2. Individual Behavior Individual differences are grounded in 4 basic psychological concepts Individual differences are grounded in 4 basic psychological concepts – Values – Attitudes – Perception – Learning

3. Values Personally or socially preferred behavior or end-state. Personally or socially preferred behavior or end-state. Element of Judgment: Right versus wrong Element of Judgment: Right versus wrong Examples: Examples: – Freedom – Pleasure – Self-respect, peace, honesty, equality

4. International Survey: Key Attributes in a job Work family-balance Work family-balance Interesting work Interesting work Security for the future Security for the future Good Pay Good Pay Enjoyable and friendly co-workers Enjoyable and friendly co-workers – Western Europe, Japan, Russia, & U.S.

5. International Survey: Continued 33% would leave their current job for a 10% pay increase 33% would leave their current job for a 10% pay increase 44% would change jobs for a position with more advancement and growth potential 44% would change jobs for a position with more advancement and growth potential

6. Importance of Values Values influence Values influence – perceptions – attitudes – behaviors

7. Dominant Values in Today’s Workforce Unique Values of Today’s Workforce Career Stage Entered the Workforce Approximate Current Age Dominant Work Values 1. Protestant 2. Existential 3. Pragmatic 4. Generation X Mid-1940s to Late 1950s 1960s to Mid-1970s Mid-1970s to Mid-1980s through 1990s 60 to 75 45 to 60 35 to 45 Under 35 Hard working; loyal to firm; conservative Nonconforming; seeks autonomy; loyal to self Ambitious,hard worker; loyal to career Flexible, values leisure; loyal to relationships

8. Today’s worker: Today’s worker: – Better educated – More mobile with less commitment to your organization – More “reward” options – Aware of new economy and technology impact

9. Hofstede’s work on values across cultures (1980+) Hofstede’s work on values across cultures (1980+) Bottom line: Cultural values are of immense importance-“drive” how people behave and, Bottom line: Cultural values are of immense importance-“drive” how people behave and,

10. Examples of Values-Cultural Dimensions CountryPower Distance IndividualQuantity Of Life Uncert- Avoid Long Term Oriented ChinaHighLowModerate High Hong KongHighLowHighLowHigh IndonesiaHighLowModerateLow JapanModerate HighModerate Adapted from G. Hofstede, “Cultural Constraints in Management Theories,” Academy of Management Executive, February 1993, p.91.

11. Attitudes Your affective evaluative reaction to objects, people or events Your affective evaluative reaction to objects, people or events – Evaluative (like/dislike) cognitive cognitive affective affective behavioral behavioral

12. Attitudes, Behavior & Consistency People seek consistency between attitudes they hold People seek consistency between attitudes they hold People seek consistency between attitudes and behavior People seek consistency between attitudes and behavior

13. Cognitive Dissonance Tension caused by: Tension caused by: – inconsistency between attitudes – inconsistency between attitudes and behavior

14. How hard one tries to reduce dissonance depends on Importance of elements (situation) creating the dissonance Importance of elements (situation) creating the dissonance Degree of personal influence over the elements (situation) Degree of personal influence over the elements (situation) Rewards involved in maintaining discrepant attitude/behavior Rewards involved in maintaining discrepant attitude/behavior

15. Reducing Dissonance Change attitude Change attitude Change behavior Change behavior Acquire new information Acquire new information Minimize importance of inconsistency Minimize importance of inconsistency

16. Work Attitudes Job Satisfaction Job Satisfaction

17. ProductivityProductivity AbsenteeismAbsenteeism TurnoverTurnover JobSatisfaction and Employee PerformanceJobSatisfaction Performance

18. Attitudes and Behavior Do Do – Attitudes cause behavior? – Behavior cause attitudes? Self-perception theory Self-perception theory

19. Job Satisfaction and OB OutcomesTreatmentProcedures Perceptions of Fairness

20. Responses to Job Dissatisfaction Exit Exit Voice Voice Neglect Neglect Loyalty Loyalty

21. Job Attitude Surveys Recommended once or twice yearly to monitor employees and perceived working conditions Recommended once or twice yearly to monitor employees and perceived working conditions

22. Other work related attitudes Job Involvement Job Involvement Organizational Commitment Organizational Commitment

23. Perceptions How we organize and interpret our environment How we organize and interpret our environment Influenced by value system Influenced by value system Influenced by perceptual biases Influenced by perceptual biases – Attribution biases

24. Causal Attributions we make Observe Behavior – Internally or externally caused? Observe Behavior – Internally or externally caused? – Distinctiveness: Unusual for the person? – Consensus: Others likely to do same under circumstances? – Consistency: Same behavior over time?

25. Fundamental attribution error We tend to underestimate the influence of external factors on behavior! We tend to underestimate the influence of external factors on behavior!

26. Self-Serving Bias We tend to attribute: We tend to attribute: – Own successes to internal factors (ability, effort) – Own failures to external factors (luck, unreasonable expectations, lack of resources, poor management).

27. Shortcuts to Judging Others Selectivity Selectivity Assumed Similarity Assumed Similarity Stereotyping Stereotyping Halo effect Halo effect