Table of Contents Chapter 1 – Introduction to Organizational Behavior

Table of Contents Chapter 1 – Introduction to Organizational Behavior
Chapter 2 – Attitudes and Job Satisfaction Chapter 3 – Emotion and Moods Chapter 4 – Personality and Values Chapter 5 – Perception and Individual Decision Making Chapter 6 – Motivation Concepts Chapter 7 – Motivation: From Concept to Application

Organizational Behavior, 11/e Stephen P. Robbins & Timothy A. Judge
1-3 Essentials of Organizational Behavior, 11/e Global Edition Stephen P. Robbins & Timothy A. Judge Chapter 1 Introduction to Organizational Behavior 3

After reading this chapter, you should be able to:
1-4 Define organizational behavior (OB). Explain the value to OB of systematic study. Identify the major behavioral science disciplines that contribute to OB. Demonstrate why few absolutes apply to OB. Identify the challenges and opportunities managers have in applying OB concepts. Identify the three levels of analysis in OB. 4

The Field of Organizational Behavior
1-5 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. Organizational behavior looks at how individuals, groups and structure can influence the behavior within an organization. This study is done so that we can use the knowledge to improve organizational outcomes and thereby its effectiveness. 5

Focal Points of OB Jobs Work Absenteeism Employment turnover
1-6 Jobs Work Absenteeism Employment turnover Productivity Human performance Management Some key areas we will look at in this course are aspects of jobs and work and how they impact organizational effectiveness. We will also look at work aspects such as absenteeism, employee turnover and productivity to see how various theories or practices influence these behaviors. In addition, we will look at the intersection of human performance and management and how various practices can improve performance. 6

Complementing Intuition with Systematic Study
1-7 Intuition: your “gut feeling” explanation of behavior. Systematic study improves ability to accurately predict behavior. Assumes behavior is not random. Fundamental consistencies underlie behavior. These can be identified and modified to reflect individual differences. Often our intuition leads us in the decision making process. Our intuition relies on gut feelings, individual observation and commonsense. 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. 7

Systematic Study Examines relationships.
1-8 Examines relationships. Attempts to attribute causes and effects. Bases conclusions on scientific evidence: On data gathered under controlled conditions. Data is measured and interpreted in a reasonably rigorous manner. When we talk about engaging in a systematic study we are talking about looking at relationships. 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. 8

Evidence-Based Management
1-9 Complements systematic study. Bases decisions on the best available scientific evidence. Forces managers to become more scientific in their thinking. Evidence-based management (EBM) complements systematic study by applying scientific evidence to managerial decisions. 9

Contributing Disciplines to the OB Field
1-10 Micro: The Individual Macro: Groups & Organizations 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. 10

Few Absolutes in OB 1-11 Impossible to make simple and accurate generalizations Human beings are complex and diverse OB concepts must reflect situational conditions: contingency variables There are few absolutes 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 an another culture. It is always important to take context into account. 11

Challenges and Opportunities for OB
1-12 Responding to Economic Pressures Responding to Globalization Managing Workplace Diversity Improving Customer Service Improving People Skills Stimulating Innovation and Change Coping with “Temporariness” Working in Networked Organizations Helping Employees with Work-Life Conflicts Improving Ethical Behavior 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. 12

Responding to Economic Pressures
1-13 Effective management is especially important during tough economic times. Employees look to their managers to provide security during the instability of a recession. During economic difficulties the need for effective managers is heightened. Anyone can manage during good times, it is much tougher to manager through economic struggles. Often when there are economic pressures managers are forced to make decisions based on resource constraints. These situations may include laying off employees, motivating employees when there are limited resources and encouraging employees when they are stressed about their futures. 13

Responding to Globalization
1-14 Increased foreign assignments Differing needs and aspirations in workforce Working with people from different cultures Domestic motivational techniques and managerial styles may not work Overseeing movement of jobs to countries with low-cost labor 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. 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. 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. 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. 14

Managing Workforce Diversity
1-15 Workforce diversity: organizations are becoming a more heterogeneous mix of people in terms of gender, age, race, ethnicity, and sexual orientation 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. 15

Diversity Implications
1-16 “Managers have to shift their philosophy from treating everyone alike to recognizing differences and responding to those differences in ways that ensure employee retention and greater productivity while, at the same time, not discriminating.” Managers must recognize differences and find ways to utilize those differences to improve organizational performance. 16

Improving Customer Service & People Skills
1-17 The majority of employees in developed nations work in service jobs and they must know how to please their customers. People skills are essential to succeed in today’s organizations. 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. 17

Stimulating Innovation and Change
1-18 Flexibility Quality Improvement Staying Competitive Organizations must be innovative and able to change in order to succeed in the marketplace today. This includes a commitment to flexibility and quality improvement in order to stay competitive. 18

Temporariness Jobs are constantly changing
1-19 Jobs are constantly changing Skills need to be updated for workers to stay on target Workers need to be able to deal with change Employees need to be able to cope with flexibility, spontaneity and unpredictability In a constantly changing environment workers have to be able to handle change, keep their skills updated and be able to be flexible. 19

Working in Networked Organizations
1-20 Managers must adapt their skills and communication styles to succeed in an online environment 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. 20

Helping Employees handle work-life conflict
1-21 The line between work and non work has blurred and managers are increasingly dealing with conflicts that arise between work and life away from work. Work and life away from work continue to become intertwined as with the rise of technological communication we are available 24/7. Managers must face the reality that people bring their life at home with them to the office, and they must find ways to help workers deal with the conflict that arises. 21

Thinking Positive 1-22 Creating a positive work environment can be a competitive advantage Positive Organizational Scholarship (Positive OB): Examines how organizations develop human strengths, foster vitality and resilience, and unlock potential. Focus is on employee strengths, not their weaknesses. By creating a positive work environment many of the job factors listed earlier can improve (such as absenteeism and turnover). Positive Organizational Scholarship examines how organizations can focus on employee strengths to unlock potential. 22

Improving Ethical Behavior
1-23 Ethical dilemmas and ethical choices Unethical practices – take bribes… Code of ethics Seminars, workshops and training programs Fair treatment of employees Ethically healthy climate Promote a strong ethical mission 23

Three Levels of OB Analysis
1-24 Chapters Chapters 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. Chapters 2 - 7 Plan of the Book 24

Implications for Managers
1-25 OB helps with: Insights to improve people skills Valuing of workforce diversity Empowering people and creating a positive work environment Dealing with change in the workplace Coping in a world of temporariness Creating an ethically healthy work environment The OB Model is critical to your understanding of how organizations behave. In the remainder of this book we will be utilizing that model to look at behavior on an individual, group and organizational level. 25

Keep in Mind… 1-26 OB’s goal is to understand and predict human behavior in organizations. Fundamental consistencies underlie behavior. It is more important than ever to learn OB concepts. Both managers and employees must learn to cope with temporariness. Keep in mind that the goal of OB is to understand and then to predict behavior so that we can improve organizational effectiveness. This assumes there is consistency in behavior and that we can systematically study it to develop patterns that will increase the accuracy of our predictions. It is more important now, then ever before, to learn OB concepts because we are in a rapidly changing environment. 26

Summary Defined Organizational Behavior (OB).
1-27 Defined Organizational Behavior (OB). Show the value to OB of systematic study. Identified the major behavioral science disciplines that contribute to OB. Demonstrated how few absolutes apply in OB. Identified the major challenges and opportunities managers have in applying OB concepts. Identified the three levels of analysis in OB. 27

Stephen P. Robbins & Timothy A. Judge
2-28 Essentials of Organizational Behavior, 11/e Global Edition Stephen P. Robbins & Timothy A. Judge Chapter 2 Job Attitudes 28

After studying this chapter, you should be able to:
2-29 Contrast the three components of an attitude. Summarize the relationship between attitudes and behavior. Compare and contrast the major job attitudes. Define job satisfaction and show how we can measure it. Summarize the main causes of job satisfaction. Show whether job satisfaction is a relevant concept in countries other than the United States. 29

Attitudes 2-30 Evaluative statements – either favorable or unfavorable – concerning objects, people or events Attitudes reflect how one feels about something Attitudes are statements that make an evaluation about objects, people or events. They offer a favorable or unfavorable view that reflect how one feels about something. 30

Three Main Components of Attitudes
2-31 Cognition – an opinion or belief “I just found out I am paid 20% less than my coworkers.” Affect – the emotional or feeling segment associated with that belief “I feel angry that I am not being treated fairly.” Behavior – the intention to behave in a certain way “I am going to quit this job soon as I can and tell everyone how terrible this company is.” Attitudes are made up of three components. The cognitive component is composed of the belief in the way things are. The affective component is the more critical part of the attitude as it is calls upon the emotions or feelings. The behavioral component describes the intention to behave in a certain way toward someone or something. These three components work together to aid in our understanding of the complexity of an attitude. 31

Attitudes Follow Behavior: Cognitive Dissonance
2-32 -Any inconsistency between two or more attitudes, or between behavior and attitudes -Cognitive dissonance occurs when there are inconsistencies between a person’s attitudes or between a person’s behavior and attitudes Individuals seek to minimize dissonance The 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 Sometimes we observe people who will change what they say so it doesn’t contradict their behavior. When attitudes and behaviors don’t line up, individuals will experience cognitive dissonance. This incongruity is uncomfortable, and individuals will seek to reduce the dissonance to find consistency. People are willing to live with some discomfort, but the degree to which this is true depends upon the importance of the elements, how much influence the individual has in the situation and the rewards that are available. 32

Behavior Follows Attitudes: Moderating Variables
2-33 The most powerful moderators of the attitude- behavior relationships are: Importance Correspondence to behavior Accessibility Social pressures Direct personal experience Knowing attitudes helps predict behavior Some variables do moderate the relationship between attitude and behavior. These factors include the importance of the attitude, the correspondence of the attitude to the behavior, the accessibility of the attitude, the existence of social pressures on behavior and the personal and direct experience of the attitude. These variables will impact the ability to estimate how a certain attitude will predict behavior. 33

Major Job Attitudes Job Satisfaction Job Involvement
2-34 Job Satisfaction Job Involvement Psychological Empowerment Organizational Commitment Affective commitment Continuance commitment Normative commitment Perceived Organizational Support (POS) Employee Engagement The field of Organizational Behavior focuses on how attitudes will influence the work place. There are several major job attitudes we will look at throughout the book. The first is job satisfaction, which is the positive feeling about the job resulting from an evaluation of its characteristics. The second is job involvement. Job involvement looks at the degree of psychological identification with the job. An additional job attitude is psychological empowerment, the belief in the degree of influence over the job, competence in the job and job meaningfulness. A very important job attitude is organizational commitment or identifying with a particular organization and its goals. There are three dimensions to this job attitude – affective, continuance commitment and normative. Organizational commitment has been found to have some relationship to performance and in particular for new employees. Over the years this may be losing importance as people are tending to be more loyal to their profession than to a given employer. Employees also respond to how they perceive the organization supports them or POS. The more support they believe they are receiving the more positive their job attitude will be. An emerging concept is employee engagement, an individual’s involvement with, satisfaction with, and enthusiasm for, the work she does. Engagement is beginning to be linked to many positive work outcomes. 34

Job satisfaction refers to a collection of feelings that an individual holds toward his or her job

Average Job Satisfaction by Facets
Measuring Job Satisfaction 2-36 Average Job Satisfaction by Facets Single Global Rating Method Only a few general questions Remarkably accurate Summation Score Method Identifies key elements in the job and asks for specific feeling about them Discussing job satisfaction is intuitively a good thing in an organization as it is a concept people understand, and it is important to recognize because of its bottom line impact. However, job satisfaction is something that is not easy to measure. One method for measure is the Single Global Rating method. This method asks one question such as “How satisfied are you with your job?” and gives options such as extremely satisfied to extremely dissatisfied. It does not go into the many facets of a job, so it does not help the organization break down where the problems are. The Summation Score Method is more sophisticated in that it asks about the various job components and breaks down how employees are specifically feeling about the different aspects of the job, thus it offers a more comprehensive look at job satisfaction. 36

What Determines Job Satisfaction?
Mentally challenging work Equitable rewards Supportive working conditions Supportive colleagues

What Causes Job Satisfaction?
2-38 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 Advancement Supervision Coworkers The type of work people do and their desire to do that type of work has the strongest correlation with job satisfaction. There is also a strong link between the social context of the work place and how people view their work. The more they enjoy the social aspects of their job the more satisfied they are with the job. Pay has an influence on job satisfaction but not as much as one might think. Typically, once a worker exceeds $40,000 a year pay has limited impact on the level of satisfied workers. 38

Destructive to Constructive
The Consequences of Dissatisfaction 2-39 Destructive to Constructive 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 towards 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. 39

The Benefits of Satisfaction
2-40 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 When employees are satisfied with their work there are many positive outcomes in the workplace. However, the inverse is true as well, if employees are dissatisfied in their work these same job outcomes will be negatively impacted. Satisfied workers tend to have stronger performance and are more in tune with the organizations mission and goals. As a result of that they tend to service customers better which translates into strong customer satisfaction. If a worker is satisfied in their job they will remain in the job for a longer period of time than dissatisfied workers. However, as we have seen recently workers are willing to stay in jobs where they are not satisfied because the job market is tight due to tough economic conditions. Dissatisfied workers are more likely to cause problems in the workplace by stealing, absenteeism, limiting productivity and other negative work outcomes. 40

Global Implications Is job satisfaction a U.S. concept?
2-41 Is job satisfaction a U.S. concept? Cross-cultural differences do exist but job satisfaction seems to be a global concern Are employees in Western cultures more satisfied with their jobs? Yes, but that may be due to the greater value Westerners put on positive emotions and happiness. Job satisfaction is not solely a US concept, but much of the research has been done in the US so more research is needed to effectively expand these theories to other cultures. Workers in western cultures do tend to be more satisfied in their jobs, but this could be due to the fact that western cultures put greater emphasis on emotions and individual happiness than other cultures do. 41

2-42 Employee attitudes give warnings of potential problems and influence behavior Satisfied and committed employees exhibit behaviors that increase organizational outcomes Managers must measure job attitudes in order to improve them Most important elements a manager can focus on are the intrinsic parts of the job: making the work challenging and interesting High pay is not enough to create satisfaction Attitudes are important components of the workplace and definitely influence behaviors. Managers should be aware of job attitudes and their influence on job satisfaction. The most effective way to do this is to focus on making work challenging and interesting especially at higher level jobs where pay is not enough to satisfy workers. 42

Keep in Mind… 2-43 Individuals have many kinds of attitudes about their job. Job satisfaction is related to organizational effectiveness. Most employees are satisfied with their jobs, but when they are not, a host of actions in response to the satisfaction might be expected. It is important that there are a number of different attitudes about jobs that workers bring to the workplace. Awareness of these attitudes will be helpful in connecting workers to their job and increasing job satisfaction. Most employees are satisfied with their jobs in general, but when they are not negative actions can be a result. 43

Summary Contrasted the three components of an attitude.
2-44 Contrasted the three components of an attitude. Summarized the relationship between attitudes and behavior. Compared and contrasted the major job attitudes. Defined job satisfaction and showed how we can measure it. Summarized the main causes of job satisfaction. Showed that job satisfaction is a relevant concept in countries other than the United States. 44

3-45 Essentials of Organizational Behavior, 11/e Global Edition Stephen P. Robbins & Timothy A. Judge Chapter 3 Moods, Emotions and Organizational Behaviour 45

3-46 Differentiate emotions from moods, and list the basic emotions and moods. Identify the sources of emotions and moods. Show the impact emotional labor has on employees. Contrast the evidence for and against the existence of emotional intelligence. Apply the concepts of emotions and moods to specific OB issues. Contrast the experience, interpretation, and the expression of emotions across cultures. 46

Why Were Emotions Excluded from OB Study?
3-47 Myth of rationality – emotions were the antithesis of rationality and should not be seen in the workplace Belief that emotions of any kind are disruptive in the workplace Historically the study of organizational behavior has not given much attention 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. 47

Affect – Emotions – Mood!!
Affect – range of feelings which encompass emotions & moods. Moods – feelings which are less intense than emotion and is not directed towards any thing. Emotions – intense feelings that are directed towards someone or something. Reactions Object specific Emotions can turn into moods

Affect, Emotions, and Moods
3-49 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. 49

Happiness Surprise Fear Sadness Anger Disgust
The Six Universal Emotions Happiness Surprise Fear Sadness Anger Disgust Emotion Continuum

The Structure of a Mood 3-51 Our basic moods carry positive and negative affects, they cannot be neutral. Emotions are grouped into general mood states. These states impact how employees perceive reality, and thereby the moods can impact the work of employees. Classifying Moods: Positive and Negative Affect 51

The Functions of Emotions
3-52 Emotions and Rationality Emotions are critical to rational thought: they help in understanding the world around us. Evolutionary Psychology Theory that emotions serve an evolutionary purpose: helps in survival of the gene pool The theory is not universally accepted There are some who think that emotions are linked to irrationality and expressing emotions in public may be damaging to your career or status. However, research has shown that emotions are necessary for rational thinking. Evolutionary psychology is the theory that emotions serve an evolutionary purpose which helps in the survival of the gene pool. Emotions help us make better decisions and help us understand the world around us. If we are going to make decisions we need to incorporate both thinking and feeling. 52

Sources of Emotions and Moods
3-53 Personality Moods and emotions have a trait component: most people have built-in tendencies to experience certain moods and emotions more frequently than others do. People also experience the same emotions with different intensities. Contrast Arsenal coach Arsene Wenger to Microsoft CEO Bill Gates. One is easily moved to anger, while the other is relatively distant and unemotional. Wenger and Gates probably differ in affect intensity, or how strongly they experience their emotions. affect intensity, or how strongly they experience their emotions. Affectively intense people experience both positive and negative emotions more deeply: when they’re sad, they’re really sad, and when they’re happy, they’re really happy. 53

Day of Week and Time of Day
Sources of Emotions and Moods 3-54 Day of Week and Time of Day More positive interactions will likely occur mid-day and later in the week There are many things that impact our mood and emotions. The time of day or the day of the week is a common cause of emotions for all of us. Many are happier towards the end of the week or mid-day. 54

More Sources Weather Stress Social Activities Sleep
3-55 Weather No impact according to research Stress Increased stress worsens moods Social Activities Physical, informal, and epicurean activities increase positive mood Sleep Lack of sleep increases negative emotions and impairs decision making Weather is thought to have an impact on our emotions, but there is no proven effect. Stress is an important factor and even at low levels it can cause our mood to change. It is important to maintain a low level of stress to help us control our psychological, as well as our physical health. Social activities have been shown to have a positive impact on our moods. This could be physical outlets such as playing in a basketball league, or it can be going out to dinner with friends. These type of activities are found to have positive impact on our moods. Sleep can be another factor, it is important to get enough, and high quality levels of sleep. 55

Even More Sources Exercise Age Gender Mildly enhances positive mood
3-56 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 Physical activity can also aid in keeping our moods upbeat. Some characteristics that are beyond our control can impact our moods such as age and gender. Elderly people tend to have fewer negative emotions. Women tend to express their emotions readily, and their moods tend to last longer. Research has shown that this is due to more cultural socialization than to biology. 56

Emotional Labor 3-57 An employee’s expression of organizationally desired emotions during interpersonal transactions at work Emotional dissonance is when an employee has to project one emotion while simultaneously feeling another In many jobs there is an implied agreement on the types of emotions that should be expressed. For example, waitresses are supposed to be friendly and cheerful whether they are currently feeling that emotion or not. When employees don’t feel the emotion they are required to express they may experience emotional dissonance. This can lead to burnout and frustration with the job. 57

Emotions are never neutral. Being neutral is being emotionless
Emotions: Felt vs. Displayed Emotions Felt emotions The individual’s actual emotions Actual feelings In-born Natural response Displayed emotions The learned emotions that the organization requires workers to show and considers appropriate in a given job Emotion exhibited Desired, organizational requirements. Learned How do you fall victim to office politics is mostly a difference between felt & displayed emotions? Emotions are never neutral. Being neutral is being emotionless Surface Acting is hiding one’s true emotions Deep Acting is trying to change one’s feelings based on display rules

Emotional Intelligence
3-59 A person’s ability to: Be self-aware (to recognize his or her own emotions as experienced), Detect emotions in others, and Manage emotional cues and information. Moderately associated with high job performance The ability, capacity, or skill to perceive, assess, and manage the emotions of oneself, of others, and of groups Emotional Intelligence (EI) is a growing area of study and becoming increasingly important in the understanding of how individuals behave. EI is pulling in one’s understanding of emotions and their impact on behavior. An individual who is emotionally intelligent will have a strong sense of self-awareness, recognizing their own emotions when experienced. They are also able to detect emotions in others. By understanding their own emotions and those of others they can manage emotional cues and information to make decisions. 59

Emotional Intelligence on Trial
3-60 The case for: The case against: Intuitive appeal – it makes sense EI predicts criteria that matter –positively correlated to high job performance Study suggests that EI is neurologically based EI is too vague a concept EI can’t be measured EI is so closely related to intelligence and personality that it is not unique when those factors are controlled EI plays a very important role in job performance, however, the jury is still out on the role EI plays in effectiveness in organizations. The case for EI is based on the fact that it makes sense and appeals to our intuitive thinking. It tends to predict things that matter and are positively correlated to high job performance. Many studies have shown that EI is neurologically based and thus helpful in predicting behavior. However, EI has its critics as the concept can be seen as too vague and not easily measured. Since it is so closely related to intelligence and personality theories, it is not seen as unique when these factors are controlled. 60

OB Applications of Emotions and Moods
3-61 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 Emotionally charged people make poor decisions, lose patience to analyze the pros & cons People experiencing positive emotions are good decision makers. Problem solving skills are sharpened There are numerous applications of emotions and moods. These include selection of employees, decision making and creativity. 61

More OB Applications of Emotions and Moods
3-62 Creativity – Positive moods and feedback may increase creativity Motivation – Promoting positive moods may give a more motivated workforce People with high motivation are emotionally committed to their work/project. Involvement with the job generates positive emotions Discouragement leads to low motivation level, hence negative emotions can be displayed Motivation, leadership, negotiation and customer service are also work outcomes that are impacted by emotions and moods, and it is important for managers to understand the connection. 62

Even More OB Applications of Emotions and Moods
3-63 Leadership – Emotions help convey messages more effectively Leader rely a lot on expression of feelings by themselves They also read and understand others’ emotions to be a better leader. Leaders make people follow them by making them emotionally charged Emotionally charged people accept change readily Negotiation – Emotions may impair negotiator performance Customer Service – Customers “catch” emotions from employees, called emotional contagion Job attitudes can influence our home life but don’t always get carried back to the workplace. However, deviant workplace behaviors are often the result of negative emotions and significantly impact the workplace. 63

3-64 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 Actions which violate norms and threaten members or organizations, such actions are called employee deviance These action scan be violent or non-violent; envy, jealousy, back stabbing, etc. Job attitudes can influence our home life but don’t always get carried back to the workplace. However, deviant workplace behaviors are often the result of negative emotions and significantly impact the workplace. 64

3-65 Safety and Injury at Work – Bad moods can contribute to injury at work in several ways. Individuals in negative moods tend to be more anxious, which can make them less able to cope effectively with hazards. A person who is always scared will be more pessimistic about the effectiveness of safety precautions because she feels she’ll just get hurt anyway, or she might panic or freeze up when confronted with a threatening situation. Negative moods also make people more distractible, and distractions can obviously lead to careless behaviors. Job attitudes can influence our home life but don’t always get carried back to the workplace. However, deviant workplace behaviors are often the result of negative emotions and significantly impact the workplace. 65

How Can Managers Influence Moods?
3-66 Use humor to lighten the moment Give small tokens of appreciation Stay in a good mood themselves – lead by example Hire positive people Managers do have an impact on moods of their employees but not all factors are within their control. Some things that can be done to positively impact moods are to use humor to lighten the moment, provide small tokens of appreciation, stay in a good mood themselves and hire positive people. 66

“YES” to all of the above!
Global Implications 3-67 Does the degree to which people experience emotions vary across cultures? Do people’s interpretations of emotions vary across cultures? Do the norms for the expressions of emotions differ across cultures? “YES” to all of the above! Across cultures there does seem to be differences in the degree to which people experience emotions. It is also apparent that in different cultures there are different interpretations of emotions. Some cultures are more accepting of emotional expression than others. When you are engaging with other cultures be sure to understand their cultural norms. 67

3-68 Understand the role of emotions and moods to better explain and predict behavior Emotions and moods do affect workplace performance While managing emotions may be possible, absolute control of worker emotions is not In summary, moods and emotions are important to the study of organizational behavior. Also, they are natural expressions and managers should not try to completely control the employees emotions, but they should be aware of the emotions and not ignore emotional indicators. The more you understand the emotions of your employees, the better you will able to predict their behavior. 68

Keep in Mind… Positive emotions can increase problem-solving skills
3-69 Positive emotions can increase problem-solving skills People with high EI may be more effective in their jobs Managers need to know the emotional norms for each culture they do business with Keep in mind that positive emotions can help to increase problem-solving skills due to heightened job involvement. People with high EI tend to be more effective in their jobs. Finally, it is important that managers are aware of the emotional norms in each culture they work with so they avoid conflict. 69

Summary 3-70 Differentiated emotions from moods and listed the basic emotions and moods. Identified the sources of emotions and moods. Discussed the impact emotional labor has on employees. Contrasted the evidence for and against the existence of emotional intelligence. Applied the concepts of emotions and moods OB issues. Contrasted the experience, interpretation, and the expression of emotions across cultures. 70

3-71 Essentials of Organizational Behavior, 11/e Global Edition Stephen P. Robbins & Timothy A. Judge Chapter 3 Moods, Emotions and Organizational Behaviour 71

3-72 Differentiate emotions from moods, and list the basic emotions and moods. Identify the sources of emotions and moods. Show the impact emotional labor has on employees. Contrast the evidence for and against the existence of emotional intelligence. Apply the concepts of emotions and moods to specific OB issues. Contrast the experience, interpretation, and the expression of emotions across cultures. 72

Why Were Emotions Excluded from OB Study?
3-73 Myth of rationality – emotions were the antithesis of rationality and should not be seen in the workplace Belief that emotions of any kind are disruptive in the workplace Historically the study of organizational behavior has not given much attention 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. 73

Affect – Emotions – Mood!!
Affect – range of feelings which encompass emotions & moods. Moods – feelings which are less intense than emotion and is not directed towards any thing. Emotions – intense feelings that are directed towards someone or something. Reactions Object specific Emotions can turn into moods

Affect, Emotions, and Moods
3-75 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. 75

Happiness Surprise Fear Sadness Anger Disgust
The Six Universal Emotions Happiness Surprise Fear Sadness Anger Disgust Emotion Continuum

The Structure of a Mood 3-77 Our basic moods carry positive and negative affects, they cannot be neutral. Emotions are grouped into general mood states. These states impact how employees perceive reality, and thereby the moods can impact the work of employees. Classifying Moods: Positive and Negative Affect 77

The Functions of Emotions
3-78 Emotions and Rationality Emotions are critical to rational thought: they help in understanding the world around us. Evolutionary Psychology Theory that emotions serve an evolutionary purpose: helps in survival of the gene pool The theory is not universally accepted There are some who think that emotions are linked to irrationality and expressing emotions in public may be damaging to your career or status. However, research has shown that emotions are necessary for rational thinking. Evolutionary psychology is the theory that emotions serve an evolutionary purpose which helps in the survival of the gene pool. Emotions help us make better decisions and help us understand the world around us. If we are going to make decisions we need to incorporate both thinking and feeling. 78

Sources of Emotions and Moods
3-79 Personality Moods and emotions have a trait component: most people have built-in tendencies to experience certain moods and emotions more frequently than others do. People also experience the same emotions with different intensities. Contrast Arsenal coach Arsene Wenger to Microsoft CEO Bill Gates. One is easily moved to anger, while the other is relatively distant and unemotional. Wenger and Gates probably differ in affect intensity, or how strongly they experience their emotions. affect intensity, or how strongly they experience their emotions. Affectively intense people experience both positive and negative emotions more deeply: when they’re sad, they’re really sad, and when they’re happy, they’re really happy. 79

Day of Week and Time of Day
Sources of Emotions and Moods 3-80 Day of Week and Time of Day More positive interactions will likely occur mid-day and later in the week There are many things that impact our mood and emotions. The time of day or the day of the week is a common cause of emotions for all of us. Many are happier towards the end of the week or mid-day. 80

More Sources Weather Stress Social Activities Sleep
3-81 Weather No impact according to research Stress Increased stress worsens moods Social Activities Physical, informal, and epicurean activities increase positive mood Sleep Lack of sleep increases negative emotions and impairs decision making Weather is thought to have an impact on our emotions, but there is no proven effect. Stress is an important factor and even at low levels it can cause our mood to change. It is important to maintain a low level of stress to help us control our psychological, as well as our physical health. Social activities have been shown to have a positive impact on our moods. This could be physical outlets such as playing in a basketball league, or it can be going out to dinner with friends. These type of activities are found to have positive impact on our moods. Sleep can be another factor, it is important to get enough, and high quality levels of sleep. 81

Even More Sources Exercise Age Gender Mildly enhances positive mood
3-82 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 Physical activity can also aid in keeping our moods upbeat. Some characteristics that are beyond our control can impact our moods such as age and gender. Elderly people tend to have fewer negative emotions. Women tend to express their emotions readily, and their moods tend to last longer. Research has shown that this is due to more cultural socialization than to biology. 82

Emotional Labor 3-83 An employee’s expression of organizationally desired emotions during interpersonal transactions at work Emotional dissonance is when an employee has to project one emotion while simultaneously feeling another In many jobs there is an implied agreement on the types of emotions that should be expressed. For example, waitresses are supposed to be friendly and cheerful whether they are currently feeling that emotion or not. When employees don’t feel the emotion they are required to express they may experience emotional dissonance. This can lead to burnout and frustration with the job. 83

Emotions are never neutral. Being neutral is being emotionless
Emotions: Felt vs. Displayed Emotions Felt emotions The individual’s actual emotions Actual feelings In-born Natural response Displayed emotions The learned emotions that the organization requires workers to show and considers appropriate in a given job Emotion exhibited Desired, organizational requirements. Learned How do you fall victim to office politics is mostly a difference between felt & displayed emotions? Emotions are never neutral. Being neutral is being emotionless Surface Acting is hiding one’s true emotions Deep Acting is trying to change one’s feelings based on display rules

Emotional Intelligence
3-85 A person’s ability to: Be self-aware (to recognize his or her own emotions as experienced), Detect emotions in others, and Manage emotional cues and information. Moderately associated with high job performance The ability, capacity, or skill to perceive, assess, and manage the emotions of oneself, of others, and of groups Emotional Intelligence (EI) is a growing area of study and becoming increasingly important in the understanding of how individuals behave. EI is pulling in one’s understanding of emotions and their impact on behavior. An individual who is emotionally intelligent will have a strong sense of self-awareness, recognizing their own emotions when experienced. They are also able to detect emotions in others. By understanding their own emotions and those of others they can manage emotional cues and information to make decisions. 85

Emotional Intelligence on Trial
3-86 The case for: The case against: Intuitive appeal – it makes sense EI predicts criteria that matter –positively correlated to high job performance Study suggests that EI is neurologically based EI is too vague a concept EI can’t be measured EI is so closely related to intelligence and personality that it is not unique when those factors are controlled EI plays a very important role in job performance, however, the jury is still out on the role EI plays in effectiveness in organizations. The case for EI is based on the fact that it makes sense and appeals to our intuitive thinking. It tends to predict things that matter and are positively correlated to high job performance. Many studies have shown that EI is neurologically based and thus helpful in predicting behavior. However, EI has its critics as the concept can be seen as too vague and not easily measured. Since it is so closely related to intelligence and personality theories, it is not seen as unique when these factors are controlled. 86

OB Applications of Emotions and Moods
3-87 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 Emotionally charged people make poor decisions, lose patience to analyze the pros & cons People experiencing positive emotions are good decision makers. Problem solving skills are sharpened There are numerous applications of emotions and moods. These include selection of employees, decision making and creativity. 87

More OB Applications of Emotions and Moods
3-88 Creativity – Positive moods and feedback may increase creativity Motivation – Promoting positive moods may give a more motivated workforce People with high motivation are emotionally committed to their work/project. Involvement with the job generates positive emotions Discouragement leads to low motivation level, hence negative emotions can be displayed Motivation, leadership, negotiation and customer service are also work outcomes that are impacted by emotions and moods, and it is important for managers to understand the connection. 88

3-89 Leadership – Emotions help convey messages more effectively Leader rely a lot on expression of feelings by themselves They also read and understand others’ emotions to be a better leader. Leaders make people follow them by making them emotionally charged Emotionally charged people accept change readily Negotiation – Emotions may impair negotiator performance Customer Service – Customers “catch” emotions from employees, called emotional contagion Job attitudes can influence our home life but don’t always get carried back to the workplace. However, deviant workplace behaviors are often the result of negative emotions and significantly impact the workplace. 89

3-90 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 Actions which violate norms and threaten members or organizations, such actions are called employee deviance These action scan be violent or non-violent; envy, jealousy, back stabbing, etc. Job attitudes can influence our home life but don’t always get carried back to the workplace. However, deviant workplace behaviors are often the result of negative emotions and significantly impact the workplace. 90

3-91 Safety and Injury at Work – Bad moods can contribute to injury at work in several ways. Individuals in negative moods tend to be more anxious, which can make them less able to cope effectively with hazards. A person who is always scared will be more pessimistic about the effectiveness of safety precautions because she feels she’ll just get hurt anyway, or she might panic or freeze up when confronted with a threatening situation. Negative moods also make people more distractible, and distractions can obviously lead to careless behaviors. Job attitudes can influence our home life but don’t always get carried back to the workplace. However, deviant workplace behaviors are often the result of negative emotions and significantly impact the workplace. 91

How Can Managers Influence Moods?
3-92 Use humor to lighten the moment Give small tokens of appreciation Stay in a good mood themselves – lead by example Hire positive people Managers do have an impact on moods of their employees but not all factors are within their control. Some things that can be done to positively impact moods are to use humor to lighten the moment, provide small tokens of appreciation, stay in a good mood themselves and hire positive people. 92

“YES” to all of the above!
Global Implications 3-93 Does the degree to which people experience emotions vary across cultures? Do people’s interpretations of emotions vary across cultures? Do the norms for the expressions of emotions differ across cultures? “YES” to all of the above! Across cultures there does seem to be differences in the degree to which people experience emotions. It is also apparent that in different cultures there are different interpretations of emotions. Some cultures are more accepting of emotional expression than others. When you are engaging with other cultures be sure to understand their cultural norms. 93

3-94 Understand the role of emotions and moods to better explain and predict behavior Emotions and moods do affect workplace performance While managing emotions may be possible, absolute control of worker emotions is not In summary, moods and emotions are important to the study of organizational behavior. Also, they are natural expressions and managers should not try to completely control the employees emotions, but they should be aware of the emotions and not ignore emotional indicators. The more you understand the emotions of your employees, the better you will able to predict their behavior. 94

Keep in Mind… Positive emotions can increase problem-solving skills
3-95 Positive emotions can increase problem-solving skills People with high EI may be more effective in their jobs Managers need to know the emotional norms for each culture they do business with Keep in mind that positive emotions can help to increase problem-solving skills due to heightened job involvement. People with high EI tend to be more effective in their jobs. Finally, it is important that managers are aware of the emotional norms in each culture they work with so they avoid conflict. 95

Summary 3-96 Differentiated emotions from moods and listed the basic emotions and moods. Identified the sources of emotions and moods. Discussed the impact emotional labor has on employees. Contrasted the evidence for and against the existence of emotional intelligence. Applied the concepts of emotions and moods OB issues. Contrasted the experience, interpretation, and the expression of emotions across cultures. 96

5-97 Define perception, and explain the factors that influence it. Identify the shortcuts individuals use in making judgments about others. Explain the link between perception and decision making. List and explain the common decision biases or errors. Contrast the three ethical decision criteria. Define creativity, and discuss the three-component model of creativity. 97

Perception 5-98 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. Perception is the way people organize the massive amounts of information they receive into patterns that give it meaning. People will use their perceptions of reality, not reality itself, to decide how to behave. 98

Factors Influencing Perception
5-99 There are many factors that influence people’s perceptions. The factors are either in the perceiver such as attitudes and experience; in the situation such as social setting and time; or in the target such as sounds, size or background. 99

Person Perception: Attribution Theory
5-100 Suggests that perceivers try to “attribute” the observed behavior to a type of cause: Internal – behavior is believed to be under the personal control of the individual External – the person is forced into the behavior by outside events/causes The attribution theory helps us to understand our perceptions about others. Research has shown that our perceptions about others are based upon the assumptions we make about them. The attribution theory says that when we observe behavior we try to determine if it is internally or externally driven. If it is internally driven it is under the person’s control whereas external causes are not under the individual’s control. 100

Determinants of Attribution
5-101 Distinctiveness – whether an individual displays different behaviors 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 We can use three factors to help us decide if behavior is internally or externally controlled: distinctiveness, consensus, consistency. Distinctiveness shows different behaviors in different situations. Consensus looks at the response and compares it to others in the same situation to see if it is consistent with the behaviors of others. Consistency looks to see if the response is the same over time. 101

Determination of Attribution
5-102 This chart looks at the elements of the attribution theory and helps us to make the connection between external or internal driven factors. 102

Attribution Errors Fundamental Attribution Error Self-Serving Bias
5-103 Fundamental Attribution Error The 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. There are errors and biases in the attributions we make. First we often tend to underestimate the influence of external factors and overestimate the influence of internal factors. This is called the fundamental attribution error. The next common error is the self-serving bias. This bias exists when individuals attribute their own successes to internal factors and blame external factors when they don’t have success. 103

Shortcuts Used in Judging Others
5-104 Selective Perception – a perceptual filtering process based on interests, background, and attitude. May allow observers to draw unwarranted conclusions from an ambiguous situation. Halo / Horn Effect – drawing a general impression based on a single characteristic. Halo – Positive / Horn – Negative 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. There are some frequently used shortcuts in judging others. People will utilize past experience, their attitudes and their interests to interpret information on their own biases, often misperceiving the situation, this is called the selective perception. Judgment can also utilize the halo effect where they will draw generally favorable impressions about an individual with a single characteristic is positive. The opposite is true when they draw unfavorable impressions about an individual based on a single negative characteristic, this is called the horn effect. Contrast effects occur when we are making judgments about an individual and comparing them to other individuals we have recently encountered. Stereotyping is when we judge someone on the basis of perception of the group to which he or she belongs. 104

The Link Between Perception and Decision Making
5-105 Individuals in organizations make decisions, choices from among two or more alternatives. Top managers determine their organization’s goals, what products or services to offer, how best to finance operations, or where to locate a new manufacturing plant. Middle- and lower-level managers set production schedules, select new employees, and decide how to allocate pay raises. Non-managerial employees decide how much effort to put forth at work and whether to comply with a request by the boss. In recent years, organizations have been empowering their non-managerial employees with decision-making authority historically reserved for managers alone. 105

The Link Between Perception and Decision Making
5-106 Individual decision-making is an important part of organizational behavior. Decision making occurs as a reaction to a perceived problem. That is, a discrepancy exists between the current state of affairs and some desired state, requiring us to consider alternative courses of action. Perception influences: Awareness that a problem exists The interpretation and evaluation of information Bias of analysis and conclusions 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 they 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. 106

Seldom actually used: more of a goal than a practical method
Rational Decision-Making Model 5-107 Define the problem. Identify the decision criteria. Allocate weights to the criteria. Develop the alternatives. Evaluate the alternatives. Select the best alternative. Decision-making is done by individuals but occurs in organizations. There are some models that can help us in thinking through decision- making in organizations. The first is the Rational decision-making model. The steps are outlined in this slide. Although this is a good model it is more of a goal than a practical method. Seldom actually used: more of a goal than a practical method 107

Rational Decision-Making Model
5-108 1.Define the Problem: A problem is a gap between a desired state and an existing state To make decision to solve problems, managers must: Be aware of the gap Be motivated to reduce the gap Have the knowledge, skills, abilities, and resources to fix the problem 2. Identify Decision Criteria: Decision criteria are standards used to guide judgments and decisions Generally, the more criteria a solution meets, the better that solution will be 3. Weight the Criteria: Which criteria are more or less important? Absolute comparisons Each criterion is compared to a standard or ranked on its own merits Relative Comparisons Each criterion is compared directly to every other criterion 4. Generate alternatives courses of actions Successful problem solving requires thorough examination of challenges. Thus a manager should think through and investigate several alternative solutions to a single problem 5. Evaluating the alternatives: S- Strengths W-Weakness O- Opportunities T- Threats 6. Make a decision-Ranking: Brands Values Nokia Samsung LG 5.35 Finally selecting the best alternative having highest rank 108

Assumptions of the Model
5-109 Complete knowledge of the situation All relevant options are known in an unbiased manner The decision-maker seeks the highest utility 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. 109

Bounded Rationality 5-110 The limited information-processing capability of human beings makes it impossible to assimilate and understand all the information necessary to optimize So most people respond to a complex problem by reducing it to a level at which they can readily understand it. Also many problems likely don’t have an optimal solution because they are too complicated to be broken down into the parameters of the rational decision- making model. So 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 The second, bounded reality, represents more of the real world where it seeks solutions that are the best given the information that is available. Basically bounded rationality constructs simplified models that identify the essential features from problems without getting into all their complexity. 110

Decision Making in Bounded Rationality
5-111 Simpler than rational decision making, composed of three steps: Limited search for criteria and alternatives – familiar criteria and easily found alternatives Limited review of alternatives – focus alternatives, similar to those already in effect Satisficing – selecting the first alternative that is “good enough” This slide details the three key steps in bounded rationality decision making which makes it a much more simple process than the rational decision making model. 111

Intuitive Decision Making
5-112 An non-conscious process created out of distilled experience Increases with experience Can be a powerful complement to rational analysis in decision making Perhaps the least rational way of making decisions is to rely on intuition. The third model is based on intuition. This is the non-conscious process that occurs as result of experiences that result in quick decisions. 112

Common Biases and Errors
5-113 Overconfidence Bias: As managers and employees become more knowledgeable about an issue, the less likely they are to display overconfidence. For example, in some quizzes, people rate their answers as "99% certain" but are wrong 40% of the time; 82% of the drivers surveyed feel they are in the top 30% of safe drivers Anchoring Bias: A tendency to fixate on initial information and fail to adequately adjust for subsequent information. Anchoring describes the common human tendency to rely too heavily, or "anchor," on one trait or piece of information when making decisions. For example, As a person looks to buy a used car, he or she may focus excessively on the odometer reading and model year of the car, and use those criteria as a basis for evaluating the value of the car, rather than considering how well the engine or the transmission is maintained; Job seekers often fall into this trap by focusing on a desired salary while ignoring other aspects of the job offer such as additional benefits, fit with the job, and working environment. There are many biases and errors that occur in the decision-making process. The overconfidence bias is when you believe too much in your own ability to make good decisions. The anchoring bias is when you make your decisions based on the information you received first and not on the new information received. 113

5-114 Confirmation Bias (also called myside bias or verification bias) : Seeking out information that reaffirms our past choices and discounting information that contradicts past judgments. It is a tendency of people to favor information that confirms their beliefs. Availability Bias: The tendency to base judgments on information that is readily available. For instance, many people have a fear of flying. Although traveling in commercial aircraft is statistically safer than driving a vehicle, aircraft accidents get much more attention. The media coverage of an air disaster causes individuals the risk of flying and under state the risk of driving. Escalation of Commitment: Staying with a decision even when there is clear evidence that it is wrong. For example, bidding war / dollar auction; price wars. The next error often made is with the confirmation bias while during the decision-making process you only use facts that support your decision. Some additional decision-making errors include the availability bias emphasizes information that is more readily at hand, information that is recent and vivid. The escalation of commitment error occurs when there is an increasing commitment to a decision in spite of evidence that it is the wrong decision. Risk aversion is when the decision maker has a tendency to prefer a sure thing over a risky outcome. The hindsight bias occurs after an outcome is already known and then believing it could have been accurately predicted beforehand. 114

5-115 Risk Aversion: Preferring a sure thing over a risky outcome. The general tendency to be afraid of taking risks even when they also carry substantial potential gain Hindsight Bias: I Knew Things Would Turn Out That Way The tendency to believe falsely that we could have accurately predicted the outcome of an event after that outcome is already known. The hindsight bias creates the illusion that the prediction of an uncertain event is easier than it really is when the event is viewed in retrospect, after its outcome is known. Once we learn the upshot of an uncertain situation, such as which team won a football game or in which direction prices moved, subsequent to a TA pattern, we tend to forget how uncertain we really were prior to knowing the outcome. Some additional decision-making errors include the availability bias emphasizes information that is more readily at hand, information that is recent and vivid. The escalation of commitment error occurs when there is an increasing commitment to a decision in spite of evidence that it is the wrong decision. Risk aversion is when the decision maker has a tendency to prefer a sure thing over a risky outcome. The hindsight bias occurs after an outcome is already known and then believing it could have been accurately predicted beforehand. 115

Organizational Constraints on Decision Making
5-116 Performance evaluations Reward systems Formal regulations Self-imposed time constraints Historical precedents 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 system-imposed time constraints and historical precedents. All these factors may influence the decisions that are made. 116

Ethical Frameworks for Decision Making
5-117 Utilitarian 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 Ethics should play a role in decision-making. There are three ethical criteria that influence decisions. The first is utilitarianism where the decisions are based on the outcome of the solution. The outcome is analyzed based on seeking the greatest good for the greatest number of people and is the dominant method for businesspeople. The second criterion is rights where decisions are based on fundamental liberties and privileges in an attempt to protect the basic rights of individuals. The final criterion is justice where the decision imposes rules in a fair and impartial manner and equitably distributes benefits and costs. 117

The ability to produce novel and useful ideas
Creativity in Decision Making 5-118 The ability to produce novel and useful ideas Helps people to: Better understand the problem See problems others can’t see Identify all viable alternatives Identify alternatives that aren’t readily apparent Better decisions are those that incorporate novel and useful ideas or better known as 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. 118

Three-Component Model of Creativity
5-119 The three component model of creativity proposes that individual creativity results from a mixture of three components, expertise, creative- thinking skills and intrinsic task motivation. Expertise is the foundation and is based on the knowledge and experience of the individual. Creative-thinking skills are the personality characteristics associated with creativity such as the ability to use analogies and the talent to see things differently. Intrinsic task motivation is the desire to do the job because of the characteristics associated with the job. 119

Global Implications Attributions: Decision Making: Ethics:
5-120 Attributions: Cross-cultural differences exist – especially in collectivist traditions Decision Making: Cultural background of the decision maker can have significant influence on decisions made Ethics: No global ethical standards exist Need organizational-level guidance There are many global implications to the things discussed in this chapter. There are cultural differences in the way people interpret behavior in others. For example, aggression in the United States may be viewed as hard work and determination, in Asian cultures it may be viewed as rude and pushy. There has not been any research on the topic of cross-cultural decision- making. Based on our understanding of cultural differences we would anticipate that this would translate to decision-making as well. Global ethics standards have not presented themselves. Some cultures do tend to see things in gray and others in black and white, but this has not been studied systematically. Companies that interact on a global basis need to set up global standards for managers. 120

5-121 Perception: To increase productivity, influence workers’ perceptions of their jobs To improve decision making: Analyze the situation Adjust your decision approach Be aware of biases and minimize their impact Combine rational analysis with intuition Try to enhance your creativity Perceptions play a critical role in how people view the situation and how they act. Managers must work on managing perceptions and incorporate them into their understanding of the workplace. Individual decision- making is also an important aspect in the workplace. In decision making most people used bounded rationality or satisfice. Managers should incorporate traditional methods with intuition and creativity to make better decisions. 121

Keep in Mind… 5-122 People have inherent biases in perception and decision making Understanding those biases allows for better prediction of behavior Biases can be helpful Managers must determine when the bias may be counterproductive Creativity aids in decision making Helps to appraise, understand, and identify problems Keep in mind that individuals have inherent biases in their perceptions and corresponding decision making. These biases can be helpful if used effectively. Creativity aids in arriving at better decisions as it allows for new perspectives and ideas. 122

Summary 5-123 Defined perception and explained the factors that influence it. Identified the shortcuts individuals use in making judgments about others. Explained the link between perception and decision- making. Listed and explained the common decision biases or errors. Contrasted the three ethical decision criteria. Defined creativity and discussed the three-component model of creativity. 123

6-124 Essentials of Organizational Behavior, 11/e Global Edition Stephen P. Robbins & Timothy A. Judge Chapter 6 Motivation I: Basic Concepts 124

6-125 Describe the three key elements of motivation. Identify early theories of motivation and evaluate their applicability today. Contrast goal-setting theory and management by objectives. Demonstrate how organizational justice is a refinement of equity theory. Apply the key tenets of expectancy theory to motivating employees. Show how motivation theories are culture bound.

What Is Motivation? 6-126 The processes that accounts for an individual’s intensity, direction, and persistence of effort toward attaining a organizational goal Intensity – the amount of effort put forth to meet the goal Direction – efforts are channeled toward organizational goals Persistence – how long the effort is maintained It is easy to see that some individuals are more motivated than others. However, the reasons for that motivation are more difficult to determine. When defining motivation it is important to look at the interaction between the individual and the situation. There are three key elements that help us define motivation. The first is intensity or how hard the person tries to accomplish the task. The second element is direction and that is the effort that is channeled toward organizational goals. The final element is persistency or how long a person can maintain the effort. 126

Early Theories of Motivation
6-127 Maslow’s Hierarchy of Needs Theory McGregor’s Theory X and Theory Y Herzberg’s Two-Factor (Motivation- Hygiene) Theory McClellan’s Theory of Needs (Three Needs Theory) There are 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. 127

Maslow’s Hierarchy of Needs Theory
6-128 The first theory was developed by Abraham Maslow in the 1950’s. 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 the 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. 128

Douglas McGregor’s X & Y
6-129 Theory X Workers Inherent dislike for work and will attempt to avoid it Must be coerced, controlled or threatened with punishment Avoid responsibilities Seek formal direction Require security Little ambition Theory Y Workers View work as being as natural as rest or play Will exercise self- direction and self- control if committed to objectives Accept responsibility Seek responsibility Make innovative decisions Douglas McGregor added to the motivation work done in the 1950’s and developed the theory called Theory X, Theory Y. He believed that there are two distinct views of human beings that managers hold. The 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. 129

Herzberg’s Two-Factor Theory
6-130 Quality of supervision Pay Company policies Physical working conditions Relationships Job security Dissatisfied Not Dissatisfied Promotional opportunities Opportunities for personal growth Recognition Responsibility Achievement Motivation Factors Satisfied Not Satisfied Herzberg’s Two-Factor theory is another one of the earlier developed theories. This theory sets forth that satisfaction and dissatisfaction are not the 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. 130

McClelland's Theory of Needs
6-131 Need for Achievement (nAch) The drive to excel Need for Power (nPow) The need to make others behave in a way they would not have behaved otherwise Need for Affiliation (nAff) The desire for friendly and close interpersonal relationships 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 make this theory difficult to measure. 131

McClelland's High Achievers
6-132 High achievers prefer jobs with: Personal responsibility Feedback Intermediate degree of risk (50/50) High achievers are not necessarily good managers High nPow and low nAff is related to managerial success The need that has received the most attention by researchers is the need for achievement. Achievers will carefully measure the odds and try to take on activities that are challenging, but not too high-risk. They tend to be motivated in jobs that are more individualistic in nature and provide regular and effective feedback. Achievers tend to not make good managers because they have more of a personal focus. Strong managers have a higher level of need for power and a lower level of need for affiliation as they are trying to motivate a team to move towards a given direction. 132

Contemporary Theories of Motivation
6-133 Self-Determination Theory Goal-Setting Theory Management by Objectives Self-Efficacy Theory Equity Theory Expectancy Theory There are a number of contemporary theories of motivation that have utilized the older theories to provide us with a deeper understanding of motivation in the workplace. 133

Self-Determination Theory
6-134 People prefer to have control over their actions so when they feel they are forced to do something they previously enjoyed motivation will decrease One example is the Cognitive Evaluation Theory proposes that the introduction of extrinsic rewards for work (pay) that was previously intrinsically rewarding tends to decrease overall motivation. Verbal rewards increase intrinsic motivation, while tangible rewards undermine it The self-determination theory states that people prefer to have control over their actions. So when they are required to do something the previously freely chose, it will diminish their motivation. An example is the Cognitive Evaluation Theory that sets forth that in the workplace intrinsic and extrinsic rewards are not independent of one another. In fact, the presence of extrinsic rewards may decrease the intrinsic rewards. In addition to extrinsic rewards managers need to realize the importance of using goal setting and verbal rewards as a method to increase motivation. 134

Goal-Setting Theory Goals increase performance when the goals are:
6-135 Goals increase performance when the goals are: Specific Difficult, but accepted by employees Accompanied by feedback (especially self- generated feedback) Contingencies in goal-setting theory: Goal Commitment – public goals better! Task Characteristics – simple & familiar better! National Culture – Western culture suits best! Edwin Locke developed what is called the goal-setting theory. The idea behind this theory is that goals which 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. The relationship between goals and performance depends on how committed the individual is to the goal as well as how specific the tasks are. Most of the research has been done in the United States so the applicability of this theory to other cultures is suspect. 135

Management by Objectives (MBO)
6-136 Converts overall organizational objectives into specific objectives for work units and individuals Common ingredients: Goal specificity Explicit time period Performance feedback Participation in decision making An implementation of the goal-setting theory is Management by Objectives or better known as MBO. MBO is a systematic way to utilize goal setting theory in which goals are set jointly by managers and employees. The goals must be tangible, verifiable and measurable in order to be effective. The manager helps to break down the organizational goals into smaller more specific goals for the employee. In order for MBO to be effective the goals must be specific, the employees must participate in the goal setting, there must be a defined time period and feedback must be incorporated into the process. 136

Individual’s belief that he or she is capable of performing a task
Self-Efficacy or Social Learning Theory 6-137 Individual’s belief that he or she is capable of performing a task 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 Another theory of motivation is the self-efficacy 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 with working harder, not shutting down. 137

Equity Theory Your Output Your Input My Output My Input
6-138 Employees weigh what they put into a job situation (input) against what they get from it (outcome). They compare their input-outcome ratio with the input-outcome ratio of relevant others. If they perceive their ratio to be equal to that of relevant others, a state of equity exists. If the ratios are unequal, inequity exists, either under-reward or over-reward. Adam’s equity theory utilizes 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 the 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. Your Output Your Input My Output My Input 138

When inequities occur, employees will attempt to correct them.
6-139 When inequities occur, employees will attempt to correct them. When employees envision an inequity, they may make one or more of six choices: 1-Change their inputs 2-Change their outcomes 3-Distort perceptions of self 4-Distort perceptions of others 5-Choose a different referent. 6-Quit the job. 139

Equity Theory and Reactions to Inequitable Pay
6-140 Employee reactions in comparison to equitably-paid employees Employees are: Paid by: Piece Time Over-Rewarded Will produce fewer, but higher-quality units Will produce more Under-Rewarded Produce large number of low quality units Produce less output or output of poorer quality People behave differently when they are over-rewarded than under- rewarded. Sensitivity to over-rewarding is less. The equity theory is often hard to apply because sensitivities differ amongst individuals and it is hard to predict how they will respond to inequities. 140

Equity Theory: Forms of Justice
6-141 Increasingly we think of equity as organizational justice, a larger perception of what is fair in the workplace. Employees perceive their organizations as just when they see that what they receive matches what they have put in. One key element of organizational justice is an individual’s perception of justice. In other words, fairness or equity can be subjective, residing in our perception. What one person sees as unfair, another may see as perfectly appropriate. The second component is procedural justice—the perceived fairness of the process used to determine the distribution of rewards. The final component is interactional justice, an individual’s perception of the degree to which she is treated with dignity, concern, and respect. These three components make up an individuals view of justice within the organization. 141

Three key relationships:
Expectancy Theory 6-142 Strength of a tendency to act in a certain way depends on strength of our expectation of a given outcome and its attractiveness Suggests that people are motivated to work toward rewards that they want and that they believe they have a reasonable chance—or expectancy—of obtaining Three key relationships: Effort-Performance: perceived probability that exerting effort leads to successful performance Performance-Reward: the belief that successful performance leads to desired outcome Rewards-Personal Goals: the attractiveness of organizational outcome (reward) to the individual 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. 142

Global Implications Are motivation theories culture-bound?
6-143 Are motivation theories culture-bound? Most were developed for and by the United States Goal-setting and expectancy theories emphasize goal accomplishment and rational individual thought Maslow’s Hierarchy may change order McClelland's nAch presupposes acceptance of a moderate degree of risk concern for performance Equity theory closely tied to American pay practices Hertzberg’s two-factor theory does seem to work across cultures Unfortunately, in the area of motivation theory the vast majority of research has been done in the United Sates and is culturally bound. There does seem to be a universal acceptance that a desire for interesting work is common across the globe, but there is no research to support this. 143

6-144 Look beyond need theories Goal setting leads to higher productivity Organizational justice has support Expectancy theory is a powerful tool, but may not very realistic in some cases Goal-setting, organizational justice, and expectancy theories all provide practical suggestions for motivation There are number of theories that can increase our understanding as managers about motivation in the workplace. It is important to utilize these theories when designing workplace programs and procedures. 144

Keep in Mind… Make goals specific and difficult
6-145 Make goals specific and difficult Motivation can be increased by raising employee confidence in their own abilities (self-efficacy) Openly share information on allocation decisions, especially when the outcome is likely to be viewed negatively Keep in mind that it is important to keep goals specific and difficult enough to be motivating. As employees increase their self-confidence in their own abilities their motivation will increase. In order to increase perceptions of justice it is important to share information about how resources are allocated. 145

Summary Described the three key elements of motivation.
6-146 Described the three key elements of motivation. Identified early theories of motivation and evaluated their applicability today. Contrasted goal-setting theory and management by objectives. Demonstrated how organizational justice is a refinement of equity theory. Applied the key tenets of expectancy theory to motivating employees. Explained to what degree motivation theories are culture bound.

7-147 Essentials of Organizational Behavior, 11/e Global Edition Stephen P. Robbins & Timothy A. Judge Chapter 7 Motivation II: Applied Concepts

7-148 Describe the job characteristics model and evaluate the way it motivates by changing the work environment. Compare and contrast the three main ways jobs can be redesigned. Give examples of employee involvement measures and show how they can motivate employees. Demonstrate how the different types of variable-pay programs can increase employee motivation. Show how flexible benefits turn benefits into motivators. Identify the motivational benefits of intrinsic rewards.

Motivating by Changing the Work Environment: JCM
7-149 The Job Characteristics Model - jobs are described in terms of five core dimensions: Skill variety Task identity Task significance Autonomy Feedback 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 a completion of 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 the worker has over their job. And finally, feedback is how much the job generates direct and clear information about the worker’s performance. 149

The Job Characteristics Model
7-150 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 150

JCM: Designing Motivational Jobs
7-151 JCM-designed jobs give internal rewards Individual’s growth needs are moderating factors Motivating jobs must be: Autonomous Provide feedback, and Have at least one of the three meaningfulness factors 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. 151

How Can Jobs be Redesigned?
7-152 Job redesign refers to designing a better fit between workers and their jobs any set of activities that involves the alteration of specific jobs or interdependent systems of jobs with the intent of improving the quality of employee job experience and their on the job productivity. any work changes that increase work quality or productivity. Alters basic relationship between worker and job. changing the tasks or the way work is performed in an existing job. to changes in the design of individual jobs. 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. In job rotation an organization will shift the employee to different tasks with similar skill requirements but all in the same organizational level. In job enrichment a manager will expand an employees job by increasing the level of control the worker has in planning their job, executing it or evaluating the work. 152

How Can Jobs be Redesigned?
7-153 Job Redesign Techniques Job Rotation The periodic shifting of an employee from one task to another Job enlargement – Horizontal Increasing the number and variety of tasks that an individual performed Job Enrichment – Vertical Increasing the degree to which the worker controls the planning, execution and evaluation of the work Adding one or more motivating factors to job activities (such as increasing responsibility or recognition) 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. In job rotation an organization will shift the employee to different tasks with similar skill requirements but all in the same organizational level. In job enrichment a manager will expand an employees job by increasing the level of control the worker has in planning their job, executing it or evaluating the work. 153

Guidelines for Enriching a Job Using JCM
7-154 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 them to identify tasks that need to be completed. This action can help the worker to have a better understanding of their job and how it helps the organization complete its goals as well as help the worker enjoy their work more because they are using more of their skill set. Enrichment reduces turnover and absenteeism while increasing satisfaction. 154

Alternate Work Arrangements
7-155 Flextime -Some discretion over when worker starts and leaves -Allow people to choose their work hours by adjusting a standard work schedule Job Sharing Allows two or more individuals to split a traditional 40-hour-a-week job Telecommuting -Work remotely at least two days per week -Employees who do their work at home at least two days a week on a computer that is linked to their office There are some alternative work arrangements that have been successful in helping increase the motivation of workers. These arrangements give the worker more control over their work and thereby can increase their level of motivation. An example of this is Flextime. Flextime is short for flexible work hours and allows the workers to choose what hours they work within a set time period. So for example, if the worker needs to work 8 hours a day the manager may say you can choose 8 hours between 6am and 8pm. That may allow a mom to be home when her kids are coming home from school. Another example is job sharing where two workers split a job and each work part-time. Telecommuting is another alternative work arrangement that has been utilized. This is when workers work from home at least 2 days a week. 155

Flextime Benefits include:
reduced absenteeism increased productivity reduced overtime expenses lessening in hostility toward management reduced traffic congestion around work sites, elimination of tardiness increased autonomy and responsibility for employees that may increase employee job satisfaction

Modified Work Schedules and Alternative Workplaces
Advantages More satisfied, committed employees Reduced stress Improved productivity Less congestion Disadvantages Challenging to coordinate and manage Poor fit for some workers Lack of network and coworker contact Lack of management belief

The Social and Physical Context
7-158 Social characteristics that improve job performance: Interdependence Social support Interactions with people outside the workplace Work context also affects performance. Some things to consider are: Temperature Noise level Safety There is both a social and a physical context to work. The social context can help to improve job performance by creating a sense of interdependence, social support and interactions with people outside of work. The physical context can also impact job satisfaction by creating a pleasant and safe environment. 158

Employee Involvement 7-159 -A participative process that uses the input of employees to increase their commitment to the organization’s success -Involving workers in decisions that will affect them and increasing their autonomy and control over their work lives Two types: Participative Management Representative Participation Employee involvement is defined as a participative process that uses employees’ input to increase their commitment to the overall success of the organization. Some examples of programs that help with employee involvement are participative management and representative participation. 159

Participative Management
7-160 Subordinates share a significant degree of decision-making power with superiors Not appropriate for every organization or every work unit Required conditions: Issues must be relevant Employees must be competent and knowledgeable All parties must act in good faith Organization’s culture must support employee involvement Only a modest influence on productivity, motivation, and job satisfaction Participative management is when managers include employees in the decision-making process. In order for participative management to be successful there must be issues that are relevant, employees who are knowledgeable and competent and all parties must be acting in good faith. This type of employee involvement program has shown to have limited impact on productivity, motivation and job satisfaction. 160

Representative Participation
7-161 Workers are represented by a small group of employees who participate in decisions affecting personnel Works Councils Board membership Desires to redistribute power within an organization Does not appear to be very motivational Representative participation tries to redistribute power by putting labor on a more equal footing with the interest of managers and stockholders. They do this by letting the workers be represented by small groups of employees who participate in decisions. -Works councils link employees with management. They are groups of nominated or elected employees who must be consulted when management makes decisions involving personnel. -Board representatives are employees who sit on a company’s board of directors and represent the interests of the firm’s employees. In some countries, large companies may be legally required to make sure that employee representatives have the same number of board seats as stockholder representatives. 161

Major strategic rewards decisions:
Rewarding Employees 7-162 Major strategic rewards decisions: What to pay employees How to pay individual employees What benefits to offer How to construct employee recognition programs 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 an organization utilizes this pay system and applies it to the pay of individual employees. 162

1. What to Pay Need to establish a pay structure Balance between:
7-163 Need to establish a pay structure Balance between: Internal equity – the worth of the job to the organization External equity – the external competitiveness of an organization’s pay relative to pay elsewhere in its industry A strategic decision with trade-offs Setting pay levels can be complex and requires a balance of internal and external pay equity. Internal equity looks at the worth of the job to the organization and compares it with what others are making within the organization. External equity looks at external competitiveness of an organization’s pay relative to pay elsewhere. 163

Bases a portion of the pay on a given measure of performance
2. How to Pay: Variable-Pay Programs 7-164 Bases a portion of the pay on a given measure of performance Piece-Rate Pay – workers are paid a fixed sum for each unit of production completed Merit-Based Pay – pay is based on individual performance appraisal ratings Bonuses – rewards employees for recent performance Skill-Based Pay – pay is based on skills acquired instead of job title or rank – doesn’t address the level of performance Some types of variable-pay programs include piece-rate, merit- based, bonuses and skill-based pay. Piece-rate pay plans pay a fixed amount of money for each unit of production. Merit-based pay plans are similar where they pay based on performance. However, it is not necessarily tied to production because in some jobs output is not as easy to measure. Bonuses is another method that is becoming increasingly popular. Bonuses are a lump sum at the end of a set period of time. The amount of the bonus is typically dependent upon the performance of the individual or the organization or some combination of both. Skill-based pay will add compensation to workers as they gain more skills and the ability to do additional jobs. It rewards the employees for continuous improvement. 164

More Variable Pay Programs
7-165 Profit-Sharing Plans – organization-wide programs that distribute compensation based on an established formula designed around profitability Gainsharing – compensation based on sharing of gains from improved productivity Employee Stock Ownership Plans (ESOPs) – plans in which employees acquire stock, often at below-market prices Other types of variable pay programs include: profit-sharing plans, gainsharing and employee stock ownership plans. Profit-sharing plans are organizational wide programs where some of the profits of the company are shared with all workers. Gainsharing is a group incentive where a department or unit will earn additional income if they improve group productivity from the previous period. ESOPs are a method used to motivate the employees towards the organizational goals. As part of their benefit package they are able to earn or purchase company’s stock, often at below-market rates. This encourages them to work towards the overall profitability of the organization as they have ownership in it and will gain as the company gains. It is important to remember that while it is often thought that pay does increase productivity it is not true that everyone responds positively to variable-pay plans. While it appears that pay does increase productivity, it seems that not everyone responds positively to variable-pay plans. 165

3. What Benefit to Offer: Flexible Benefits
7-166 Each employee creates a benefit package tailored to their own needs and situation Modular plans – predesigned packages to meet the needs of a specific group Core-plus plans – core of essential benefits and menu of options to choose from Flexible spending plans – full choice from menu of options 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. Some types included modular plans, packaged plans that meet the needs of the group, care-plus plans, a set of core benefits that most need and then some additional options to choose from and flexible spending plans where there is a menu of options to choose from. 166

4. How to Recognize Them: Employee Recognition Programs
7-167 In addition to pay there are intrinsic rewards Can be as simple as a spontaneous comment Can be formalized in a program Programs where specific types of behavior are encouraged and the procedures for attaining recognition are clearly identified Recognition is the most powerful workplace motivator – and the least expensive! 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. 167

Employee Recognition Programs
Rewarding behavior with recognition immediately leads to its repetition. To maximize motivation potential, publicly communicate who and why is being recognized. Critics argue that employee recognition programs are highly susceptible to political manipulation by management

Global Implications Do motivational approaches vary by culture?
7-169 Do motivational approaches vary by culture? Job Characteristics/Enrichment: may not be the same in collectivist cultures Telecommuting, variable pay, flexible benefits: while all of these seem to be on the increase, not enough research has been done to make any conclusions Employee Involvement: important to modify practices to reflect national culture There is some application of these various theories to other cultures. However, there has not been a lot of research to support common assumptions and understandings. It would make sense that these ideas apply across the globe, but more research needs to be done. 169

7-170 Recognize and allow for individual differences Use specific goals and feedback Allow employees to participate in decisions that affect them Link rewards to performance Check the reward system for equity The motivational theories presented in this chapter and the last chapter set forth the following overarching ideas. It is important to recognize individual differences when designing and applying motivational programs. Managers will get better results if they use goals, feedback and allow employees to participate in the decisions that impact them. Finally, by linking rewards to performance and making sure the system is equitable better results will follow. 170

Keep in Mind… 7-171 Most people respond to the intrinsic job characteristics of the JCM It is not clear that employee involvement programs work – use caution! Variable-pay plans can enhance motivation It is important to keep in mind that intrinsic rewards work and this is supportive of the JCM. However, employee involvement programs are less clear on their benefits so organizations should use caution when implementing these programs. Variable-pay programs fall in the middle and can enhance motivation, but not in all cases. 171

Summary 7-172 Described the job characteristics model and evaluated the way it motivates by changing their work environment. Compared and contrasted the three main ways jobs could be redesigned. Gave examples of employee involvement measures and how they could motivate employees. Demonstrated how the different types of variable-pay programs could increase employee motivation. Showed how flexible benefits can turn benefits into motivators. Identified the motivational factors of intrinsic rewards. 172

Table of Contents Chapter 1 – Introduction to Organizational Behavior

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