CHAPTER 6

SPECIFIC APPLICATIONS OF SHORTCUTS Intuitive decision making- the least rational

1. Employment Interviews When people way of making decisions , an unconscious
interview for jobs, the interviewers often make process created from distilled experience. It
quick judgments based on their first occurs outside conscious thought; it relies on
impressions. holistic associations, or links between disparate
2. Performance Expectations People attempt to pieces of information
validate their perceptions of reality even when COMMON BIASES AND ERRORS IN DECISION
these are faulty. The terms self-fulfilling MAKING
prophecy and Pygmalion effect describe how Overconfidence Bias- When we’re given factual
an individual’s behavior is determined by others’ questions and asked to judge the probability
expectations. People tend to live up to the that our answers are correct, we tend to be far
expectations that others have of them. too optimistic.
-​ Self-fulfilling prophecy A situation in anchoring bias is a tendency to fixate on initial
which a person inaccurately perceives a information and fail to adequately adjust for
second person, and the resulting subsequent information
expectations cause the second person to Confirmation Bias- represents a specific case
behave in ways consistent with the of selective perception: we seek out information
original perception. that reaffirms our past choices, and we discount
3. Performance evaluations often involve informa tion that contradicts them.
subjective judgments, which can be influenced Availability bias is our tendency to base
by biases including the manager's own biases judgments on information read ily available.
and perceptions. Escalation of commitment refers to staying with
LINK BETWEEN PERCEPTION AND INDIVIDUAL a decision even when there is clear evidence it’s
DECISION MAKING wrong.
Decisions Choices made from among two or Randomness error- Our tendency to believe we
more alternatives. can predict the outcome of random events
Problem A discrepancy between the current Risk aversion- This tendency to prefer a sure
state of affairs and some desired state. thing over a risky outcome.
DECISION MAKING IN ORGANIZATIONS Hindsight bias- is the tendency to believe
Rational Characterized by making consistent, falsely, after the outcome is known, that we’d
value-maximizing choices within specified have accurately predicted it.
constraints. INDIVIDUAL DIFFERENCES
Rational decision-making model A 1. Personality Research suggests that
decision-making model that describes how personality traits influence decision-making
individuals should behave in order to maximize outcomes.
some outcome. A. Conscientiousness:
STEPS IN RATIONAL DECISION MAKING MODEL a. Achievement Striving - Motivated by a
1. Define the problem. strong aversion to failure, they persist in
2. Identify the decision criteria. efforts to avoid it. These individuals are
3. Allocate weights to the criteria. more prone to hindsight bias, possibly
4. Develop the alternatives. because of a heightened need to justify
5. Evaluate the alternatives. their actions.
6. Select the best alternative. b. Dutifulness - Focused on
Bounded rationality A process of making organizational well-being, they prioritize
decisions by constructing simplified models that what is best for the organization over
extract the essential features from problems personal concerns. No evidence yet
without capturing all their complexity. indicates whether they are immune to
hindsight bias.
B. Self-Esteem - Individuals with high operational guidelines to compliance
self-esteem exhibit a distinct approach to rules, limit the range of choices available
preserving their self-worth. Use self-serving to decision-makers.
bias to maintain high self-esteem. Attribute ●​ System-Imposed Time Constraints
failures to external factors while taking credit for Almost all important decisions come with
successes. explicit deadlines.
2. Gender - Women exhibit a higher tendency to ●​ Historical Precedents- Choices made
ruminate than men, which has both advantages today are largely a result of choices
and drawbacks for decision-making processes made over the years. Outcomes of past
Rumination- refers to reflecting at length. In decisions can limit future options, with
terms of decision making, it means historical patterns shaping the decisions
overthinking problems of the present
3 Theories Why Women Ruminate More Than THREE ETHICAL DECISION CRITERIA
Men 1. Utilitarianism The idea of making decisions
• Socialization and Parenting- Parents may based on what will result in the best outcomes
encourage girls more than boys to express for the most people. “greatest good for the
sadness and anxiety, reinforcing introspective greatest number. ”
tendencies. 2. Rights-Based Decision-Making Focuses on
• Self-Esteem and External Validation- Women making choices that respect and protect basic
may place greater importance on others’ rights and freedoms, such as the right to
opinions, leading to increased reflection on privacy, free speech, and fair treatment.
social interactions and outcomes. -​ whistle-blowers- Individuals who report
• Empathy and Emotional Sensitivity -Women’s unethical practices by their employer to
higher levels of empathy and greater sensitivity outsiders.
to others’ experiences may result in more issues 3. Justice-Based Decision-Making - impose
to ruminate about. and enforce rules fairly and impartially to ensure
3. Mental Ability- people with higher levels of an equitable distribution of benefits and costs.
mental ability are able to process information IMPROVING CREATIVITY IN DECISION MAKING
more quickly, solve problems more accurately, Creativity The ability to produce novel and
and learn faster. They are also better able to useful ideas.
avoid logical errors like false syllogisms or THREE-COMPONENT MODEL OF CREATIVITY -
incorrect interpretation of data. The proposition that individual creativity
4. Cultural Differences- cultural background of requires expertise, creative thinking skills, and
a decision maker can significantly influence the intrinsic task motivation.
selection of problems. Decision-making ●​ Expertise. is the foundation for all
processes are shaped by cultural norms and creative work.
values. ●​ Creative-thinking skills. This
ORGANIZATIONAL CONSTRAINTS encompasses personal ity characteristics
●​ Performance Evaluation Managers are associated with creativity, the ability to
strongly influenced by the criteria on use analogies, and the talent to see the
which they are evaluated. familiar in a different light.
●​ Reward Systems The organization’s ●​ Intrinsic task motivation. This is the
reward system influences decision desire to work on something because it’s
makers by suggesting which choices interest ing, involving, exciting, satisfying,
have better personal payoffs. or personally challenging.
●​ Formal Regulations- Organizational International Differences There are no global
rules and regulations act as constraints ethical standards
by providing a framework within which
decisions must be made. These formal
regulations, which can range from
 the other one is Positive, Theory Y. McGregor
CHAPTER 7 Concluded that their views of the nature of
MOTIVATION -the processes that account for an human beings are based on certain
individual’s intensity, direction, and persistence assumptions that mold their behavior.
of effort toward attaining a goal. • THEORY OF X -Managers believe employees
THREE KEY ELEMENTS inherently dislike work and must therefore be
• intensity directed or even coerced into performing it.
• direction ASSUMPTIONS OF THEORY X
• persistence. 1. DISLIKE WORK - Employees see their job as
Intensity - how hard a person tries to achieve something they can avoid whenever they want
their goal, degree of effort because they don’t want responsibility, and they
Direction - the target the effort directed lack the motivation to do the task.
towards, goal of effort 2. LACK AMBITION - Employees prefer to be
Persistence - How long a person maintains their directed rather than take initiative.
effort, consistency of effort 3. MUST BE CONTROLLED - Employees naturally
HIERARCHY OF NEEDS THEORY (ABRAHAM resist working hard, managers must implement
MASLOW’S HIERARCHY OF NEEDS) strict supervision, detailed instructions, and even
• Abraham Maslow’s hierarchy of five disciplinary measures to ensure productivity.
needs—physiological, safety, social, esteem, and 4. MONETARY REWARDS AND PUNISHMENTS -
self-actualization—In which, as each need is Employees primarily work for money and
substantially satisfied, the next need becomes threats. They’re doing the task just for the
dominant. money and bonuses. They are scared to lose the
FIVE NEEDS: job, that’s why they do the task.
1. PHYSIOLOGICAL. Includes hunger, thirst, THEORY OF Y-Managers assume employees can
shelter, sex, and other bodily needs. view work as being as natural as rest or play,
2. SAFETY. Security and protection from physical and therefore the average person can learn to
and emotional harm. accept, and even seek, responsibility.
3. SOCIAL. Affection, belongingness, acceptance, ASSUMPTIONS OF THEORY Y
and friendship. 1. SELF-MOTIVATED AND DISCIPLINE -Employees
4. ESTEEM. Internal factors such as self-respect, can direct themselves into organizational goals
autonomy, and achievement, and external without needing supervision. They aren't
factors such as status, recognition, and required to be monitored because they are
attention. disciplined enough to do the job efficiently.
5. SELF-ACTUALIZATION. Drive to become what 2. NATURAL AND ENJOYABLE - Employees do not
we can become; includes growth, achieving our inherently dislike work. Given the right
potential, and self-fulfillment. conditions, they can view work as fulling and
engaging, much like play or rest. Employees are
enjoying their work as much as they want.
3. INTRINSIC MOTIVATION- Employees are
driven by personal growth, achievement and
sense of purpose, not just rewards and salaries.
They are motivated because they love their job.
Frederick Herzberg- Herberzg's Two-Factor
*Lower-order needs Needs that are satisfied
Theory, also known as the motivation-hygiene
externally, such as physiological and safety
theory, was developed by analyzing individuals'
needs.
feelings about their jobs in detail.
*Higher-order needs are satisfied internally
TWO-FACTOR THEORY
(within the person)
1. MOTIVATION FACTORS - (Lead to Job
Douglas McGregor, proposed two distinct views
Satisfactions) - These factors inspire employees
of human beings: Theory X is the Negative and
to work harder, perform better, and feel fulfilled
in their jobs. Motivation factors make Job engagement- The investment of an
employees feel excited about their work, leading employee’s physical, cognitive, and emotional
to increased performance and engagement. energies into job performance
2. HYGIENE FACTORS - (Prevent Job Goal-setting theory - A theory that says that
Dissatisfaction) - These factors relate to the specific and difficult goals, with feedback, lead
work environment and conditions rather than to higher performance
the work itself. • A more systematic way to utilize goal-setting
Intrinsic factors such as advancement, is with management by objectives (MBO) , A
recognition, responsibility, and achievement program that encompasses specific goals,
seem related to job satisfaction. participatively set, for an explicit time period,
Extrinsic factors, such as supervision, pay, with feedback on goal progress.
company policies, and working conditions. Self-Efficacy Theory (also referred as “social
McClelland’s theory of needs- A theory that cognitive theory” or “social learning theory” )
states achievement, power, and affiliation are -Refers to a person’s own belief of their
three important needs that help explain capabilities and amount of effort they are willing
motivation to exert to succeed or finish a task and redeem
David McClelland and his associates- He themselves in times of hardships.
believes that these 3 needs are not inherent but Individuals with higher self-efficacy: High
rather learned and developed through self-confidence, exerts effort, engageful, positive
experience. It look at three needs; mind and motivation.
• Need for Achievement (nAch) - is to drive to Individuals with lower self-efficacy: Low
excel, to achieve in relationship to a set of self-confidence, minimum effort, no interest, low
standards. self-esteem and negative mindset.
• Need for power (nPow) - is the need to make *Managers help their employees achieve high
others behave in a way they would not have levels of self-efficacy -Through combining
otherwise: goal-setting theory and self-efficacy theory
• Need for affiliation (nAff) - is the desire for together.
friendly and close interpersonal relationships. Reminder: Goal-setting theory and self-efficacy
Self-determination theory , which proposes theory don’t compete; they complement each
that people prefer to feel they have control over other.
their actions, so anything that makes a
previously enjoyed task feel more like an
obligation than a freely chosen activity will
undermine motivation. Theory of motivation
that is concerned with the beneficial effects of
intrinsic motivation and the harmful effects of
extrinsic motivation
Cognitive evaluation theory , which
hypothesizes that extrinsic rewards will reduce
Albert Bandura- Known for: Social Learning
intrinsic interest in a task. A version of
Theory, Bobo Doll Experiment, Self-Efficacy
self-determination theory which holds that
4 ways self-efficacy can be increased:
allocating extrinsic rewards for behavior that
1. Enactive mastery. “The most important
had been previously intrinsically rewarding
source of increasing self-efficacy ” It is all about
tends to decrease the overall level of
the usefulness of ‘experiences’ a person has
motivation if the rewards are seen as
gained in the past years.
controlling.
Self-concordance - Considers how strongly
peoples’ reasons for pursuing goals are
consistent with their interest and core values.
2. Vicarious modeling. Being confident to finish recognition. It influences individuals to perform
a task because they saw someone else and excel more.
accomplishing it. you observe other people’s Equity theory- A theory that says that
motivation and try to get a mindset of “if they individuals compare their job inputs and
can do it, then I can too”. outcomes with those of others and then
3. Verbal persuasion. Unlike the previous one, respond to eliminate any inequities.
verbal persuasion refers to the spoken words of Ex. : Input: Work Hard and Punctual = Output:
someone else’s to you that brings confidence Fair Salary and Recognition
and motivation. Pygmalion effect or the Galatea Input: Good Communication Skills = Output:
effect – “believing something can make it true”. Great Relationship with co-workers
4. Arousal. Energized state = ‘psyched up’ = John Stacy Adams, proposed that this negative
performs better. It connects the body and mind state of tension: when we feel “underrewarded”,
conditioning of a person, especially their we experience equity tension that creates
emotions while doing the tasks. anger; when we see ourselves “overrewarded”
Reinforcement Theory. This theory takes a we feel guilt. It allows us to feel motivated to
behavioristic view and argues that correct it.
reinforcement conditions behavior, unlike 4 referent comparisons that employees selects
goal-setting which is a cognitive approach. A to complete its complexity, namely:
theory that says that behavior is a function of its 1. Self-inside. Employee’s experiences in a
consequences. different position inside his/her current
Burrhus Frederick Skinner. American organization.
Psychologists: Operant Conditioning Theory. 2. Self-outside. Employee’s experiences in
“Probably the most relevant component of situation/position, outside his/her current
reinforcement theory for management” Argues organization.
that people will most likely behave to either 3. Other-inside. Another individual(s)
have or avoid something. experiences inside the employee’s current
Behaviorism A theory that argues that behavior organization.
follows stimuli in a relatively unthinking manner. 4. Other-outside. Another individual(s)
Social Learning Theory. Individuals observe and experiences outside the employee’s current
adapt to how other people face situations and organization.
deal with consequences, learning through social Based on Equity Theory, employees who
observation and experiences. experience inequity will make one of these
4 processes determine their influence on an choices:
individual: 1. Change Inputs. Adjusting efforts based on
1. Attentional processes. People learn from a expected results.
model only when they recog nize and pay 2. Change Outcomes. Adjusting the results
attention to its critical features. Influenced by (rewards, salary, incentives, etc.)
relevant people such as celebrities, etc. or the 3. Distort perceptions of self. Doubting self
people that we put our attention and care on performance.
like friends and family. 4. Distort perceptions of others. Believing other
2. Retention processes. Model’s Influence people deserves more than themselves.
depending on the impact of the model’s action 5. Choose a different referent. Comparing
even after it is no longer available. themselves to a new person or group.
3. Motor reproduction processes. If the 6. Leave the field. Quit the job, transfer to
influence to a person is not just limited on another department or field to try and look for a
knowledge and mind, but can effectively better workplace.
convert it into action, “watching must be Distributive justice- Perceived fairness of the
converted to doing” . amount and allocation of rewards among
4. Reinforcement processes. Motivations individuals.
coming from positive incentives, rewards, or
Organizational justice- An overall perception of attractiveness of those potential rewards for the
what is fair in the workplace, composed of individual.
distributive, procedural, and interactional
justice.
Procedural justice- The perceived fairness of
the process used to determine the distribution
of rewards.
2 key elements of procedural justice:
INTEGRATING CONTEMPORARY THEORIES OF
●​ Process Control - Opportunity to present
MOTIVATION
one’s POV of desired outcome to decision
makers.
●​ Explanations - Clear reasonings on the
decisions made, reasons management
gives for the outcome
Interactional justice The perceived degree to
which an individual is treated with dignity,
concern, and respect.

summary of how these theories are connected

to each other.
• Expectancy Theory serves as the core of the
model, focusing on the relationships between
effort, performance, rewards, and personal
goals.
• Goal-Setting Theory reinforces the idea that
clear goals help direct effort, strengthening the
Victor Vroom’s Expectancy Theory explains effort → performance link in expectancy theory.
that people are motivated to act based on the • Achievement Motivation (nAch) suggests
expected outcome of an individual’s effort. It that some individuals are motivated by
suggests that individuals decide how much personal goals rather than external rewards,
effort to put into a task based on how likely they adding complexity to the effort → goals
think their effort will lead to a desired outcome, pathway.
and how much they value that outcome. • Reinforcement Theory emphasizes how
The theory, therefore, focuses on three relation rewards can reinforce behavior, directly
ships: influencing the performance → rewards
1. Effort–performance relationship. The connection in expectancy theory.
probability perceived by the indi vidual that • Cognitive Evaluation Theory warns that
exerting a given amount of effort will lead to rewards can diminish intrinsic motivation,
performance. offering a cautionary perspective on the
2. Performance–reward relationship. The performance → rewards link.
degree to which the individual believes • Equity Theory and Organizational Justice
performing at a particular level will lead to the theories highlight that perceived fairness in
attainment of a desired outcome. rewards and treatment affects motivation,
3. Rewards–personal goals relationship. The especially in performance → rewards and
degree to which organizational rewards satisfy rewards → personal goals relationships.
an individual’s personal goals or needs and the
 their work can make their jobs better. It boosts
CHAPTER 8 their independence, responsibility, and the
THE JOB CHARACTERISTICS MODEL feedback they receive.
Job Design- suggests the way the elements in a
job are organized can increase or decrease
effort and also suggests what those elements
are.
The Job Characteristics Model: Developed by J.
Richard Hackman and Greg Oldham, the job
characteristics model (JCM) says we can
describe any job in terms of five core job
dimensions:
ALTERNATIVE WORK ARRANGEMENTS
1. Skill variety is the degree to which a job
Flextime- A work arrangement that lets
requires a variety of different activities so the
employees select their working hours within a
worker can use a number of different skills and
specific range, as long as they meet the weekly
talents.
hour requirement, becoming more common
2. Task identity is the degree to which a job
globally.
requires completion of a whole and identifiable
Job Sharing- A work arrangement where two or
piece of work, finish work from top to bottom.
more employees split the duties of one full-time
3. Task significance is the degree to which a job
position.
affects the lives or work of other people.
Telecommuting- Working from home or
4. Autonomy is the degree to which a job
another remote location, which can increase
provides the worker freedom, independence,
productivity and job satisfaction but may
and discretion in scheduling work and
reduce social interaction and team cohesion.
determining the procedures for carrying it out.
THE SOCIAL AND PHYSICAL CONTEXT OF WORK
5. Feedback is the degree to which carrying out
Social context of work plays a key role in how
work activities generates direct and clear
motivated and satisfied employees feel. Good
information about your own performance.
relationships with colleagues, bosses, and
management can boost engagement and
productivity.
Physical work environment is also very
important. Issues like heat, noise, and safety
risks can decrease job satisfaction and
motivation.
EMPLOYEE INVOLVEMENT
Employee involvement is a process that
engages workers in decision-making, increasing
their commitment to the organization. When
Motivating Potential Score (MPS) is a tool that employees have more control over their work,
predicts how well a job can motivate workers. It they become more motivated, productive, and
is determined by factors like skill variety, task satisfied.
identity, and task significance, which all EXAMPLES OF EMPLOYEE INVOLVEMENT
contribute to a sense of meaning. Additionally, PROGRAMS
autonomy and feedback are important. Participative Management- A process in which
Job Rotation- A method used to reduce the subordinates share a significant degree of
boredom of repetitive tasks by periodically decision-making power with their immediate
shifting employees between different but similar superiors, joint decision making.
roles, also known as cross-training. Representative Participation- system in which
Job Enrichment- Giving employees more workers participate in organizational decision
control over how they plan, carry out, and review
making through a small group of representative merit-based pay plan- pays for individual
employees. performance based on performance appraisal
EMPLOYEE INV. PROGRAMS AND MOTIVATION ratings.
THEORIES Bonus- A pay plan that rewards employees for
Theory X believes that employees dislike work recent performance rather than historical
and need close supervision, which fits an performance.
autocratic management style. Skill-based pay (also called
Theory Y believes that employees enjoy their competency-based or knowledge-based pay )
work and want responsibility, fitting a is an alternative to job-based pay that bases
participative management style where pay levels on how many skills employees have
employees are involved in decision-making. or how many jobs they can do.
Two-Factor Theory- Employee involvement Profit-sharing plan distributes compensation
programs boost intrinsic motivation based on some established formula designed
What to Pay: Establishing a Pay Structure around a company’s profitability.
Internal equity refers to how fair and consistent Gainsharing- is a formula-based group
pay is within an organization. It is usually incentive plan that uses improvements in group
determined through job evaluation. Worth of productivity from one period to another to
the job to the organization. determine the total amount of money allocated.
External equity ensures that an organization’s Employee stock ownership plan (ESOP) is a
pay is competitive compared to similar roles in company-established benefit plan in which
the industry. This is usually determined through employees acquire stock, often at
pay surveys. External competitiveness of an below-market prices, as part of their benefits.
organization’s pay. FLEXIBLE BENEFITS
Pay Strategy Approaches Flexible benefits individualize rewards by
1. Above Market Pay – Offering salaries higher allowing each employee to choose the
than industry standards helps attract top talent, compensation package that best satisfies his or
boost employee morale, and reduce turnover. her current needs and situation.
2. At Market Pay – Paying employees at THREE MOST POPULAR TYPES OF BENEFITS PLANS
industry-standard rates balance cost efficiency Modular plans-are predesigned pack ages or
and competitiveness. modules of benefits, each of which meets the
3. Below Market Pay – Some organizations pay needs of a specific group of employees.
lower than market rates to reduce costs. Core plus plans- consist of a core of essential
Strategic Considerations and Trade-offs benefits and a menulike selection of others
●​ Higher Pay = Better Employee Retention from which employees can select.
& Productivity Flexible spending plans- allow employees to
●​ Lower Pay = Cost Savings but Higher set aside pretax dollars up to the dollar amount
Turnover offered in the plan to pay for particular benefits,
HOW TO PAY such as health care and dental premiums.
Variable-pay programs- a pay plan that bases INTRINSIC REWARDS: EMPLOYEE RECOGNITION
a portion of an employee's pay to individual PROGRAMS
and/or organizational measure of performance, 1. Intrinsic Rewards: in the form of employee
it fluctuates up and down. recognition programs
Piece-rate pay plan-has long been popular as 2. Extrinsic Rewards: in the form of
a means of compensating production workers compensation systems.
with a fixed sum for each unit of production Recognition program: ways to acknowledge
completed. A pure piece-rate plan provides no and reward employees for their contributions
base salary and pays the employee only for and achievements.
what he or she produces.
7 TYPES OF RECOGNITION PROGRAM ** ●​ Similarity-people who have the same
1. Formal recognition: Official acknowledgment values or characteristics as other
of achievements, typically through awards or members of their organization have
certificates. higher levels of group identification.
2. Informal recognition: Casual or spontaneous ●​ Distinctiveness- People are more likely
appreciation, often through praise or simple to notice identities that show how they
gestures. are different from other groups.
3. Social recognition: Acknowledging ●​ Status- most interested in linking
achievements within social settings, such as themselves to high-status groups.
public praise or social media shoutouts. ●​ Uncertainty reduction- Membership in a
4. Monetary recognition: Financial rewards or group also helps some people
bonuses given to recognize contributions or understand who they are and how they fit
achievements. into the world
5. Recognizing milestones: Celebrating Five-stage group-development model-
significant achievements or progress points in a characterizes groups as proceeding through the
project or career. distinct stages of forming, storming, norming,
6. Structured recognition: A systematic, performing, and adjourning.
organized approach to acknowledging ●​ Forming stage-first stage, is
achievements, often through programs or characterized by a great deal of
processes. uncertainty about the group’s purpose,
7. Team recognition: Acknowledging the structure, and leadership.
collective efforts of a team or group for their ●​ Storming stage- is one of intragroup
shared success. conflict. Members accept the existence of
the group but resist the constraints it
CHAPTER 9 imposes on individuality.
Group- 2 or more individuals interacting and ●​ Norming stage- is complete when the
independent who have come together to group structure solidifies and the group
achieve particular objectives. has assimilated a common set of
●​ Formal- defined by the organization’s expectations of what defines correct
structure, with designated work member behavior, characterized by
assignments establishing tasks aimed at close relationships and cohesiveness.
achieving organizational goals. ●​ Performing- The structure at this point is
●​ Informal- neither formally structures nor fully functional and accepted. Group
organizationally determined, natural energy has moved from getting to know
formations in work environment. Emerge and understand each other to performing
naturally in the workplace based on the task at hand.
social needs rather than organizational * For permanent work groups, the last stage is
directives. Performing. But for temporary committees,
Social Identity Theory- tendency to take teams, task forces, with limited task to perform,
personal pride or offense for the the Adjourning stage is last
accomplishments of a group. People have ●​ Adjourning stage- is for wrapping up
emotional reactions to failure or success of activities and disband.
group cus their self esteem is tied to the group’s Punctuated-Equilibrium Model- describes
performance. groups that experience prolonged periods of
Ingroup favoritism- means we see members of inertia, punctuated by brief but intense bursts of
our ingroup as better than other people, and change driven by time awareness.
people not in our group as all the same, (1) their first meeting sets the group’s direction
stereotyping. (2) this first phase of group activity is one of
Characteristics make a Social Identity inertia
Important to a Person:
(3) a transition takes place exactly when the ● Social Arrangement Norms: Dictate
group has used up half its allotted time interaction patterns and workplace
(4) this transition initiates major changes relationships.
(5) a second phase of inertia follows the ● Resource Allocation Norms: Ensure fair
transition distribution of tasks, pay, and equipment.
(6) the group’s last meeting is characterized by The Hawthorne Studies- A full appreciation of
markedly accelerated activity. norms' influence on worker behavior emerged in
the early 1930s following studies conducted
between 1924 and 1932 at the Western Electric
Company’s Hawthorne Works in Chicago.
Conformity- The adjustment of one’s behavior
to align with the norms of the group.
Reference groups- in which a person is aware
of other members, defines himself or herself as
a member or would like to be a member, and
GROUP PROPERTIES feels group members are significant to him or
Group Property 1: Roles A set of expected her.
behavior patterns attributed to someone Deviant workplace behavior (also called
occupying a given position in a social unit. If antisocial behavior or workplace incivility ) is
each of us could choose a single role and voluntary behavior that violates significant
consistently play it, understanding role behavior organizational norms and, in doing so, threatens
would be simple. the well-being of the organization or its
●​ Role perception refers to an individual’s members.
personal understanding of how they
should behave in a given situation. GROUP PROPERTY 3: STATUS
●​ Role expectations refer to how others Status- a socially defined position or rank given
believe a person should act in a given to groups or group members by
role. others—permeates every society.
○​ Psychological contract- role Status characteristics theory- A theory that
expectations are shaped, an states that differences in status characteristics
unwritten agreement between create status hierarchies within groups.
employees and employers that According to status characteristics theory ,
outlines mutual expectations. status tends to derive from one of three sources:
●​ Role conflict arises when fulfilling the 1. The power a person wields over others.
demands of one role makes it difficult to Because they likely control the group’s
meet the requirements of another. resources, people who control the outcomes
GROUP PROPERTY 2: NORMS tend to be perceived as high status.
Norms in Groups All groups establish norms and 2. A person’s ability to contribute to a group’s
shared standards of behavior that define what goals. People whose contributions are critical to
members should and shouldn’t do in various the group’s success tend to have high status.
situations. 3. An individual’s personal characteristics.
Types of Norms Someone whose personal characteristics are
● Performance Norms: Define expectations for positively valued by the group (good looks,
work effort, output levels, task completion, and intelligence, money, or a friendly personality)
punctuality, often impacting performance typically has higher status than someone with
beyond individual ability and motivation. fewer valued attributes.
● Appearance Norms: Establish guidelines for Status and Norms- Status has some interesting
dress codes and workplace demeanor. effects on the power of norms and pressures to
conform. High-status individuals are often given
more freedom to deviate from norms than are deep-level diversity in underlying attitudes,
other group members. values, and opinions.
Status and Group Interaction- People tend to
be more assertive group members. They speak
out more often, criticize more, state more
commands, and interrupt others more often.
Status Inequity It is important for group
members to believe the status is equitable.
GROUP PROPERTY 4 : SIZE
Smaller groups are faster at completing tasks GROUP DECISION MAKING GROUPS VERSUS THE
than larger ones, and individuals perform better INDIVIDUAL
in smaller groups. ​ Strengths of Group Decision Making Groups
Large groups consistently get better marks in generate more complete information and
problem solving, than their smaller knowledge. By aggregating the resources of
counterparts. several individuals, groups bring more input as
Social loafing- the tendency for individuals to well as heterogeneity into the decision process.
expend less effort when working collectively Weaknesses of Group Decision Making Group
than alone. decisions are time consuming because groups
There are several ways to prevent social typically take more time to reach a solution.
loafing: There are conformity pressures.
(1) Set group goals Effectiveness and Efficiency Whether groups
(2) increase intergroup competition are more effective than individ uals depends on
(3) engage in peer evaluation so each person how you define effectiveness. Group decisions
evaluates each other person's contribution are generally more accurate than the decisions
(4) select members who have high motivation of the average individual in a group, but less
and prefer to work in groups accurate than the judgments of the most
(5) if possible, base group rewards in part on accurate.
each member's unique contributions. GROUPTHINK AND GROUPSHIFT
GROUP PROPERTY 5: COHESIVENESS Groupthink, relates to norms. It describes
Cohesiveness - the degree to which members situations in which group pressures for
are attracted to each other and motivated to conformity deter the group from critically
stay in the group. appraising un usual, minority, or unpopular
What can you do to encourage group views.
cohesiveness? Groupshift, which describes the way group
(1) Make the group smaller members tend to exaggerate the initial
(2) encourage agreement with group goals positions they hold when discussing a given set
(3) increase the time members spend together of alternatives and arriving at a solution. ​
(4) increase the group's status and the “Group polarization" specifically describes the
perceived difficulty of attaining membership tendency for a group's initial opinion to become
(5) stimulate competition with other groups more extreme after discussion, while
(6) give rewards to the group rather than to "Groupshift" simply refers to a shift in the
individual members group's overall attitude
(7) physically isolate the group GROUP DECISION-MAKING TECHNIQUES
GROUP PROPERTY 6: DIVERSITY Interacting groups- Most common, members
Diversity - the degree to which members of the meet face to face and rely on both verbal and
group are similar to, or different from, one nonverbal interaction to communicate.
another. Brainstorming- An idea-generation process
Surface-level diversity in observable that specifically encourages any and all
characteristics such as national origin, race, and alternatives while withholding any criticism of
gender those alternatives.
Nominal group technique- A group
decision-making method in which individual
members meet face to face to pool their
judgments in a systematic but independent
fashion.
Electronic meeting- A meeting in which
members interact on computers, allowing for
anonymity of comments and aggregation of
votes.