OB Study Guide PDF

Here is a study guide based on the provided lecture notes. Organizational Behavior Definition: Organizational Behavior (OB) is the study of how individuals, groups, and structures impact behavior within organizations. Levels of Analysis: ○ Individual Level ○ Group Level ○ Organization System Level...

Here is a study guide based on the provided lecture notes. Organizational Behavior Definition: Organizational Behavior (OB) is the study of how individuals, groups, and structures impact behavior within organizations. Levels of Analysis: ○ Individual Level ○ Group Level ○ Organization System Level Evidence-Based Management Importance of Evidence-Based Management: Decisions in OB should be based on scientific evidence rather than intuition, personal experience, or observed trends. Strong Evidence: ○ Rigorous scientific methods ○ Large samples ○ Surveys and experiments ○ Replicated findings across companies and industries Weak Evidence: ○ Intuition and gut feelings ○ Anecdotes and personal experiences ○ Case studies and expert opinions ○ Observed trends Personality & Values Personality: ○ Definition: Characteristic patterns of thinking, feeling, and behaving. ○ Interactionist Perspective: Both personality and situational factors predict behavior. ○ Situation Strength Theory: The influence of personality on behavior depends on the situation's strength. The Big Five Model: ○ Openness: Low: Practical, conventional, prefers routine High: Curious, creative, imaginative Predicts creativity, flexibility, and adaptation to change ○ Conscientiousness: Low: Impulsive, careless, disorganized High: Hardworking, dependable, organized, persistent Strongest predictor of job performance ○ Extraversion: Low: Quiet, thoughtful, reserved, withdrawn High: Outgoing, gregarious, assertive, sociable May be better leaders ○ Agreeableness: Low: Critical, uncooperative, skeptical High: Helpful, trusting, empathetic Associated with more liking by co-workers, more helping behavior, and less deviant behavior ○ Neuroticism: Low: Calm, even-tempered, relaxed, secure High: Anxious, nervous, insecure, prone to negative emotions Predicts less job and life satisfaction, more stress, and negative feelings Myers-Briggs: Not recommended due to low reliability, categorical nature, lack of scientific basis, and lack of predictive validity. Hiring Based on Personality: Consider the job requirements and how different personality traits align with those requirements. Culture and Values: ○ Culture: Learned and shared ways of thinking and acting within a group. ○ Hofstede Study: Cultural dimensions to consider in management: Individualism-Collectivism: Importance of self-interest versus group relationships. Power Distance: Acceptance of status and power differences. Uncertainty Avoidance: Tolerance for uncertainty, ambiguity, and risk. Masculinity-Femininity: Emphasis on assertiveness versus caring for others. Consider these dimensions in areas like hiring, promotion, leadership, and CEO compensation. Perception and Decision Making Perception: The process of organizing and interpreting sensory impressions to make sense of the environment. Factors Influencing Perception: ○ Perceiver: Attitudes, experience ○ Target: Appearance, social group ○ Situation: Context, social setting, time Rational Decision-Making Model: A theoretical model that is rarely used in practice. 1. Define the problem. 2. Generate alternatives. 3. Identify relevant criteria. 4. Assign weights to the criteria. 5. Evaluate the alternatives. 6. Compute the optimal decision. Bounded Rationality: People make decisions using simplified models due to limited cognitive capacity. Cognitive Biases: ○ Fundamental Attribution Error: Tendency to overemphasize personal characteristics and underestimate situational factors when explaining others' behavior. ○ Halo Effect: Generalizing from one positive trait to other unrelated traits. ○ Overconfidence Bias: Overestimating one's abilities or the accuracy of one's judgments. ○ Anchoring Bias: Relying too heavily on initial information when making decisions. ○ Confirmation Bias: Seeking out information that confirms existing beliefs and ignoring contradictory information. ○ Availability Bias: Tendency to overestimate the likelihood of events that are easily recalled. ○ Sunk Cost Fallacy: Continuing to invest in a losing course of action because of prior investments. ○ Loss Aversion: The pain of a loss is felt more strongly than the pleasure of an equivalent gain. Self-Fulfilling Prophecies: Initial impressions can lead to behaviors that elicit confirming responses from others. Reducing Biases: Be aware of common biases, seek out diverse perspectives, and use structured decision-making processes. Emotions & Motivation Affect: A broad range of feelings that people experience, encompassing emotions and moods. Emotions: ○ Caused by specific events. ○ Brief in duration. ○ Action-oriented. Moods: ○ Cause is general and unclear. ○ Longer-lasting than emotions. ○ Cognitive in nature. Emotional Labor: The effort required to manage emotions and express organizationally desired emotions. Emotional Dissonance: A conflict between felt emotions and displayed emotions. Felt Emotions: Actual emotions experienced. Displayed Emotions: Emotions that are learned and considered appropriate for a given job. Surface Acting: Managing observable emotional expressions. Deep Acting: Modifying one's inner feelings to match the required emotions. Managing Emotions in the Workplace: ○ Recognize that emotions are inevitable. ○ Pay attention to signs of negative emotions. ○ Model positive emotions as a manager. ○ Encourage positive emotional displays. ○ Provide positive feedback. Motivation: ○ Definition: The force that drives effort in action. ○ Components: Activation: The decision to initiate action. Intensity: The amount of effort exerted. Persistence: How long effort is maintained. Importance of Motivation: ○ Impacts job satisfaction. ○ Influences organizational commitment. ○ Affects turnover rates. ○ Contributes to performance. Performance Formula: Performance = Ability x Motivation x Opportunity Expectancy Framework of Motivation: ○ Expectancy: Belief that effort will lead to performance. ○ Instrumentality: Belief that performance will lead to outcomes. ○ Valence: The value or desirability of the outcomes. Strategies for Enhancing Motivation: ○ Provide training to increase expectancy. ○ Set clear goals and performance metrics. ○ Build confidence in employees' abilities. ○ Foster trust between management and employees to enhance instrumentality. ○ Offer rewards that are consistent, equitable, and visible. ○ Use rewards that are valued by employees. Intrinsic Motivation: Motivation that comes from the task itself, such as a sense of autonomy, mastery, or purpose. Extrinsic Motivation: Motivation that comes from external rewards or punishments. Intrinsic Incentive Bias: The tendency to assume others are more motivated by extrinsic rewards than they actually are. Risks of Extrinsic Rewards: ○ Can undermine intrinsic motivation. ○ Can incentivize the wrong behaviors. ○ Can increase inequality and competition, hindering collaboration and performance. Using Incentives Effectively: ○ Pay competitive salaries. ○ Provide unexpected rewards. ○ Offer intangible rewards like recognition and gratitude. ○ Ensure rewards are proportional to effort. ○ Avoid excessive pay disparities. Goal Setting Goals: Cognitive representations of targets for behavior. The Power of Goal Setting: Goals can significantly enhance performance. Characteristics of Effective Goals: ○ Specific: Clearly defined and measurable. ○ Difficult but Attainable: Challenging yet realistic. ○ Important: Meaningful to the individual. Potential Downsides of Goals: ○ Tunnel vision: Narrow focus on goal achievement, neglecting other important areas. ○ Achievement ceiling: Reduced effort after goal attainment. ○ Unethical behavior: Taking shortcuts or engaging in unethical practices to reach goals. Key Takeaways: ○ Goals can be highly motivating. ○ Design goals thoughtfully to be specific, measurable, and important. ○ Re-evaluate goals regularly to avoid achievement ceilings. ○ Be mindful of unintended consequences. Persuasion & Communication Principles of Persuasion: ○ Liking: People are more persuaded by those they like. ○ Reciprocity: The obligation to return favors. ○ Social Proof: Looking to others' behavior to guide our own. ○ Consistency: The desire to be consistent with past commitments. ○ Authority: Deferring to those in positions of authority. ○ Scarcity: Valuing things that are rare or in limited supply. Email Communication: ○ Less rich and interactive compared to face-to-face communication. ○ Greater social distance. ○ Reduced privacy. ○ Can lead to diminished commitment. Effective Virtual Communication: ○ Use appropriate technology. ○ Clearly communicate intentions. ○ Be open and inclusive. Leadership & Power Trust in Leaders: Essential for risk-taking, information sharing, innovation, and productivity. Building Trust: ○ Integrity ○ Ability ○ Perspective-taking ○ Vulnerability ○ Willingness to compromise ○ Empathy Power: ○ Definition: Control over resources and the ability to influence others. ○ Formal Power: Based on position within an organization. ○ Informal Power: Stems from personal characteristics or relationships. Sources of Power: ○ Legitimate Power: Derived from formal authority. ○ Reward Power: Based on the ability to provide rewards. ○ Coercive Power: Based on the ability to punish. ○ Expert Power: Based on specialized knowledge or skills. ○ Referent Power: Based on admiration or respect. Hierarchies: ○ Advantages: Reduce uncertainty, facilitate coordination, and can increase motivation. ○ Disadvantages: Can delay communication and decision-making, create resentment, and promote competition. The Power Paradox: The qualities that help individuals gain power (competence, trustworthiness, concern for others, likeability) can be eroded by having power. Groups & Teams Work Group Properties: ○ Roles: Sets of expected behaviors. ○ Norms: Acceptable standards of behavior within a group. ○ Status: A socially defined position or rank given to groups or group members. Sources of status: Power, ability to contribute, and personal characteristics. ○ Size: The number of members in a group. Larger groups can lead to social loafing. ○ Diversity: Differences among group members in terms of demographics, experiences, and perspectives. Social Loafing: The tendency for individuals to exert less effort when working collectively than when working individually. ○ Ringelmann's Rope-Pulling Experiment: Demonstrated that individual effort decreases as group size increases. Preventing Social Loafing: ○ Limit group size. ○ Set clear group goals. ○ Define individual roles and responsibilities. ○ Build trust and establish norms of high effort. ○ Use peer evaluations. ○ Tie rewards to individual contributions. Groupthink: A phenomenon where the desire for harmony or conformity in a group results in poor decision-making. ○ Conditions Favoring Groupthink: High cohesiveness or similarity. Isolation from outside opinions. Charismatic leader with strong opinions. Strong conformity norms. High stress levels. Preventing Groupthink: ○ Create diverse groups. ○ Minimize status differences. ○ Frame the task as problem-solving. ○ Seek external input. ○ Encourage disagreement and curiosity. ○ Focus on unshared information and unique experiences. ○ Rank options rather than making choices. ○ Use private ballots. ○ Have individuals analyze information before group discussions. Group Decision Making: ○ Strengths: More information, diverse views, greater acceptance of solutions. ○ Weaknesses: Time-consuming, conformity pressures, potential for domination by a few members, ambiguous responsibility. Teams vs. Groups: ○ Teams: Have a shared goal, work interdependently, and have complementary skills. ○ Groups: Share information and may have individual accountability. Creating Effective Teams: ○ Recognize that teams are not always the best approach. ○ Set clear team goals. ○ Maintain team stability over time. ○ Assign a "deviant" to challenge the status quo. Factors to Consider When Deciding Whether to Use Teams: ○ Complexity of work ○ Presence of a common purpose ○ Level of interdependence Diversity in Organizations Diversity, Inclusion, and Equity: ○ Diversity: Representation of different people and perspectives. ○ Inclusion: Creating a culture where everyone feels valued and respected. ○ Equity: Fair and impartial access to opportunities and resources. Trends in the U.S. Workforce: ○ Increasing ethnic and racial diversity. ○ More women and older workers. ○ Persistent wage gaps across gender and racial/ethnic groups. Visible and Invisible Diversity: Diversity encompasses both observable characteristics (age, race, gender) and less visible attributes (religion, skills, family background). Age and Job Performance: Mandatory retirement is outlawed, and research shows a complex relationship between age and performance. Gender Pay Gap: Women continue to earn less than men on average. Preference for Similarity: People tend to favor those who are similar to themselves, which can lead to bias in hiring, promotions, and performance evaluations. Discrimination: Can be intentional or unintentional. Bias in Hiring: Studies have shown that resumes with Black-sounding names receive fewer callbacks. Addressing Bias in Hiring: ○ Blind hiring (removing identifying information from resumes). ○ Structured interviews (using standardized questions). ○ Diverse hiring committees. Addressing Workplace Discrimination: ○ Focus on long-term strategies. ○ Actively investigate potential biases. ○ Hold everyone accountable for creating a fair and inclusive workplace. Organizational Culture  Definition: A system of shared meaning that distinguishes an organization from others, defining what is important and appropriate. Importance: Culture can influence employee behavior more effectively than formal rules. Characteristics of Organizational Culture: ○ Innovation and risk-taking. ○ Relationships and connectedness. ○ Outcome orientation. ○ Teamwork and collaboration. ○ Aggressiveness and competition. ○ Stability. Manifestations of Culture: ○ Physical space. ○ Language. ○ Rituals and ceremonies. ○ Stories. Strong Cultures: ○ Values are intensely held and widely shared. ○ Influence member behavior. ○ Shape and coordinate behavior. ○ Increase cohesiveness. ○ Attract and retain talent. Benefits of a Strong Culture: ○ Job satisfaction. ○ Customer satisfaction. ○ Quality of products and services. ○ Profitability. ○ Innovation. How Cultures Form: ○ Founder's philosophy. ○ Selection criteria. ○ Top management behavior. ○ Socialization processes. The Dark Side of Strong Cultures: Can lead to a lack of diversity and stifle dissenting opinions. Key Takeaways: ○ Culture is comprised of both explicit and implicit values and norms. ○ Culture is a powerful influence on behavior. ○