OB Midterm Notes PDF

B610 Organizational Behavior: Understanding People at Work Week 1: Introduction to OB & the Course Fall 2024 Professor Meena Andiappan Agenda Introductionto Organizational Behavior Interactive Lecture & Personal Introductions How to Analyze a Case Study PPT Break Management...

B610 Organizational Behavior: Understanding People at Work Week 1: Introduction to OB & the Course Fall 2024 Professor Meena Andiappan Agenda Introductionto Organizational Behavior Interactive Lecture & Personal Introductions How to Analyze a Case Study PPT Break Management Reflection Exercise Pickyour Case Studies/Innovation presentations scheduling Wrap up & next class 2 What is Organizational Behavior? Thestudy of how people think, feel, and act; in organizations Behaviorscience base: psychology and sociology 3 4 What will we learn about?  Managing Self  Managing Teams  Managing Organizations 5 Why is Organizational Behavior useful? If you know why most people behave a certain way, then you can predict what people will do… Crucial for: Implementing your best ideas  accounting, finance, marketing, operations, etc. Accelerating your career & achieving your goals 6 Why do OB Skills Matter to You? Leaders Strategic Technical/individual skills only get you so far Up the hierarchy, Managers success is due to effective managerial skills, not technical expertise Entry-level Technical 7  OB vs. HRM (Human Resource Management) OB – study of human behavior HRM – process of hiring & in org setting developing employees so they are valuable to the org -Topics include: leadership, motivation, decision making -Functional area in a company, like finance or marketing -Certifications available -Topics include: performance evaluations, recruitment, development, benefits 8  Relationship between OB & HRM? Performance = Ability x Motivation HRM OB (Selection, (Getting the assessment, best work from training) employees) 9  Relationship between OB & HR? Both are useful if you would like to be a manager If your company has an HR department, they can offer you guidance on HR issues (e.g., legal)… but your company will assume you know OB 10 Why don’t we just focus on what famous managers do? Sometimes a company that looks like a good example to follow… turns out to not be so good (e.g., Blackberry). What worked for them in the past won’t necessarily work now or for YOU  E.g., not many can pull off Steve Jobs’ managerial style (or would want to) Wewill use cases to explore & understand how we might react to specific scenarios 11 My Aim for this Course Is to help you learn the principles of OB, and develop the “soft” skills that will help you succeed 12 Brief Presentation of your Professor Background Teaching Research Consulting Email: [email protected] Office: RJC 254 OfficeHours: By appointment (in person13 or via zoom/teams) Brief Presentation of your TA Ayush Suri, MBA Background Work Experience Email: [email protected] Office Hours: By appointment (via zoom/teams) 14 Introductions In pairs, get to know each other (5 min):  Name  One thing you have in common  One interesting fact about your partner You will introduce each other to the class 15  Class Format  Per week, 2h 50min class  C01 – Monday 2:30-5:20pm (Sept 9-Dec 2)  C02 – Tuesday 12-2:50pm (Sept 10-Dec 3)  C03 – Tuesday 8:30-11:20am (Sept 10-Dec 3)  170-minute class: ~50-minute interactive lecture ~35-minute experiential exercise ~20-minute OBHR innovation presentations ~15-minute break ~45-minute case study 16 Week Date Class Deliverables/Case Study 1 Sept 9,10 Introduction to Course & OBHR 2 Sept 16,17 Personality & Values Body Shop International 3 Sept 23,24 Motivation Suicides at France Telecom 4 Sept 30,Oct1 Performance & Job Design Ottawa Voyagers 5 Oct 7,8 Ethical Decision Making & Org Nike: Ethics vs. reputation in Justice the #metoo era 6 No Class GRIT WEEK GRIT Assignment (5%) 7 Oct 21,22 Leadership Ricardo Semler 8 Oct 28,29 Groups & Teams Blake Sports Apparel 9 Nov 4,5 Midterm exam (30%) 10 Nov 11,12 Power & Influence Angela Merkel’s long journey 11 Nov 18,19 Networks, Conflict & Communication Patagonia 12 Nov 22,26 Change Management Nissan renewal plan 13 Dec 2,3 Create-a-case Presentations (10%) Create-a-case written study due (15%) 17 18 Assignments 1. Case analysis – presentation & discussion leadership (in learning groups) – 20% 2a. Create-a-case presentation (in learning groups) – 10% (Week 13) 2b. Create-a-case written study (in learning groups) – 15% (Week 13) 3. OBHR innovation presentation (in learning groups) – 10% 4. Participation – 10% 5. Midterm exam – 30% (Week 9) 6. GRIT week assignment – 5% (Week 6) 19 Teams You will be part of pre-determined “learning groups” Develop a team name These teams will be used for:  Team OBHR Innovation presentation (10%)  Team Case Analysis (20%)  Team Create-a-Case Project (25%) Email your team name, team members, case choice, and innovation presentation date to me by Thursday  FCFS 20 1. Team Case Analysis (20%) Your group will choose to analyze one case from our list of 9 cases during the term (1st come, 1st served!) You must present the case to the class, your analysis of the case and its issues, and lead the class discussion You should be prepared to discuss the “Discussion Questions” about the case posted on A2L You may or may not choose to use PPT All members of the group will receive the same grade 21  2a&b. Team Create-a-Case Project (25%) Your task: Create your own case study (1 per team). Identify an event or situation to write a case about. Gather data on the event/issue, analyze the reasons for the event, & write a compelling story about this event.  Choose an event for which there is a lot of information available  Event could be based on one group member’s experience; an issue in the news; an issue/event someone you know has experienced… You will present your full case study (10 min pres, 5 min Q&A) & hand in a written case (max. 10 pages not including refs/appx) on the final day of class We will vote for the best case – winner gets a 1% final grade bonus Presentation (10%)+Written Case (15%) =25% 22 3. Team OBHR Innovation Presentation (10%) Your task: Identify an industry innovation within the field of organizational behavior or human resource management – e.g. a new way to motivate employees, an innovative approach to recruitment, creative leadership or change implementation initiatives... Can be from a company you worked within, recent (national or international) trend, a co. site, etc. You will present the innovation (7-10 min pres, 5 min Q&A) during a predetermined class session  schedule list posted on A2L Should relate to that week’s topic Your presentation should include: the who, what, when, where, & why of the innovation; you must try to “sell” the innovation to the class 23 Presentation & Project Grading Guidelines GRADE LEVEL EXPECTATIONS A Work that exceeds stated assignment expectations in terms of quality, depth and rigor - e.g., inclusion of additional research; particularly compelling writing; novel and insightful insights drawn from your analysis B Work that meets all stated assignment guidelines C Work that meets some, but not all stated assignment guidelines D Work that meets few stated assignment guidelines 24 4. Participation (10%) Expect 100% attendance OB is fundamentally experiential Team activities & project work in class Let me know in advance if you cannot attend class 25  What is Good Participation? Responding Asking Sharing Integrating Driving Present & to my questions relevant learning discussion focused in questions about personal across forward by class (i.e., no readings/ experiences sessions building on cellphones) theory or news & items responding to others 26 5. In-class Midterm Exam (30%) Multiple choice Week 9 (Nov 4&5) 90 minutes 27 6. GRIT Week Assignment(5%) Week 6 (Oct 15-18) Groupwork 28 Course Materials Cases  Coursepack available via Harvard Business Publishing (about $45 USD)  1st case: next class! 29 For Next class Topic: Personality & Values OBHR innovation presentation Case Study: Body Shop 30  Exercise: Management Reflection 1. Think back on your most vivid (positive or negative) experiences within organizations (professional, school, sports teams, etc.) when you were managing or being managed Consider the context: What happened? Why? How did you feel? List 2-3 major insights that you learned about management based on this experience (10 min) 2. In groups of 2-3, briefly describe the situation to the others (5 min) 3. Identify 2-3 major takeaways from your group discussion and have someone ready to share your takeaways (10 min) 31  Organizational Behavior: Understanding People at Work MBA B610 Week 2: Personality & Values Fall 2024 Professor Meena Andiappan Agenda Personality & Values Interactive Lecture Values Exercise OBHR innovation presentation Break Case Study: Body Shop Wrap up & next class 2  Managing Need to deeply understand… Self Your strengths and weaknesses How you work best (e.g., alone vs. teams) Where you belong What you can contribute (KSAs – knowledge, skills, abilities) 3 What is Personality? Setof psychological characteristics that influences the way an individual interacts with the environment & how he or she feels, thinks, and behaves Relatively stable 4 Why does personality matter for OB? 5 The people make the place (Schneider, 1987) People select themselves in & out of organizations ASA Framework:  Attraction: People of similar types are attracted to particular jobs & co’s  Selection: Co’s tend to select for & encourage people with similar types of KSAs  Attrition: People who find they do not fit a place tend to leave  people left are even more similar to each other than those who were attracted to company 6  Personality = Nature + Nurture Influenced by Nature Heredity explains ~ 50% of behavioral tendencies & 30% of temperament Minnesota studies (1990) – twins raised apart had same chance of similar personalities as those raised together Influenced by Nurture Socialization/culture Schooling Upbringing 7 Your Personality Test Many personality tests out there  E.g., Meyers-Briggs, “Colours”  Many of these are like horoscopes in the newspaper – fun to think about but not valid  So, why do companies still use them? The“Big 5” personality test is the most valid, covers fundamental dimensions of psychology  We’ll do a short version 8 Your Personality Test For each, rate yourself on a scale of 1 (Strongly Disagree) to 7 (Strongly Agree) 1. I see myself as extraverted, enthusiastic. 2. I do not see myself as critical, quarrelsome. 3. I see myself as dependable, self-disciplined. 4. I do not see myself as anxious, easily upset. 5. I see myself as open to new experiences, complex. 6. I do not see myself as reserved, quiet. 7. I see myself as sympathetic, warm. 8. I do not see myself as disorganized, careless. 9. I see myself as calm, emotionally stable. 10.I do not see myself as conventional, uncreative. 9 SCORING Your Personality Test Sum your answers as follows: Personality Dimension Question # A. Extraversion: 1, 6 B. Agreeableness: 2, 7 C. Conscientiousness: 3, 8 D. Neuroticism: 4, 9 E. Openness to Experiences: 5, 10 If your score on a dimension is 8 or more, you are more so of that dimension; if your score is lower, you are less so of that dimension. E.g., More or less extraverted; more or less agreeable… 10 “Big Five” Personality Traits 11 The Big Five: Research  Which factor is the biggest predictor of performance? Conscientiousness is the strongest (non- cognitive) predictor of overall job performance across all occupations (Wilmot & Ones, 2019). 12 Locus of Control 13 Locus of control in practice Situation:The fantasy novel that you spent all your evenings writing last year is a best-seller!! What is the reason why?  Internal?  External?  Which type (internal or external LOC) is a better employee? 14 Locus of Control: Research (Ng, Sorensen, & Eby, 2006) Internals are more satisfied with their jobs & more committed to their org  why? Internals achieve higher positions Internals perceive less stress, cope with stress better, experience less burnout, & engage in more careful career planning 15 Narcissism  Positive & inflated view of oneself (Twenge & Campbell, 2009)  “Grandiose sense of self-importance” (Judge, LePine, & Rich, 2006, p. 762). Will narcissists be more or less satisfied in their jobs? Are CEOs more or less likely than the general population to be high on narcissism? 16 Machiavellianism  “The ends justify the means”  Manipulative, always want to win, difficult to persuade, can persuade others  Especially successful when:  Face-to-face contact, no rules, when others are distracted by emotions  How would you manage a high Mach? 17 Emotions Intense feelings that are directed at someone or something Often in response to a stimulus (i.e., not personality) Fleeting 18 Key Constructs in Emotions Emotional Contagion - the tendency for moods and emotions to spread between people or throughout a group. Emotional Labour - In some jobs, employees must exaggerate positive emotions while in others they must suppress negative emotions. Examples? Consequences?  Frequent need to suppress negative emotions or fake emotions can lower job satisfaction & increase stress. 19 Emotional Intelligence (EQ/EI) 20 What factors affect job satisfaction?  Job Satisfaction Facets Thework itself - Working conditions meaningful, mentally Supervision challenging work Co-workers (friendly Compensation or helpful colleagues) Recognition Organizational policy Benefits Career opportunities  Which of these does a manager control? Summary Personality types & emotional intelligence can shape people’s strengths in particular jobs Understanding yourself (LOC, emotions, etc.) is critical in job success & career satisfaction Biologyis NOT destiny; the role of personality should not be overstated when predicting workers’ behaviors 23 For Next class Topic: Motivation OBHR innovation presentation Case Study: France Telecom 24 What Are Values? Values have to do with what we consider good and bad. Values are motivational; they signal how we believe and how we should and should not behave. 25 Values Exercise (Part I) Step 1 - Divide values into 3 categories:  Values that are extremely important to you  Values that are moderately important to you  Values that are not important to you Step 2 - Focus on the 5 most important values (important to “you” not your organization, family, etc.) 26  Core Values List  ACHIEVEMENT / SUCCESS  HONESTY / INTEGRITY  AUTONOMY / INDEPENDENCE  HUMOR  CHALLENGE /COMPETITION  INTELLIGENCE  COMMUNICATION  KNOWLEDGE / LEARNING  COURAGE  LOYALTY  COMPASSION / KINDNESS  MEANING  CREATIVITY / INNOVATION  OPEN-MINDEDNESS  DEPENDABILITY  POWER  DISCIPLINE  PROSPERITY / WEALTH  EFFECTIVENESS / PRODUCTIVITY  QUALITY  EQUALITY  RECOGNITION / REPUTATION  FAMILY  RESPECT  FLEXIBILITY  RISK TAKING / SECURITY  FREEDOM  SERVICE  GROWTH  STRENGTH / TENACITY  HAPPINESS  TEAMWORK / COLLABORATION  HEALTH  VARIETY / DIVERSITY Values Exercise (Part II) Step 3 - In your groups, select a value that one or more group member identified as the most important for them in the previous step Sept 4 - Take 5 minutes to brainstorm some leadership actions that would be aligned with that value in terms of objectives, language, support, measurement, rewards, sanctions 28 Exercise Debrief How easy was it to come up with actions to demonstrate commitment to values? What was the hardest part? Why? What do you think it will take for you to consistently enact your values? Do you have personal examples of alignment and misalignment with your values and organizational values? 29 Myers-Briggs Type Indicator Classifies people into one of sixteen personality types Four dimensions  Extraversion / Introversion  Sensing / Intuiting  How do you gather information?  Thinking / Feeling  How do you like to make decisions?  Judging / Perceiving  Are you more decisive or are you more spontaneous? 30 Myers-Briggs Type Indicator NOT reliable  People who re-take assessment may have different outcomes each time NOT valid  Not an accurate representation of how people behave  “cut points” are arbitrary 31 Group Activity Even though Myers-Briggs is not valid or reliable, it is still widely used in organizations. Why?  Form a group of 4-6 people, and discuss.  Come up with at least three reasons  Be ready to report back to the class. 32  Organizational Behavior: Understanding People at Work MBA B610 Week 3: Motivation Fall 2024 Professor Meena Andiappan Agenda Motivation Interactive Lecture Break OBHR innovation presentation Case Study: France Telecom Creating Motivation Exercise Wrap up & next class 2 Motivation What motivates you at work? At home? 3 Motivation and management How do you get people to do what you want? 4 Motivation Processes that account for an individual’s intensity, direction, & persistence toward obtaining a goal Not the only thing that affects work outcomes (e.g., performance, learning). For example, ability and opportunity also matter. 5 Extrinsic and Intrinsic Motivation Researchersdistinguish between intrinsic and extrinsic motivation. What is the difference? What should you emphasize as a manager? Why? 6 Intrinsic Motivation Motivation that stems from the direct relationship between the worker & the task Examples? Include: Feelings of achievement, accomplishment, challenge, & competence derived from performing one’s job; the interest in the job itself. 7 Extrinsic Motivation Motivation that stems from the work environment external to the task Usually applied by others Examples? Include: Pay Fringe benefits Praise 8 Extrinsic Versus Intrinsic Motivators Both intrinsic and extrinsic motivation affect performance: Extrinsic motivation is more strongly related to the quantity of performance & mundane tasks. Intrinsic motivation is more strongly related to the quality of performance & complex tasks. 9  Motivation Theories… Can be traced back to the scientific management movement. Frederick Taylor (1880s-1920s)  Factory work had been typically organized around workers’ expertise  Taylor thought they could produce more  Studied people shoveling ore, etc. at steel mills  Developed specific instructions for workers about speed & efficiency  Used $ to motivate 10 Taylor Claimed to have increased workers’ productivity from 13 tons/day to 48 tons/day  But workers resisted demands for more speed & loss of control over their Pig Iron Breakers at Coltness Ironworks, 1910 work by making deliberate errors—Taylor retaliated with fines 11 Motivation Theories… Represent different strategies for motivating people at work.  They prioritize different things  None completely explain motivation, but each contributes something important  Caveat: Theories typically assume that people are equal in their inherent levels of motivation though we know they’re not. 12 Approaches to Motivation FOCUS THEORY Needs Maslow; McClelland; Herzberg Psychological Reinforcement; Goal Setting Processes Cognitive Growth Job Design Theory Social Equity Theory 13 Maslow’s Hierarchy of Needs (1954) How can an organization use Maslow’s hierarchy? 14 McClelland’s Need Theory (1985) Three basic needs motivate people: Need for achievement: want to accomplish goals through their own efforts, win Need for affiliation: seek approval, conform, avoid conflict and confrontation Need for power: desire to control people and resources By satisfying these needs, you will motivate others Can you think of a job that responds to each of McClelland’s needs? 15 Herzberg’s Two- Factor Theory (1959) There are certain factors at work that cause job satisfaction while a separate set of factors cause dissatisfaction All act independently of each other 16 Approaches to Motivation FOCUS THEORY Needs Maslow; McClelland; Herzberg Psychological Reinforcement; Goal Setting Processes Cognitive Growth Job Design Theory Social Equity Theory 17 Reinforcement Theory If, “…behavior is a function of its outcomes” Thenyou focus on figuring out what behaviors you want to encourage/discourage, and applying… 4 approaches:  Positive Reinforcement  Negative Reinforcement  Punishment  Extinction 18 How have you seen managers use each approach? 19 Goal Setting (e.g., Latham & Kinne, 1974) Suggests that specific & difficult goals lead to higher performance Goals increase intensity & persistence of effort  Employees know what is expected so they can focus their efforts more efficiently  NOT just saying to people “do your best!”  An extrinsic reward is NOT given for completion  Have you worked in settings where goals were unclear? What happened? 20 Approaches to Motivation FOCUS THEORY Needs Maslow; McClelland; Herzberg Psychological Reinforcement; Goal Setting Processes Cognitive Growth Job Design Theory  Week 4 Social Equity Theory  Week 5 21  Follow a Career Passion? Let It Follow You – Cal Newport (NYT, 2012) During my senior year of college, I faced a hard decision about my future. I had a job offer from Microsoft, an acceptance from the CS PhD program at MIT, and I had also just written my 1st book, so I could become a full-time writer. These are three strikingly different career paths, and I had to choose which one was right for me. For many of my peers, this decision would have been fraught with anxiety. Growing up, we were told to “follow our passion.” This advice assumes we all have a pre- existing passion. If we have the courage to discover this calling and to match it to our livelihood, we’ll end up happy. If we lack this courage, we’ll end up bored and unfulfilled. But the traits that lead people to love their work are general & have little to do with a job’s specifics: a sense of autonomy, the feeling that you’re good at what you do, and that you are having an impact on the world. Thus, I offer this advice: Passion is not something you follow. It’s something that will follow you as you put in the hard work to become valuable to the world. 22 Summary Motivationis an important predictor of work outcomes like performance and learning There are many different approaches to motivating people – the more managers can adjust their approach to their employees, the better the outcomes 23 For Next class Topic: Performance & Job Design OBHR innovation presentation Case Study: Ottawa Voyageurs 24 Creating Motivation in NYC Bus Drivers In a typical 1-year period, roughly 80 NYC bus drives are spat upon by disgruntled passengers. These incidents (no other bodily harm was involved) generate an average of 64 days off work – equal to 3 months pay. In 2009, one driver took 191 days of paid leave. The union said the leave was justified because being spat on “is a physical and psychological traumatic experience”. Reasons for spitting are varied – from perceived delays to a passenger’s metrocard not working. 1. Do you think drivers should be able to take time off in return for being spat at? If so, how long should they have off? Why? 2. What responsibilities does the transit authority (ethical or otherwise) have towards the drivers? 3. What would you do as a manager in this situation? How would you manage driver’s motivation? 25  Organizational Behavior: Understanding People at Work MBA B610 Week 4: Performance & Job Design Fall 2024 Professor Meena Andiappan Agenda Performance & Job Design Interactive Lecture Break OBHR innovation presentation Case Study: Ottawa Voyagers Flight Crews Exercise Wrap up & next class 2 Job Design Theory Focuses on how context shapes the individual Suggeststhat the way the parts of a job are organized increases or decreases one’s effort Examines components of a job that can be changed to increase work meaningfulness Job Design Theory: Job characteristics model Hackman & Oldham, 1975 1. Skill Variety Do you believe that you create something from 2. Task Identity beginning to end, with a visible outcome? 3. Task Significance Do you feel that your job actually matters? 4. Autonomy Do you make your own decisions 5. Feedback (from job not supervisor)  3 common applications Job rotation (rotate of job design employees through diff theory: jobs) Job enlargement (increase number of Job Design tasks—more breadth) Job enrichment (more depth—more responsibility, etc. w/ same tasks) Redesign a job to make it more satisfying Form a group of 4-6 people Choose one person’s (old) job, and rate it according to the job characteristics model For each characteristic, try to suggest improvements that would make it a more satisfying job Be prepared to report back to the class Today: Some bigger picture issues in job design 1. Changing structure of employment relations  Rising use of temporary, nonpermanent workers  “Gig” economy 2. Structuring work for work-life balance  Connected to #1  Also driven by technology Changing structure of employment relations The“standard” work arrangement during the 20th century was:  full-time employment  continued indefinitely  performed at the employer’s location  employer-supervised This is also our cultural image of work Changing structure of employment relations How many of you… Have held an internship? Have held a contract position? Have used Uber or Lyft? Have used Air B&B? Changing structure of employment relationships These are all related to the rise of “contingent” or “precarious” work: work that is short-term, part-time, without benefits and insecure  Temporary staffing agencies  Independent contractors (“freelance” workers)  Direct-hire temporary arrangements  Seasonal workers (e.g., farm labourers)  Spread of contingent work Over 1/3 of Canadian workers are precariously employed, working variable hours, without benefits or employment security (Foster, 2023) Education typically touted as a pathway to quality employment; but many in precarious jobs are trained members of high-skilled occupations (Noakes, 2015) 80% of large US firms plan to increase the use of contingent workers over the next 3 years (Intuit report, 2023) Pandemic flexible employment increased its popularity Why employers might prefer contingent work  More flexibility for employers - staffing up and down around big projects  Cheaper  Wages  Benefits  Short-termism – putting off bigger decisions about necessary labour force  Case 1: OceanTech You’ve been working for OceanTech, a 250-person company developing technology to harness energy from ocean waves, for 5 years. You feel lucky to work at such a cutting-edge firm. You are now paid $82,000 a year, have a good defined contribution pension plan and extended health benefits – the same benefits package as everyone you work with. You’ve recently been assigned to work on an exciting new design project that extends some of the technology’s key benefits. OceanTech has decided to hire three people on contract to join a team of seven engineers. These new people will work with you as direct colleagues, but be paid $65,000 a year, no benefits, and work on 8-month contracts that are renewable based on internal need and the individual’s performance. Your manager has explained privately to you that the firm can’t afford to hire them on permanently with the same package you have. Yet, it is well-known that the company’s president has recently received a generous salary increase, and the office is being renovated. What are the potential benefits and costs of adding to the team in this way?  Case 2: Bloodwork inc You’ve been working for Bloodwork Inc, a laboratory that provides blood testing and analysis, for 10 years. You started out as a lab technician and have recently been promoted to manager. You are now paid $90,000 a year, have a good pension plan & benefits. Your role is to oversee the Hamilton lab, employing 2 assistant managers and 15 lab techs—folks who draw blood samples and process the samples. In your 1st month, your district manager tells you that Bloodwork has been paying lab techs too much relative to its competitors -- $25/hour instead of the industry average of $22/hour. Bloodwork has decided to lay off all techs who make more than $22/hour. They will then hire new people into the role, in renewable 1-year contracts with a starting wage of $20/hour. The laid off techs are eligible to reapply for the jobs, and you are encouraged to rehire them, as you’d save on training costs. Indeed, Bloodwork Inc’s US locations recently did this layoff and rehire, and 85% of those hired into the lower paid positions had previously occupied the better paid positions. What do you do? What are the potential benefits and drawbacks of managing wage costs in this way? OB consequences of using contingent workers Connelly & Gallagher, 2004; PEPSO, 2015; Lane, 2009; Fisher and Connelly, 2016 Effects for contingent workers:  Commitment issues  torn between feeling committed to their temp agency & to their employing organization  Reduced job satisfaction  Greater psychological stress Effects on ”standard” employees who work with them:  Reduced perceived job security & workplace attachment  Poorer relationships with managers & coworkers  Lower trust between coworkers For employers: ultimately more costly due to increased turnover & lower performance  Benefits of creating “good” jobs (Ton, 2012): Bad jobs: low pay, poor benefits, little schedule control, little advancement opportunity Assumption that this is necessary to compete on low prices (e.g. retail)  Labor  largest controllable expense  $ benefits of cutting employees clear in short-term But having well-paid employees pays off -  Quantity: At Borders, a one-SD increase in labor levels in a store increased profit margins by 10% over a year  Job quality: better wages & opportunities for advancement  reduce turnover & produce better customer service  E.g., Trader Joe’s - employees start at $40k/year Ton (2012): Good jobs Research primarily done in retail industry but likely applicable broadly  Work-life balance How many of you…  Have your work email on your phone?  Check it at night?  Check it on the weekends?  Have canceled doctor’s appointments because something came up at work?  Have felt burnt out?  Leave earned vacation time in the bank at the end of the year?  Work-life balance Work pressures on employees’ time exacerbated by new technology People believe email gives them more control (“autonomy”) over how & when they work– but people with most perceived autonomy take fewest vacations & work the most (Michel, 2015) In “knowledge work” - difficult to measure output quality  time spent working easier metric to judge (Reid & Ramarajan, 2016) Work-life balance long viewed as an issue for women, especially mothers, but increasingly an issue for men too (Galinsky, Aumann & Bond, 2009) Summary Jobs are constantly evolving – where, when, and how we work have changed significantly in the last decade & post-pandemic When considering hiring contingent workers, think carefully about benefits and costs  Including effects on your existing/ permanent workforce Is this the seemingly easy way to avoid more difficult decisions? For Next class Topic: Ethical decision making & Organizational Justice OBHR innovation presentation Case Study: Nike #metoo 21  Flight Crews Ex (Robbins & Judge, 2013) You’ve been hired by Ajet, a startup airline in Calgary. Your team has been formed to consider the pros & cons of using variable flight crews and to arrive at a recommendation on whether to follow this industry practice at Ajet. Variable flights crews are crews formed when pilots, copilots, & attendants bid for schedules on specific planes based on seniority. Then they’re given a monthly schedule made up of 1- to 4-day trips. Thus, any given flight crew is rarely together for more than a few days. A complicated system is required to complete the schedules. In this system, it’s not unusual for a senior pilot to fly with a different copilot on every trip in a month. In contrast, fixed flight crews consist of the same group of people who fly together for a period of time. 1. What are the primary advantages and disadvantages of variable flight crews? 2. What considerations do you need to keep in mind? 3. If you were to recommend some version of fixed flight crews, on what criteria would you assign Ajet crews? 4. How would you evaluate worker performance? Individually, by team? Which model is easier to evaluate?  Organizational Behavior: Understanding People at Work MBA B610 Week 5: Ethical Decision Making & Organizational Justice Fall 2024 Professor Meena Andiappan Agenda Ethics & Justice Interactive Lecture Break OBHR innovation presentation Case Study: Nike #metoo Ethics Exercise Wrap up & next class 2 Why is it so hard to make good decisions? 3 Key challenges to making good decisions 1. Problem identification (“what problem are we solving?”) 2. Biased perceptions and attributions 3. Emotions Taken together, these makes us irrational decision makers 4 1. Problem Identification Often the most important step However, problem identification can be very difficult (why?)  Problems (& opportunities) are not labeled as such  not pre-defined for us  We must discern the problem through interpretation of ambiguous information Problem identification occurs through combination of conscious/logical analysis and nonconscious/emotional/perceptual response 5 Example: Buying a car What problem are you solving? -Need for reliable transportation? -Looking good to others? -Treating yourself? 6  7 Problem Identification Challenges 1. Others with vested interests try to “frame” the situation 2. Mental models create assumptions & expectations that filter out ideas worth considering 3. Leaders aim for decisiveness at the cost of logical analysis 4. Problems defined in terms of solutions ▫ Previously successful strategies applied regardless of current circumstances 7 Identifying Problems Effectively Be aware of perceptual Understand and diagnostic limitations of own limitations mental models Discuss situations Resist the with colleagues (get “decisiveness trap” different perspectives) (take your time) 2. Biased Perceptions & Attributions 9 Perception is…  Process of interpreting our senses’ messages to provide order & meaning to our environment.  People base their actions on the interpretation of reality rather than on reality itself. 10  Selective Attention Our attention is selective because of… Characteristics of the event  size, intensity, motion, repetition, novelty Characteristics of the perceiver  Innate drives & emotions  Expectations condition us to expect events Confirmation bias  Screening out information contrary to our beliefs/values Examples? 11 Key Biases in Perception 1. Primacy (anchoring) First impressions 2. Recency Most recent information dominates perceptions 3. Halo effect One trait forms a general impression 4. Projection Believe other people do the same things or have the same attitudes as you  Which of these have you experienced? When? 12 Biases in Attributions Attributionis the process by which we assign causes or motives to explain people’s behaviour.  When do we use attribution at work? 13 Biases in Attribution 1. Fundamental Attribution Error Tendency to see the person rather than the situation as the main cause of that person’s behavior 2. Self-Serving Bias Tendency to attribute our successes to internal factors and our failures to external factors What situations would these biases affect? 14 2. Biases in Perception and Attribution Among other things such biases affect…  Interviews  Performance expectations & evaluations Our ability to make accurate, effective decisions 15 3 Questions to Overcome Attribution Bias 1. Does the person engage in the behaviour regularly and consistently? (Consistency cues). 2. Do most people engage in the behaviour, or is it unique to this person? (Consensus cues). 3. Does the person engage in the behaviour in many situations, or is it distinctive to one situation? (Distinctiveness cues).  How does emotion affect DM? 16 Research on How Emotions and Mood Affect Decision Making (Johns & Saks, 2020) 1. People in a positive (negative) mood tend to evaluate objects, people, and events more positively (negatively). 2. People in a good mood adopt simplified shortcut strategies, violating the rational model. 3. People in a negative mood approach decisions in a more deliberate, systematic, detailed way. 17 3. Emotions & decision making “Gut feelings” are emotional signals Gut feelings are great for small, unimportant decisions (e.g., what brand of headphones to buy)… try to ignore for larger decisions Ethical decisions Cheating, deception, organizational misconduct, and many other forms of unethical behavior are among the greatest challenges in today’s society (Jannat et al., 2022) Situational and social forces influence whether people behave ethically or not 19 20 We often can’t predict our ethics in advance 21  E.g., Milgram experiments (1961) Assistant asked participants to play role of “teacher” and administer “electric shocks” to a “learner” whenever they made a mistake After each mistake, participant asked to administer a shock of higher voltage  louder cries from the “learner”  >60% of study participants “shocked” their “learner” to the highest voltage, which they knew was potentially dangerous  However, only a few predicted they would act this way 22 Scenario (Trevino & Nelson, 2004) You’re the head of marketing for a small pharmaceutical company that has just discovered a promising drug for Alzheimer’s. You’ve spent months designing a marketing campaign that contains printed materials & medication samples for distribution to almost every family physician in the country. As the materials are being loaded for delivery, your assistant tells you that she’s noticed a typo that could mislead physicians & patients. In the section discussing side effects, vomiting & gastrointestinal problems are listed as having a probability of 2%. It should have read 20%. This error appears on virtually all the literature; ads containing the error are already in press in several magazines. What should you do? 23 Organizational Justice 24 Organizational Justice Types (Greenberg, 1993) 25 Equity theory https://www.youtube.com/watch?v=t6OsVUlp7Y0 26 Equity Theory Peoplecompare their job inputs and outcomes with those of others and then respond to eliminate any inequities. Feelingsof equity shape and direct people’s motivations 27  Summary Our perceptions are subject to systematic biases. Our decisions may be less than optimal due to our biased perceptions as well as systematic biases in our decision-making. These biases affect important work outcomes and events like interviews, performance appraisals, & our ability to be moral. 28 For Next class Topic: Leadership OBHR innovation presentation Case Study: Semler *Reminder: no class next week (Oct 14/15) – it’s GRIT Week! 29 (In)Justice Exercise Individually, 1. Think of time when you felt unfairly treated at work. When, where, how did it happen? Who was involved? Describe the situation, what precipitated the event, & how you believe the other party could have made the situation better. 2. Think about a time when you might have either deliberately or accidentally done something that made someone else feel unfairly treated. Once again, describe it in detail. In groups, 3. Think about what these 2 situations have in common. Develop a short list of principles for how these situations could be addressed. 4. How can companies better address injustices at work? 30 Organizational Behavior: Understanding People at Work MBA B610 Week 7: Leadership Fall 2024 Professor Meena Andiappan Agenda Leadership Interactive Lecture Break OBHR innovation presentation Case Study: Semler Speech Exercise Wrap up & next class 2 Writing Task Think back to the best OR worst leader (e.g., manager, supervisor, etc.) that you have ever had. Whywere they so great OR so terrible? Inyour notes, be as specific as possible. 3 Group Activity Form groups of 4-5 people. Discuss each of the leaders that you wrote about. Whattypes of leadership behaviors did they demonstrate? What is their leadership style? Choose your best example to report back to the class 4 Questions: Whodo you think of when you think of a leader? What are the ideal traits of a leader? 5 Traits Associated with Leadership Effectiveness 6 Leadership - defined Leadership involves skill at developing and exercising influence and power (Pfeffer, 1982)  Why do we need leaders (do we?)? 7 We need leaders because… Leaders play a key role in helping people to notice & inspiring them to solve problems Thisis true in everyday work life & in the broader world Effective,long-term leadership requires intention: thinking about what you hope to create, sustain or change and why  Put otherwise, your values as a leader 8 Leadership Styles Multipleleadership styles exist:  Laissez-faire, Servant-leadership, Authoritative, etc. Keydistinction between 2 general types:  Transactional  Transformational Burns, 1978 9  Transactional Leadership Leader sets up a system of rewards & punishments based on performance Sets clear goals; explains employees will be promoted or receive $ if they achieve them Rational approach Extrinsic motivation Managerial 10 Transformational Leadership (Bass, 1996) Leaders who create change by creating, communicating, & modeling a vision; inspire people to strive for that vision  Inspirational motivation  Intellectual stimulation  Idealized influence 11 Transactional vs. Transformational Leadership TRANSACTIONAL TRANSFORMATIONAL  Fulfills lower-order needs  Fulfills higher-order needs (e.g., psychological well- (e.g., self-esteem) being, safety)  Involves needs & values of  Involves punishment, both leaders & followers deference to authority,  Followers have the potential conformity, social to be changed (transformed) convention into leaders themselves 12 Are leaders born or made? 13  Ongoing debate: Trait theories vs. Process theories TRAIT THEORIES PROCESS THEORIES Focus on leader’s inborn Focuses on relationship qualities between leader & follower Assume same traits work Argue leadership is in all situations context-dependent 14 Gender and Leadership Male leaders engaged in more management by exception and laissez-faire leadership (passive form of leadership). Of the Fortune500, only 10% have female CEOs (0% in 1990; 7% in 2020; 10.4% in 2024). How can we explain this obvious gender difference in leadership? 15 Women & Leadership Perceived misfit between perceived characteristics of women & perceived requirements of leadership roles. Glass ceiling metaphor – the invisible barrier that prevents women from advancing to senior leadership positions in organizations. Research finds it a labyrinth: twists, turns, detours, and dead ends on the way up the organizational hierarchy (Eagly & Carli, 2011). 16 Agentic vs. Communal Leadership Traits Men - perceived as having agentic traits, which convey assertion & control; associated with effective leadership. Women - perceived as having communal traits; convey a concern for the compassionate treatment of others. 17 Leaders vs. Managers? What is the difference? 18 Leaders vs. Managers (Kotter) Leaders and managers are responsible for these business operations:  Deciding what needs to be done  Creating networks of people to accomplish the agenda  Ensuring that those people do the job But they accomplish them in different ways Often one person both leads and manages  How many of us have been leaders? Managers? 19  Creating Networks of People LEADERS MANAGERS Align people: Organize people:  Communicate the vision  Design a structure &  Empower people to carry system to carry out the out the vision vision  Explain & instill the  Make decisions & common goal delegate responsibility  Get people to move together toward common goal 20  Ensuring that People do the Job LEADERS MANAGERS Motivate & inspire Control & problem-solve:  Develop and oversee Energize people by systems & processes fulfilling human needs, values, & emotions:  Monitor results  Achievement  Adjust processes as  Sense of belonging needed  Recognition  Allocate resources  Self-esteem 21 Summary We need leaders to change the world (ideally, for better) Being clear & focused on your values can help you to lead in a way you can be proud of Two main styles of leadership: transformational & transactional Leadership is different from management – but often, leaders are also managers (and are expected to have the skills to do both) 22 For Next class Topic: Groups & Teams OBHR innovation presentation Case Study: Blake Sports 23 Grades Originally,  Case analysis presentation – 20%  Create-a-case presentation – 10%  Total = 30% Update,   Better grade (case analysis/create-a-case) – 25%  Worse grade (case analysis/create-a-case) – 5%  You do not need to email me or Ayush, we will set this up automatically during end of term grade calculations 24  New Team Speech Exercise In groups: Congratulations, one of you has just been promoted to Team Manager! The CEO decided to lay off the previous manager because his/her team’s performance was terrible and they’re counting on you to improve the situation in the coming months Today, you’ll have your first opportunity to speak to your new team. You need to address your team, and you know that this speech is incredibly important in installing a new dynamic and setting a new tone amongst the employees Write a 3-4 minute speech & be ready to present it to the class (think about what you want to message you want to convey and why) 25 Organizational Behavior: Understanding People at Work MBA B610 Week 8: Groups & Teams Fall 2024 Professor Meena Andiappan Agenda Groups & Teams Interactive Lecture Break OBHR innovation presentation Case Study: Blake Sports Virtual Team Exercise Wrap up & next class 2 What’s in a team? What are teams? 1. Groups of two or more people 2. Interdependent -- interact and influence each other 3. Mutually accountable for achieving common goals 4. Perceive themselves as a social entity What’s in a team? In groups: Discuss the teams you most vividly remember… What went well? What didn’t go well? Why? When are teams a good idea? 1. The work is complex & there’s a need for different perspectives 2. The work creates a common purpose larger than the aggregate of the goals for individuals 3. Tasks are interdependent Task Interdependence The extent that team members:  must share common inputs to their individual tasks  need to interact in the process of executing their work, or  receive outcomes (e.g., rewards) partly determined by others’ performance Teams built on task interdependence Other examples? What interdependent teams have you worked on? Do large groups perform better than small groups? Group Size and Performance It depends on the task Three types of group tasks: 1. Additive tasks (size matters, like building a house) 2. Disjunctive tasks (dependent on the best member of the group, like a research team) 3. Conjunctive tasks (dependent on the lowest performer of the group, like an assembly line) Group Size and Performance Actual performance increases with size - up to a point - and then falls off. Theaverage performance of group members decreases as size gets bigger.  2 Key Advantages of teams 1. Group cohesion  drives motivation & performance 2. Tend to make better decisions than individuals, because they…  Generate more information & more diverse views  Tend to make more accurate decisions, develop more creative solutions & generate greater acceptance of decisions  Cohesiveness Degree to which group members are attracted to each other and are motivated to stay in the group.  Generally, creates greater productivity, lower absenteeism and turnover  However, can go rogue, reduce creativity (e.g., groupthink)  What groups/teams have you been a part of that were particularly cohesive?  What made them cohesive?  How to Facilitate Cohesion 1. Severity of Initiation: difficult entry, e.g., sororities, Army 2. External Threat: common enemy draws groups together 3. Group Size: smaller groups more cohesive Disadvantages of teams? 3 Key Disadvantages TIME CONSUMING AMBIGUOUS PRESSURE TOWARD RESPONSIBILITY CONFORMITY Disadvantage 1. Time consuming Less efficient Less effective Process losses - use of time - use of time - Problems of Coordination Fixing others’ motivating delays work larger groups  Disadvantage 2. Ambiguous responsibility Aka, Social Loafing - tendency to withhold physical or intellectual effort when performing a group task  causes? Two Causes: Diffusion of Responsibility (free rider effect) & Equity (sucker effect)  Example: Rope-pulling task  When alone, 63kg force per person  Group of 3, 53 kg force per person  Group of 8, 31 kg force per person Social Loafing Inthe free rider effect, people lower their effort to get a free ride at the expense of their fellow group members. Inthe sucker effect, people lower their effort because of the feeling that others are free riding. They are trying to restore equity in the group.  What are some ways to counteract social loafing? Ambiguous responsibility: Solution 1. Promote individual accountability 2. Keep groups small 3. Make group rewards contingent upon individual contributions Disadvantage 3. Pressure toward conformity (Asch, 1951)  How does the presence of others affect individuals’ performance? Disadvantage 3. Pressure toward conformity Group Norms 3 Bases of Conformity (why we conform) -Standards of behavior within a group -People want to belong that are shared by the group’s members. -People believe the group is right -Common norms: Performance, -People are punished for not conforming Appearance, Social Arrangement, Allocation Psychological Safety A shared belief that the team is safe for interpersonal risk- taking (Edmondson, 2000)  Tends to be taken for granted, not directly discussed  Enables people to speak up, revealing potentially difficult information Different from group cohesiveness, which can reduce willingness to disagree and challenge others’ views, e.g., groupthink (Janis, 1982) Enables learning behavior  E.g., Nurses reporting mistakes Summary Groups have common norms and differentiated roles and interact to pursue shared goals Few trends have influenced jobs as much as the move towards groupwork Teams have benefits (broader range of ideas, better decision making) but a range of drawbacks as well (groupthink, ambiguous responsibility)  as a manager, you need to be thoughtful about how you design your team membership For Next class Study for the Midterm! Week 10: Topic: Power & Influence OB in the news mini presentation Case Study: Merkel 25  Virtual Team Exercise Create a group of 3-4 people You are working as a team of 3-4 people to create a video game and your company wants you to work as a fully virtual team. You each bring a different expertise: technical, creative, and client knowledge You have no office space & no clear guidelines about how to organize your team - all the company wants are results You have a large budget to use in order to establish the functioning of your virtual team. What decisions or actions do you take & in which order?