© 2007 Prentice Hall Inc. All rights reserved. PersonalityandValues Chapter FOUR.

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© 2007 Prentice Hall Inc. All rights reserved. PersonalityandValues Chapter FOUR

Stephen Schwarzman – Blackstone CEO  The King of Wall Street  The Seven – Billion – Dollar Man  I want WAR !!!!!  You want to work for him?!! –Wear the proper black shoes –Be careful how you breathe © 2007 Prentice Hall Inc. All rights reserved.

Personality - The Cave of All Secrets  Personality shapes behaviors  Why are some people quiet and passive, while others are loud and aggressive?  Are certain personalities better adapted than others for certain job types?  A dynamic concept describing the growth and development of a person’s whole psychological system  Rather than looking at parts of a person, personality looks at some aggregate whole that is greater than the sum of the parts © 2007 Prentice Hall Inc. All rights reserved.

What is Personality? Personality The sum total of ways in which an individual reacts and interacts with others; measurable traits a person exhibits. Personality Traits Enduring characteristics that describe an individual’s behavior. Shyness, fear, aggression, ….. Personality Determinants Heredity Environment Situation Personality Determinants Heredity Environment Situation

© 2007 Prentice Hall Inc. All rights reserved. The Myers-Briggs Type Indicator Personality Types Extroverted vs. Introverted (E or I) Sensing vs. Intuitive (S or N) Thinking vs. Feeling (T or F) Judging vs. Perceiving (P or J) Score is a combination of all four (e.g., ENTJ) Personality Types Extroverted vs. Introverted (E or I) Sensing vs. Intuitive (S or N) Thinking vs. Feeling (T or F) Judging vs. Perceiving (P or J) Score is a combination of all four (e.g., ENTJ) Myers-Briggs Type Indicator (MBTI) A personality test that taps four characteristics and classifies people into 1 of 16 personality types. Asks people how they usually feel or act in particular situations

© 2007 Prentice Hall Inc. All rights reserved. The Myers-Briggs Type Indicator 1) I don't reveal much about myself to others. Very Inaccurate Very Accurate 2) I like to start projects far more than I like to finish them. Very Inaccurate Very Accurate 3) I prefer working on the theoretical side of a project than the practical side. Very Inaccurate Very Accurate 4) Fun is the most important thing in life. Very Inaccurate Very Accurate 5) I like to do things at the last minute. Very Inaccurate Very Accurate

© 2007 Prentice Hall Inc. All rights reserved. Meyers-Briggs, Continued A Meyers-Briggs score –Can be a valuable too for self-awareness and career guidance BUT –Should not be used as a selection tool because it has not been related to job performance!!!

© 2007 Prentice Hall Inc. All rights reserved. The Big Five Model of Personality Dimensions Extroversion Sociable, gregarious, and assertive Agreeableness Good-natured, cooperative, and trusting. Conscientiousness Responsible, dependable, persistent, and organized. Openness to Experience Curious, imaginative, artistic, and sensitive Emotional Stability Calm, self-confident, secure under stress (positive), versus nervous, depressed, and insecure under stress (negative).

The Big Five Model What does it affectWhy it is relevant?Big five trait © 2007 Prentice Hall Inc. All rights reserved. Higher job & life satisfaction Lower stress levels Less negative thinking, fewer negative emotions Less hyper-vigilant Emotional Instability Higher performance Enhanced leadership Higher job & life satisfaction Better interpersonal skills Greater social dominance More emotionally expressive Extraversion Training performance Enhanced leadership More adaptable to change Increased learning More creative More flexible & autonomous Openness Higher performance Lower levels of deviant behavior Better liked More compliant &conforming Agreeableness Higher performance Enhanced leadership Greater longevity Greater effort & persistence More drive & discipline Better organized & planning Conscientious

© 2007 Prentice Hall Inc. All rights reserved. Measuring Personality Personality is Measured By  Self-report surveys  Observer-rating surveys  Projective measures –Rorschach Inkblot Test –Thematic Apperception Test

© 2007 Prentice Hall Inc. All rights reserved. Major Personality Attributes Influencing OB  Core Self-evaluation –Self-esteem –Locus of Control  Machiavellianism  Narcissism  Self-monitoring  Risk taking  Type A vs. Type B personality  Proactive Personality

© 2007 Prentice Hall Inc. All rights reserved. Core Self-Evaluation: Two Main Components Self Esteem Individuals’ degree of liking or disliking themselves. Impact on performance ?!! Locus of Control The degree to which people believe they are masters of their own fate. Internals (Internal locus of control) Individuals who believe that they control what happens to them. Externals (External locus of control) Individuals who believe that what happens to them is controlled by outside forces such as luck or chance.

© 2007 Prentice Hall Inc. All rights reserved. Machiavellianism Conditions Favoring High Machs Direct interaction with others Minimal rules and regulations Emotions distract for others Conditions Favoring High Machs Direct interaction with others Minimal rules and regulations Emotions distract for others Machiavellianism (Mach) Degree to which an individual is pragmatic, maintains emotional distance, and believes that ends can justify means.

© 2007 Prentice Hall Inc. All rights reserved. Narcissism A Narcissistic Person Has grandiose sense of self-importance Requires excessive admiration Has a sense of entitlement Is arrogant Tends to be rated as less effective

© 2007 Prentice Hall Inc. All rights reserved. Self-Monitoring A personality trait that measures an individual’s ability to adjust his or her behavior to external, situational factors. High Self-Monitors Receive better performance ratings Likely to emerge as leaders Show less commitment to their organizations High Self-Monitors Receive better performance ratings Likely to emerge as leaders Show less commitment to their organizations

© 2007 Prentice Hall Inc. All rights reserved. Risk-Taking  High Risk-taking Managers –Make quicker decisions –Use less information to make decisions –Operate in smaller and more entrepreneurial organizations  Low Risk-taking Managers –Are slower to make decisions –Require more information before making decisions –Exist in larger organizations with stable environments  Risk Propensity –Aligning managers’ risk-taking propensity to job requirements should be beneficial to organizations.

© 2007 Prentice Hall Inc. All rights reserved. Personality Types Type A’s 1. are always moving, walking, and eating rapidly; 2. feel impatient with the rate at which most events take place; 3. strive to think or do two or more things at once; 4. cannot cope with leisure time; 5. are obsessed with numbers, measuring their success in terms of how many or how much of everything they acquire. Type B’s 1. never suffer from a sense of time urgency with its accompanying impatience; 2. feel no need to display or discuss either their achievements or accomplishments; 3. play for fun and relaxation, rather than to exhibit their superiority at any cost; 4. can relax without guilt.

© 2007 Prentice Hall Inc. All rights reserved. Personality Types Proactive Personality Identifies opportunities, shows initiative, takes action, and perseveres until meaningful change occurs. Creates positive change in the environment, regardless or even in spite of constraints or obstacles.

© 2007 Prentice Hall Inc. All rights reserved.  Definition: Mode of conduct or end state is personally or socially preferable (i.e., what is right & good) –Terminal Values Desirable End States –Instrumental Values The ways/means for achieving one’s terminal values  Value System: A hierarchy based on a ranking of an individual’s values in terms of their intensity. Note: Values Vary by Cohort Values

© 2007 Prentice Hall Inc. All rights reserved. Importance of Values  Provide understanding of the attitudes, motivation, and behaviors of individuals and cultures.  Influence our perception of the world around us.  Represent interpretations of “right” and “wrong.”  Imply that some behaviors or outcomes are preferred over others.

© 2007 Prentice Hall Inc. All rights reserved. Types of Values –- Rokeach Value Survey Terminal Values Desirable end-states of existence; the goals that a person would like to achieve during his or her lifetime. Instrumental Values Preferable modes of behavior or means of achieving one’s terminal values.

© 2007 Prentice Hall Inc. All rights reserved. Values in the Rokeach Survey E X H I B I T 4-3 Source: M. Rokeach, The Nature of Human Values (New York: The Free Press, 1973).

© 2007 Prentice Hall Inc. All rights reserved. Values in the Rokeach Survey (cont’d) E X H I B I T 4-3 (cont’d) Source: M. Rokeach, The Nature of Human Values (New York: The Free Press, 1973).

© 2007 Prentice Hall Inc. All rights reserved. Mean Value Rankings of Executives, Union Members, and Activists E X H I B I T 4-4 Source: Based on W. C. Frederick and J. Weber, “The Values of Corporate Managers and Their Critics: An Empirical Description and Normative Implications,” in W. C. Frederick and L. E. Preston (eds.) Business Ethics: Research Issues and Empirical Studies (Greenwich, CT: JAI Press, 1990), pp. 123–44.

© 2007 Prentice Hall Inc. All rights reserved. Values, Loyalty, and Ethical Behavior Ethical Climate in the Organization Ethical Values and Behaviors of Leaders

© 2007 Prentice Hall Inc. All rights reserved.  Power Distance  Individualism vs. Collectivism  Masculinity vs. Femininity  Uncertainty Avoidance  Long-term and Short-term orientation Values across Cultures: Hofstede’s Framework

© 2007 Prentice Hall Inc. All rights reserved. Hofstede’s Framework for Assessing Cultures Power Distance The extent to which a society accepts that power in institutions and organizations is distributed unequally. Low distance: relatively equal power between those with status/wealth and those without status/wealth High distance: extremely unequal power distribution between those with status/wealth and those without status/wealth

© 2007 Prentice Hall Inc. All rights reserved. Hofstede’s Framework (cont’d) Collectivism A tight social framework in which people expect others in groups of which they are a part to look after them and protect them. Individualism The degree to which people prefer to act as individuals rather than a member of groups. Vs.

© 2007 Prentice Hall Inc. All rights reserved. Hofstede’s Framework (cont’d) Masculinity The extent to which the society values work roles of achievement, power, and control, and where assertiveness and materialism are also valued. Femininity The extent to which there is little differentiation between roles for men and women. Vs.

© 2007 Prentice Hall Inc. All rights reserved. Hofstede’s Framework (cont’d) Uncertainty Avoidance The extent to which a society feels threatened by uncertain and ambiguous situations and tries to avoid them. High Uncertainty Avoidance: Society does not like ambiguous situations & tries to avoid them. Low Uncertainty Avoidance: Society does not mind ambiguous situations & embraces them.

© 2007 Prentice Hall Inc. All rights reserved. Hofstede’s Framework (cont’d) Long-term Orientation A national culture attribute that emphasizes the future, thrift, and persistence. Short-term Orientation A national culture attribute that emphasizes the present and the here and now. Vs.

Hofstede’s Framework © 2007 Prentice Hall Inc. All rights reserved.

Achieving Person-Job Fit Personality Types Realistic Investigative Social Conventional Enterprising Artistic Personality Types Realistic Investigative Social Conventional Enterprising Artistic Personality-Job Fit Theory (Holland) Identifies six personality types and proposes that the fit between personality type and occupational environment determines satisfaction and turnover.

© 2007 Prentice Hall Inc. All rights reserved. Holland’s Typology of Personality and Congruent Occupations E X H I B I T 4–8

© 2007 Prentice Hall Inc. All rights reserved. Relationships among Occupational Personality Types E X H I B I T 4–9 Source: Reprinted by special permission of the publisher, Psychological Assessment Resources, Inc., from Making Vocational Choices, copyright 1973, 1985, 1992 by Psychological Assessment Resources, Inc. All rights reserved.

© 2007 Prentice Hall Inc. All rights reserved. Organizational Culture Profile (OCP)  Useful for determining person- organization fit  Survey that forces choices/rankings of one’s personal values  Helpful for identifying most important values to look for in an organization (in efforts to create a good fit)

© 2007 Prentice Hall Inc. All rights reserved. In Country J most of the top management team meets employees at the local bar for a beer on Fridays, and there are no reserved parking spaces. Everyone is on a first name basis with each other. Country J, according to Hofstede’s Framework, is probably low on what dimension? Chapter Check-Up: Values CollectivismCollectivism Long Term OrientationLong Term Orientation Uncertainty AvoidanceUncertainty Avoidance Power DistancePower Distance How would a College or University in Country J differ from your College or University? Identify 3 differences and discuss with a neighbor.