traits and OB Trait Activation Theory

BIG FIVE / FIVE FACTOR MODEL a categorized scheme that describes personality
developed by McRae and Costa in 1992. Five universal and widely agreed upon
dimensions of personality and described using its most positive traits in acronym
O.C.E.A.N:
O– OPENNESS to Experience – curiosity, interest, imagination and creativity to new ideas.
C– CONSCIENTIOUSNESS – planning, organizing, hard-working, controlling,
persevering, and punctuality.
E– EXTRAVERSION – sociable, talkative, active, outgoing, and fun-loving.
A– AGREEABLENESS – friendly, warm, trusting, generous, and kind-hearted.
N– NEUROTICISM (Emotional Stability) –taps a person’s ability to withstand stress.
People with positive emotional stability tend to be calm, relaxed and comfortable.
Those with high negative scores tend to be nervous, anxious, depressed and
insecure.

Other Personality Traits Relevant to OB

✓ Core self-evaluation - People with positive core self-evaluation like
themselves and see themselves as capable and effective in the workplace.
✓ Self-monitoring - Adjusts behavior to meet external, situational factors. High
monitors are more likely to become leaders in the workplace.
✓ Risk-taking - People differ in their willingness to take chances, a quality that
affects how much time and information managers make to make a decision.
✓ Proactive personality
- Identifies opportunities, shows initiative, takes action, and perseveres
VALUES
In this section, we cover individual values and how they are related to, yet
different from, attitudes. A person’s values are the things that have worth for or are
important to the individual, and a value system is the set of standards by which the individual
lives. Values concern what “should be”; they influence the choices we make among
alternative behaviors. Values direct the form that motivated behavior will take. For
example, if you have three job offers, you will select the one that is of the highest
value to you.
Values help shape your attitudes. When something is of value to you, you tend to
have positive attitudes toward it. What is of value to you? Take time and identify
what is truly important to you, and be sure you devote time to your values.
Complete Self-Assessment Exercise 1-4 to identify your personal values in eight
broad areas of life.
Values are developed in much the same way as attitudes. However, values
are more stable than attitudes. Attitudes reflect multiple, often changing, opinions.
Values about some things do change, but the process is usually slower than a
change in attitude. Society influences our value system. What was considered
unacceptable in the past may become commonplace in the future, or vice versa. For
example, the percentage of smokers and the social acceptance of smoking have
decreased over the years. Value changes over the years are often a major part of
what is referred to as the generation gap.
Getting to know people and understanding their values can improve human
relations. For example, if Juan knows that Carla has great respect for the president,
he can avoid making negative comments about the president in front of her.
Discussions over value issues, such as abortion and homosexuality, rarely
lead to changes in others’ values. They usually just end in arguments. Therefore,
you should try to be open-minded about others’ values and avoid arguments that
will only hurt human relations.

Spirituality in the Workplace

People want to be happy. Many people are seeking spirituality as a means of
fullfillment in their lives. Dr. Edward Wilson, Harvard University professor and two-
time Pulitzer Prize– winning expert on human nature, says, “I believe the search for
spirituality is going to be one of the major historical episodes of the 21st century.”
NBA 11-ring- winning coach Phil Jackson says: “Much of my outlook in life is from a
spiritual direction.”

Defining Spirituality in the Workplace

Spirituality in the workplace is about people seeing their work as a spiritual
path, as an opportunity to grow personally and to contribute to society in a
meaningful way. It is about learning to be more caring and compassionate with
fellow employees, with bosses, with subordinates, and with customers. It is about
having integrity, being true to oneself, and telling the truth to others. Spirituality in
the workplace can refer to an individual’s attempts to live his or her values more
fully in the workplace. Or it can refer to the way’s organizations structure
themselves to support the spiritual growth of employees. In the final analysis, your
understanding of spirit and of spirituality in the workplace is a very individual and
personal matter.
Guidelines for Leading from a Spiritual Perspective Here are five spiritual principles
that have been useful in personal and professional development:
1. Know thyself. All spiritual growth processes incorporate the principle of self- awareness.
2. Act with authenticity. Be yourself.
3. Respect and honor the beliefs of others. Be open to other’s beliefs and values.
 4. Be as trusting as you can be. This means trusting yourself and that there is a
Higher Power in your life and that if you ask, you will receive guidance on
important issues.
5. Maintain a spiritual practice. Examples include spending time in nature,
attending religious services, meditating, praying, and reading inspirational
literature.

Secular institutional research has found that during moments of anger and
distress, turning to prayer or meditation, encouraged in nearly all religions,
diminishes the harmful effects of negative emotions and stress. Also, people who
attend religious services regularly enjoy betterthan-average health and wealth,
have better marriages, and are happier. One survey reported that the majority of
Americans pray.
By implementing the ideas presented in this chapter, you can develop positive
attitudes and a more positive self-concept, as well as clarify your values. Begin
today.

Still on VALUES:
Rokeach Value Survey (RVS)

❖ Terminal values: desirable end-states of existence Goals that a person

would like to achieve during his or her lifetime

❖ Instrumental values: preferable modes of behavior or means of

achieving the terminal values

Terminal and Instrumental Values in the RVS

Terminal Values Instrumental Values

A comfortable life (a prosperous Ambitious (hardworking,

life) aspiring)
Equality (brotherhood, Responsible(dependable,
equal opportunity for reliable)
all)
Freedom Helpful (working for the
welfare of others)
(independence, free
choice)
Happiness (contentedness) Courageous (standing up for
your beliefs)

Self-respect Honest (sincere, truthful)

❖ Generational Values
 Dominant Work Values
Cohort/Generation Entered Approx.
s Workforce Current Age
 1950’s Hardworking,
Veterans or early conservative,
(Traditionali 1960’s 65+ conforming; loyalty to the
sts) organization

Boomers Mid-40’s Success,

1965
(Baby to
-
Boomers) achievement, ambition,
1985
mid- dislike of authority;
60’s loyalty to career
Work/life balance,
Late team oriented, dislike
1985
Xers (Gen X) 20’s to of rules; loyalty to
-
early relationships
2000
40’s
Confident, financial
success, self-reliant but
Nexters (Gen team-oriented; loyalty to
2000prese both self and
Y)/ Under 30
nt relationships
Millennials

Person-Organization Fit
This idea can be further linked to the workplace by looking at person-
organization fit. The employee’s personality needs to fit with the organizational
culture. When employees find organizations that match their values, they are more
likely to be selected and correspondingly be more satisfied with their work. The big
five personality types are often helpful in matching the individuals with
organizational culture.

International Values
There are global implications to personality and values in the workplace.
Frameworks such as the Big Five are transferable across cultures; in fact, it has
been used worldwide. However, the applicability is higher in some cultures than
others. Values, on the other hand, differ to a great degree across cultures.

Hofstede’s Framework for Assessing Cultures

Five factors:
1.Power Distance
2.Individualism vs. Collectivism
3.Masculinity vs. Femininity
4.Uncertainty Avoidance
5.Long-term vs. Short-term Orientation

Geert Hofstede developed a framework for assessing culture. He breaks up

his framework of understanding into five value dimensions: power distance,
individualism vs. collectivism, masculinity vs. femininity, uncertainty avoidance, and
long-term vs. short- term orientation.
 The GLOBE, as discussed earlier, is also helpful in framing differences
between cultures. Global Leadership and Organizational Behavior
Effectiveness Ongoing study with nine factors:

Assertiveness Individualism/ collectivism

Future orientation In-group collectivism
Gender differentiation Performance orientation
Uncertainty avoidance Humane orientation
Power distance

ETHICS
As related to values, ethics refers to the moral standard of right and wrong behavior.
Business is often viewed as being unethical, and today more businesses are
focusing on ensuring ethical business practices. In this section, we discuss whether
ethical behavior does pay, how personality and attitudes affect ethical behavior,
how people justify unethical behavior, some ethical guidelines, the stakeholders’
approach to ethics, and global ethics.
Does Ethical Behavior Pay?
Generally, the answer is yes. Ethical or unethical behavior is linked directly to
bottom-line performance. Organizational scandals have become too common. Greed
and materialism have led to distrust, if not disdain, for business leaders. An ethical
scan- dal can lead to having a hard time attracting customers, investors, and
employees and may lead to lawsuits, financial losses through settlements and sales
declines, increases in the cost of capital, market share decline, loss of network
partners, and other costs associated with a negative reputation.
On a personal level, it may be incredibly tempting to be unethical, but the long-
term consequences can impose dramatic costs. Lying is common, but it’s generally
best not to lie. Being truthful can enhance your well-being, as honest people have
fewer mental health and physical complaints.
How Personality Traits and Attitudes, Moral Development, and the Situation Affect Ethical
Behavior
Personality Traits and Attitudes The use of ethical behavior is related to our
individual needs and personality traits. Leaders with surgency dominance personality
traits have two choices: to use power for personal benefit or to help others. To gain
power and to be conscientious with high achievement, some people will use unethical
behavior. An agreeableness personality, sensitive to others, can lead to following the
crowd in either ethical or unethical behavior. Emotionally unstable people and those
with an external locus of control are more likely to use unethical behavior. People
open to new experiences are often ethical.
People with positive attitudes about ethics tend to be more ethical than those with
negative or weak attitudes about ethics. The firm’s internal ethical context can help
or hurt employee attitudes and behavior—being ethical or unethical.
When you complete Self-Assessment Exercise 1-6 at the end of this section, you will
have a better understanding of how your personality affects your ethical behavior.
But before that, complete Self-Assessment Exercise 1-5 to determine how ethical
your behavior is.
Moral Development A second factor affecting ethical behavior is moral
development, which refers to understanding right from wrong and choosing to do the
right thing. Our ability to make ethical decisions is related to our level of moral
development when we face moral issues. There are three levels of personal moral
development, as discussed in Exhibit 1.1. Although most of us have the ability to
reach this third level, only about 20 percent of people actually do reach it.
Most people behave at the second level, conventional. How do you handle peer
pressure? What level of moral development have you attained? What can you do to
further develop your ethical behavior?
The Situation People respond to “incentives” and can often be manipulated to
do the ethical or unethical thing based on the situation’s circumstances. Highly
competitive and unsupervised situations increase the odds of unethical behavior.
Unethical behavior occurs more often when there is no formal ethics policy or code
of ethics and when unethical behavior is not punished. Unethical behavior is
especially prevalent when it is rewarded. People are also less likely to report
unethical behavior (blow the whistle) when they perceive the violation as not being
serious and when the violator is a friend.
To tie together the three factors affecting ethical behavior, you need to
realize that personality traits and attitudes and your moral development interact
with the situa- tion to determine if you will use ethical or unethical behavior. In this
chapter we use the individual level of analysis: Am I ethical? How can I improve my
ethical behavior? At the organizational level, many firms offer training programs
and develop codes of

Exhibit 1.1 Levels of Moral Development

Level 3: Postconventional
Behavior is motivated by universal principles of right and wrong, regardless of the
expectations of the leader or group. One seeks to balance the concerns for self with
those of others and the common good. At the risk of social rejection, economic loss,
and physical punishment, the individual will follow ethical principles even if they
violate the law (Martin Luther King, Jr., for example, broke what he considered
unjust laws and spent time in jail seeking universal dignity and justice).
“I don’t lie to customers because it is wrong.”
The common leadership style is visionary and committed to serving others and a
higher cause while empowering followers to reach this level.
Level 2: Conventional
Living up to expectations of acceptable behavior defined by others motivates
behavior to fulfill duties and obligations. It is common for followers to copy the
behavior of the leaders and group. If the group (this could be society, an
organization, or a department) accepts lying, cheating, and stealing when dealing
with customers, suppliers, the government, or competitors, so will the individual.
On the other hand, if these behaviors are not accepted, the individual will not do
them either. Peer pressure is used to enforce group norms. “I lie to customers
because the other sales reps do it too.”
It is common for lower-level managers to use a leadership style similar to that of the
higher-level managers.
Level 1: Preconventional
Self-interest motivates behavior to meet one’s own needs and to gain rewards while
following rules and being obedient to authority to avoid punishment.
“I lie to customers to sell more products and get higher commission checks.”
The common leadership style is autocratic toward others while using one’s position
for personal advantage.
Source: Based on Lawrence Kohlberg, “Moral Stages and Moralization: The
CognitiveDevelopment Approach,” in Moral Development and Behavior: Theory, Research,
and Social Issues, ed. Thomas Likona (Austin, TX: Holt, Rinehart and Winston, 1976),
pp. 31–53.
IV. ACTIVITY / EXERCISES

Teamwork. As individuals, search for “Free Holland Career Model

Assessment” on the web and take one of the assessments. Get the list of jobs you
are most likely to enjoy doing and those you are least likely to enjoy. Bring your
results into the team.
As a team, find out which team members are currently in jobs (or if they are
not working now, were in jobs) that Holland’s assessment indicates they
should enjoy and which are in jobs that the assessment says they would not
enjoy. Determine:
a. How accurately does the assessment match your own experiences?
b. How well do your degree fields match the suggested careers?
c. What is the group’s opinion of the personality field in which each
person was placed? How accurately does it describe each of you?

Compile your results and share them with the class.

V. ASSESSMENT

1. Describe the two most common methods of assessing a personality. Which is

likely to be the most accurate? Why?
2. Describe the Myers-Briggs Type Indicator personality framework.
Based on the framework, what would you think was your personality type?
Why?
3. Identify and describe the five traits of the Big Five personality model.
4. What are two attributes of values? Why are values important in OB?
5. Describe the relationship between terminal and instrumental values.

VI. SUMMARY

A. Personality. Managers need to evaluate the job, the work group, and the
organization in order to determine what the optimum Big Five personality
type would be for a new employee. The MBTI could be helpful in training and
development.
B. Values. Values strongly influence attitudes, behaviors, and perceptions, so
knowing a person’s values may help improve prediction of behavior.
C. Additionally, matching an individual’s values to organizational culture can
result in positive organizational outcomes.

Chapter 6: Perception and Individual Decision Making

I. LEARNING OBJECTIVES/OUTCOMES

At the end of this lesson, you should be able to:

1. Understand perception and the factors that influence it and its link
to decision making;
2. Learn how individual differences and organizational constraints
 affect decision making; and
3. Becoming a great decision maker in the workplace.
II. INTRODUCTION

Perception is a process by which individuals organize and interpret their

sensory impressions in order to give meaning to their environment. In relation to
decision making process, perception affects our way of thinking on how we deal
with situations like making a decision. We may make decisions based on our
experiences because there are some that has already the knowledge on how they
will respond to that situation. There are also some that they based their decision
making skills on their interest or their motives with it. Perception affects our
decision making process because in order to make an accurate decision, you need
to think properly if this one will work or not. There are a lot of things that should be
consider in making a decision. One thing that makes decision making difficult is our
perception to what will be the outcome after making this decision.

III. LESSON PROPER

PERCEPTION - A process by which individuals organize and interpret their

sensory impressions in order to give meaning to their environment. The world as it
is perceived is the world that is behaviorally important

Factors Influencing Perception

PERSON PERCEPTION:
Perceiver
Attribution Theory- Suggests that perceivers try to
Situation Target
“attribute” the observed behavior to a type of cause:
Internal – behavior is believed to be under the personal
Perception control of the individual
External – the person is forced into the behavior by
outside events/causes

Determinants of Attribution  Distinctiveness– whether an individual displays different

behavior in different situations (the uniqueness of the act)
 Consensus – does everyone who faces a similar situation respond in the
same way as the individual did  Consistency– does the person respond
the same way over time
This chart looks at the elements of the
attribution theory and helps us to make
the connection between external or
internal driven factors.

Attribution Errors

• Fundamental attribution error: Tendency

to underestimate the influence of external
factors and overestimate that of internal
factors.
• Self-Serving Bias: Occurs when individuals
 overestimate their own (internal) influence on successes and overestimate the
external influences on their failures. The basic process of attribution applies
across cultures, but Western cultures tend to be more individualist, while Asian
cultures are more group oriented

SHORTCUTS USED IN JUDGING OTHERS

 Selective Perception: A perceptual filtering process based on interests,

background, and attitude.
 Halo Effect: Drawing a general impression based on a single characteristic
 Contrast Effects: Our reaction is influenced by others we have recently
encountered (the context of the observation)  Stereotyping: Judging
someone on the basis of
the perception of the group to which they belong

THE LINK BETWEEN PERCEPTION AND DECISION MAKING

In organizational behavior we are concerned with how decisions are made

and perceptions play a significant role in that process. Often decision making
occurs as a reaction to a problem or a perceived discrepancy between the way
things are and the way we would like them to be. A decision is then made based
on various alternatives that have been developed from the data collected.
Perception influences this entire process from problem recognition to data
selection to alternative chosen.

 Rational Decision-Making Model

This model is seldom actually used: it’s more of a goal than a practical
method. This model assumes a perfect world in order to make decisions. It assumes
that there is complete information, that every option has been identified and that
there is a maximum payoff.
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
The limited information-processing capability of human beings makes it
impossible to assimilate and understand all the information necessary to optimize.
People seek solutions that are satisfactory and sufficient, rather than optimal (they
“satisfice”). Bounded rationality is constructing simplified models that extract the
essential features from problems without capturing all their complexity

Simpler than rational decision making, decision making under bounded rationality
is composed of three steps:
1. Limited search for criteria and alternatives – familiar criteria and
easily found alternatives
2. Limited review of alternatives – focus on alternatives, similar to those
already in effect
 3. Satisficing – selecting the first alternative that is “good enough” 
Intuitive Decision Making
The third model is based on intuition. This is the non-conscious process that
occurs as a result of experiences that result in quick decisions.
 1. Increases with experience
2. Can be a powerful complement to rational analysis in decision making

Common Biases and Errors

1.Overconfidence Bias
As managers and employees become more knowledgeable about an
issue, the less likely they are to display overconfidence
2.Anchoring Bias
A tendency to fixate on initial information and fail to adequately adjust for
subsequent information
3.Confirmation Bias
Seeking out information that reaffirms our past choices and discounting
information that contradicts past judgments
4. Availability Bias
Basing judgments on information that is readily available
5. Escalation of Commitment
Staying with a decision even when there is clear evidence that it is wrong
6. Risk Aversion
Preferring a sure thing over a risky outcome
7.Hindsight Bias
Believing falsely that we could have predicted the outcome of an
event after that outcome is already known

Organizational Constraints on Decision Making

There are many organizational constraints to good decision making that
create deviations from the rational model defined earlier. Managers shape their
decisions on performance evaluations, reward systems, and formal regulations. They
also base decisions on systemimposed time constraints and historical precedents. All
these factors may influence the decisions that are made.

Ethical Frameworks for Decision Making

 Utilitarianism - Provide the greatest good for the greatest number
 Rights- Make decisions consistent with fundamental liberties and privileges
 Justice- Impose and enforce rules fairly and impartially so that there is equal
distribution of benefits and costs

CREATIVITY IN ORGANIZATIONS
Better decisions are those that incorporate novel and useful ideas, or creativity. An
organization will tend to make better decisions when creative people are involved in
the process. So, it is important to identify people who have that creative potential.
Some of the methods and theories identified in earlier chapters can help in this
process. For example, those who score high in openness to experience tend to be
more creative.

CREATIVITY - The ability to produce novel and useful ideas

Helps people:
• See problems others can’t see
• Better understand the problem
• Identify all viable alternatives
 • Identify alternatives that aren’t readily apparent

Three-Stage Model of Creativity

Creative behavior occurs in four steps, each of
which leads to the next. Problem formulation,
information gathering, idea generation, and
idea evaluation.
Steps:
1. Problem formulation: identify a problem
or opportunity that requires a solution as yet
unknown
2. Information gathering possible solutions
incubate in an individual’s mind
3. Idea generation: develop possible solutions
from relevant information and knowledge
4. Idea evaluation: evaluate potential solutions and identify the best one Cause of
creative behavior:
 Creative potential- Expertise is the single most important predictor of
creative potential
 Creative environment- Motivation and Rewards and recognition

Off-the-wall solutions are creative only if they help solve the problem.
Creative ideas do not implement themselves; translating them into creative
outcomes is a social process that requires utilizing other concepts addressed in the
text.

IV. ACTIVITY: International OB

East–West Differences: It’s Perceptual

1. Divide into groups of three to five people or Individual.
2. View the ad as an individual or as a group. http://www.youtube.com/watch?v=--BwPz574MA
3. Discuss in the group how differences in culture might result in differences of interpretation.
4. If you decide there is a possibility of misinterpretation, what would you suggest as
a solution to meet the advertiser’s goals while ensuring more similar
interpretations globally?
5. Present your conclusion to the class to open discussion to each group’s interpretations.

V. ASSESSMENT

1-2.) Perception is a process by which individuals and

their sensory
impressions in order to give meaning to their environment.

3.) Stereotyping: someone on the basis of the perception of the

group to which they belong.
4, 5 and 6.) Determinants of Attribution
7.) Internal – behavior is believed to be under the of the individual.
8.) External – the person is forced into the behavior by events/causes.

9 and 10. Three Stages of Creativity

VI. SUMMARY

Behavior follows perception, so to influence employee behavior at work,

assess how employees perceive their work. As individuals have inherent biases in
their perceptions and corresponding decision making. Make a better decision by
recognizing perceptual biases and decision-making errors we tend to commit
because biases can be helpful if used effectively. Adjust your decision-making
approach to the national culture you’re operating in and to the criteria your
organization values. Combine rational analysis with intuition. Try to enhance your
creativity as it aids in arriving at better decisions as it allows for new perspectives
and ideas.

Chapter 7: Motivation Concepts

I. LEARNING OBJECTIVES/OUTCOMES

At the end of this lesson, you should be able to:

1. Understand the reasons why Filipino workers take on the daily challenges of
their work and how organizations respond in return;
2. Learn the different components that make up an employer-employee
relationship and how both sides contribute to sustaining it; and
3. Learn more about the different forms of organizational rewards which are
cornerstones of motivation in the workplace.

II. INTRODUCTION

In 2013, 38.5 million or nearly 60% of Filipinos of working age were employed
(Philippine Statistics Office 2013). Among these three in every five employed
persons are full-time workers while one in every five seek more hours of work. For
the most part, work is a means to satisfy the requirements of everyday living and
maintaining a lifestyle (Henderson 2000). Enriquez (1993) said that work also gives
a person a sense of identity and provides opportunities to make friends and expand
one’s social network. On a more abstract level, some people even find a more
purposeful and meaningful life through work (Tiglao-Torres 1990).
III. LESSON PROPER

Understanding Filipino Work Motivation

In understanding the motivations of Filipino employees, it is important to
consider what is important in their lives as this may guide their work activities and
goals.
Sense of familialism (pagkakamag-anak) – a central feature in Filipino culture
that is reflected in the different interactions that they engage in. The family interest
is foremost in making decisions on the type of work that one engages in; thus,
Filipino overseas workers may give more importance to the economic gain for their
families over their personal feelings of separation. The benefits of the financial
rewards are contextualized in terms of how these will improve the conditions of the
family and contribute to their social mobility.
The tenacity to improve one’s self and their condition in society reflects the
Filipino’s pagsusumikap – a valued social trait (Jocano 2001). One is expected to
work hard to improve their lot. The be perceived otherwise is a stigma and is
avoided in Filipino society. This desire to further one’s self (kaunlaran) applies even if
it means leaving the country to seek this advancement (Jocano 2001).
More recently, a research of Ilagan et al. in 2014 identified several motivating
factors of Filipino employees to come up with Filipino Needs Theory of Motivation:

1. Job related – needs concern those that are specific to the worker’s
immediate tasks (e.g., co-worker relations)
2. Organization related – considers the larger working environment (e.g.
being a role model to others)
3. Family related – needs include education for family members and having
good pay and benefits
4. Career related – needs are those that contribute to their professional development
Total Rewards for Filipino Employees
The presence of both intrinsic and extrinsic rewards in an organization
underlies the concept of total rewards. Total rewards refer to all the rewards that
the employer gives to the employee, which include all forms of financial returns,
benefits, tangible services, and intangible returns that employees receive as part of
an employment relationship (Milkovich et.al 2014). Two main parts of Employee
Compensation:

1. FINANCIAL REMUNERATION or CASH

Base pay – refers to the cash compensation that an employer pays for the
work performed.
Merit pay – is a performance-based increment to the base pay which can
substantially increase it in the long run.
Individual incentives – are given on the achievement of objective, pre-
established performance standards such as commissions.

2. INDIRECT FINANCIAL COMPENSATION

Pay for time not worked, services and protection programs given to the
employees that are either mandated by the government or at the discretion
of the company (Martires 1988).
BENEFITS
Government-mandated benefits: social security, thirteenth month pay, paid
vacation/holidays, retirement benefit, housing benefit, medical care and paternity
leave.
Additional benefits: access to medical service, allowance for rice and
groceries, life insurance, savings plan, training programs, work life balance
programs, and scholarships.

FLEXIBLE BENEFITS
The study of Martires (1988) says that a growing trend in the crafting of benefits
program in an organization is the flexible benefits also known as the cafeteria plan.
For a specified amount, an employee is given freedom to choose the benefits he or
she would like to avail of from a list provided by the company – turo-turo or pointing
style.
The FLEXIBLE BENEFIT program gives the organization a better control on
cost while making the employees more aware of the benefits that they receive
(Watson Wyatt Worldwide 2009).
This program adheres to the understanding that different rewards will
motivate different employees. For instance, a working mother may be more interested
in health coverage for her family, while a single employee may be more interested on
self-development activities such as a scholarship or gym membership.
Ensuring top performance from Filipino workers therefore requires an
understanding of their culture and beliefs. Below are some ways to enhance the
motivation of Filipino employees:

1. Identify the most pressing needs of employees. It is important for

organizations to understand the needs of their employees and the extent
to which they believe these needs are being met. Such data can guide the
development of programs, policies and interventions.
2. Introduce challenging activities where the employee can potentially learn a
new skill or acquire a new set of knowledge. Engaging the employees in
tasks that maximize their potential can add to their interest at work. Not
only would this contribute to their growth but this can also reflect the
organization’s concern on their continued financial sustainability.
3. Give meaningful rewards. Rewards are most appreciated when it is
perceived as valuable. Taking the extra effort to identify which rewards
are most needed by the employees will ensure that it generates the most
impact. Filipino workers in general, place a high value on cash (Asundion
2000), travel, and recognition as powerful motivators for them to do
productive work (Yao, Franco and Hechanova 2005).
4. Respect the cultural norms and behavior that they have and use these as a
vehicle to get through them. Filipinos are known to be family-oriented
(Medina 2001). Work activities that have the potential to conflict with this
aspect of the person, such as requiring work when they are supposed to
spend time with the family, may not be received favorably.
5. Harness Congenial Relationships. An employer should harness the
congenial relationships in the office that can facilitate productive
collaboration on work activities.
6. Build relationships with leaders and employees. Leaders need to take the
 time and effort to know their employees – their lives, dreams and plans for
the future. Addressing their need for belongingness can make them feel
cared for which leads to a feeling of oneness with the organization.
EARLY THEORIES OF MOTIVATION
 There are a number of theories of motivation that help us gain a better
understanding of the concept. Some of the earlier theories are not entirely valid
anymore but they are still used by many managers.

• Maslow’s Hierarchy of Needs Theory

• McGregor’s Theory X and Theory Y
• Herzberg’s Two-Factor (Motivation-Hygiene) Theory
• McClelland’s Theory of Needs (Three Needs Theory)

The first theory was developed by Abraham Maslow in

the 1950s. His theory states that with every
individual there is a hierarchy of five needs. As each
need is met or satisfied the next need becomes
dominant. His theory posits that individuals are stuck
in their existing need level until it is satisfied and
then they can move on to the next level. For
example, until their safety needs are met they will
not be able to move on to the social level. The
organization of these need levels may vary across
cultures.

Douglas McGregor added to the motivation work done

in the 1950s and developed the theory called Theory
X, Theory Y. He believed that there are two distinct Theory X
views of human beings that managers hold. The Theory Y
Theory X view is basically negative and holds that
workers have little ambition, dislike work, and avoid
responsibility. The Theory Y view is in contrast to X
and sets forth that workers tend to be self-directed,
enjoy work, and accept responsibility. Managers will
modify their behavior toward employees based on
what view they hold about them.

Herzberg’s Two-Factor theory is another one of the

earlier developed theories. This theory sets forth that
satisfaction and dissatisfaction are not opposites, but
two separate ideas. There are a set of factors that
when present will help to avoid dissatisfaction in
workers. This group is called the hygiene factors and
includes such things as salary, working conditions,
and company policies. There is another set of factors
that when present will help to cause satisfaction in
workers. This group is called motivators and includes
things such as growth, responsibility, and
achievement. These sets are distinct and the
presence of hygiene factors does not cause
satisfaction; it just helps avoid dissatisfaction.
The final earlier theory of needs we will look at is McClelland’s need theory. He
bases his theory on the idea that people are motivated in the workplace by three
main needs. The first need is the need for achievement or the drive to excel in
relation to a set of defined standards. The second is the need for power, to make
others behave in a way that they would not have behaved otherwise. The final need
addressed in this theory is the need for affiliation. Affiliation looks at the relationship
aspect and the desire for close relationships. People will have varying levels of
these needs, which makes this theory difficult to measure.
CONTEMPORARY THEORIES OF MOTIVATION

 Self-determination theory: People prefer to have control over their actions so

when they feel they are forced to do something they previously enjoyed,
motivation will decrease

• Cognitive evaluation theory: Proposes that the introduction of extrinsic

rewards for work (pay) that was previously intrinsically rewarding tends
to decrease overall motivation
• Self-concordance: considers how strongly people’s reasons for pursuing
goals are consistent with their interests and core values

 Goal-Setting Theory- Edwin Locke developed what is called the goal-setting

theory. The idea behind this theory is that goals that are specific and
effectively difficult can lead to higher performance if they include self-
generated feedback. A difficult goal will help the individual to focus and direct
attention as well as energize them to work harder. The difficulty of the goal
will increase persistence and force people to be more effective and efficient.

 Self-efficacy theory- An individual’s belief that he or she is capable of

performing a task also known as social cognitive theory or social learning
theory. Developed by Albert Bandura. This theory is based on an individual’s
belief that he or she is capable of performing a task. This theory is a
complement to the goal-setting theory, as it incorporates goals into the
process. Higher efficacy is related to greater confidence, greater persistence
in the face of difficulties, and responding to negative feedback by working
harder, not shutting down.

Self-efficacy increased by:

 Enactive mastery: gain experience
 Vicarious modeling: see someone else do the task
 Verbal persuasion: someone convinces you that you have the skills 
Arousal: get energized

 Equity Theory- Adam’s equity theory utilizes the perception theory that we
looked at in previous chapters. The idea is that employees compare their
ratios of outcomes to inputs of others they see as relevant. When they see
the ratios as equal, there is a perceived state of equity and no tension arises.
However, when they perceive the ratios to be unequal, they may experience
anger or guilt depending on the result of the equity analysis, and then tension
can arise. This tension can motivate people to act in a way to bring the
situation into a more equitable state.

Equity theory suggests employees who perceive inequity will make one of six choices:
1. Change inputs 4. Distort perceptions of others
2. Change outcomes 5. Choose a different referent
3. Distort perceptions of self 6. Leave the field
Equity theory is popular in the United States because U.S. style reward systems
assume that employees are highly sensitive to equity in reward allocation. Research
shows, however, that in other cultures inputs and outputs may be valued
differently. Managers need to determine what
is considered “fair” in a particular culture. Managers need to be transparent,
consistent, and unbiased in their decision making.

 Expectancy Theory- The most commonly used and widely accepted theory of
motivation is Victor Vroom’s Expectancy Theory. This theory argues that the
strength of a tendency to act in a certain way is dependent on the strength of
the expectation that they will receive a given outcome and that the outcome
is desired.

Employees are willing to work harder if they believe that their actions will get them
an outcome they desire. For example, employees are willing to work long and hard
hours if they know that they will be rewarded through promotion, recognition, or
pay in response to their hard work

Three key relationships:

1. Effort-performance: perceived probability that exerting effort leads to
successful performance
2. Performance-reward: the belief that successful performance leads to
desired outcome
3. Rewards-personal goals: the attractiveness of organizational outcome
(reward) to the individual

IV. ACTIVITIES/EXERCISES

• Pick a company and find the most benefits information and list out those
benefits. Estimate the approximate worth of those benefits. Calculate the total
worth of an entry-level job (salary plus benefits).
• Talk to an adult about any company benefits he or she may have. Ask if this
person had a choice over any of the benefits and, if so, what influenced his or
her final decisions about the job and benefits.
• List at least three companies or organizations for which you would consider
working. Go online and search for the companies’ websites (or interview a
local employer) to learn about what employee benefits the company provides.
• What employee benefits are particularly important to you now? What
additional benefits will you want when considering future jobs?

V. ASSESSMENT
Answer the following:

1. Define motivation. How does this explain the behavior of a worker in the organization?
2. How does adopting a Total Rewards perspective benefit the employee
and the organization?
3. What are the advantages and pitfalls of using a flexible benefits program?
VI. SUMMARY
I. IMPLICATIONS FOR MANAGERS
A. Make sure extrinsic rewards for employees are not viewed as coercive and
recognize the importance of intrinsic motivators that appeal to employees’
desires for autonomy, relatedness, and competence.
B. Consider goal setting theory: Within reason, clear and difficult goals often
lead to higher levels of employee productivity.
C. In accordance with self-efficacy theory, efforts you make to help your
employees feel successful in completing tasks will result in their
increased motivation.
D. As suggested by justice theory, ensure that employees feel fairly treated;
sensitivity to processes and interactions are particularly important when
rewards are distributed unequally.
E. Expectancy theory offers a partial means of enhancing employee
productivity, absenteeism, and turnover. Employees are more motivated to
engage in behaviors they think they can perform, and which in turn lead to
valued rewards. II. KEEP IN MIND
A. Make goals specific and difficult.
B. Motivation can be increased by raising employee confidence in their own
abilities (selfefficacy).
C. Openly share information on allocation decisions, especially when the
outcome is likely to be viewed negatively.

Suggested Further Readings

Riggio, Ronald. 2013. Introduction to Industrial/Organizational Psychology.
6th Ed. New Jersey, USA: Prentice Hall.
Jocano, F. Landa. 1999. Management by Culture: Fine-tuning Modern
Management to Filipino Culture. Quezon City, Philippines: Punlad Research
House Inc.

Chapter 8: Motivation from Concept to Application

I. LEARNING OBJECTIVES / OUTCOMES

1. Understand how job characteristics model and the way it motivates by

changing the work environment.
2. Learn how specific alternative work arrangements, different types of
variable-pay programs and employee involvement measures can motivate
employees.
3. Becoming a motivator by means of flexible benefits and intrinsic rewards.

II. INTRODUCTION

Simply knowing about motivational theories is not enough to make

managers effective. Managers must be able to apply these theories in the
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HUMAN BEHAVIOR IN ORGANIZATION
workplace to increase worker motivation. This chapter will review the job
characteristics model, discuss some ways jobs can be redesigned, and then
explore some alternative work arrangements.

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HUMAN BEHAVIOR IN ORGANIZATION
III. LESSON PROPER

The Job Characteristics Model

The job characteristics model looks at describing any job in terms of five core job dimensions.
These job dimensions include;
 Skill variety, which is the degree to which the job incorporates a number of
different skills and talents.
 Task identity is another dimension that looks at the degree to which the job
requires the completion of a whole and identifiable piece of work.
 Task significance is included and looks at how the job impacts the lives of others.
 Autonomy, the fourth dimension, identifies how much freedom and
independence workers have over their jobs. And finally,
 Feedback is how much the job generates direct and clear information about
the worker’s performance.

Much evidence supports the JCM

concept that the presence of a set of
job characteristics—variety, identity,
significance, autonomy, and feedback—
does generate higher and more
satisfying job performance.
JCM creates motivational jobs as
they are designed to give internal
rewards. Positive outcomes are
moderated by individual growth needs as
each individual will respond differently.
In order for the jobs to increase motivation there should be a high degree of
autonomy, feedback, and a least one meaningfulness factor such as significance,
identity, or variety. Note that because the JCM is relatively individualistic, job
enrichment strategies might not have the same effect in collectivistic cultures as
they do in individualistic cultures like the United States.

How Can Jobs Be Redesigned?

There are some helpful ways to redesign a job to increase the motivation of
the employees. Two common practices are job rotation and job enrichment.
 Job Rotation
-The periodic shifting of an employee from one task to another
 Job Enrichment
-Increasing the degree to which the worker controls the planning,
execution, and evaluation of the work
• Enrichment reduces turnover and absenteeism while
increasing satisfaction

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HUMAN BEHAVIOR IN ORGANIZATION
 Guidelines for Enriching a Job
Job enrichment is helpful in keeping the
worker engaged in their work. There are many
actions a manager can take to help the worker.
These actions help to achieve core job
dimensions. For example, if the manager
combines tasks for the worker, it can help the
worker increase the amount of skills they are
utilizing and help the worker to identify tasks
that need to be completed. This action can help
the worker have a better understanding of the
job and how it helps the organization complete
its goals as well as help the
worker enjoy his work more because he is using more of his skill set.

 Relational Job Design

-Designing work so employees are motivated to promote the well-being of
the organization’s beneficiaries
• Relate stories from customers who have benefited from the
company’s products or services
• Connect employees directly with beneficiaries

 Alternative Work Arrangements

 Flextime- Some discretion
over when worker starts and
leaves

 Job Sharing- Two or

more individuals split a
traditional job

 Telecommuting- Work
remotely at least two days per
week

Employee Involvement- A participative process that uses the input of employees to

increase their commitment to the organization’s success Two types:

1. Participative management- occurs when managers include employees in the

decisionmaking process. Subordinates share a significant degree of decision-
making power with superiors. Only a modest influence on productivity,
motivation, and job satisfaction.

To be effective:
 Followers must have confidence and trust in leaders
 Leaders should avoid coercion and stress organizational consequences of decisions

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HUMAN BEHAVIOR IN ORGANIZATION
2. Representative participation- tries to redistribute power by putting labor on a
more equal footing with the interests of managers and stockholders. This is
achieved by letting workers be represented by small groups of employees
who participate in decisions. Workers are represented by a small group of
employees who participate in decisions affecting personnel

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HUMAN BEHAVIOR IN ORGANIZATION
 a. Works councils
b. Board membership

Employee Involvement Programs and Motivation Theories

 Theory Y: consistent with participative management
 Theory X: consistent with the more autocratic style of managing
 Two-factor theory: employee involvement programs could provide intrinsic
motivation by increasing opportunities for growth, responsibility, and involvement
in the work itself

Using Pay to Motivate Employees

As we saw in previous chapters, money is not the primary driver for job
satisfaction. However, it does motivate individuals, and companies often
underestimate its impact in keeping top talent.
It is critical to figure out what to pay and to establish a pay structure that makes
sense for your industry and organization. Then it is imperative that the organization
utilizes this pay system and applies it to the pay of individual employees.

Major strategic rewards decisions:

 What to pay employees
 How to pay individual employees
 What benefits to offer
 How to construct employee recognition programs

What to Pay?
 Establishing a pay structure
 Balance between:
• Internal equity – the worth of the job to the organization
• External equity – the external competitiveness of an organization’s
pays relative to pay elsewhere in its industry
 A strategic decision with trade-offs

How to Pay?
Variable-Pay Programs-Base a portion of the pay on a given measure of performance
Seven types:
1. Piece-rate pay plan- workers are paid a fixed sum for each unit of production completed
2. Merit-based pay-pay is based on individual performance appraisal ratings
3. Bonuses- rewards employees for recent performance
4. Skill-based pay-pay is based on skills acquired instead of job title or rank –
doesn’t address the level of performance
5. Profit-sharing plans- organization-wide programs that distribute compensation
based on an established formula designed around profitability
6. Gain-sharing- compensation based on sharing of gains from improved productivity
7. Employee-stock ownership plan (ESOP)-plans in which employees acquire
stock, often at below-market prices
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HUMAN BEHAVIOR IN ORGANIZATION
Using Benefits to Motivate

Flexible benefits allow employees choices between different benefits. This

allows them to customize their options and create a plan that best meets their
needs and situation. This increases their motivation because they realize the
organization has their best interest in mind.

Using Intrinsic Rewards to Motivate

A method of motivation that has been highly successful is employee

recognition programs. This idea recognizes the importance of coupling extrinsic and
intrinsic methods to help motivate employees. Recognition is an intrinsic motivation
technique that can range from giving an employee the proverbial pat on the back to
a more public recognition ceremony. Recognition programs are highly effective and
cost very little to administer. There are critics of such programs, however, who say
that they can be politically motivated and if the perception is that they are applied
unfairly, they can cause more harm than good.

IV. ACTIVITIES / EXERCISES

As a small group, assume you are a consultancy firm that specializes in

motivational techniques and job redesign. The college administration has come to
you and asked that you examine the college bookstore (or some other entity on the
campus) and can provide them with suggestions for increasing the motivation of the
employees there. Assess the current work environment and write up your
suggestions using the motivational theories and techniques given in Chapters 6 and
7.

V. ASSESSMENT

Identification

1. Some discretion over when worker starts and leaves.

2. Two or more individuals split a traditional job.
3. Work remotely at least two days per week.
4. Occurs when managers include employees in the decision-making process.
5. This is achieved by letting workers be represented by small groups of
employees who participate in decisions.
6. It is a type of Variable-Pay Program which is based on individual performance
appraisal ratings.
7. It is a type of Variable-Pay Program which is based on skills acquired instead
of job title or rank – doesn’t address the level of performance.
8. It is a type of Variable-Pay Program which is based on sharing of gains from
improved productivity.
9. It is a type of Variable-Pay Program where workers are paid a fixed sum for
each unit of production completed
10.It is a type of Variable-Pay Program which employees acquire stock, often at
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HUMAN BEHAVIOR IN ORGANIZATION 0
below-market prices

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HUMAN BEHAVIOR IN ORGANIZATION 1
VI. SUMMARY

D. Understanding what motivates individuals is key to organizational performance.

E. Employees whose differences are recognized, who feel valued, and who have
the opportunity to work in jobs tailored to their strengths and interests will be
motivated to perform at the highest levels.
F. Employee participation and recognition can increase employee productivity,
commitment to work goals, motivation, and job satisfaction.

Chapter 9: Foundations of Group Behavior

I. LEARNING OBJECTIVE / OUTCOME

At the end of this lesson you should be able to:

1. Define group and identify the five stages of group development.
2. Show how role requirements change in different situations.
3. Demonstrate how norms exert influence on an individual’s behavior.
4. Discuss the dynamics of status in group behavior.
5. Show how group size affects group performance.
6. Contrast the benefits and disadvantages of cohesive groups.
7. Explain the implications of diversity for group effectiveness.
8. Contrast the strengths and weaknesses of group decision making.
9. Compare the effectiveness of interacting, brainstorming, and the nominal group
technique.

II. INTRODUCTION

People turn to groups when they must solve problems and make decisions.
Groups often make better decisions than individuals, for groups can process more
information more thoroughly. But groups, like individuals, sometimes make
mistakes.
When a group sacrifices rationality in its pursuit of unity, the decisions it
makes can yield calamitous consequences.
■Why make decisions in groups?
■What problems undermine the effectiveness of decision making in groups?
■Why do groups make riskier decisions than individuals?
■What is groupthink, and how can it be prevented?

III. LESSON PROPER

Groups are defined as two or more individuals who come together to achieve
a set goal. There are two main types of groups. The first is a formal group where the
organization establishes the group with defined work tasks and outcomes. The
second group is an informal group that is not part of the organizational structure.
They are often established in reaction to a need for social interaction and form
naturally. Informal groups can have a significant influence on behavior and

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HUMAN BEHAVIOR IN ORGANIZATION 2
performance

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HUMAN BEHAVIOR IN ORGANIZATION 3
The Five-Stage Model

STAGE ACTIVITY
Forming Orientation: members getting to know one another
Storming Conflict: disagreement about roles and procedures
Norming Structure: establishment of rules and social relationships
Performing Work: focus on completing the task
Adjourning Dissolution: completion of task and end of the group
SOURCE: Adapted from Tuckman, B., & Jensen, M. (1977). Stages of small
group
development revisited. Group and Organizational Studies, 2, 419-427).

The forming stage is filled with

uncertainty as group members figure out
their roles and the group norms. The
storming stage occurs as the roles continue
to be developed and conflict arises
between group members. As members
develop closer relationships and a sense of
cohesiveness, they move into the norming
stage. When the group is functioning well
together and achieving their goals they are
in the performing stage. If it is a temporary
group, they will wrap up activities and
adjourn in the final stage.
Temporary groups usually do not
follow the five-stage model. Instead, they
follow a
punctuated equilibrium model. The first meeting sets the group’s direction, after
which a period of inertia sets in until about half the group’s allotted time is used up.
At that point, a transition initiates major changes, followed by a second period of
inertia. The group’s last meeting is characterized by a much higher level of activity
Work groups have properties including roles, norms, status, size, and
cohesiveness that shape the behavior of members. These properties can help
explain and predict behavior within the group and the performance of the group
itself.

Group Property 1: Role-The set of expected behavior patterns that are attributed to
occupying a given position in a social unit.

 Role perception– our view of how we’re supposed to act in a given situation
 Role expectations– how others believe you should act in a given situation
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HUMAN BEHAVIOR IN ORGANIZATION 4
  Role conflict– conflict experienced when multiple roles are incompatible

Group Property 2: Norms-Acceptable standards of behavior within a group that are

shared by the group’s members.

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HUMAN BEHAVIOR IN ORGANIZATION 5
Powerful means of influencing behavior
 Performance norms
 Appearance norms
 Social arrangement norms
 Resource allocation norms

The Hawthorne studies were conducted in the 1920s and 1930s. This research
has been widely used in the understanding of group interactions. These studies
found that worker behavior was highly influenced by group norms and that
individual productivity was influenced by the standards the group set forth. Also,
money was not as important in determining worker output as group standards and
sentiments were.
The Asch studies, which were conducted in the early 1950s, found that
groups can encourage members to change their attitudes and behaviors to be more
in line with those of the other group members. Since this research was done, new
studies show that levels of conformity have been steadily declining, and that Asch’s
findings were specific to the United States. In general, though, conformity tends to
be greater in collectivist cultures.
Deviant Workplace Behavior: Voluntary behavior that violates significant
organizational norms and, in doing so, threatens the well-being of the organization
or its members

Group Property 3: Status- A socially defined position or rank given to groups or group
members by others.
Determined by:
 The power a person wields over others
 A person’s ability to contribute to a group’s goals
 An individual’s personal characteristics

Status can have an impact on a few things in groups.

First, it can impact norms within a group where high-status members don’t
feel the need to conform to group norms but can pressure others to conform.
Second, it can impact group interaction where members who hold more status
tend to be more assertive and can hinder new ideas being presented.
Finally, it impacts perceived equity in a group, which will influence how
engaged others are in the group process.

Group Property 4: Size- Size is an important factor in group behavior as well and
impacts the behavior in groups. The larger the group, the harder it is to get
contributions from all members in a timely manner. In contrast, small groups can be
limited in their problem-solving ability and the availability of resources could be
limited. There are some detrimental behaviors that can occur around group size. For
example, as groups get larger, social loafing can occur. Some individuals may put in
less effort because they think others in the group will make up for them.

Group Property 5: Cohesiveness- The degree to which members of the group are

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HUMAN BEHAVIOR IN ORGANIZATION 6
attracted to each other and motivated to stay in the group

 Performance-related norms are the moderating variable for productivity and cohesiveness
 High cohesiveness with high norms gives higher productivity

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HUMAN BEHAVIOR IN ORGANIZATION 7
Encouraging Cohesiveness
1. Make the group smaller
2. Encourage agreement with group goals
3. Increase the time spent together
4. Increase the status and perceived difficulty of group 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 6: Diversity- refers to the degree to which members of a group are
similar or different from one another. These differences, which may be cultural or
demographic, can increase group conflict in the short term, but once the conflicts
are resolved, the group may actually perform better than a non-diverse group.

 Faultlines: perceived divisions that split groups into two or more subgroups
based on individual differences such as gender, race, age, work experience,
and education  Splits are generally detrimental to group functioning and
performance.

 Groupthink: relates to norms and describes situations in which group

pressures for conformity deter the group from critically appraising unusual,
minority, or unpopular views. A common problem with groups is groupthink.
This occurs when the group is seeking conformity and there is pressure to
come to a conclusion without critically appraising alternative viewpoints.
Groupthink, a term coined by Janis (1972). Janis used the analysis of historical
decisions to show how decision-making processes can go wrong.

Groupthink occurs when group members' desire to maintain good relations

becomes more important than reaching a good decision. Instead of searching for a
good answer, they search for an outcome that preserves group harmony. This leads
to a bad decision that is then accompanied by other actions designed to insulate
the group from corrective feedback.

Members are more likely to engage in groupthink when they tend to

rationalize away any resistance to assumptions, and they feel pressure to support
the majority. Doubters tend to keep silent and minimize their thoughts on what
might be wrong with a proposed solution, and the rest of the group interprets this to
be a yes vote.

Groupthink can be minimized by limiting the group size, having a leader who
actively seeks input from all members, and by appointing a devil’s advocate, or
someone who is always trying to look at things from a different perspective.

 Group-shift: describes the way group members tend to exaggerate their initial
positions when discussing alternatives and arriving at solutions. Another
phenomenon in the group decision-making process is group shift, where once
a solution is selected, group members tend to exaggerate the initial positions

10
HUMAN BEHAVIOR IN ORGANIZATION 8
 that they hold. This can cause a shift to a more conservative or risky decision.

Group Decision-Making Techniques

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HUMAN BEHAVIOR IN ORGANIZATION 9
  Interacting groups- Meet face to face and rely on verbal and non-verbal
interactions to communicate

 Brainstorming-Generates a list of creative

alternatives Problem: production blocking
 Nominal Group Technique (NGT)- Restricts discussion during the decision-
making process to encourage independent thinking. Allows a group of people to
focus on the task of making a decision without developing any social relations. It
is called nominal because it does not require a true group. This technique can be
used by a collection of people who are brought together to make a decision.

 Delphi Technique uses a series of written surveys to make a decision. A group

of experts is given a survey containing several open-ended questions about
the problem to be solved. The results of this survey summarized and
organized into a set of proposed solutions. These solutions are sent to the
participants, who are then asked to comment on the solutions, which are
based on the first survey. The process is repeated until the participants start
to reach agreement on a solution to the problem.

 Ringi Technique - is a Japanese decision-making technique used for dealing

with controversial topics.
 It allows a group to deal with conflict while avoiding a face-to- face confrontation.

Sample in Evaluating Group Effectiveness

This exhibit shows that an interacting group is good for achieving

commitment to a solution, brainstorming develops group cohesiveness, and the
nominal group technique is an inexpensive means for generating a large number of
ideas.

IV. ACTIVITY / EXERCISES

ACTIVITY: Riddle Me This!

Choose a fighter per team and the one who guess those given riddles within
10 mins. is the winner.
• What comes once in a minute, twice in a moment, but never in a thousand years?
• You see a boat filled with people. It has not capsized, but when you look
again you don't see a single person on the boat. Why?
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HUMAN BEHAVIOR IN ORGANIZATION 0
• What always ends everything?

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HUMAN BEHAVIOR IN ORGANIZATION 1
 • I have keys, but no locks. I have space, but no room. You can enter, but
you can’t go outside. What am I?
• I have seas without water, coasts without sand, towns without people, and
mountains without land. What am I?

V. ASSESSMENT

Fill in the blanks.

1. refers to the degree to which members of a group are
similar or different from one another.
2. the first group where the organization establishes the
group with defined work tasks and outcomes.
3. our view of how we’re supposed to act in a given situation.
4. studies found that worker behavior was highly
influenced by group norms.
5. some individuals may put in less effort because they
think others in the group will make up for them.
6. allows a group of people to focus on the task of making a
decision without developing any social relations.
7. describes the way group members tend to exaggerate their
initial positions when discussing alternatives and arriving at solutions.
8. occurs when group members' desire to maintain good
relations becomes more important than reaching a good decision.
9. refers to perceived divisions that split groups into two
or more subgroups based on individual differences such as gender,
race, age, work experience, and education
10. studies found that groups can encourage members to
change their attitudes and behaviors to be more in line with those of
the other group members.

VI. SUMMARY

Groups are defined as two or more individuals who come together to achieve
a set goal. There are two main types of groups as either formal group or informal
groups can have a significant influence on behavior and performance.
Groups develop in a standardized five stage model consisting of: The forming
stage, storming stage, norming stage, performing stage and adjourning stage.
Work groups have properties including roles, norms, status, size, and
cohesiveness that shape the behavior of members. Group properties includes role,
norms, status, size, cohesiveness and diversity.
Hawthorne studies found that worker behavior was highly influenced by group
norms and that individual productivity was influenced by the standards the group
set forth.
Asch studies found that groups can encourage members to change their
attitudes and behaviors to be more in line with those of the other group members.
Deviant Workplace Behavior: Voluntary behavior that violates significant

11
HUMAN BEHAVIOR IN ORGANIZATION 2
organizational norms and, in doing so, threatens the well-being of the organization
or its members

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HUMAN BEHAVIOR IN ORGANIZATION 3
 Groupthink: relates to norms and describes situations in which group
pressures for conformity deter the group from critically appraising unusual,
minority, or unpopular views. A common problem with groups is groupthink.
Group-shift: describes the way group members tend to exaggerate their initial
positions when discussing alternatives and arriving at solutions. Another
phenomenon in the group decision-making process is group shift, where once a
solution is selected, group members tend to exaggerate the initial positions that
they hold. This can cause a shift to a more conservative or risky decision.
The techniques used in group decision-making are: interacting groups,
brainstorming, nominal group technique, delphi technique and ringi technique.

Chapter 10: Understanding Work Teams

I. LEARNING OBJECTIVE / OUTCOME

At the end of this lesson you should be able to:

1. Analyze the growing popularity of teams in organizations.
2. Contrast groups and teams.
3. Contrast the five types of teams.
4. Identify the characteristics of effective teams.
5. Show how organizations can create team players.
6. Decide when to use individuals instead of teams.

II. INTRODUCTION

Teams are increasingly becoming the primary means for organizing work in
contemporary business firms. Understanding how and when to create these work
teams is the purpose of this chapter.

III. LESSON PROPER

What Is a Team? The word team is used to describe a wide assortment of

human aggregations. For example, in business settings, work units are sometimes
referred to as production teams or management teams. At a university, professors
and graduate students may form a research team to conduct experiments
cooperatively. In the military, a small squad of
soldier's train as a special operations
team. In schools, a teaching team
may handle the education of 500
students. In multiplayer games,
people use computers to join carefully
composed teams to try challenges
(“instances”) that require the skills of
many types of characters. Over the
last decade we have seen the use of
teams grow exponentially in

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HUMAN BEHAVIOR IN ORGANIZATION 4
organizations. There are a

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HUMAN BEHAVIOR IN ORGANIZATION 5
number of reasons why this is true. Teams can enhance the use of employee
talents and tend to be more flexible and responsive to change. Teams can help to
keep employees engaged in their work and increase their participation in decision
making, thus increasing their motivation.
However, teams are not always effective, and so it is important to take a look at
how to deploy teams effectively.
Work group: Interacts primarily to share information and to make decisions to help
one another perform within each member’s area of responsibility
Work team: Generates positive synergy through coordinated effort; individual efforts
result in a level of performance that is greater than the sum of those individual
inputs

Work groups and work teams differ on their goals, level of synergy,
accountability, and skills. Their function is different. Work groups share information
while work teams work together for a collective performance. The synergy in groups
is neutral whereas work teams have a positive synergy. Accountability can be
individual in both, but it is more often mutual in teams. The skills in a group can be
varied whereas the skills on a team need to be complementary.
Different Types of work teams, Teams come in a wide variety of forms, and
they fulfill many different functions in military, educational, industrial, corporate,
research, and leisure settings. A general distinction, however, can be made
between teams that process information and teams that plan, practice, and perform
activities (Devine, 2002). Table 12.1 offers an even more fine-grained analysis of
teams within these two general categories, distinguishing between management,
project, and advisory teams within the information cluster and service, production,
and action teams within the performance cluster.
■Executive teams and command teams such as administrative units, review
panels, boards of directors, and corporate executive teams, are management
teams. They identify and solve problems, make decisions about day-to-day
operations and production, and set the goals for the organization’s future.
■Project teams, or cross-functional teams, include individuals with different
backgrounds and areas of expertise who join together to develop TEAMS 353
Copyright 2009 Cengage Learning. All Rights Reserved. May not be copied,
scanned, or duplicated, in whole or in part. innovative products and identify new
solutions to existing problems. These teams are extremely common in
organizational settings, for they often are composed of individuals from a variety of
departments and are deliberately organized to reduce the lack of communication
that isolates units within the overall organization.
Negotiation teams represent their constituencies; commissions are special task
forces that make judgments, in some cases about sensitive matters; and design
teams are charged with developing plans and strategies.
■ Advisory teams, such as review panels, quality circles, and steering committees
are sometimes called parallel teams because they work outside the usual
supervisory structures of the company.
■ Work teams, such as assembly lines, manufacturing teams, and maintenance
crews, are responsible for the organization’s tangible output; they create products
(production teams) or deliver services (service teams). Some of these teams can

11
HUMAN BEHAVIOR IN ORGANIZATION 6
also be considered action teams.
■ Action teams include sports teams, surgery teams, police squads, military units,
and orchestras. All are specialized teams that generate a product or a service
through highly coordinated actions (Devine, 2002; Sundstrom et al., 2000).

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HUMAN BEHAVIOR IN ORGANIZATION 7
Four Types of Teams

 Problem-solving teams are a very popular method used in many organizations.

Typically this type of team meets for a few hours each week to solve a
particular problem. Members often from the same department. Share ideas or
suggest improvements. Rarely given authority to unilaterally implement any
of their suggested actions.
 Self-managed work teams are comprised of a group of people who perform
highly related or inter-dependent jobs and take on the responsibilities of their
former supervisors.
Team takes on supervisory responsibilities: Work planning and scheduling,
assigning tasks, Operating decisions/actions, working with customer. The
effectiveness of this type of group greatly depends on the situation and the
goals of the group.
 Cross-functional teams gather workers from many different work areas to
come together to accomplish a task that needs to utilize multiple
perspectives. This type of group is good at developing new ideas and solving
problems or coordinating complex projects. Given that their tasks are
normally complex and diverse, it may take some time for the group to
develop into an effective and productive team.
 Virtual teams are increasing in their use. This type of team uses computer
technology to bring people together to achieve a common goal. Typically,
these types of teams get right to work with little socializing but need to
overcome time and space constraints to accomplish the task. In order to be
effective, virtual teams need to find ways to establish trust among the
members, have close monitoring, and results need to be publicized.
Dispersing information can be challenging. Research shows that virtual teams
are better at sharing unique information, but they tend to share less
information overall. It can also be challenging to find the best amount of
communication. Low levels of virtual communication can mean high levels of
information sharing, but high levels of virtual communication can hinder
information sharing.

Multi-team systems perform better when they have “boundary spanners” whose job
is to coordinate with members of other sub-teams. Multi-team systems can be the
best choice when teams are too large to be effective, or when teams with distinct
functions need to be highly coordinated.

The three key components of effective teams are context, composition, and process variables.
Next we will look at each one of
these components individually.
Context Factors in Team Success
 Presence of adequate resources
 Effective leadership and structure
 Climate of trust in the team
 Performance evaluation and reward system that reflects team contributions

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HUMAN BEHAVIOR IN ORGANIZATION 8
 Team Composition and Success
A manager must pay close
attention to how a team is put
together to assure group
cohesiveness and effectiveness. Each
member should be selected based on
the type of skills and abilities needed
to accomplish the task at hand.
However,
abilities are not the only
characteristic that managers need to
pay attention to; personality is also
important so that the team can bond
and form trust.
In addition, the manager must
be sure he assigns the right people to
fill the roles needed, but maintain
adequate diversity so that idea
generation still occurs.
The manager must also pay attention
to the size of the team and ensure that members want to be on the team and enjoy
teamwork.
Organizational demography suggests that diversity in attributes such as age
or the date of joining should help us to predict turnover.

1. Abilities of Members 3. Allocation of roles

a. Technical
Expertise
4. Diversity of Members
a. Organizational Demography
b. Problem Solving
c. Interpersonal 5. Size of Teams
2. Personality of Members 6. Member Preferences
a. Conscientious
and
Openminded

Team Process and Success

Teams should create outputs greater than the sum of their inputs. This
exhibit shows how group processes can have an impact on a group’s actual
effectiveness.

A team’s processes can have a big impact on its effectiveness. Teams must
have a strong commitment to a common purpose that provides direction, but yet
incorporates reflexivity so that plans can be adjusted if necessary. The goals of the

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HUMAN BEHAVIOR IN ORGANIZATION 9
team must be set up, so they are specific, measurable, and realistic yet challenging
in order to keep the team members engaged.
Members must believe they can succeed and have a mental map of how to
get the work done to assist in the process of accomplishing their task.
Finally, members must navigate through conflict and social loafing to encourage a
healthy and effective group.

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HUMAN BEHAVIOR IN ORGANIZATION 0
TURNING INDIVIDUALS INTO TEAM PLAYERS

Team players are indispensable human assets of many organizations, and

these organizations would want to make sure that they are available when their
services are needed. An important concern, however, is to turn individuals into
team players. The available options consist of the following:

 Selection: Need employees who have the interpersonal as well as technical skills

 Training: Workshops on problem-solving, communications,

negotiation, conflict management, and coaching skills
 Rewards: Encourage cooperative efforts rather than individual ones

IV. ACTIVITY / EXERCISES

If your team needs motivation activities to sharpen their communication

skills, this game is an easy way to encourage that! You can play this game in pairs
of 2 partners or in small groups. The aim of the game is for one person to describe a
random image and have their partner or group draw what is being described. This
activity to motivate employees can give your team great insight into how people
might interpret directions differently. If you need a fun office game for employees,
you’ll want to pick this idea. Time Required: 20 minutes Materials Needed:
• Random images that can be verbally described
• Pens or markers
• Sheets of paper

How to Play: One person will receive a random image. They will be tasked
with describing what they see to their partner or small group. Without seeing the
image or asking questions, the group must draw the image based on the verbal
descriptions they receive. Give your teams around 10 minutes to draw, and 10
minutes to reveal their drawings and talk about how communication could be
improved for next time.

V. ASSESSMENT

I. Find and Choose the correct answer inside the box. Write the letter only in the
blank before the number.
A. Context B. Composition C. Process

1. Allocating roles
2. Social loafing
3. Leadership and structure
4. Conflict levels
5. Climate of trust
6. Size of teams
7. Common purpose
8. Adequate resources
9. Diversity
 10. Specific goals

II. Answer the following:

1. Recall the time when you were at school and your teacher told the class to
create groupings for a specific project. Each group should also select a leader or
set of officers to make the project more efficient. Unfortunately, despite your
efforts, your project was a failure…Share your story and answer the following
questions:  What was the project all about?

 What was your role in the project?

 How
can you describe your group members
and your leaders?

 Did your
group met problems or conflict while doing your project?

 How did
your group solve it?

 Which part did your group fall short that caused the project unsuccessful?

 If you will be
in the same scenario, what would you do to make it successful?

2. Write a short story about your favorite sports and the specific team you
cheered on every time they are playing. Describe the role of each member
how they are doing their part in the game. Does this team always win and
what do you think is their strategy/ies in winning? When the odds are on their
side, how do they resolve it?

VI. SUMMARY

Team is used to describe a wide assortment of human aggregations. Work

group: Interacts primarily to share information and to make decisions to help one
another perform within each member’s area of responsibility Work team: Generates
positive synergy through coordinated effort; individual efforts result in a level of
performance that is greater than the sum of those individual inputs. Different types
of work teams are: Executive teams and command teams, Project teams, or cross-
functional teams, Negotiation teams, Advisory teams, Work teams and action
teams. Teams may be classified as Problem-solving teams Self-managed work
teams Cross-functional teams’ virtual teams Multi-team systems perform better
when they have “boundary spanners” whose job is to coordinate with members of
other sub-teams. The three key components of effective teams are context,
composition, and process variables. Context Factors in Team Success includes the
presence of adequate resources, Effective leadership and
structure, Climate of trust in the team and Performance evaluation and reward
system that reflects team contributions. A manager must pay close attention to how
a team is put together to assure group cohesiveness and effectiveness. Each
member should be selected based on the type of skills and abilities needed to
accomplish the task at hand.
Organizational demography suggests that diversity in attributes such as age or the
date of joining should help us to predict turnover such as the abilities of members,
and personality of members. The potential problems of teams consist of changing
membership and social loafing. Individuals may be developed into team players by
means of selection, training, and rewards.

Chapter 11: Communication

I. LEARNING OBJECTIVE / OUTCOME

At the end of this lesson you should be able to:

1. Understand the communication process and formal and informal communication.
2. Explain downward, upward, and lateral communication.
3. Know how to compare and contrast formal small-group networks and the grapevine
4. Understand oral, written, and nonverbal communication.
5. Explain how channel richness underlies the choice of communication channel.
6. Understand the differences between automatic and controlled processing of
persuasive messages.
7. Know common barriers to effective communication.
8. Show how to overcome the potential problems in cross-cultural communication.

II. INTRODUCTION

In order to be successful, managers must be able to communicate effectively.

This chapter describes the communication process and the various ways managers
communicate to employees. Additionally, barriers to communication are presented.

III. LESSON PROPER

Communication is the process of transmitting information and common

understanding from one person to another (Keyton, 2011). In another study
According to Fred Lunenburg, communication from studies is important, because
every administrative function and activity involves some form of direct or indirect
communication.
The Communication Process
 This graph outlines the communication process between the sender and the
receiver. The sender encodes the ideas by selecting words, symbols, or gestures
with which to compose a message. The message is the outcome of the encoding
which takes the form or verbal nonverbal or written language. The message is sent
through a medium or channel, which is the carrier of communication. The medium
can be face-to-face conversation, telephone call, email, or written report. The
receiver decodes the received message into meaningful information.

Sometimes during the transmission of a message, distortion happens from

the sender to the receiver which we call noise. Noise is anything that distorts a
message (different perception of the message, language barriers, interruptions,
emotions, attitudes and even how we interpret one’s message)
Lastly feedback allows the sender to determine whether the message has been
received and understood.

The communication process consists of a sender who encodes a message and

transmits it through a channel to a receiver who decodes it and may give feedback. Exhibit 5.3
illustrates the communication process. Below is a brief explanation of each step in
the communication process; you will learn the details of each step-in separate
sections of this chapter.

In step 1, the sender encodes the message and selects the transmission
channel. The sender of the message is the person who initiates the communication.
Encoding is the sender’s process of putting the message into a form that the
receiver will understand.
The
message is the physical form of the encoded
information. The message is transmitted through
a channel. The three primary communication
channels you can use are oral, nonverbal, and
written. See Exhibit 5.4 for the various
transmission channel options. When selecting a
channel, you need to remember that people do
have different preferences for example, many
younger people like to text, whereas older
people do not.

In step 2, the sender transmits the

message through a channel. As the
sender, after you encode the message
and
select the channel, you
transmit the message through the
channel to one or
more receivers.

In step 3, the receiver decodes the

message and decides whether
feedback is needed. The person
receiving the message decodes it.
Decoding is the receiver’s process of
translating the message into a meaningful
form. We all decode words so that the message makes sense to us. The receiver
decides if feedback, a response, or a new message is needed.

There are a few different channels of communication in the workplace. The

first type is formal channels. These channels transmit messages that are related to
the professional activities of the members, such as email, memos, and planned
speeches. The second type is informal channels, used to transmit personal or social
messages. This channel is more spontaneous in nature and a result of individual
choices such as who you eat lunch with.

Direction of Communication
In an
Upward
organization
Lateral communication flows in
three different directions.
It can flow downward from
the top management to
people in lower levels of
the organization.
Downward It can flow up from
workers on the ground
floor to the CEO or it can
flow between or
within
departments in a
lateral movement.

Downward Communication
✓ Is that of superior to subordinate or management to employees 
One-way communication
✓ Managers explain why a decision was made, but do not solicit
advice or opinions of employees
Upward Communication
✓ Is a communication of subordinates to superior or of employees to managers
✓ Keeps managers aware of how employees feel about their jobs,
coworkers, and the organization
Lateral Communication
✓ Communication that occurs between members of a work group, members at
the same level in separate work groups, or any other horizontally equivalent
workers o Saves time and facilitates coordination

Formal Small-Group Networks

In an organizational context communication is commonly broken down into three
formal small- group networks.
 ❑ The chain is a very formal and rigid chain of
command. Employees know who the next
person in the chain is and that is where they
give and get their
information.
❑ The wheel is a network where there is a
central figure who controls all the communication. This type of group requires
a very strong leader who can communicate effectively.
❑ The all-channel network is a much more fluid arrangement where all group
members communicate actively with each other and there is no formal
channel or single person. This works best in a situation such as a self-
managed team.

The effectiveness of each network

depends on the dependent variable that
concerns you.

The Grapevine
The grapevine an unofficial, informal communication and not controlled by
management nor do they feed it information. However, employees see it as a very
believable and reliable form of communication. The grapevine has no formal
purpose but is mainly there to serve the self-interests of those who use it,
developing from a need for these individuals to get more information about an
important, but ambiguous situation. The grapevine can be a way to receive
information about the situation and reduce anxiety as well as fill a social need to
connect.
•Gossip Grapevine -a pattern of grapevine communication in which a message is
passed to only a select group of individuals.

MODES OF COMMUNICATION
Three modes of communication

Oral Communication - A primary means of conveying messages. Speeches, formal

one-on-one and group discussions, and the informal rumor mill or grapevine are
popular communications.

✓ Advantages o Speed
 o Feedback
o Simple to correct
✓ Disadvantages o Potential for distorted message when passed through a
number of people
Written Communication - Includes letters, e-mails, instant messaging, organizational
periodicals, and any other method that convey written words or symbols.

✓ Any method that conveys written words or symbols

✓ The longest lasting form of communication

Nonverbal

✓ Body language conveys

o The extent of affinity for another
o The relative perceived status between a sender and receiver
✓ Meaning changes with
o Intonation o Facial expression o Physical distance

Channel Richness

Channel Richness is the

amount of information that can be
transmitted during a communication
episode. It transmits the
most information

per communication episode –

multiple information cues (words,
postures, facial expressions,
gestures, intonations), immediate
feedback (both verbal and nonverbal)
and the personal touch of being
present.

Choosing Communication Method

The choice of channel depends on whether the message is routine.
Routine messages tend to be straightforward and have minimal ambiguity.
Nonroutine communication are likely complicated and have the potential for
misunderstanding.
Choosing your mode of communication is not always easy to know when to
choose oral rather than written communication. Your communication choice is worth
a moment’s thought: Is the message you need to communicate better suited to a
discussion, or a diagram?
Also consider the receiver’s preferred mode of communications; some
individuals focus on content better in written form and other prefer discussion.
PERSUASIVE COMMUNICATION
❑ Automatic processing: superficial consideration of evidence and information
making use of heuristics

o Takes little time and

minimal effort
o But, it’s easy to be fooled
❑ Controlled processing: detailed consideration of evidence and information
relying on facts, figures, and logic

o Requires effort and energy

o But, less likely to be fooled

Barriers to Effective Communication

• Now that we have a foundation in organizational structure and

communication flow organization wide, for the rest of the chapter, let’s focus
more on interpersonal communications, which are often between two people.
In this section, we begin with an explanation of the communication process,
followed by barriers to communications. Next we discuss differences in
communications between genders, and end with difference by culture.

There are a number of barriers to effective communication that can distort the
message being sent. Let’s look at a few of those.
• Physical Barriers – distances between people, could be because of a wall,
internet connection, signal from different networks. Is the environmental and
natural condition that act as barrier in communication in sending message
from sender and receiver
• Sematic Barriers – the words we choose, how we use them and the meaning
we attach to them cause many communication barriers. o Ex. Increased
efficiency, management prerogatives
• Psychosocial Barriers – associated with psychological and social barriers o Experience
– different sets of values, beliefs and perception of different individuals o
Filtering – we see and hear what we are emotionally tuned in to see and hear
o Psychological distance between people that is similar to actual physical
distance
▪ Example – The school administrator talks down to a staff member,
who resents this attitude, and this resentment separates them,
thereby blocking opportunity for effective communication

• Major areas where communication breakdown most frequently:

o Sincerity – is the foundation on which all true communication rests.
Without sincerity-honesty, straightforwardness, and authenticity- all
attempts at communication are destined to fail.
 o Empathy – research shows that lack of empathy is one of the major
obstacle to effective communication. o Role Perception – Unless people
know what their role is (most especially in an organization or in a
group), the importance of their role, and what is expected of them,
they will not know what to communicate, when to communicate, or to
whom to communicate.
o Self-Perception – how we see ourselves affects our ability to
communicate effectively
o Culture – our cultural heritage, biases, and prejudices often serve as
barrier to communication.
▪ Filipino often communicate indirectly in order to prevent a loss of
face(muhka) and evoking hiya on either side of an exchange.
They tend to avoid interrupting other and are more attentive to
posture, expression and
tone of voice to draw meaning.
▪ Filipinos rarely give a direct answer of ‘no’ and will avoid
disagreement, rejection and confrontational behavior, especially
when a superior is involved.
o Listening – frequently, people fail to appreciate the importance of
listening, do not care enough to become actively involved with what
others are saying, and are not sufficiently motivated to develop the
skills necessary to acquire the art of listening. o

IV. ACTIVITY / EXERCISES

Analyzing Your Organization (Cumulative Project). Discuss with various

members of your organization where they think the communication breakdowns
occur, either in their department or in the organization itself. Analyze their answers
in the context of the communications model. Where in the process do you feel these
breakdowns tend to occur most often? Write up your results and prepare
suggestions on “fixing” the process in your organization. If your instructor directs,
be ready to share your suggestions in class.

V. ASSESSMENT

MULTIPLE CHOICE
1. Juan here is the report you asked me to complete. Let me know if I
need to make any changes.
a. vertical-downward b. vertical-upward c. Horizontal d. Grapevine
2. “Jackson, I just closed a larger sales order with Tyson, but I had to
guarantee delivery by next Tuesday. Can you produce 100 units on time?
a. vertical-downward b. vertical-upward c. Horizontal d. Grapevine
3. “Hi Tyler, please take this over to the mail room right away for me”
a. vertical-downward b. vertical-upward c. Horizontal d. Grapevine
4. “Jamal, have you heard that President Flynn is using the company jet
to take his mistress out on dates?
a. vertical-downward b. vertical-upward c. Horizontal d. Grapevine
 5. “Judy, will you please hold this so I can put it together-the way I help
you all the time”
a. vertical-downward b. vertical-upward c. Horizontal d. Grapevine
6. A type of channel that used to transmit personal or social messages.
a. Formal Channel b. Informal Channel c. Channel
7. A Communication that flows to a higher level.
a. Upward Communication b. Lateral Communication c. Channel
8. A Communication that flows from one level to a lower level.
a. Upward Communication b. Channel c. Downward Communication
9. A network which is very formal and rigid chain of command.
a. The Chain b. The All-Channel c. The Wheel
10. It is a superficial consideration of evidence and information
making use of heuristics.
a. Controlled Processing b. The Chain c. Automatic Processing

II. Select the most appropriate channel for each message

a. Face-to-Face b. Telephone c. Meeting d. Presentation
e. Memo f. Letterg. Report h. Poster
1. An employee came in late for work again today. This is not
acceptable behavior and needs to stop.
2. The supervisors is getting together with a few employees to discuss a
new procedure that will be going into effect in a week
3. Shelly, the supervisor, is expecting needed material for production
this afternoon. She wants to know whether it will arrive on time to make the
product
4. Employees have been leaving the lights on when no one is in the
break room. As the manager concerned for saving electricity, you want
employees to shut off the light when they leave
5. The boss asked for the sales data for the quarter.

VI. SUMMARY

Implications for Managers

✓ Remember that your communication mode will partly determine your
communication effectiveness.
✓ Obtain feedback from your employees to make certain your messages are understood.
✓ Remember that written communication creates more misunderstandings
than oral communication.
✓ Make sure you use communication strategies appropriate to your audience
and the type of message you’re sending.
✓ Keep in mind communication barriers such as gender and culture.

Keep in Mind…
✓ Each communication direction has its own challenge that must be overcome
 ✓ Each form of communication has an optimal purpose and specific
limitations – use appropriately
✓ Communication barriers often retard or distort communication

Chapter 12: Leadership

I. LEARNING OUTCOMES

At the end of this lesson, you should be able to:

1. Understand the differences between leadership and management;
2. Learn the different central tenets and main limitations of behavioral
theories and contingency theories of leadership; and
3. Becoming an effective leader in the organization

II. INTRODUCTION

Leaders help themselves and others to do the right things. They set direction,
build an inspiring vision, and create something new. Leadership is about mapping
out where you need to go to "win" as a team or an organization; and it is dynamic,
exciting, and inspiring. Yet, while leaders set the direction, they must also use
management skills to guide their people to the right destination, in a smooth and
efficient way.

III. LESSON PROPER

LEADERSHIP is the ability to influence a group toward the achievement of

goals. A leader does not have to be someone who holds a formal position or title.
Leaders can emerge from a group and provide vision and motivation to those
around them. They are critical in helping people cope with change by establishing
direction that relates to the vision. In order to achieve the vision, they align
resources and inspire workers to work toward organizational goals.
Management deals with the complexity of the organization and works with
planning, organizing, leading, and controlling to bring about order and consistency
in the organization. Even though the two roles have different areas of focus, both
are necessary for organizational success. TRAIT THEORIES of Leadership focus on
personal qualities and characteristics
Big Five Personality Framework

 Extraversion has strongest relation to leadership

 Conscientiousness and Openness to Experience also strongly related to leadership 
Agreeableness and Emotional Stability are not correlated with leadership
 Emotional Intelligence is correlated with leadership; however, this link is underinvestigated

Two conclusions:
1. Traits can predict leadership
2. Traits do a better job predicting the emergence of leaders and the
 appearance of leadership than distinguishing between effective and
ineffective leaders

BEHAVIORAL THEORIES of leadership- we can determine leadership effectiveness by leader

behavior, and perhaps train people to be leaders
 Behaviors can be taught – traits cannot
 Leaders are trained – not born

Two key studies of leadership

The Ohio State Studies

Attempts to organize Initiating

Structure
Consideration
Concern for followers’
work, work relationships, and goals comfort, well-being, status,
and satisfaction

The University of Michigan Studies

Emphasize the technical or the task Production Employee

Emphasize interpersonal are
aspects of the job. Oriented Oriented means to an end and accept
individual differences

CONTINGENCY THEORIES of leadership

 Fiedler leadership model: Effective group performance depends on the proper

match between the leader’s style and the degree to which the situation gives the
leader control In this theory Fielder is trying to match the leader to the context. He
proposes that leadership style is fixed. So, if the situation demands a charismatic
leader and your current leader does not exhibit that style, you need to change
leaders. This leadership style can be determined by taking the LPC questionnaire
(least preferred co-worker).
After the leadership style is determined, you can match the leader to the situation.
There are three dimensions to find a successful match.

• The first situational factor is the leader-member relationship; this tie back to our
behavioral studies by looking at the degree of trust and respect employees have
for the leader.
• The second factor is the amount of structure that is embedded in job assignments.
• The last factor is the amount of influence the leader has over decisions that
represent power such as hiring, firing, and rewards. (Position Power)

In Fiedler’s model you need to find a leader to fit the situation or change the situation to
fit the leader in order to achieve effective leadership for the organization.
 Situational leadership theory (SLT): successful leadership depends on selecting
the right leadership style contingent on the followers’ readiness to accomplish a
task
1. Unable and unwilling
2. Unable but willing
3. Able but unwilling 4. Able and willing
  Path-goal theory: it’s the leader’s job to provide followers with information,
support, or other resources necessary to achieve goals

• Directive leadership yields greater satisfaction when tasks are ambiguous or

stressful
• Supportive leadership results in high performance and satisfaction when
tasks are structured
• Directive leadership is perceived as redundant by employees with high
ability or experience

Matching Leaders to Situations

This graph helps to visually determine the situational factors and what type of leader
would succeed in this situation. There are eight possible situations in which leaders can
find themselves in. By matching their LPC score with these eight different situations a
leader can see where they will be most effective. For example, categories four through
six would be better suited to relationship-oriented leaders because Fielder proposes
that they perform best in moderately favorable situations.

CHARISMATIC LEADERSHIP
Charisma comes from the Greek
word meaning gift. When talking about
a charismatic leader one will refer to
someone with certain gifts or abilities.
A charismatic leader will often gain
followers through personality rather
than through power or authority.

There are four key characteristics that

are associated with a charismatic leader.

1. Vision and Articulation The leader

must have vision, expressed as an
idealized goal.
2. Personal risk-taking The leader
must be willing to take on high
personal risk
and engage in self-sacrifice to achieve the vision.
3. Sensitivity towards followers in doing so the leader needs to remain sensitive
to the feelings and needs of their followers.
4. Unconventional Behaviors Throughout the process the leader may be engaging
in behaviors that are perceived as counter to norms, thereby extraordinary.

The charismatic traits are often traits that a leader is born with, thus
continuing the debate whether leaders are born or developed. In reality it is a mix of
genetics, training, and experience. Charisma can be created. One way is to develop
an aura of charisma by being optimistic, passionately enthusiastic, and to
communicate with behaviors and words. A leader can also create charisma by drawing
in others through inspiration, as well as by tapping into the emotions of individuals to
bring out their potential.
TRANSFORMATIONAL/TRANSACTIONAL LEADERSHIP

Transformational leaders help followers to look at the bigger picture and commit to
the good of the organization, even if it means setting their own goals aside.
Transactional leaders motivate their follower towards the goals set by clarifying
their roles in the process and what they need to do to reach the goals set.

These two approaches are not contradictory in nature; in fact, they can
complement each other. Transformational leadership often is built upon transactional
leadership. Good leadership will incorporate both transactional and transformational
components.

Full Range of Leadership Model

This exhibit shows the full range of the leadership model. The first four
behaviors represent transactional approaches and begins with the Laissez-Faire
approach, which is the most passive. As a leader progresses on the scale, she
moves toward more active behaviors.
The final four behaviors on the model represent transformational actions. This model
shows that as leaders utilize more transformational behaviors, they become more
effective.

Evaluation of Transformational
Leadership
Transformational
leadership works in a variety of
contexts but tends to be more
effective in smaller companies.
It does work better when the
leader is more closely
connected to the followers and
can understand their situation.
The link between
transformational leadership and
positive
job outcomes is solid. They
tend to be creative and
inspire creativity. They
create a “can-do” spirit.

Transformational vs. Transactional Leadership

Transformational leadership is more strongly correlated with:
 Lower turnover  Higher productivity
 Lower employee stress and burnout
 Higher employee satisfaction

AUTHENTIC LEADERSHIP: Ethics and Trust

 Authentic leadership is a growing area of research. There are several components
that need to be addressed when discussing authenticity in leadership.
First, we must look at authentic leaders. These are leaders who engage in
reflection and understand who they are and what they believe and bring those two
aspects together in their actions. Next, authentic leaders are able to create trust
with their followers and encourage a
culture of open communication. These factors will help to create an authentic
leader that people will follow.

Ethics and Leadership

There is a strong intersection of ethics and leadership. Over the past several
years we have been involved in what many have called an ethical crisis in the
business community. When we look at leadership, we need to look at more than the
results of the leader. We must also look at the steps the leader took to achieve
those results. Executives set the moral tone for an organization so they must set
and adhere to high ethical values. Leadership is not value free, and the means by
which a leader achieves their goal must be framed by ethics.

 Socialized charismatic leadership: leadership that conveys other-centered values

by leaders who model ethical conduct
 Servant Leaders: Go beyond their own self-interest and focus on opportunities to
help followers grow and develop. They don’t use power to achieve their goal;
instead they focus on persuading followers. The effects of servant leadership
include higher levels of commitment to the supervisor, self-efficacy, and
perceptions of justice, all of which are related to organizational citizenship
behavior. Servant leaders increase team potency, which leads to higher levels
of group performance, and also a greater focus on growth and advancement
which leads to higher levels of creative performance. This type of leadership
may be more prevalent in East Asian cultures.

Trust
Trust is defined as a state that exists when you
agree to make yourself vulnerable to another
because you have a positive expectation for how
things are going to turn out. Over the years this has
been found to be a foundational characteristic of
leadership. When trust is present followers are
willing to do as the leader asks and engage in
behaviors that are for the benefit of the organization.
In short, followers will do a lot
more for a leader they trust than for one that does not hold their trust.
Trust is developed over time. The interactions between the leaders and the
followers are part of the development of trust; it goes both ways. Research has
shown that the three main characteristics of a leader that instill trust are integrity,
ability, and benevolence.
These three characteristics are important in developing trust between leaders and
followers. If followers perceive these characteristics as strong in their leaders, it will
encourage positive behaviors such as risk taking, information sharing, group
interactions, and productivity.

IV. ACTIVITIES / EXERCISES

Watch this video on Ted Talks:
https://www.ted.com/talks/simon_sinek_why_good_leaders_make_you_feel_safe

V. ASSESSMENT

Reflection
 1. Describe your mental model of leadership.
2. What is the difference between leadership and management?
3. For you, are leaders born or made?

VI. SUMMARY

Leaders can influence a group toward the achievement of goals. The best
leaders are ethical and authentic in addition to being charismatic. For maximum
leadership effectiveness, ensure that your preferences on the initiating structure
and consideration dimensions are a match for your work dynamics and culture. Hire
candidates who exhibit transformational leadership qualities and who have
demonstrated success in working through others to meet a long-term vision. For
management role, hire candidates whom you believe are ethical and trustworthy;
and train managers in your organization’s ethical standards. Seek to develop
trusting relationships with followers. Consider investing in leadership training.

Chapter 13: Power and Politics

I. LEARNING OBJECTIVE / OUTCOME

After studying this chapter, you should be able to:

1. Define power and contrast leadership and power.
2. Contrast the five bases of power.
3. Identify nine power or influence tactics and their contingencies.
4. Show the connection between sexual harassment and the abuse of power.
5. Distinguish between legitimate and illegitimate political behavior.
6. Identify the causes and consequences of political behavior.
7. Apply impression management techniques.
8. Determine whether a political action is ethical.
9. Show the influence of culture on the uses and perceptions of politics.

II. INTRODUCTION

For anything to be accomplished in an organization people must use both

power and politics. While often looked at as negative aspects of organizations, both
power and politics are the means by which organizations and individuals get
objectives accomplished.

III. LESSON PROPER

POWER refers to the capacity of one person who has over the other person to
get the individual to do something. Inherent in this definition is the idea of
dependency. The stronger the relationship or the dependency that one person has
when the other possesses something they want or requires, the greater the
dependency on that person.
Contrasting Leadership and Power
 Differences Leadership Power Leadership and power are two
different concepts and need to
be defined separately.
Goal Requires goal Only Leadership
Compatibili needs congruence is focusing on goal
ty dependence achievement along with
followers. Power is
Direction Focuses Concerned used as a way to accomplish
of on with influence the goal and often followers
Influence downward in all are also meaning to
influence directions accomplish the goal.
Leadership will focus on
Broader topic: using leadership downward to
Researc focuses on influence others to help them
Emphasizes tactics used by
h achieve their tasks, whereas
leadership individuals and
Emphasi power uses influence
style groups
s to gain something
upward or laterally.

TWO MAIN BASES OF POWER

 Formal power is based on an individual’s organizational position. Formal power

is defined more by the position a person will hold in the organization. People
with formal power can utilize different power bases to accomplish their tasks.
 Coercive Power: Complies from fear of the negative results
 Reward Power: Complies due to desire for positive benefits
 Legitimate Power: From the formal authority to control and use
organizational resources
 Personal power stems from an individual’s unique characteristics
 Expert Power: Influence wielded as a result of expertise, special skill, or knowledge
 Referent Power: Based on identification with a person who has desirable
resources or personal traits. Ex. Charisma

Effective Power Bases:

 Expert and referent power are positively related to performance and commitment
 Reward and legitimate power are unrelated to organizational outcomes
 Coercive power is negatively related to employee satisfaction and commitment

POWER TACTICS
There are a number of power tactics an individual can use or ways in which
they can make the power base work for them by moving people into specific
actions. Some are more effective than others. There are 9 major power or influence
tactics. They are legitimacy, rational persuasion, inspirational appeals, consultation,
exchange, personal appeals, ingratiation, pressure, and coalitions.
Preferred Power Tactics by Influence Direction
While rational persuasion may work
for you, the effectiveness of some
influence tactics depends on the
direction of influence. This exhibit
shows that rational persuasion is
the only tactic effective across
organizational levels.

Unequal Power in the Workplace: Sexual

Harassment and Abuse of Power

Sexual Harassment is any unwanted activity which is sexual in nature that affects
an individual’s employment and creates a hostile environment. It is wrong and has
legal danger, also it can have a negative impact on the work environment too.

Organizations’ limiting sexual harassment includes limiting:

- Unwanted physical touching
- Recurring request for dates when it is made clear the person is uninterested
- Coercive threats that he or she will lose job when refusing sexual preposition

Sexual harassment is more likely to occur when there are large power
differential. However, although co-workers don’t have legitimate power, they can
have influence and use it to sexually harass peers. Individuals who are sexually
harassed report lower job satisfaction and diminished organizational commitment as
a result.

Some ways can protect themselves and their employees from sexual harassment:
1. Make sure to have an active policy, inform employees, and establish
procedures for how complaints can be made
2. Ensure employees that they will not encounter retaliation if they issue a complaint.
3. Investigate every complaint and include the legal and human resource departments.
4. Make sure offenders are disciplined or terminated.
5. Set up in-house seminars to raise employee awareness of the issues
surrounding sexual harassment.

How Power Affects People

Power doesn’t affect everyone in the same way.

The toxic effects of power depend on one’s personality. Power doesn’t

corrupt those with anxious personalities because they are less likely to think that
using power benefits them. The corrosive effects of power can be contained by
organizational systems. We have the power to blunt the negative effects of power.
The people who are most likely to abuse power are those who are low in status and
gain power
POLITICAL SKILL: ability to influence others to enhance one’s own objectives
• Politically skilled are more effective users of all the influence tactics
• Political skill is more effective when the stakes are high
 • Those with political skill can exert their influence without others detecting it

POLITICAL BEHAVIOR: consists of activities that are not required as part of an

individual’s formal role but that influence, or attempt to influence, the
distribution of advantages and disadvantages within the organization

The Reality of Politics

Politics often occurs when resources are low; the excess demand for the
resources leads to competition and political behaviors. When the scarce resources
are distributed, there will be varying views regarding how “fairly” or “effectively”
the distribution was done. Perceptions can be distorted such that the manager feels
he is documenting decisions and the employee just feels that the manager is
covering his rear.

Most of the time, managers are making decisions under ambiguous

conditions and there is not a readily available objective standard. This creates a
context in which political maneuvering is encouraged.

Politicking: Twisting facts to support one’s own goals and interests

Individual Factors Contributing to Political Behavior

 Traits that encourage political action:

o High self-monitors o Internal locus of control
o High need for power

 Situational influences leading to illegitimate political actions o

Lower organizational investment o Greater number of
perceived alternatives o Greater expectations of success

Organizational Factors Contributing to Political Behavior

 Organizational resources declining or distribution shifting 

Opportunity for promotion exists  Organizational culture
issues o Low trust o Role ambiguity o Zero-sum reward
allocation o Democratic decision making o High performance
pressures o Leading by poor example
o Unclear performance evaluation systems
 This exhibit summarizes the
Responses to Organizational Politics extensive research on the
relationship between organizational
politics and individual outcomes.
Most employees will not engage in a
high level of politics and often react
negatively to politics. Their reactions
include decreased job satisfaction,
increased anxiety and stress,
increased turnover, and a reduction
in performance. Even though the
given outcome for the individual
employee who engages in politics
may be favorable, it is often a
negative impact for the group as a
whole.

IMPRESSION MANAGEMENT: The process by which individuals attempt to

control the impression others form of them
 People may misrepresent themselves in situations of high
uncertainty or ambiguity
 Misrepresentations may discredit the individuals – seen as
insincere or manipulative

Using Impression Management

 IM and interviews:
o Self-promotion and ingratiation work well
 IM and performance evaluations:
o Ingratiation positively related o Self-promotion is
negatively related
Impression management has shown to be effective in different situations,
such as job interviews and performance evaluations. It is important that in an
interview you set forth a positive impression. Many applicants utilize IM to get the
interviewer to like them. Self-promotion is seen as important because it shows
confidence; however, in an interview, ingratiation is not as effective. Albeit, in
performance evaluations ingratiation has been found to be a positive technique and
linked to higher rankings. However, self-promotion does not work as well in this
context. Most research on employee reactions to organizational politics is U.S.-
based; the few studies that have been done elsewhere suggest minor modifications
may be necessary to our understanding.
You must be aware of your context when utilizing IM techniques in order to get
the outcome desired.

The Ethics of Behaving Politically

 Is political behavior ethical in the workplace? Well, the answer is probably yes
and no. It is difficult to tell ethical from unethical politicking. There are three
questions that can help define ethical/unethical political behavior:
1. What is the utility of engaging in the behavior?
2. Does the utility balance out any harm done by the action?
 3. Does the action conform to standards of equity and justice?

The answers to these questions can help you decide if the behavior is ethical or
unethical. One of the most useful ways to think about power and politics is in terms of
your own career.

IV. ACTIVITIES / EXERCISES

1. Which “bases of power” are most effective in your opinion? Justify your answer.
2. Make an exhibit of a political map based on your hypothetical relationships with
one of your major subject professors upon whom your career depends. Use the
below diagram as an example:

V. ASSESSMENT

Answer the following

1. Contrast leadership and power.
2. Define the five bases of power.
3. List and define nine influence tactics.
4. Describe the effective use of influence tactics.
5. List the individual and organizational factors that stimulate political behavior.
6. Identify and describe the seven techniques for managing the impression one makes
7. List the three questions that can help determine if a political action is ethical.

VI. SUMMARY

Implications for Managers

 As a manager who wants to maximize your power, you will want to
increase others’ dependence on you.
 You will not be alone in attempting to build your power bases.
 Try to avoid putting others in a position where they feel they have no power.
 By assessing behavior in a political framework, you can better predict the actions
of others and use that information to formulate political strategies that will gain
advantages for you and your work unit.
 Help others understand the importance of becoming politically savvy.
Keep in Mind…
Informal, expert, and referent power are the most
important. Use consultation and inspirational
appeals.
The effectiveness of IM techniques depends on the setting.

Chapter 14: Conflict and Negotiation

I. LEARNING OBJECTIVES / OUTCOMES

After studying this chapter, you should be able to:

1. Understand the nature of conflict.
2. Know the differences between the traditional, interactionist and managed-
conflict views of conflict.
3. Learn the conflict process.
4. Understand the nature of negotiation.
5. Learn distributive and integrative bargaining.
6. Know the five steps of the negotiation process.
7. Understand how individual differences influence negotiations.
8. Explain the roles and functions of third-party negotiations.
9. Understand cultural differences in negotiations.

II. INTRODUCTION

Managers in organizations need to be able to effectively deal with conflict and to

negotiate with people inside and outside of the organization. These two skill sets are
critical for managerial success.

III. LESSON PROPER

CONFLICT is a process that begins when one party perceives that another party
has negatively affected, or is about to negatively affect, something that the first party
cares about.
Primarily deals with perception. If nobody thinks there is conflict, then no conflict
exists. Conflict can be experienced in an organization through many different avenues.
It can be that the goals of the individuals are incompatible or there is a difference of
opinion over the interpretation of facts. Many conflicts also arise through
disagreements about how people should behave.
The traditional view of conflict believes that conflict is bad and should be avoided
as much as possible. This view was more prevalent in the 1930s and 40s than it is
today. This view held that conflict was the result of poor communication, lack of
openness, or failure to respond to employee needs. All these things are negative and
can be fixed. Thus, management thought that conflict could be fixed and should be
fixed.
The interactionist view of conflict does recognize that even though functional
conflict can support the group’s goals and improve its performance there is also
dysfunctional conflict that hinders group performance. This type of conflict should be
avoided, controlled, or minimized as much as possible.
Functional conflict will work toward improving group performance while dysfunctional conflict
will hinder group performance.
Types of Conflict
Three categories of conflict:
1. Task conflict: Work content and goals. Arises when there is conflict over
the content and/or goals of the work. If this type of conflict exists at
low to moderate levels, then this is a functional conflict that can help
individuals seek clarification or new ideas on how to accomplish their
goals.
1. Relationship conflict: Interpersonal relationships. Based on problems
between individuals and is almost always dysfunctional.
2. Process conflict: How the work is done. Occurs when there is
disagreement on how the work gets done. Low levels of process conflict
represent functional conflict.

Loci of Conflict

Desired Conflict Levels Another

Level of Conflict way to understand conflict is
Source of to
Conflict consider where it occurs – its
Low Moderate High locus.
Three sources of
Task Functional Dysfunction Dyadic conflict: Conflict between
al two people
Relationship Dysfunction Intragroup conflict:
al Conflict occurring
Process Function Dysfunctional within a group or team
al Intergroup conflict:
Conflict between
groups or teams
In sum, the traditional view that all conflict should be eliminated is short-
sighted. The interactionist view that conflict can stimulate active discussion without
spilling over into negative, disruptive emotions is incomplete. Thinking about
conflict in terms of type and locus help us realize that conflict is probably inevitable
in most organizations. Therefore, it’s important to manage the variables of the
conflict process.

The Conflict Process

Stage I: Potential Opposition
Stage I of the conflict process is potential opposition or incompatibility. In this
stage there are three main conditions that can cause conflict to arise. They are
communication, structure, and personal variables.
 Communication
o Barriers exist
o Too much or too little
 Structure
o Group size, age, diversity
o Organizational rewards, goals, group dependency
 Personal Variables
o Personality types
o Emotionality

Stage II: Cognition and Personalization

Stage II looks at the recognition or cognition of the conflict and the personalization
or the emotional part of the conflict. As stated earlier, in order for conflict to be
present there must be an awareness of its existence, defined as perceived conflict.
Once people are aware of the conflict, emotions are expressed that can impact the
outcome of the conflict; this is defined as felt conflict. Emotions can include
anxiety, tension, frustration, or hostility.

 Perceived conflict: awareness needed for actualization

 Felt conflict: emotional involvement - parties experience anxiety, tension, frustration, or
hostility

Stage III: Intentions

Stage III starts to look at the intentions of the individuals involved. These intentions
include the determination to act in a certain way, but it is important to realize
behavior does not always accurately reflect intention. Sometimes people act out of
emotion and not rational thinking.
Five conflict handling intentions:

1. Competing
2. Collaborating
3. Avoiding
4. Accommodating
5. Compromising

Using two dimensions – cooperativeness (the degree to which one party

attempts to satisfy the other party’s concerns) and assertiveness (the degree to
which one party attempts to satisfy her own concerns) – we can identify five conflict
handling intentions: competing (assertive and uncooperative); collaborating
(assertive and cooperative); avoiding (unassertive and uncooperative);
accommodating (unassertive and cooperative); and compromising (midrange on
both assertiveness and cooperativeness).
Stage IV: Behavior
Stage IV moves us beyond intentions to the chosen behavior in the conflict. This is
when conflict becomes visible. Usually each party is using overt attempts to implement
their own intentions.
This step may cause a reaction
in others, either because the
individual miscalculated
someone’s intentions or he or
she was not skilled in
translating his or her intentions
into behavior. This can cause
functional conflicts that may be
helpful, or dysfunction conflicts
that can be highly destructive.
Functional conflicts are usually
at the lower range of the
continuum, while conflicts that
reach the upper
range of the continuum are almost always
dysfunctional.

Stage V: Outcomes
Stage V looks at the outcomes of conflict resolution.

 Functional Outcomes:
o Improves decision quality o Stimulates creativity and innovation
o Encourages interest and curiosity o Problems are aired
o Accepts change and self-evaluation
 Dysfunctional Outcomes:
o Group is less effective
o Reduces cohesiveness and communications o Leads
to the destruction of the group

Managing Functional Conflict

If managers recognize that in some situations conflict can be beneficial, they can
encourage people to challenge the system and develop fresh ideas.
Minimize counterproductive conflict:

 Recognize when there really is a disagreement

 Encourage open, frank discussion focused on interests
 Have opposing groups pick important issues and
work for mutual satisfaction
 Emphasize shared interests

NEGOTIATION: Process that occurs when two or more parties decide how to
allocate scarce resources
 There are two main
approaches:
Distributive bargainingseeks
to divide up a fixed
amount of resources and
often creates a win/lose
situation.
Integrative bargaining seeks
one or more settlements
that can create a win-win
situation for all parties
involved.
This exhibit depicts distributive bargaining. Each negotiator has a target
point that defines his goals and a resistance point that marks the lowest acceptable
outcome. The area between these points is the settlement range in which both
parties’ goals can be met.

Integrative bargaining: A win-win solution is possible But:

• Parties must be open with information and candid about their concerns
• Both parties must be sensitive regarding the other’s needs
• Parties must be able to trust each other
• Both parties must be willing to be flexible

The Negotiation Process

The negotiation process is
best understood

through
the negotiation process.
The grid in this slide
outlines the
steps:

1. Preparation and planning,

2. Definition of ground rules,
3. Clarification and justification,
4. Bargaining and problem solving, and 5.
Closure and implementation.

You should determine your BATNA and that of the

other party before proceeding with negotiations.
 BATNA represents the Best Alternative To a Negotiated
Agreement or the lowest acceptable value you will take for a
negotiated agreement. Then anything above your BATNA is
a good negotiated outcome.
Individual Differences in Negotiation Effectiveness
Many individual differences are interwoven in the negotiation process and impact the
effectiveness of the outcomes.

 Personality traits will impact outcomes as extroverts tend to be weaker at

negotiation because they will want people to like them. Intelligence is not an
indicator of effective negotiation skills.
 Mood and emotion can impact negotiations as anger is often an effective tool
in distributive bargaining, whereas positive moods are helpful in integrative
bargaining situations.  Culture also plays a role in negotiations and the
styles utilized. American negotiators will often make the first offer where
Japanese negotiators will often wait. North Americans use facts to persuade,
Arabs use emotions, and Russians speak more in ideals. Brazilians tend to
say no when negotiating much more than Americans or Japanese negotiators
will do so.
 Gender can also impact negotiation effectiveness. Men and women tend to
approach negotiations in the same way but may view the outcomes
differently. Women may appear more tender in the process where men come
across as tough. On the average, men are more likely to be negotiators than
women.

IV. ACTIVITIES / EXERCISES

Self-analysis
Remember your last negotiation activity. This activity could have been as
simple as asking someone out for a date or as complex as trying to purchase a
home. Describe that negotiation using the terms and concepts from this chapter.
What could you have done better to increase your likelihood of success in the
negotiation? Be specific.

V. ASSESSMENT

Using the table below, write the possible interventions for the five Sources of Conflict:

NATURE OF CONFLICT POSSIBLE INTERVENTION

Data Conflict

Values Conflict
 Relationship Conflict

Structural Conflict

Interest Conflict

VI. SUMMARY

Implications for Managers  Choose

an authoritarian management
style:
 In emergencies
 When unpopular actions need to be implemented 
When
the issue is vital to the organization’s welfare
 Seek integrative solutions:
 When your objective is to learn
 When you want to merge insights from people with different perspectives
 When you need to gain commitment by incorporating concerns
into a consensus
 When you need to work through feelings that have interfered with a
relationship
 Build trust by accommodating others:
• When you find you’re wrong
• When you need to demonstrate reasonableness
• When other positions need to be heard
• When issues are more important to others than to yourself
• When you want to satisfy others and maintain cooperation
• When you can build social credits for later issues
• To minimize loss when you are outmatched and losing
• When employees should learn from their mistakes
 Consider compromising when:
• Goals are important but not worth potential disruption
• Opponents with equal power are committed to mutually exclusive goals
• You need temporary settlements to complex issues
Keep in Mind…  Conflict is an inherent part of organizational life: probably
necessary for optimal organizational function
 Task conflict is the most constructive
  Most effective negotiators use both types of bargaining and know the appropriate tactics

Chapter 15: Foundations of Organization Structure

I. LEARNING OBJECTIVE / OUTCOME

After studying this chapter, you should be able to:

1. Know the six elements of an organization’s structure.
2. Understand the characteristics of the three most common organizational designs.
3. Learn the characteristics of the virtual organization, the boundaryless
organization, and leaner organizations.
4. Understand how organizational structures differ and contrast mechanistic and
organic structural models.
5. Learn the behavioral implications of different organizational designs.

II. INTRODUCTION

The theme of this chapter is that organizations have different structures and
the structures have a bearing on employee attitudes and behavior. Therefore, it is
important that managers be able to identify the correct structure to use in a given
situation.

III. LESSON PROPER

ORGANIZATIONAL STRUCTURE depicts how job tasks are formally divided,

grouped, and coordinated. The key elements of organizational structure include
work specialization, departmentalization, chain of command, span of control,
centralization, decentralization, and formalization.

Key Questions and Answers

This exhibit presents each element as an
answer to an important structural question.

 Work Specialization

A key part of organizational structure is

understanding the degree to which tasks
are divided into separate jobs or work
specialization. Also known as the division
of labor, which is helpful in creating the
most efficient way to
utilize employee skills, increase their skills, and maximize their input.
 Work specialization can cause
greater economies, but in some cases
it can cause diminishing returns due to
repetition, which can lead to boredom.
Job enlargement can be more effective
at creating greater efficiencies than
work specialization.

This exhibit shows economies and

diseconomies of work specialization.

 Departmentalization
It is defining how jobs are grouped together. There are a number of options
to choose from when grouping jobs; you could organize around function, product,
location, process, or customer. When jobs are grouped, departments are formed.

 Chain of Command
Represents the line of authority present in decision making. Embedded in the
chain of command is the inherent right of a manager to give orders and expect the
orders to be followed. Unity of command is the idea that a subordinate should have
only one superior to report to so that directions and the chain of command are
clear. As organizations change this concept is becoming less and less important.

 Span Of Control
This concept looks at how many workers a manager can effectively direct toward
organizational goals. Wider span allows for more efficiency because you need fewer
managers. However, it can also limit the amount of time and direction managers
can give to their employees.
A narrow span can allow for more direction but can add layers of management, increase
the complexity of the vertical communication, and encourage overly tight supervision,
limiting employee autonomy.

The exhibit illustrates that wider spans of control have fewer levels and fewer managers.

 Centralization and Decentralization

Centralization is the degree to which decision making is concentrated at a
single point in the organization, typically at the top. Decentralization represents an
organization that spreads decision making throughout the organization.
Only includes formal authority: positional rights. Highly centralized when top
managers make all the decisions. Decentralized when front-line employees and
supervisors make decisions. Trend is toward increased decentralization

 Formalization
_Is the degree to which jobs within the organization are standardized. When there is
high formalization workers have very little control over how they do their work and
they will be required to follow a number of rules and procedures. Lower
formalization will tend to allow for different job behaviors to get the job done, giving
workers more control over their work.
Common Organizational Designs
Three common organizational designs:
1. Simple structure
 Low degree of departmentalization
 Wide spans of control
 Authority centralized in a
single person
 Little formalization
 Difficult to maintain in anything
other than small organizations
2. Bureaucracy
 Highly routine operating tasks
achieved through specialization
• Formal rules and regulations
• Centralized authority
• Narrow spans of control
• Tasks grouped by
functional departments
• Decision making follows
the chain of command
3. Matrix structure
 Combines two forms of departmentalization
- Functional
- Product
- Dual chain of command
Advantages:
- Facilitates coordination and efficient allocation of specialists
Disadvantages:
- Possible confusion, fosters power struggles, stress

Matrix Structure for a College of Business Administration

New Design Options

1. Virtual Organization-A small core organization that outsources its major business functions
 Highly centralized with little or no departmentalization
 Provides maximum flexibility while concentrating on what the
organization does best
  Reduced control over key
parts of the business
2. Boundaryless organization:
 Eliminates the chain
of command
 Has limitless spans of control
 Replaces
departments with
empowered teams
 Breaks down
geographical barriers

The Leaner Organization: Downsizing- In

the midst of tough economic times and
the need for companies to be leaner,
downsizing has been on the rise.
Downsizing is a systematic effort to make an organization leaner by ridding
itself of business units, excessive locations, and staff. It has been very controversial
because of the strong negative impact on employees. Because of this negative
impact, the link to performance enhancement has been questioned.

Two Models of Organizational Design

This slide shows two extreme

models of organizational design –
the mechanistic model and the
organic model. Several factors
discussed next influence which type
of structure is best for an
organization.

Determinants of Structure

1. Organizational Strategy

 Innovation strategy: introduce new offerings – prefer organic structures

 Cost-minimization strategy: cost control – prefer mechanistic structures
 Imitation strategy: minimal risk and maximum profit – both structures used

2. Organization Size - Move toward mechanistic structure as size increases

3. Technology- Routine activities prefer mechanistic structures, non-routine prefer
organic structures
4. Environment- Dynamic environments lead to organic structures
Organizational Designs and Employee Behavior
• Cannot generalize any link between structure and performance o
Too much individual variance
• Consider employee preferences for:
o Work specialization
o Span of control
o Centralization
• National culture influences organizational structure
o High power distance cultures accept mechanistic structures

IV. ACTIVITY / EXERCISES

Choose one activity.

1. Brick & Mortar vs. Brick & Click vs. Click & Buy. Today’s retail world is
increasingly moving online in an effort to woo customers. Research and
identify a retailer from each of these three types: (1) brick & mortar: on-
ground presence only, (2) brick & click: on-ground and online presence,
(3) click & buy: online presence only. Describe the structures of each of
these three firms in terms of the six key elements given in the chapter.
Draw a generalized organizational chart for each type of retail
organization based on your research.
2. (If the student has internet connection available.) Search the web to
find three articles on an organization that has changed its structure in the
recent past (downsized or increased in scale). Carefully read the articles
and describe what happened using structural terms from this chapter.
What kinds of internal and external reactions were there to the structural
change? What was the impact of the change on the organization’s
effectiveness (e.g., perhaps as measured by its stock price)?

REFLECTION
Examine your own work/student life: consider the jobs/positions you have
held and organizations with which you have been associated. Based on your
experiences, what type of organizational structure appears to suit your best? Why?
Relate your own attitudes, behaviors, and values to the organizational structures
described in this chapter.

V. ASSESSMENT

ENUMERATION •
Organizational Structure Key • FORMALIZATION
Elements
•
• DEPARTMENTALIZATION
• •
•
Common Organizational Designs
1. SIMPLE STRUCTURE
2.
3.

Determinants of Structure
1.
2.
3. TECHNOLOGY
 4. formalization

MULTIPLE CHOICE
1) Which of the following is not one of
the six key elements of organizational
structure?
A) chain of command
B) departmentalization
C) work specialization
D) span of control
E) location of authority

2) A task that is subdivided into

many separate jobs is
considered to have
.
A) a high degree of
departmentalization
B) a low degree of decentralization
C) a high degree of work specialization
D) a wider span of control
E) a high degree of formalization

3) A allows management to
make the most efficient use of its
employees' skills and even
successfully improve them through
repetition.
A) low degree of centralization
B) high degree of formalization
C) wider span of control
D) low degree of departmentalization
E) high degree of work specialization

4) Which of the following statements is

true regarding work specialization?
A) Work specialization indicates to
what degree there will be rules and
formalization regulations to direct
employees and managers.
B) Work specialization decreases
the time spent in changing tasks.
C) Work specialization increases
the cost of finding and training workers
to do specific and repetitive tasks.
D) Work specialization provides an
unending source of increased
productivity.
E) Work specialization hinders
efficient use of employee skills.

5) The basis by which jobs are

grouped is called . A)
B) departmentalization
C) chain of command 9) Some of the departments in
D) span of control Procter & Gamble are Tide,
Pampers, Charmin, and Pringles.
6) Which one of the This is an
following is not one of the example of
primary ways to group departmentalization by .
jobs? A) function
A) skill B) process
B) customer C) geography
100
C) function HUMAN BEHAVIOR IN ORGANIZATION
D) product
E) service

7) A manufacturing
manager organizes a plant
into engineering,
accounting,
manufacturing, personnel,
and supply specialists’
departments. This division
of an organization into
groups according to work
functions is an example of .
A) social clustering
B) bureaucracy
C) specialization
D) centralization
E) departmentalization

8) Agri Producers provides

services related to the
testing of soil and crops. It
also provides advice to its
customers for improving
the productivity of the soil
and the quality of the
crops. It has customers all
over the United States.
The crops and soil are
different in the various
large areas of the nation,
such as the west coast
and the Midwest. Which
type of
departmentalization would
be best for Agri
Producers?
A) functional
B) process
C) product
D) geographic
E) temporal
D) product E) interest
A) product
10) Aeronautics Inc., a parts supplier, A) function
has departments for government B) geography
aircraft and contracts, large C) customer
commercial aircraft clients, and small D) service
personal aircraft clients. This is an
example of
departmentalization.

VI. SUMMARY

Implications for Managers

 Excessive specialization can create dissatisfaction and reduced motivation
 Avoid designing rigid hierarchies that overly limit employees’ empowerment and autonomy
 Balance the advantages of virtual and boundaryless organizations against the
potential pitfalls before adding flexible workplace options
 Downsize your organization to realize major cost savings, and focus the
company around core competencies – but only if necessary because downsizing
can have a significant negative impact on employee affect

Keep in Mind…
 As tasks become more complex and required skills more diverse, more use
of crossfunctional teams
 Simple structures are easy to create but difficult to grow
 External boundaries can be reduced through globalization, strategic
alliances, customerorganizational links, and telecommuting

Chapter 16: Organizational Culture

I. LEARNING OBJECTIVES / OUTCOMES

At the end of this lesson you should be able to:

1. Understand organizational culture and describe its common characteristics.
2. Learn and compare the functional and dysfunctional effects of organizational
culture on people and the organization.
3. Explain the factors that create and sustain an organization’s culture.
4. Know how culture is transmitted to employees.
5. Understand how an ethical culture can be created.
6. Know what a positive organizational culture is.
7. Understand the characteristics of a spiritual culture.
8. Understand how national culture may affect the way organizational culture is
transported to a different country.

II. INTRODUCTION

10
HUMAN BEHAVIOR IN ORGANIZATION 1
 This chapter examines organizational culture: the effects culture has on
members within the organization; how members learn the culture; and how it can
be changed.

10
HUMAN BEHAVIOR IN ORGANIZATION 2
III. LESSON PROPER

ORGANIZATIONAL CULTURE is an important concept in studying how

organizations behave. Culture is defined as a common perception held by the
members of the organization or a sense of shared meaning.
There are seven primary characteristics define organizational culture. They
are: innovation and risk taking, attention to detail, outcome orientation, people orientation,
team orientation, aggressiveness, and stability.
Culture is concerned with the way employees perceive their culture, not
whether they like it or not. Job satisfaction, in contrast, is evaluative in nature and
gets at how employees respond to certain factors in their work context.

Do Organizations Have Uniform Cultures?

The dominant culture expresses the core values that are shared by a majority of
the organization’s members
 Subcultures tend to develop in large organizations to reflect common
problems, situations, or experiences of members. Subcultures mirror
the dominant culture but may add to or modify the core values

In a strong culture, the organization’s core values are both intensely held and widely
shared Strong cultures will: o Have great influence on the behavior of
members o Increase cohesiveness
o Result in lower employee turnover

Culture versus Formalization

Formalization and culture are two different roads to a common destination.
The stronger an organization’s culture, the less management needs to be
concerned with developing formal rules and regulations to guide employee
behavior. Those guides will be internalized in employees when they accept the
organization’s culture.

The Functions of Culture

• Defines boundaries
• Conveys a sense of identity
• Generates commitment beyond oneself
• Enhances social stability
• Sense-making and control mechanism

Organizational climate: The shared perceptions organizational members have

about their organization and work environment
 Positive climate is linked to higher customer satisfaction and financial performance

Culture as a Liability
• Institutionalization- Behaviors and habits go unquestioned – can stifle innovation
• Barriers to change- Culture is slow to change – even in a dynamic environment
• Barriers to diversity- Culture seeks to minimize diversity. Can embed prevalent
bias and prejudice
 • Barriers to acquisitions and mergers- Cultural incompatibility can be a problem

How a Culture Begins

Ultimate source of an organization’s culture is its founders.

Founders create culture in three ways:

1. Hiring and keeping those who think and feel the same way they do
2. Indoctrinating and socializing those employees to their
way of thinking and feeling
3. Acting as a role model and encouraging employees to
identify with them A culture is kept alive in three main ways.
 Selection: seek out those who fit in
 Top management: establish norms of behavior by their actions
 Socialization: help new employees adapt to the existing culture

A Socialization Model
The socialization process involves
a few steps. The employee will learn
about the organization through
literature, interviews and other people in
the pre-arrival stage. Once the employee
starts interacting with other employees,
the employee enters the encounter stage
where he or she sees what the
organization is really like. Expectations
are measured against reality during this
stage, and a misalignment may emerge.
During the third stage, metamorphosis,
the new employee adjusts to the
organization and work.

Entry Socialization Options

There are a number of possible socialization programs. Each organization

needs to select one that best fits its culture. When the socialization process
matches an organization’s culture, it will have positive outcomes including higher
productivity, greater commitment, and lower turnover.

How Cultures Form

• Formal: new workers separated for • build up new ones
• training
Collective: group basis
Fixed: planned activities
•
Serial: role models used
• Divestiture: strip away characteristics to
• Informal: new workers immediately put to
• work
• Individual: one-
on-one Variable:
no timetables •
Random: on your own
• Investiture: accepts and confirms existing
characteristics
How Employees Learn Culture
Employees learn the organizational
culture through a number of
avenues.
 Stories: provide explanations
 Rituals: reinforce key values
 Material symbols: convey
importance, degree of
egalitarianism desired, and
appropriate behaviors
 Language: identify and segregate members

As cultures are created, it is important to incorporate ethics into cultural

norms early on. Certain characteristics will help develop high ethical standards,
such as a high tolerance for risk so people are not afraid to make mistakes; low to
moderate in aggressiveness so that unethical behaviors are avoided, and a focus on
the means as well as the outcomes so that ethics is embedded in both.
Managers must be visible role models and communicate ethical expectations.
Training on ethical behavior and guidelines must be done and ethical acts must be
rewarded while unethical acts need to be punished. In addition, protective
mechanisms must be in place to assist the workers in behaving ethically.
A positive organizational culture is one that builds on employee strengths so
that employees can develop and grow. It also rewards more than it punishes, so
employees are not afraid to try new things and feel good about what they are
contributing. Finally, it emphasizes individual vitality and growth so that employees
are operating at full potential. The idea of a positive organizational culture is new
and the jury is still out on how and when it works best. We do know, however, that
not all national cultures value being positive as much as U.S. culture does.
Moreover, even within U.S. cultures, there are limits as to how far U.S. companies
should go. These limits may be dictated by industry.

IV. ACTIVITIES / EXERCISES

Select a Philippine company, read its Mission and Vision Statement. Interview some
managers and employees from that organization:

1. Find out what their corporate culture is;

2. Classify the organization’s culture using the typology model (below). Explain
your classification decision; and
3. What Filipino values are at work in the company?

TYPES/QUADRANT PHILIPPINE INDUSTRIES

I – Organic – Internal Maintenance Architecture, Healthcare,
(CLAN) Pharmaceuticals,
Retail, Social Welfare
II – Organic – External Positioning Computer Hardware/Software,
(ADHOCRACY) Consulting,
Education, Engineering, Print/Publishing
III – Mechanistic – Internal Banking and Finance, Government,
Maintenance (HIERARCHY) Social Welfare, Transport
 IV – Mechanistic – External Architecture, Chemicals/Oils,
Positioning (MARKET) Distribution, Food and Beverage,
Manufacturing, Property
Development, Services, Utilities

V. ASSESSMENT

Answer the following:

1. Describe the seven key characteristics that capture the essence of the
organization's culture.
2. Contrast organizational culture and job satisfaction.
3. Identify the functional and dysfunctional effects of organizational culture on employees.
4. List the factors that maintain an organization's culture.
5. Identify and describe the phases of organizational socialization.
6. How can culture be transmitted to employees? Provide examples for each.
7. Explain how an ethical culture can be established.
8. What is a positive organizational culture and what key variables are used in creating it?
9. What is the relationship between national culture and a global organization’s
organizational culture?

VI. SUMMARY

Implications for Managers  Realize that an organization’s culture is relatively fixed

in the short term. To effect change, involve top management and strategize a
long-term plan.
 Hire individuals whose values align with those of the organization; these
employees will tend to remain committed and satisfied.
 Understand that employees’ performance and socialization depend to a
considerable degree on their knowing what to do and not do. Train your
employees well and keep them informed of changes to their job roles.
 Your company’s organizational culture may not be transportable to other
countries. Understand the cultural relevance of your organization’s norms
before introducing new plans or initiatives overseas.
Keep in Mind…  Organizational culture develops over time and reflects deeply held
values to which employees are strongly committed
 Ethical and positive organizational cultures can be created – methods differ 
National culture influences organizational culture

Chapter 17: Human Resource and Policies

I. LEARNING OBJECTIVE / OUTCOME

After studying this chapter, you should be able to:

1. Know initial selection and understand the most useful methods.
2. Understand substantive selection and learn the most useful methods.
3. Know contingent selection and understand the arguments for and against drug testing.
4. Understand the four main types of training.
 5. Understand formal and informal training methods.
6. Learn on- the-job and off-the-job
7. Understand the purposes of performance evaluation and methods by which it can be done.
8. Know how managers can improve performance evaluations.
9. Learn how organizations can manage work-family conflicts.
10.Understand how a global context affects human resource management.

II. INTRODUCTION

This chapter is about change. We describe environmental forces that require

managers to implement comprehensive change programs. We also consider why
people and organizations often resist change and how this resistance can be
overcome. We review various processes for managing organizational change. We
also discuss contemporary work stress issues for today’s managers.

III. LESSON PROPER

How does the selection process work?

 After the applicant applies for a job, he/she then goes to the initial selection to
decide whether an applicant meets the basic qualifications using application
forms and background checks. If not, applicant is rejected.

In the initial selection, applicants submit their first information devices used
for preliminary rough cuts to decide whether the applicant meets the basic
qualifications for a job. Initial selection devices include application forms (including
letters of recommendation). Background checks, although can be considered a
contingent selection device, some HR prefer to look into an applicant’s background
right away. About 80% of employers conduct background checks on their applicants
at some point in the hiring process because they want to know how an applicant did
in past jobs and whether former employers would recommend hiring the person.
About 2/3 of employers only give general reference information on applicants
because they are afraid of being sued for saying something bad about a former
employee.
Application forms, although not a very good predictor of performance might
be a good initial screen. For example, applicants who are not registered nurse for a
registered nurse position has no sense spending time for an interview because
he/she doesn’t have a proper credentials. Questions about race, gender and
nationality is not allowed and might put the company and manager in jeopardy.
Letters of recommendation are also a form of background check but most of
them tends to be favorable and biased to the applicants’ side so the employer
would either ignore them or “read between the lines” to extract the hidden meaning
in them. Some employers would also check the applicants’ credit histories and
criminal records because not checking can carry a legal cost.

 Applicant that meets the basic qualifications will proceed to the substantive
 selection
where the HR determines the most qualified from those who passed the basic
qualification
 using written tests, performance tests and interviews. Applicants who are
less qualified than others are rejected.

Substantive selection is the heart of the selection process where applicant

that passes the initial screen advances. It includes written tests, performance-
simulation tests and interviews. Written tests called “paper-and-pencil” tests have
been fluctuating in the past several decades. Typical written tests include: (1)
intelligence or cognitive ability tests (2) personality test
(3) integrity tests (4) interest inventories. Intelligence tests have proven to be
particularly good predictors for jobs that include cognitively complex tasks.
Personality tests are inexpensive and simple to administer.
Performance- Simulation tests have higher face validity which measures
whether applicants perceive the measures to be accurate. Two best known
examples are the work sample tests and assessment centers.

- Work sample tests are hands-on simulations of part or all of the work that
applicants for routine jobs must perform. Each work sample element is
matched with a job-performance element of measure applicants’ knowledge,
skills, and abilities with more validity than written aptitude and personality
tests. Work sample test is usually done in hiring welders, machinists,
carpenters, and electricians.

- Assessment centers are specifically designed to evaluate a candidate’s

managerial potential. This is done by line executives, supervisors, and trained
psychologists. To reduce the cost of job simulations, many organizations have
started to use situational judgement tests, which ask applicants how they
would perform in a variety of job situations and compare their answers to
those of high-performing employees.

Interviews are the most common method of substantive selection. To reduce

bias and improve the validity of interviews, managers should adopt a standardized
set of questions, a uniform method of recording information, and standardized
ratings of applicants’ qualifications. Interview effectiveness also improves when
employers use behavioral structured interviews.

 Applicants who is among the best qualified will advance to the contingent
selection where the HR will make a final check before making offer to
applicants like drug tests and background check. Those who fail contingent
selection will be rejected.

If applicants pass the substantive selection methods, they are ready to be

hired, contingent on a final check. One common contingent method is a drug test.

Drug testing is controversial. Some think that testing without reasonable

suspicion is invasive or unfair and say they should be tested on job-performance
factors, not lifestyle choices that may not be relevant.
 Employers may require applicants to have medical exams to determine
whether an applicant is physically fit and mentally stable to do the job or sometimes
employers use medical exams to find out whether and how they can accommodate
employees with disabilities. Some jobs that require medical exams because of
exposure to heavy physical or psychological demands are traffic controllers and
firefighters.
Types of Training

1. Basic Literacy skills

-Statistics showed that 40% of US labor force and 50% of high school
graduates don’t possess the basic work skills needed in workplace.

2. Technical skills
-Reasons to improve technical skills: 
New technology
 New structural designs in the organization.

3. Interpersonal skills
-Others require training to improve listening, communicating and team-building skills.

4. Problem- Solving skills

-To sharpen their logic, reasoning, and problem-defining skills as well as their
abilities to assess causation, develop and analyze alternatives, and select
solutions.

Ethics training
To recognize ethical dilemmas and become aware of the ethical issues underlying their actions.

Formal Training vs. Informal Training

Historically, training is deemed to be formal, planned in advance and having a
structured formal. However, recent study suggests that about 70% of workplace
takes informal training – unstructured, unplanned, and easily adapted to situations
and individuals – for teaching skills and keeping employees current. In reality,
informal training is helping fellow employee out. They share information and solve
work-related problems together.

On-the-Job Training vs. Off-the-Job Training

On-the-job training methods include job rotation, apprenticeships, understudy
assignments, and formal monitoring programs. But because they often disrupt the
workplace, organizations invest in off-the-job training. Off-the-job training includes
live classroom lectures, videotapes, public seminars, self-study programs, internet
courses, satellite-beamed television classes, and group activities that use role-plays
and case studies.
The fastest-growing training medium is probably computer-based training or
e-training. Computer-based training let learners actively participate in exercises and
quizzes was more effective than a traditional classroom instruction. E-training
increases flexibility because organizations can deliver materials anywhere, anytime.
Fast and efficient. But it is expensive to design self-paced online materials.
Employees miss the social interaction of a classroom, online learners are more
susceptible to distractions, and “clicking through” training without actually
engaging in practice activities provides no assurance employees have actually
learned anything.

Individualizing Formal Training to Fit the Employee’s Learning Style

 Some people absorb information better when they read about it. Some
people learn by observation. Some heavily rely on their auditory senses. And some
people prefer a participating style learn by doing. We can translate these learning
styles into teaching methods that maximize learning. Good teachers recognize that
students learn differently and use multiple teaching methods: they assign readings
before class; give lectures; use visual aids to illustrate concepts; and have students
participate in group projects, case analysis, role-plays, and experiential learning
exercises.

Not all training methods are equally effective. The success of training also
depends on the individual. Personality is important: those with an internal locus of
control, high conscientiousness, high cognitive ability, and high self-efficacy learn
more. Climate is also important: when trainees believe there are opportunities and
resources to let them apply their newly learned skills, they are more motivated and
do better in training programs.

Performance Evaluation

Three major types of behavior that constitutes performance at work.

 Task performance is performing the duties and responsibilities that contribute

to the production of a good or service or to administrative tasks.

 Citizenship are actions that contribute to the psychological environment of

the organization, such as helping others when not required, supporting
organizational objectives, treating co-workers with respect, making
constructive suggestions, and saying positive things about the workplace.

 Counter-productivity are actions that actively damage the organization such

as stealing, damaging company property, behaving aggressively toward co-
workers, and avoidable absences.

Most managers believe good performance means doing well on the first two
dimensions and avoiding the third.

Purposes of Performance Evaluation

 To help management make general human resource decisions about

promotions, transfers, and terminations.

 To identify training and development needs.

 To provide feedback to employees for the basis for reward allocations

including merit pay increases.

What do we evaluate?
 Management should evaluate an employee’s task on outcomes such as
quantity produced, scrap generated, and cost per unit of production for a plant
manager or on overall sales volume in the territory, dollar increase in sales, and
number of new accounts established for a salesperson.

Organizational citizenship behavior, helping others, making suggestions for

improvements, and volunteering for extra duties make work groups and
organizations more effective and often are incorporated into evaluations of
employee performance.

Having good attitude, showing confidence, being dependable, looking busy, or

possessing a wealth of experience may or may not be highly correlated with
positive task outcomes, but it’s naïve to ignore the reality that organizations still
use such traits to assess job performance.

Who should do the evaluating?

Top
management
Manager (Internal Suppliers
(Internal customer) (External
customer) customer)

Subordinates Clients
(Internal (External
customer) customer)

Co-workers or Other
team department
members Employee representativ
(Internal es (Internal
customer) customer)

It’s advisable to use multiple sources of ratings. The latest approach to performance
evaluation provides performance feedback from the employee’s full circle of daily
contacts, from mailroom workers to customers to bosses to peers. By relying on
feedback from co-workers, customers, and subordinates, these organizations are
hoping to give everyone a sense of participation in the review process and gain
more accurate readings on employee performance.

Methods of Performance Evaluation

 Written essays is the simplest method to evaluate performance by writing a

narrative describing an employee’s strengths, weaknesses, past
performance, potential, and suggestions for improvement.
 Critical incidents is way of evaluating the behaviors that are key in making the
difference between executing a job effectively and executing it ineffectively.
The appraiser describes what the employee did in a situation that was
especially effective or ineffective.
 Graphic rating scales is an evaluation method in which the evaluator rates
performance factors such as quantity and quality of work, depth of
knowledge, cooperation, attendance, and initiative and rates each on an
 incremental scale.
 BARS (Behaviorally anchored rating scales) are scales that combine major
elements from the critical incident and graphic rating scale approaches. The
appraiser rates the employees based on items along a continuum, but the
points are examples of actual behavior on the given job rather than general
descriptions or traits.
  Forced comparison is a method of performance evaluation where an
employee’s performance is made in explicit comparison to others (e.g., an
employee may rank third out of 10 employees in her work unit.) Two most
popular comparisons are group order ranking and individual ranking. Group
order ranking is an evaluation method that places employees into a particular
classification, such as quartiles. Individual ranking is an evaluation method
that tank-orders employees from best to worst

The following suggestions can make the process more objective and fairer:
• As the number of evaluators increases, the probability of attaining more
accurate information increases.
• To increase agreement among them, appraisers should evaluate only where
they have some expertise.
• Training evaluators can produce more accurate raters. Most rater training
courses emphasize changing the rater’s frame of reference by teaching them
what to look for, so everyone in the organization defines good performance in
the same way.
• The concept of due process can be applied to appraisals to increase the
perception that employees are being treated fairly. 3 features characterize
due process systems:
1. Individuals are provided with adequate notice of what is expected to them
2. All evidence relevant to a proposed violation is aired in a fair
hearing so the individuals affected can respond
3. The final decision is based on the evidence and free of bias.

Providing Performance Feedback

Managers are likely to ignore this responsibility:

1. Fear of confrontation when presenting negative feedback
2. Employees become defensive when weaknesses are pointed out
3. Employees have inflated assessment of their own performance

Managing work-life conflicts in organizations

1. Work-life conflicts grabbed management’s attention in the 1980s.
2. Most major organizations made their workplaces family friendly.
3. Modifying with scheduling options and benefits to accommodate the
varied needs of a diverse workforce

IV. ACTIVITY / EXERCISES

1.

Briefly explain the below initial selection process:

2. Why is training necessary? Defend your answer.
 3. Give an example of a (1) formal and
(2) informal training.

4. Among the methods of

Performance Evaluation, what do you
think is the most effective? Explain.

V. ASSESSMENT

Answer the following

1. Describe forces that act as stimulants to change.
2. Describe the sources of resistance to change.
3. Summarize Lewin's three-step change model.
4. Explain the relationship between Lewin's change model and
Kotter’s plan for implementing change.
5. Describe potential sources of, and ways of managing, work stress.
6. Explain the values underlying most organizational development (OD) efforts.

VI. SUMMARY

Implications for Managers  If selection practices is properly designed, an

organization’s selection will identify competent candidate and accurately match
them to the job and the organization.
 The most obvious effect of training programs is direct improvement in the
skills necessary to successfully complete the job. Increased ability thus
improve potential, but whether that potential becomes realized is largely an
issue of motivation. It also increases an employee’s self- efficacy, a person’s
expectation that he or she can successfully execute the behaviors required to
produce an outcome.
 The major goal of performance evaluation is to asses an individual’s
performance accurately as a basis for allocating rewards. If evaluation is
inaccurate or emphasizes the wrong criteria, employees will be over- or under
rewarded.

Chapter 18: Organizational Change and Stress Management

I. LEARNING OBJECTIVE / OUTCOME

After studying this chapter, you should be able to:

1. Know forces that act as stimulants to change.
2. Understand the sources of resistance to change.
3. Learn the three main approaches to managing organizational change.
4. Know the two ways of creating a culture for change.
 5. Understand the potential sources and consequences of stress and describe
techniques for managing stress.
6. Learn the consequences of stress.
7. Know the individual and organizational approaches to managing stress.
8. Understand global differences in organizational change and work stress.

II. INTRODUCTION

There are many forces that stimulate change including the nature of the
workforce, technology, economic shocks, competition, social trends, and world politics.
All these things can create change in a workplace.

III. LESSON PROPER

Whenever change is present there is resistance to change. Individuals and

groups become comfortable with things that are familiar, and change threatens the
status quo. There are different ways that change is resisted by employees. It is
important to note that not all change is good. Speed can lead to bad decisions;
sometimes those initiating change fail to realize the full magnitude of the effects or
their true costs. Change can be good, but change agents need to carefully think
through its implications.

Sources of Resistance
Overcoming Resistance to
Change
1. Education and communication
2. Participation
3. Building support and commitment
4. Developing positive relationships
5. Implementing changes fairly
6. Manipulation and cooptation
7. Selecting people who accept change
8. Coercion
Approaches to Managing Organizational Change

 Lewin’s Three-Step Model of Change

In the unfreezing stage, Lewin identifies driving

and restraining forces. Driving forces are those
that direct behavior away from the status quo.
Restraining forces are those that hinder
movement from the existing equilibrium.

 Kotter’s Eight-Step Model of the Change Process

OD Interventions
1. Survey Feedback Gathering data and acting on it
2. Process Consultation Using outside consultants
3. Team Building Increase trust and openness
4. Intergroup Development Change attitudes, stereotypes, and perceptions
5. Appreciative Inquiry Discovering what the organization does right

Organizational Development

It is an area of study that is set up to determine what an organization needs to

improve
its effectiveness and employee well-being.

Based on humanistic-democratic values

• Respect for people
• Trust and support
• Power equalization
• Confrontation
• Participation
Stimulating a Culture of Innovation
 Innovation: A new idea applied to initiating or improving a product, process,
or service Sources of innovation include:
• Structure
• Culture
• Human resources

 Idea champions: Managers who actively and enthusiastically promote an

idea, build support, overcome resistance, and ensure that innovation is
implemented
• Have high self-confidence, persistence, energy, and acceptance of risk
• Use inspiration and vision to gain commitment
• Have decision-making discretion

 Stress: A dynamic condition in which an individual is confronted with an

opportunity, demand, or resource related to what is desired and for which the
outcome is perceived to be both uncertain and important

Types of Work Stress:

 Challenge Stress: associated with workload, pressure to complete tasks,
and time urgency o Can be positive
 Hindrance Stress: comes from obstacles to achieving goals o Mostly negative
 Usually stress is associated with demands and resources

Consequences of Stress
Stress shows itself in a number of ways, such as high blood pressure,
ulcers, irritability, difficulty making routine decisions, loss of appetite,
accident proneness, and so on. These symptoms fit under three general
categories:

 Physiological symptoms
 Psychological symptoms
 Behavioral symptoms

Managing Stress
Stress needs to be managed and maintained at a healthy level. Individuals
often manage stress through time management techniques, physical exercise, or
expanding their social support network. Organizations can also help employees
manage stress by providing training, realistic goal setting, solid designing of jobs,
offering employee sabbaticals, and establishing a wellness program.

IV. ACTIVITY / EXERCISES

Critical thinking questions:

1. The school you are currently attending is currently undergoing some sort of
change to adopt more closely with its environment. Discuss the external
forces that are driving the change. What internal drivers for change also
exist?
 2. Any form of resistance is a symptom, not a problem, in the change
process. What are some of the real problems that may underlie
resistance?

3. Change is often not a welcomed reality and we often say that individuals, like
organizations, do not like change. For example, who wants to change from a
recently that individuals (perhaps like organizations) are embracing change.
Please give several concrete examples of this phenomenon and suggest
reasons as to why his might be the case.

V. ASSESSMENT

Answer the following

1. Describe forces that act as stimulants to change.
2. Describe the sources of resistance to change.
3. Summarize Lewin's three-step change model.
4. Explain the relationship between Lewin's change model and Kotter’s plan for 5.
Explain the values underlying most organizational development (OD) efforts.
6. Describe potential sources of, and ways of managing, work stress.

VI. SUMMARY

Implications for Managers

 You are a change agent for your organization. The decisions that you make,
and your role- modeling will help shape the organization’s change culture.
 Your management policies and practices will determine the degree to which
the organization learns and adapts to changing environmental factors.
 Some stress is good.
 You can help alleviate harmful workplace stress for you and any employees
you supervise by accurately matching workloads to employees, providing
employees with stress-coping resources, and responding to their concerns.
 You can identify extreme stress when performance declines, turnover
increases, healthrelated absenteeism increases, and engagement declines.
Stay alert for early indicators and be proactive.
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