Organizational Behavior Chapter 2 PDF

Because learning changes everything. ® Chapter 2 The Central Role of People in Organizations ORGANIZATIONAL BEHAVIOR FIRST EDITION Baldwin, Bommer, Rubin Copyright 2021 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written...

Because learning changes everything. ® Chapter 2 The Central Role of People in Organizations ORGANIZATIONAL BEHAVIOR FIRST EDITION Baldwin, Bommer, Rubin Copyright 2021 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. Learning Objectives LO2.1: Describe the value of people in organizational success. LO2.2: Explain why people are so critical to competitive advantage. LO2.3: Describe the most important outcomes in organizational behavior. LO2.4: Identify the factors that lead to healthy, engaged workplaces. LO2.5: Identify the people-related factors that reduce organizational effectiveness. Copyright 2021 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 2 High-performance Work Practices Examples include using incentives, selectivity in hiring, extensive training, and decentralized decision making. These practices improve organizational performance by: Providing employees critical KSAs. Increasing motivation to get the job done. Improving the social dynamics in organizations. Copyright 2021 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 3 High-performance Work Practices-Empirical Research These practices can increase growth, productivity, and retention by upwards of 15%. Human resource planning alone can increase a firm’s financial performance by 20%. The effects are strongest for firm-specific human capital. Companies should therefore retain experienced managers and employees to reap in these benefits. Copyright 2021 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 4 Resource Based View (RBV) of the firm Organizations differ in the types and uses of resources available to them. Firms compete for human capital when it is rare, hard to imitate, and substitutes for it do not readily exist. People practices drive a significant portion of an organization’s competitive advantage. Copyright 2021 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 5 OB Outcomes that Matter Most Three, person-related outcome factors matter most in OB: Performance Engagement Healthy Workplaces These are dependent variables. Research factors that affect them are independent variables. Copyright 2021 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 6 Figure 2.1 Linking Organizational Behavior to Organizational Effectiveness Access the text alternative for slide images. Copyright 2021 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 7 Individual Job Performance Two components: Task Performance: effectively completing the essential functions of the job. Contextual Performance: employee behaviors that increase organizational effectiveness but are not part of the employee’s core tasks. Also known as Organizational Citizenship Behaviors. Copyright 2021 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 8 Task Performance “The bottom line” Distinguish between Effectiveness: The results an employee achieves, versus. Efficiency: The amount of resources dedicated to attain the result. Copyright 2021 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 9 Organizational Citizenship Behaviors Going above and beyond tasks and duties listed in the job description: Volunteering Helping a coworker Following organizational rules and procedures OCBs are strongly related to individual task performance, department performance, and organizational productivity and profitability. Copyright 2021 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 10 Components of Organizational Citizenship Behavior Altruism – helping a specific other person in the organization. Civic Virtue – responsible participation in the organization’s political life. Conscientiousness – behavior well beyond what is expected. Courtesy – touching base with parties whose work my decisions affect. Sportsmanship – being a good sport. Copyright 2021 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 11  Table 2.1 Organizational Citizenship Behavior (OCB) Altruism. Behaviors that have the effect of helping a specific other person with an organizationally relevant task or problem. Civic virtue. Behaviors regarding responsible participation in the political life of the organization. Civic virtue implies a sense of involvement in what policies are adopted and which candidates are supported. Behaviorally, civic virtue takes such mundane forms as attending meetings, reading mail, discussing issues on personal time, voting, and “speaking up.” Conscientiousness. Employee behavior that goes well beyond the organization’s role requirements, in the areas of attendance, taking breaks, and obeying organizational policies. Courtesy. Actions such as touching base with those parties whose work would be affected by one’s decisions or commitments. Providing advance notice, reminders, and passing along information are all examples of courtesy. Sportsmanship. Behavior indicating an individual’s willingness to tolerate less-than-ideal situations by not filing petty grievances or complaining about minor issues. An employee who exhibits sportsmanship behavior can be described as being a good sport. Sources: Organ, D. W. Organizational Citizenship Behavior: The Good Soldier Syndrome. Lexington, MA: D. C. Heath & Co., 1988; Podsakoff, P. M., S. B. MacKenzie, J. B. Paine, and D. G. Bachrach. “Organizational Citizenship Behaviors: A Critical Review of the Theoretical and Empirical Literature and Suggestions for Future Research.” Journal of Management 26, no. 3 (2000): 513–63. Copyright 2021 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 12 Five Key Processes Critical to Team Success Confidence: Belief we can perform successfully. Cooperation: High quality information exchange among team members. Coordination: Integration of effort toward team goals. Cohesion: Shared commitment toward the team. Conflict: Friction among team members. Copyright 2021 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 13 Work Engagement Making sense of how people engage or disengage depends on understanding work attitudes. An attitude is an evaluation of one’s job - expressing one’s feelings toward, beliefs about, and attachment to one’s job. Job characteristics, how people are led, and the relationships people form at work all influence work attitudes. Copyright 2021 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 14 Healthy Workplaces The challenge is for organizations to help employees maintain healthy lifestyles. 90% of organizations with 50 or more employees have at least one program geared toward promoting health outcomes. Copyright 2021 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 15 More than the Bottom Line Firms that are socially and environmentally responsible outperform other firms financially. Firms are using balanced scorecards that more clearly reflect the contributions of people to the bottom line. See Figure 2.2 (next slide) for a balanced scorecard used by Southwest Airlines. Copyright 2021 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 16 Figure 2.2 Major Types of Counterproductive Work Behaviors Source: Adapted from Robinson, S. L., and R. J. Bennett. “A Typology of Deviant Workplace Behaviors: A Multidimensional Scaling Study.” Academy of Management Journal 38, no. 2 (1995): 555–72. Access the text alternative for slide images. Copyright 2021 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 17 The “Dark Side” Sometimes, people can hold negative views, engage in dysfunctional behavior, and undermine organizational success. Firms must mitigate this by trying to find out how and why things go wrong. Copyright 2021 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 18 Organizational Withdrawal Withdrawal Behaviors: Actions whereby employees are more likely to avoid (psychological withdrawal) or leave (physical withdrawal) the work situation. Turnover: Voluntary (the employee chooses to leave) versus Involuntary (the organization initiates the separation) Turnover damages organizational performance. A significant increase in turnover can lower a firm’s financial performance by up to 26%. Copyright 2021 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 19 How to Retain High Performers Recognize pay level matters a lot less than pay equity. Promote strong boss-employee relationships. Engage high performers with new challenges and skill development. Copyright 2021 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 20 Realistic Job Previews Present an accurate / realistic description of the job to applicants. Mention both the positive and negative aspects of the work. Research shows that using RJPs leads to higher job acceptance rates and lower turnover. RJPs also help improve applicants’ decisions about fit with the job. Copyright 2021 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 21 The Unfolding Model of Turnover Recognizes there is no one single explanation for why people quit. Instead, organizational “shocks” are experienced which unfold over time and cause employees to rethink their job situations. Shocks can be so powerful that they induce an impulsive response whereby people quit without a next job lined up. Copyright 2021 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 22 Cyber Loafing Employees’ use of the internet to avoid work or disguise engaging in actual work. 90% of employees admit to non-work emailing, or visiting news sites. 70% admit to shopping online at work. 40% even report job hunting while on their current job! Copyright 2021 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 23 Counterproductive Work Behaviors (CWB) Intentional behavior on the part of an employee that is viewed by the organization as contrary to its legitimate interests. Example: serious crimes, sexual harassment, theft, fraud, lying, bullying, spreading rumors. Copyright 2021 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 24 Types of Counterproductive Work Behaviors Production Oriented: The purposeful failure to perform job tasks. Politically Oriented: Acts that undermine others’ success in the organization. Property Oriented: Destroying or stealing organizational property. Personally Oriented: Acts geared toward directly impacting others at work. Copyright 2021 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 25 Workplace Incivility A form of CWB where behaviors are low in intensity and ambiguous in their intent to harm. Examples include rudeness, teasing, shaming others. Research estimates incivility costs firms $14,000 per employee annually. (see next slide) Copyright 2021 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 26 Table 2.3 Consequences of Workplace Incivility Employees who experience repeated incivility in the workplace have been shown to have the following. Cognitive and Emotional Behavioral Organizational Consequences Consequences Consequences Increased emotional Increased motivation to reciprocate Increased turnover and turnover exhaustion incivility costs Reduced optimism Increased likelihood to engage in Increased project delays retaliatory behavior Lower levels of energy Lower task performance and Increased inventory theft citizenship behavior Increased stress Increased turnover intentions Decreased consumer loyalty Lower task-related memory recall Lower levels of creativity and innovation Reduced levels of perceived fairness Lower levels of physical health Increased levels of psychological distress and anxiety Source: Summarized from Schilpzand, P., I. E. De Pater, and A. Erez. “Workplace Incivility: A Review of the Literature and Agenda for Future Research.” Journal of Organizational Behavior 37 (2016): S57–S88. Copyright 2021 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 27 Managing Workplace Incivility Take an honest look in the mirror (are you also guilty of incivility?). Don’t escalate the incivility. Understand the manager’s role, and educate when necessary. Give yourself some space for a bit. Bolster your personal resources. Copyright 2021 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. 28  End of Main Content Because learning changes everything. ® www.mheducation.com Copyright 2021 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.