1. Review:
Key Concepts, Part 2

2. Errors and Biases in Attributions
Fundamental Attribution Error
The tendency to underestimate the influence of external factors and overestimate the influence of internal factors when making judgments about the behavior of others
In general, we tend to blame the person first, not the situation.

3. Errors and Biases in Attributions (cont’d)
Self-Serving Bias
The tendency for individuals to attribute their own successes to internal factors while putting the blame for failures on external factors
Thought: When students get an “A” on an exam, they often say they studied hard. But when they don’t do well, how does the self-serving bias come into play?
Hint: Whose fault is it usually when an exam is “tough”?

4. Frequently Used Shortcuts in Judging Others
Selective Perception
People selectively interpret what they see on the basis of their interests, background, experience, and attitudes.

5. Frequently Used Shortcuts in Judging Others
Halo Effect
Drawing a general impression about an individual on the basis of a single characteristic
Contrast Effects
Evaluation of a person’s characteristics that are affected by comparisons with other people recently encountered who rank higher or lower on the same characteristics

6. Frequently Used Shortcuts in Judging Others
Projection
Attributing one’s own characteristics to other people
Stereotyping
Judging someone on the basis of one’s perception of the group to which that person belongs

7. Specific Applications in Organizations
Employment Interview
Perceptual biases of raters affect the accuracy of interviewers’ judgments of applicants
Performance Expectations
Self-fulfilling prophecy (Pygmalion effect): The lower or higher performance of employees reflects preconceived leader expectations about employee capabilities.
Ethnic Profiling
A form of stereotyping in which a group of individuals is singled out—typically on the basis of race or ethnicity—for intensive inquiry, scrutinizing, or investigation

8. Specific Applications in Organizations (cont’d)
Performance Evaluations
Appraisals are often the subjective (judgmental) perceptions of appraisers of another employee’s job performance.

9. Maslow’s Hierarchy of Needs
Lower-Order Needs
Needs that are satisfied externally; physiological and safety needs
Higher-Order Needs
Needs that are satisfied internally; social, esteem, and self-actualization needs
Self
Esteem
Social
Safety
Physiological
E X H I B I T 6–1

10. Managers See Workers as…
Theory X
Managers See Workers as…
Disliking Work
Avoiding Responsibility
Having Little Ambition
Theory Y
Managers See Workers as…
Enjoying Work
Accepting Responsibility
Self-Directed
Douglas McGregor said that managers hold one of two sets of assumptions about human nature: either Theory X or Theory Y. Seeing people as irresponsible and lazy, managers who follow Theory X assume the following:
1. Employees inherently dislike work and will try to avoid it.
2. Since employees dislike work, they must be coerced, controlled, or threatened to achieve goals.
3. Employees avoid responsibilities and seek formal direction, if possible.
4. Most workers place security above all other work-related factors and will display little ambition.
Since they see people as responsible and conscientious, managers who follow Theory Y assume the following:
1. Employees can view work as being as natural as rest or play.
2. When committed to their objectives, people will exercise self-direction and self-control
3. The average person can learn to accept, even seek, responsibility.
4. Many workers besides managers have innovative decision-making skills.
No hard evidence confirms that either set of assumptions is universally true. It is more likely that the assumptions of Theory X or Theory Y may or may not be appropriate, depending on the situation at hand.

11. Contrasting Views of Satisfaction and Dissatisfaction
E X H I B I T 6–3

12. David McClelland’s Theory of Needs
Need for Achievement
The drive to excel, to achieve in relation to a set of standards, to strive to succeed
Need for Affiliation
The desire for friendly and close personal relationships
Bottom Line
Individuals have different levels of needs in each of these areas, and those levels will drive their behavior.
Need for Power
The need to make others behave in a way that they would not have behaved otherwise

13. Goal-Setting Theory (Edwin Locke)
Basic Premise: That specific and difficult goals, with self-generated feedback, lead to higher performance.
But, the relationship between goals and performance will depend on:
Goal commitment
“I want to do it & I can do it”
Task characteristics (simple, well-learned)
National culture

14. Equity Theory (cont’d)
E X H I B I T 6–8

15. Equity Theory (cont’d)
Choices for dealing with inequity:
Change inputs (slack off)
Change outcomes (increase output)
Distort/change perceptions of self
Distort/change perceptions of others
Choose a different referent person
Leave the field (quit the job)

16. Ethical Values and Behaviors of Leaders
Expectancy Theory
Ethical Values and Behaviors of Leaders
Bottom Line
All three links between the boxes must be intact or motivation will not occur. Thus,
Individuals must feel that if they try, they can perform and
If they perform, they will be rewarded and
When they are rewarded, the reward will be something they care about.

17. Job Design Theory Job Characteristics Model Characteristics
Identifies five job characteristics and their relationship to personal and work outcomes
Characteristics
Skill variety
Task identity
Task significance
Autonomy
Feedback

18. Job Design and Scheduling
Job Rotation
The periodic shifting of a worker from one task to another
Job Enlargement
The horizontal expansion of jobs
Job Enrichment
The vertical expansion of jobs

19. Alternative Work Arrangements, cont.
Telecommuting
Employees do their work at home on a computer that is linked to their office.
Categories of Telecommuting Jobs
Routine information-handling tasks
Mobile activities
Professional and other knowledge-related tasks

20. Telecommuting Advantages Disadvantages (Employer) Larger labor pool
Higher productivity
Less turnover
Improved morale
Reduced office-space costs
Disadvantages (Employer)
Less direct supervision of employees
Difficult to coordinate teamwork
Difficult to evaluate non-quantitative performance

21. What Is Employee Involvement?
Employee Involvement Program
A participative process that uses the entire capacity of employees and is designed to encourage increased commitment to the organization’s success

22. Rewarding Employees: Variable Pay Programs
A portion of an employee’s pay is based on some individual and/or organization measure of performance.
Piece rate pay plans
Profit sharing plans
Gain sharing plans

23. Variable Pay Programs (cont’d)
Piece Rate Pay Plans
Workers are paid a fixed sum for each unit of production completed.
Profit Sharing Plans
Organization-wide programs that distribute compensation based on some established formula designed around a company’s profitability
Gain Sharing
An incentive plan in which improvements in group productivity determine the total amount of money that is allocated.

24. Rewarding Employees Employee Stock Ownership Plans (ESOPs)
Company-established benefit plans in which employees acquire stock as part of their benefits.

25. Employee Recognition Programs
Intrinsic rewards: Stimulate Intrinsic Motivation
Personal attention given to employee
Approval and appreciation for a job well done
Growing in popularity and usage
Benefits of Programs
Fulfill employees’ desire for recognition
Inexpensive to implement
Encourages repetition of desired behaviors
Drawbacks of Programs
Susceptible to manipulation by management