Organizational Behaviour PDF

Topic 1 Intro to OB What are Organizations (Who, What, How): Social inventions for accomplishing common goals through group efforts. -​ Who/ relates to individuals in the organization -​ What/ relates to the common goals within the organization -​ How/ relates to the group efforts put forth...

Topic 1 Intro to OB What are Organizations (Who, What, How): Social inventions for accomplishing common goals through group efforts. -​ Who/ relates to individuals in the organization -​ What/ relates to the common goals within the organization -​ How/ relates to the group efforts put forth to accomplish the goals in the organization Micro meso macro Organizational Behaviour (from textbook): The attitudes and behaviours of individuals and groups in organizations. (S+T=R) / Situation + Thinking = Response Evolution of Managerial Thinking 1.​ Classical Traditional Way of Thinking (one size fits all). Efficiency in jobs was becoming sought after. Managers believed there was one best way to perform any job. Thinking was non-humanistic, human emotions not factored into decisions like employee needs/desires/motivations. Bureaucracy (Max Weber): Strict chain of command (reporting to a single superior), detailed rules/regulations/procedures (ensures job is completed), centralized power (decisions made by selective few at the top), selection/promotion (through technical competence/experience), specialization (match duties with technical competence). COORDINATED AND CONTROLLED Scientific Management (Fredrick Taylor): Careful research to determine optimum degree of specialization and standardization of work tasks. Work designed through observation. Time taken to complete tasks (efficiency), work standards (legislation, etc), piece rate pay system (certain wage to produce a certain amount of goods/ productivity/ assumed pay was primary motivator). 2.​ Human Relations Movement Classical traditional ways of thinking were criticized. Pushed the importance that employee needs must be met. Hawthorne Studies: Research conducted at Hawthorne plant of Western Electric in the 1920s examining how psychological and social processes affect productivity. Workplace Illumination Studies assessing how lighting affects productivity. Brighter Lighting (decreased productivity), Dimmer lighting (increased productivity), Control Group: Also showed increased productivity despite no changes. Hawthorne Effect: Observing employees influenced their behavior, enhancing performance. This was due to a sense of recognition/belonging/less alienated fostering involvement. Management realized the importance of participative management styles that focus on employees’ needs. Maslow’s Hierarchy of Needs: Douglas McGregor's Shift from Theory X to Theory Y Theory X: Employees are inherently lazy, lack ambition, resist change, need to be closely supervised, and are motivated primarily by money and fear of punishment. Management Approach: Centralized decision-making with strict control, close supervision, and often coercive measures to ensure compliance. Theory Y: Employees are self-motivated, enjoy work, are capable of self-direction, embrace responsibility, and are motivated by achieving personal growth and fulfillment. Management Approach: Decentralized decision-making with a participative management style, fostering an environment of trust and encouraging employee involvement in decision-making processes. 3.​ Human Resources Perspective / Beyond Human Relations Workplace Democracy: Encourages participative decision-making and shared responsibility among employees. Builds sense of ownership and inclusivity, leading to higher morale and commitment. Fostering Autonomy: Grant employees independence/authority to make decisions within their roles. Increased accountability, job satisfaction, and overall performance. Employees Contributing to Productivity: Recognizing engaged employees drives organizational success. Create a supportive environment where employees feel their contributions matter. 4.​ Contingency and Systems Approach Thinking (flexible/fluid) There is no one best way to manage. Management style must be tailored to the situation. Experience in management fosters situational sensing; tune into situations and alter thinking and management style depending on the situation. Prescriptive approaches provide specific, fixed guidelines that dictate management practices, assuming one-size-fits-all effectiveness. Non-prescriptive approaches, like those seen in contingency and systems thinking, advocate for flexibility and adaptability, suggesting that management should tailor strategies to fit the specific circumstances of each situation. What do Managers do? Managerial Roles (Henry Mintzberg) ​ Informational Roles:  ○​ Monitor: Scan the internal/external environment to stay informed of new ideas and trends. Example: A head of R&D attending an engineering conference. ○​ Disseminator: Share relevant information and insights within the organization. Example: Summarizing in an email to staff. ○​ Spokesperson: Communicate on behalf of the organization to external stakeholders. Example: Drafting an annual report for shareholders. ​ Interpersonal Roles: ○​ Figurehead: Act as a ceremonial leader, representing the organization at major events. Example: Speaking at a trade group or signing official documents. ○​ Leader: Guide and influence team members through selection, mentoring, rewarding, and disciplining. ○​ Liaison: Maintain connections both within and outside the organization to facilitate workflow. Example: Coordinating with another department on a project. ​ Decisional Roles: ○​ Entrepreneur: Innovate and drive changes to improve the organization. Example: Proposing new products or services. ○​ Disturbance Handler: Address conflicts and organizational threats effectively. ○​ Resource Allocator: Manage the distribution of organizational resources. ○​ Negotiator: Engage in and manage significant negotiations with external entities. Managerial Activities (Fred Luthans) ​ Routine Communication: Manage daily communications and paperwork efficiently. ​ Traditional Management: Oversee planning, decision-making, and controlling functions. ​ Networking: Build and maintain professional relationships for business advantage. ​ Human Resources Management: Develop and implement strategies to manage and grow the organization’s human capital. Managerial Agendas (John Kotter) ​ Agenda Setting: Establish informal, flexible goals that often prioritize human aspects of work. ​ Agenda Implementation: Utilize networks within and outside the organization to achieve these goals. ​ Networking: Build and maintain professional relationships for business advantage. Managerial Minds (Simon & Isenberg) ​ Intuition in Management: Use intuitive processes to identify problems, make decisions, and synthesize complex information. This involves rapid mental analysis, problem-solving based on extensive experience, and interpreting analytical data. Current Trends in Management  ​ Managers today face several evolving challenges including: ○​ Diversity Management: Handling diversity both locally and globally. ○​ Employee Health and Well-Being: Prioritizing employee health initiatives. ○​ Talent Management and Employee Engagement: Engaging and retaining skilled employees through effective talent management strategies. ○​ Alternative Work Arrangements: Adapting to flexible and remote working models. ○​ Corporate Social Responsibility: Focusing on ethical practices and community involvement. International Management (Geert Hofstede) ​ Understanding and adapting to cultural differences is crucial for managers operating in international contexts. Management practices vary significantly across cultures, influenced by local values and behaviors. Topic 2 (Personality, Abilities, Values & Attitudes) Ability: What a person is capable of doing (competency). Can change over time 1.​ Cognitive Intelligence Capacity to learn and process cognitive information such as reading, comprehension, mathematical patterns and spatial patterns. It can be improved over time by practice. examples of tests MCAT, GMAT, LSAT. 2.​ Emotional Intelligence Refers to the ability to accurately identify emotions (in self and others) as well as understand and manage those emotions separately. It is important for being an effective leader. How someone is behaving can help us understand and make our next move. High intelligence can help maintain stress, 90% of leaders have high emotional intelligence. To be a good leader you must be good in six of these competencies from different sections. They are self-aware. Developing it: Be self-aware and know your triggers. Observe how you react under pressure and recognize the source of these emotions. To understand and manage people, see from their perspective to understand others, and ask questions and listen to them, also observe their body language. Ask someone trusted how they see you. Own your emotions. It is not about suppressing emotions but learning and manipulating. 3.​ Cultural Intelligence Person’s capability to function effectively in situations characterized by cultural diversity. A person does not have to be multilingual, traveller or anything like this.  a)​ High CQ drive or motivation: Person’s interest in experiencing other cultures and interacting with people from different cultures. b)​ High CQ-Knowledge: Person’s understanding of how cultures are similar and different. c)​ High CQ-Strategy: How a person interprets and understands intercultural experiences. d)​ High CQ-Action or Behaviour: Person’s capability to modify their own verbal and nonverbal behaviour so it is appropriate for different cultures. Ability vs. Personality Ability: What a person is capable of doing (competency) Personality: the relatively stable set of psychological characteristics that influences the way an individual interacts (thinks, acts, behaves) with their environment. It does not change over time and it affects the job you are doing. Three Approaches: Dispositional, Situational and Interactionist. 1.​ Dispositional This focuses on a person's internal traits, personality, or characteristics. It explains behaviour as coming from "who they are" rather than the situation. Example: Someone is helpful because they are naturally kind. 2.​ Situational This focuses on external factors or the environment. It explains behaviour because of the situation or context someone is in. Example: Someone is angry because they're stuck in traffic. 3.​ Interactionist This combines both dispositional and situational factors. It explains behaviour as the result of how a person's traits interact with the situation. Example: Someone becomes a great leader because of their confidence (trait) and a crisis (situation) where leadership is needed. Five Factor Model of Personality (OCEAN) 1.​ Openness to Experience This trait is marked by a willingness to think flexibly and be receptive to new ideas. Individuals high in this trait are eager to venture into unfamiliar situations, take risks, and try new things. They are typically more creative, possess a strong imagination, and can offer innovative solutions within their organizations, moving away from the “status quo.” 2.​ Conscientiousness High levels of conscientiousness are a powerful predictor of job performance across various occupations. This trait is recognized as the most significant predictor of overall job success.  3.​ Extraversion This dimension spans from introversion, characterized by a reserved and shy demeanor, to extraversion, which is marked by outgoing and sociable behavior. Individuals usually display characteristics of both ends but tend to lean more towards one. Introverts feel energized by working alone or in small groups, while extroverts find vitality in busy, noisy environments and enjoy collaborative efforts. 4.​ Agreeableness Individuals high in agreeableness come across as warm, considerate, friendly, and cooperative, always ready to assist others. Conversely, low agreeableness is associated with being cold, argumentative, intolerant, and inflexible. 5.​ Neuroticism (Emotional Stability) This trait concerns the extent of a person's emotional control. High emotional stability correlates with high self-confidence and self-esteem. On the other hand, lower emotional stability is connected with self-doubt, a propensity for stress, and subpar performance. Other Important Personality Characteristics Locus of Control This refers to an individual's belief about the extent to which their actions influence the outcomes in their life. Those with an internal locus of control believe they can control their own fate, while those with an external locus of control feel their lives are controlled by external factors, such as luck or other people. Self-Monitoring This trait describes how much people regulate their behavior to accommodate social situations. High self-monitors easily adjust their behavior to conform to the social norms present in a situation, whereas low self-monitors act consistently across situations according to their internal states and beliefs. Self-Esteem This is the measure of how much value people place on themselves. It is a belief about one's own worth and capabilities. High self-esteem indicates a positive self-view, while low self-esteem may reflect a critical and negative perspective on oneself. Positive and Negative Affectivity These terms describe the dimensions of mood and emotions. Positive affectivity refers to the extent to which a person feels enthusiastic and energetic, whereas negative affectivity is the extent to which a person feels distressed and unpleasurable emotions. Proactive Personality Individuals with a proactive personality are relatively unconstrained by situational forces and typically affect environmental change. They are self-starting and take action to improve their current circumstances or create new ones. Self-Efficacy This is the belief in one’s capabilities to organize and execute the courses of action required to manage prospective situations. High self-efficacy means a person believes they can successfully execute tasks to achieve their goals. Core Self-Evaluations This concept represents a fundamental assessment of oneself that includes one's capabilities, competencies, and worth as a person. It encompasses self-esteem, general self-efficacy, locus of control, and emotional stability. People with positive core self-evaluations believe in their inner worth and basic competence. Core Values (Individual’s Belief System) Definition: Broad tendency to prefer certain states of affairs over others ​ Enduring beliefs about what’s most important in the world ​ There are a number of values and people differ on degree to which they possess each ​ Values awareness helps determine fit with others in jobs, occupations and organizations Difference in Values Generational (know generations and their values) Traditionalists (1922-1945) -​ Very traditional views -​ "I can fix it don't throw it out" mentality Baby boomers (1946-1964) -​ They lived to work -​ Worked hard because their parents worked hard Generation X (1965-1980) -​ Work is less central to their lives -​ They value leisure more -​ They are more inclined to having a better work life balance Millennials (Gen Y) (1981-1996) -​ Work is less central to their lives -​ They value leisure more -​ They are more inclined to having a better work life balance Generation Z (1997-2012) -​ Have better boundaries in their work life balance  -​ Expect to be fairly compensated Generation alpha (2010 - 2026) Cultural Work Centrality: Degree of importance that work has in the life of an individual at a cultural level. Do you work to live, or live to work? Power Distance: Measures how much people accept that power is unevenly spread in organizations and society. ○​ High Power Distance: People are okay with a clear hierarchy where bosses have a lot more power than their workers. ○​ Low Power Distance: People prefer everyone to have equal power and a say in decisions. Uncertainty Avoidance: How comfortable people are with uncertainty and the unknown. ○​ High Uncertainty Avoidance: People in these cultures dislike ambiguity, so they stick closely to rules and like everything to be clear and organized. ○​ Low Uncertainty Avoidance: People are more relaxed with not knowing everything and don't feel the need to follow strict rules or procedures. Masculinity/Femininity: Explores how much a society sticks to traditional male and female roles. ○​ Masculine Cultures: These cultures value assertiveness and the pursuit of success, often expecting men to dominate. ○​ Feminine Cultures: These cultures care more about cooperation, fairness, and ensuring everyone is happy. They don’t strictly stick to traditional male and female roles. Individualism/Collectivism: This determines whether people act as individuals or as part of a group. ○​ Individualistic Societies: People look after themselves and their immediate families and value personal freedom and achievement. ○​ Collectivist Societies: There is a strong sense of community. People expect loyalty to the group and the group looks after them in return. Long-term/Short-term Orientation: ○​ Long-term Orientation: These cultures plan for the future, value persistence, and are good at saving.  ○​ Short-term Orientation: These cultures focus on the present or immediate outcomes and value traditions and fulfilling social duties. Attitudes 1.​ You believe strong family relationships are essential for well-being. 2.​ You value family time more than career success. 3.​ You have a negative attitude toward jobs that interfere with family time. 4.​ You avoid or leave jobs that demand long hours and encroach on family time. Determinants of Job Satisfaction Discrepancy: the gap between what employees desire from their jobs and what they perceive they receive. For example, two nurses perform identical tasks; one perceives her role as patient care, which she values, whereas the other sees her role primarily as completing paperwork. If only the first nurse believes her job involves providing patient care, a discrepancy arises, leading to job satisfaction only for her. ​ Cognitive Dissonance: This occurs when there's a contradiction between what we believe and what is happening. Employees experience discomfort from this misalignment and seek ways to reduce the dissonance to restore harmony. Fairness: ​ Distributive Fairness: Concerns how rewards and resources are allocated. For instance, if a month-end bonus isn't distributed fairly, it leads to dissatisfaction. ​ Procedural Fairness: Involves the fairness of the processes used to distribute rewards. Dissatisfaction arises if the boss does not follow established processes for reward distribution. ​ Interactional Fairness: Relates to the quality of communication about decisions and outcomes. Even if processes are fair, poor communication by a supervisor can lead employees to perceive them as unfair, resulting in dissatisfaction. Disposition: Some individuals are predisposed to feel dissatisfied regardless of the job circumstances due to their inherent personality traits. Mood and Emotion: ​ Emotional Contagion: Emotions can spread among individuals and groups, influencing the general mood and satisfaction levels. Working around colleagues who are frequently in a bad mood can lead to widespread dissatisfaction within the team. Work Factors: Job satisfaction is also heavily influenced by factors such as compensation, career advancement opportunities, the nature of the work itself, and the work environment. Consequences of Job Dissatisfaction Absence from Work: Job dissatisfaction often leads to increased absenteeism as employees avoid stressful or unpleasant work environments. Turnover: Dissatisfied employees are more likely to leave their jobs, causing high turnover rates that require costly and time-consuming recruitment and training. Performance: A lack of job satisfaction can result in lower productivity and reduced quality of work, impacting overall organizational effectiveness. Organizational Citizenship Behavior (OCB): Dissatisfied employees are less inclined to engage in voluntary, helpful behaviors beyond their job requirements, affecting organizational health. Counterproductive Work Behavior (CWB): Employees who are unhappy may exhibit behaviors that harm the organization, such as theft, sabotage, or excessive absenteeism. Customer Satisfaction & Profit: Employee dissatisfaction can negatively affect customer interactions and satisfaction, leading to lower customer retention and profitability. Organizational Commitment Affective Commitment: Employees stay because they want to; they feel emotionally attached to the organization and identify with its goals and values. Driven by personal satisfaction and a genuine connection with the organization. Continuance Commitment: Employees stay not because they want to, but because they feel they have to. May feel that the cost of leaving is too high or there is a lack of job opportunities. Normative Commitment: Employees stay because they feel obligated. Possibly due to a familial connection (e.g., a family member helped secure the job) or because the organization has invested in them (e.g., paying for their MBA). Topic 3 (Perception) Perception: Process of interpreting the message of our senses to provide order and meaning to the environment. We interpret things based on experiences, past conceptions, emotions, perceptions, and needs. Three Components of Perception Perceiver: The individual interpreting sensory input, influenced by past experiences, current needs, and emotions. This process includes "perceptual defense," where unpleasant or threatening information is filtered out or distorted. Target: The object, person, or event being perceived, often complex and open to interpretation based on various cues. Situation: The context or setting influencing perception, including factors like timing. The relationship is summarized by the formula: S = T + R (Situation = Target + Response), illustrating how context affects perception. Social Identity Theory Personal Identity: Personal identity is shaped by how individuals (perceivers) view themselves (target) based on their unique traits and their memberships in social categories (situation). This self-concept includes the internalization of personal characteristics as well as the roles they play within various social groups. Social Identity: Social identity involves how individuals (perceivers) are perceived and categorized by others (target) based on their memberships in social categories (situation). It reflects the external perceptions and societal expectations tied to the groups to which individuals belong. The Perceptual Process (5 Step) Environmental Stimuli: This refers to all the things you can sense around you, such as sights, sounds, smells, tastes, and physical sensations. These are the raw inputs that your senses pick up from the environment. Observation: In this step, you use your senses (eyes, ears, nose, skin, tongue) to notice the stimuli. For example, you might hear a dog barking or feel the warmth of the sun. Perceptual Selection: This is when you focus on certain stimuli while ignoring others. The "attended stimulus" is what you choose to pay attention to. For instance, in a noisy room, you might concentrate on listening to your friend speaking instead of the background noise. Perceptual Organization/Construction: Here, your brain organizes the information it has selected. It makes sense of what you're paying attention to by arranging it into a familiar shape or concept. This is about recognizing and understanding what you see, hear, or feel. For example, you might see scattered ingredients on a table and recognize them as components of a meal you're about to prepare. Interpretation: Finally, you give meaning to what you've organized based on your personal experiences and beliefs. This determines how you react to the stimuli. For instance, if you see a fast-approaching ball, you might interpret it as a threat and duck. Bruner’s Model of the Perceptual Process Attribution The process by which causes or motives are assigned to explain people’s behaviours Internal Attribution (Dispositional Attributions): Perception that outcomes are due to personality or intellect rather than situation or environment. External Attribution (Situational Attributions): Perception that outcomes are due to situation or environment rather than the person. E.g. Is high performance on the exam due to ability or easy questions? Some will say working hard got them a good grade on the exam (Internal Attribution). Some will say they got difficult questions on the exam (External Attribution). Three Attribution Cues Three questions which guide our decisions as to whether we attribute the behaviour to dispositional or situational causes… Consistency Cues Does the person engage in the behaviour regularly and consistently? Ex: Late for Work -If they do it regularly (High Consistency) -If they don't normally do this (Low Consistency) Consensus Cues Do most people engage in the behaviour, or is it unique to this person? -Everyone’s late to work (High Consensus) -Unique to the one person is late (Low Consensus) Distinctiveness Cues Does the person engage in the behaviour in many situations, or is it distinctive to one situation? -Late for every aspect in life/parties/interviews/work (Low Distinctiveness) -Only distinctive/happens at the workplace (High Distinctiveness) Biases in Attribution Fundamental Attribution Error: Involves the tendency to overemphasize dispositional explanations for someone else's behavior at the expense of situational explanations. ​ Example: Observing a person yelling at a cashier, you might immediately conclude they are inherently rude and impatient, failing to consider potential situational triggers such as having just received distressing news or being under significant stress. Actor-Observer Effect: The different perspectives between actors and observers regarding the causes of the actor's behavior. Actors often attribute their own actions to situational factors, whereas observers are more likely to attribute the same actions to the actor’s personal traits. ​ Example: If you accidentally spill coffee on your shirt, you might attribute it to the crowded café or being jostled by someone (situational causes/actor). Conversely, if you observe someone else making the same mistake, you might think they are clumsy or not careful (dispositional judgment/observer). Self-Serving Bias: The tendency to credit oneself for successes while attributing failures to external factors ​ Example: After winning a team game, you might attribute the victory to your own excellent skills and strategic thinking. However, if your team loses, you might blame the  defeat on bad luck or ineffective teamwork, rather than acknowledging your own possible faults. Perceptual Errors Stereotyping: Generalize people in a social group/category and ignore variations among them. ○​ Interview Example: An interviewer assumes a rural candidate lacks tech skills, potentially overlooking their true abilities. ○​ Performance Evaluation Example: A manager believes younger employees are more innovative, possibly skewing reviews against older employees. Self-fulfilling Prophecy: Occurs when our expectations about another person cause that person to act in a way that is consistent with those expectations ○​ Interview Example: Expecting a candidate to be nervous, an interviewer's intimidating demeanor actually causes the candidate's nervousness. ○​ Performance Evaluation Example: Anticipating a new leader's success, a supervisor's extra support actually enhances the leader's performance. Pygmalion Effect Overview (Self Fulfilling Prophecy) Study Setup: In the 1960s, researchers told elementary school teachers that certain students had scored highly on a test predicting future academic success. These students were actually chosen at random. Result: The students identified as "gifted" showed significant improvement over the school year. Reasons: 1.​ Enhanced Interactions: Teachers gave these students more attention and positive feedback, expecting more from them. 2.​ Positive Reinforcement: The students received more encouragement, boosting their self-esteem and motivation. 3.​ Assessment Bias: Teachers possibly marked these students' work more leniently due to their supposed potential. Halo (Horns): The Halo effect occurs when a positive trait influences overall perception, overshadowing negative traits. The Horns effect happens when a negative trait dominates, overshadowing positives. Projection: The tendency for perceivers to attribute their own thoughts and feelings onto others Implicit Personality Theories: Personal theories that people have about which personality characteristics go together. Exhibit one trait and we assume that the person exhibits similar/connected personality characteristics. Ex. Assume introverted means honesty. Primacy Effect: the tendency to form lasting opinions about someone based on the first information received about them. -Important to create a strong first impressions and highlight biggest accomplishments Recency Effect: The tendency for a perceiver to rely on recent cues or last impressions. -At the end of an interview, ask good questions or follow up with a conversation. Reliance on Central Traits: Personal characteristics of a target person that are of particular interest to a perceiver (easily identifiable like Physical appearance; height; weight) Challenges in the Workplace Related to Perception Perception and Workforce Diversity: Embracing workforce diversity enhances the talent pool and aligns more closely with a diverse customer base. Perception and Organizational Behaviour: Perception significantly influences trust among team members. Trust is a psychological state that involves a willingness to be vulnerable based on positive expectations about another's intentions or behavior. Perceived Organizational Support (POS): Employees generally believe that the organization values their contributions and cares about their well-being. If you believe that you’re valuable to the corporation, you will be more satisfied, more committed, less likely to leave/call in sick, etc. Perception in Human Resource Management: -Candidates form impressions of an organization based on their experiences during the recruitment and selection process. It serves as key cues and signals to candidates about what it might be like to work for the organization. Recency Effect: Conversely, the most recent interactions during the selection process might be more influential in shaping a candidate's final decision than earlier ones. Stereotyping: Candidates might be assessed not only on their qualifications but also on how closely they match the stereotype of an 'ideal' applicant, which can lead to biased decision-making. Contrast Errors: Evaluators may compare candidates against each other rather than against consistent company standards, which can skew perception based on the relative strengths and weaknesses shown during the process. Performance Appraisals: -Leniency Error: Raters give overly favorable evaluations to all employees, typically to avoid conflict, resulting in ratings that don’t accurately distinguish between different levels of performance. -Severity Error: Some raters are excessively strict, which can demotivate employees and negatively bias appraisal outcomes. -Central Tendency Error: Raters avoid extreme ratings, marking most employees as average, which can obscure true performance differences. Topic 4 (Motivation) Three Critical Questions of Motivation 1.​ What is it that gets behaviour started? 2.​ What is it that determines the magnitude or intensity of behaviour? 3.​ What is it that causes behaviour to stop? Basic Characteristics of Motivation: How consistently and for how long effort is directed towards achieving a specific goal. It reflects the endurance of motivation over time in the face of challenges or obstacles. Effort: This refers to how much energy a person invests in a task. The level of effort can vary; not all tasks receive 100% effort due to differences in priority or interest. Persistence: This describes the continued effort toward a goal despite obstacles or challenges. Persistence levels can differ such as those who strive to get good grades or those who wish to pass. Depends on the importance of the goal. Direction of Effort: This involves the focus of one's efforts. It's crucial not only to be motivated but also to channel this motivation effectively towards the intended goals. Goals: These are the objectives or ends that one aims to achieve through their motivated efforts. Goals provide purpose and direction for effort and persistence. Content Approaches to Motivation Maslow’s Hierarchy of Needs 1.​ Physiological Needs: Survival (e.g., food, water, shelter) 2.​ Safety and Security: Protection (e.g., health, employment) 3.​ Love and Belonging: Connection (e.g., friendship, intimacy) 4.​ Self-Esteem: Recognition (e.g., confidence, achievement) 5.​ Self-Actualization: Fulfillment (e.g., morality, creativity) Concept of Prepotency: This principle asserts that lower, unsatisfied needs take precedence over higher ones. The lowest level of unsatisfied needs has the most significant motivating potential. Only when a particular level of needs is met can individuals focus on higher-level needs. The only exception is self-actualization, which continues to motivate behavior no matter how much has been achieved, as individuals always strive for further growth and realization of their potential. This hierarchy not only explains the sequence of needs but also highlights the motivation behind human behavior as individuals strive to fulfill these needs sequentially, starting from the basic and moving towards the complex. Alderfer’s ERG Model ​ Existence Needs: Cover basic material and physiological requirements. ​ Relatedness Needs: Concern relationships and social connections. ​ Growth Needs: Focus on personal development and potential. Key Points: ​ Satisfaction of lower needs increases the desire for fulfilling higher needs. Higher needs become more compelling once they are engaged, reflecting the Satisfaction-Progression Hypothesis. ​ The model is flexible, allowing for movement between needs based on personal priorities and circumstances. ​ The "Frustration-Regression Principle" suggests that unmet higher needs can lead to a renewed focus on more readily satisfied lower needs. Herzberg’s Two Factor Theory  ​ Hygiene Factors: These are essential for preventing job dissatisfaction but do not create job satisfaction when improved. They include aspects like salary, work conditions, and job security. ​ Motivators: These factors can enhance job satisfaction and include elements like recognition, advancement, and the work itself. Key Points: ​ Improving hygiene factors can reduce dissatisfaction but don’t increase satisfaction. ​ Enhancing motivators leads to higher job satisfaction, but only if hygiene factors are already adequate. ​ To achieve true job satisfaction, address hygiene factors first to remove dissatisfaction, then focus on motivators to actively enhance satisfaction. McClelland’s Three Needs The Need for Power (nPow): ​ This need is the desire to have control or influence over others. People with a high need for power enjoy being in charge, seek positions of authority, and often prefer competitive environments where their influence can be felt. The need for power can be expressed in two forms: personal power (domination over others) and institutional power (organizational and leadership roles aimed at helping the group). The Need for Achievement (nAch): ​ This need encapsulates the drive to excel and accomplish challenging goals in accordance to set standards. Individuals with a high need for achievement are motivated to succeed and prefer to pursue reasonably challenging objectives. They thrive on clear, unambiguous feedback about their progress and success. Typically, these individuals enjoy working independently or alongside other high achievers, constantly striving to meet high standards they set for themselves. The Need for Affiliation (nAff): ​ This need involves the desire for friendly and close interpersonal relationships. Individuals with a high need for affiliation prefer cooperation over competition and often work well in customer service or client interaction settings where they can be supportive and nurturing. They seek approval from others and are concerned with maintaining pleasant social relationships. What Content Theories Suggest Managers Should Do: 1.​ Identify Individual Needs: Understand that different employees are motivated by different needs. For example, some may seek security (Safety Needs from Maslow),  while others may be driven by higher responsibilities and personal growth (Growth Needs from ERG or Power and Achievement from McClelland). 2.​ Provide Relevant Incentives: Align incentives with the needs that are most prominent for each employee. For instance, offer leadership roles to those with a high need for power, team-oriented projects for those with a high need for affiliation, and challenging tasks to those driven by achievement. 3.​ Create a Supportive Environment: Structure the workplace environment to support various needs. This can include providing a safe and secure work environment, opportunities for social interaction, and paths for personal and professional development. 4.​ Facilitate Goal Achievement: Help employees set and achieve goals that are meaningful and challenging but also attainable, catering especially to those with a high need for achievement. 5.​ Empower and Delegate: Especially for those with a high need for power, delegate authority and offer opportunities to lead projects or mentor others. 6.​ Feedback and Recognition: Regularly provide clear and constructive feedback and recognize accomplishments, which is crucial for those with high needs for achievement and esteem. Self-Determination Theory (SDT) An approach that relates the satisfaction of 3 basic psychological needs to autonomous or controlled motivation. Competence/Mastery: This need refers to a person's desire to gain expertise, develop skills, and master tasks. When individuals feel competent, they are more motivated and capable of achieving their goals, leading to greater satisfaction and effectiveness at work or in other activities. Autonomy: Autonomy is about having control over one's own life and making choices freely without external interference. This need emphasizes the importance of feeling in control and being able to make decisions independently, which can significantly enhance motivation and personal well-being. Relatedness: This refers to the desire to connect with others and have meaningful relationships. Feeling connected and valued by others can motivate individuals to engage more deeply in activities and perform better in team settings. When the basic psychological needs of competence, autonomy, and relatedness are met, individuals experience enhanced motivation, performance, and well-being. This leads to greater job satisfaction, creativity, and stronger social connections. Conversely, when these needs are unmet, it can result in decreased motivation, poor performance, reduced job satisfaction, increased stress, and weakened social bonds, negatively impacting the work environment. Cognitive/ Information Processing Approaches to Motivation (C2) Expectancy Theory (Strongest Variable) Belief that motivation is determined by the outcome that people expect to occur as a result of their actions on the job. ​ Belief: Motivation is determined by the outcomes people expect as a result of their actions on the job. ​ Formula: Motivational Force (MF) = Expectancy (E → P) x Instrumentality (P → O) x Valence (V) ○​ Expectancy (E → P): The perceived likelihood that one's effort will lead to desired performance. A stronger E-P relationship results in better motivation. ○​ Instrumentality (P → O): The perceived likelihood that one's performance will lead to desired rewards or outcomes. ○​ Valence (V): The value of the expected rewards to the individual. Equity Theory This theory focuses on the perceived fairness of outcomes, where individuals assess how their rewards compare to others' by evaluating their inputs and outcomes relative to others. Theoretical Anchor Fairness is assessed through social comparison—people form a mental ledger of their inputs and outcomes relative to others. If two individuals contribute equally but receive different rewards, perceived inequity arises, triggering corrective actions: ​ Distorting perceptions (justifying or altering how inputs/outputs are viewed) ​ Adjusting behavior (working harder, reducing effort, or quitting) ​ Changing comparison points (selecting a different benchmark) Ratio of Exchange Employees evaluate their input-output ratio against peers: ​ Inputs: Effort, experience, education, skills ​ Outputs: Pay, recognition, promotions, job security​ Perceived imbalance motivates action to restore fairness. Outcomes of Perceived Inequity Inequity can lead to: ​ Reduced motivation and job satisfaction ​ Lower productivity ​ Increased stress and workplace dissatisfaction ​ Higher turnover rates Implications ​ Transparent pay structures ensure fairness. ​ Emotional intelligence helps address concerns. ​ Open communication prevents misinformation and perceived inequities. Goal-Setting Theory Goal-Setting Theory emphasizes the importance of clear and challenging goals in enhancing motivation and performance. Motivation increases when individuals commit to specific goals and receive feedback on progress. Key Elements of Goal-Setting Theory 1.​ Goal Specificity – Clearly defined goals lead to better performance compared to vague objectives. 2.​ Goal Difficulty/Challenge – Challenging goals enhance motivation and performance, as long as they are attainable. 3.​ Goal Commitment – Involving employees in goal-setting increases ownership, motivation, and persistence. 4.​ Goal Feedback – Continuous feedback helps individuals track progress, stay motivated, and adjust efforts accordingly. Implications for Managers ​ Regular Meetings – Track progress and provide necessary support. ​ Recognize Goal Preferences – Distinguish between learning and performance goals. ​ Short & Long-Term Goals – Use short-term milestones to drive long-term success. ​ Continuous Monitoring – Conduct frequent check-ins to ensure alignment and progress. ​ Goal Alignment – Ensure goals are achievable and aligned with organizational objectives. Management by Objectives (MBO) MBO, introduced by Peter Drucker, is a structured approach to goal setting and performance management, ensuring alignment between individual and organizational goals. 1.​ Goal Setting – Managers and employees collaboratively set clear, measurable goals aligned with company objectives. 2.​ Continuous Support – Regular meetings help monitor progress, address challenges, and provide necessary resources. 3.​ Reassessment and Evaluation – Performance is reviewed at the end of the cycle, and necessary adjustments are made for continuous improvement. Contextual Theories of Motivation 1. Reinforcement Theory (Operant Learning) Reinforcement Theory explains how behavior is influenced by consequences. Rewards and punishments impact future actions. A. Classification of Reinforcement Situations 1.​ Positive Reinforcement – Rewarding desirable behavior increases the likelihood of it being repeated. Example: An employee gets a bonus for excellent performance. 2.​ Negative Reinforcement – Removing an unpleasant situation to encourage good behavior. Example: A manager stops micromanaging once an employee consistently meets deadlines. 3.​ Punishment – Applying negative consequences to discourage undesirable behavior. Example: Docking pay for tardiness. 4.​ Extinction – Ignoring or withholding reinforcement to decrease undesired behavior. Example: A manager stops praising an employee’s irrelevant contributions in meetings, leading the employee to stop making them. B. Examples of Organizational Learning Programs  1.​ Organizational Behavior Modification (OB-Mod) – A structured approach to shaping behavior through reinforcement: ○​ Define target behaviors ○​ Set measurable performance goals ○​ Monitor behavior and administer rewards 2.​ Employee Recognition Programs – Publicly recognizing and rewarding employees to reinforce positive behavior. 3.​ Training and Development Programs – Teaching employees how to improve performance and adopt desired behaviors. 2. Job Design as a Motivator Job design structures work to enhance motivation and satisfaction. A. Key Concepts 1.​ Job Design & Job Scope ○​ Breadth: Number of different tasks performed. ○​ Depth: Degree of control employees have over their work. ○​ High job scope leads to greater motivation and engagement. 2.​ Job Involvement – Employees’ identification with their job, affecting commitment and performance. 3.​ Job Enlargement vs. Job Enrichment ○​ Job Enlargement – Adding more of the same tasks (can become monotonous). ○​ Job Enrichment – Adding variety and responsibility for skill development. B. Job Characteristics Model (Hackman & Oldham) A well-designed job influences motivation, satisfaction, and performance through: 1.​ Core Job Characteristics ○​ Skill Variety – Diverse tasks prevent monotony. ○​ Task Identity – Seeing a project through from start to finish. ○​ Task Significance – Understanding the job's impact. ○​ Autonomy – Having control over one’s work. ○​ Feedback – Receiving direct information on performance. 2.​ Critical Psychological States ○​ Meaningfulness of work ○​ Responsibility for outcomes ○​ Knowledge of results 3.​ Outcomes ○​ Increased motivation, satisfaction, and effectiveness 4.​ Moderators ○​ Knowledge & Skill – Skilled employees benefit more. ○​ Growth Need Strength – Employees motivated by personal growth thrive. ○​ Context Satisfaction – A positive work environment enhances motivation. C. Relational Job Design ​ Enhancing employees’ ability to connect and collaborate with others (prosocial motivation). D. Job Crafting ​ Employees making self-initiated adjustments to better fit their job roles. 3. Money as a Motivator Money can be a primary driver of motivation when used effectively. ​ Pay for Performance Plans ○​ Production Jobs – Employees are paid based on output. ○​ Professional Jobs – Performance-based incentives tied to goals. ​ Team-Based Incentives (Gainsharing) – Rewarding teams for collective success. 4. Alternative Motivation Methods Besides monetary incentives, alternative methods can boost motivation. ​ Alternative Work Schedules ○​ Flextime – Employees choose work hours while fulfilling required hours.  ○​ Compressed Workweeks – Completing full-time hours in fewer days. ​ Alternative (Non-Monetary) Incentives ○​ Recognition programs, growth opportunities, and workplace flexibility. Topic 5 (Individual Decision Making) The process of developing a commitment to some course of action. ​ Involves making a choice among several alternatives ​ It’s a process that involves more than simply the final choice among alternatives ​ Involves the commitment of resources (e.g. time, money, human resources etc.) Also referred to as problem-solving Well-Structured Problems: These problems have clear, defined parameters and a straightforward solution path. They typically involve: ​ A clearly stated problem with specific goals. ​ Established methods or rules to solve them. ​ A single correct answer or a limited number of solutions. Example: A math problem like "Solve for x: 2x + 5 = 15." Ill-Structured Problems: These problems are ambiguous, complex, and lack a clear solution path. There are multiple approaches, differing opinions, no single correct solutions. They often involve: ​ Unclear objectives or multiple possible outcomes. ​ No predefined method for solving them. ​ Multiple competing solutions, depending on perspective or available information. Example: "How can we reduce global poverty?" Rational Decision Making Process If we were perfectly rational, we would follow this process for every problem we encounter. Our decisions would be based on careful evaluation of alternatives and their consequences, ensuring logical and calculated choices. Why is this not realistic, fails to consider how people actually act. Perfect vs. Bounded Rationality Perfect Rationality (good but not realistic) Traditional economic theory states that rational consumers seek to maximize their satisfaction by making optimal decisions. It is a decision strategy that is fully informed, perfectly logical, and focused on maximizing economic gain, void of emotional influence or biases. Bounded Rationality A decision strategy that relies on limited information and that reflects time constraints and political considerations. Consumers and businesses aim to satisfy rather than maximize. This is due to the non-realism of maximizing every time compared to having a satisfactory choice. Why bounded by Rationality occurs? (9 Types) Framing Aspects of the presentation of information about a problem that are assumed by decision making. How we frame a problem (tone of voice, presenting using positive/negative language), can lead to different decisions. Cognitive Biases Tendencies to acquire and process information in an error-prone way. Also referred to as heuristics/rules of thumb (mental shortcuts) to make decisions quickly. ​ Availability Bias; We tend to rely too much on easily remembered information while ignoring other relevant details. Past events and decisions affect our choices based on how easily we recall them, with the most vivid and dramatic events having the biggest influence ​ Representative Bias; Decisions based on our stereotypes/beliefs. Problems with Problem Identification ​ Perceptual Defense; Biases cause us to avoid information that is unwelcome or uncomfortable. Perceptual defense makes us select and filter out information or even filter out the problem entirely. ​ Functional Speciality; Look at the problem from your own speciality/perspective even when other perspectives may be warranted. ​ Solution; Jump to conclusions without studying the full problem. HR manager not analyzing the situation and instead fixing employee absence with higher pay. ​ Symptoms; Instead of identifying the actual issue, we focus only on visible symptoms, which can lead to ineffective or temporary solutions. Problems with Identification Search ​ Confirmation Bias; We seek out information that supports our existing beliefs, even after making a decision. Instead of evaluating information objectively, we focus on evidence that confirms our choice, leading to irrational decision-making. ​ Non-invented-here bias; The tendency to ignore or have negative attitudes toward ideas that come from outside our own environment, organization, or team. ​ Information Overload; Too much information that we don’t know what's relevant or not, ultimately leading to poor decisions. Alternative Development, Evaluation & Choice ​ Maximization: Spending excessive time weighing options to maximize utility, leading to decision paralysis. Even after deciding, there may be regret over whether it was the best choice. Often don't end up maximizing but satisficing. ​ Anchoring Effect: Relying too much on the first piece of information received as a reference point, leading to inadequate adjustments in later judgments. ​ Satisficing: Setting an acceptable standard for a solution and choosing the first option that meets it. This speeds up decision-making but doesn’t always lead to the best outcome. Best balance is to satisfice most of the time and only maximize when stakes are high. Problems when Risk is involved ​ When people view a problem as a choice between losses, they tend to make risky decisions (tend to make riskier decisions). You acknowledge the loss, ​ When people view a problem as a choice between gains, they tend to make conservative decisions ​ Attitudes toward risk: risk averse; risk taking; risk neutral Prospect theory (framing). Problems with Solution Implementation Decisions makers are often dependent on others to implement their decisions, and it might be difficult to anticipate their ability and motivation to do so. 2 Types of Interdependence ​ Sequential Interdependence: Depend on people before you to get their work done, so you can do your work (like a group project). ​ Reciprocal Interdependence: Each of you are interdependent on each other to complete the larger task (like our OB assignment). Problems with Solution Evaluation ​ Justification Bias – The tendency to defend flawed decisions to minimize cognitive dissonance, leading to rationalization rather than objective reassessment. ​ Escalation of Commitment – The inclination to continue investing resources in a failing course of action due to prior commitments, even when evidence suggests a change is needed. ​ Sunk Cost Fallacy – The irrational belief that past investments justify continued commitment, despite diminishing returns or clear signs of failure. Bounded Rationality – Humans make decisions with cognitive limitations, incomplete information, and time constraints. This leads to simplifications, heuristics, and justifications rather than purely logical choices. Perfect Rationality – A theoretically ideal decision-maker who evaluates all available information objectively, ignores sunk costs, and always selects the most optimal solution without cognitive biases. However, in reality, perfect rationality is rarely achievable. Problems with Emotions and Mood Emotions can: ​ Correct ethical errors (e.g., whistleblowers acting on moral intuition). ​ Enhance decision-making by providing intuition and moral guidance. ​ Distract and unsettle thinking, leading to poor choices (e.g., fear of making a bad decision causing indecisiveness). Mood affects: ​ Information Recall – Positive moods enhance recall of positive information, while negative moods increase focus on negative details. ​ Evaluation – A good mood can lead to optimism bias (overestimating positive outcomes), whereas a bad mood can cause pessimistic bias (overestimating risks or negative consequences). ​ Creativity – Positive moods foster creative thinking, while negative moods may limit cognitive flexibility. Topic 6 (Communication) Basic Model of Communication Sending: ​ Thinking – The sender formulates the message based on their ideas or intent. ​ Encoding – The message is converted into a communicable format (words, gestures, symbols). ​ Transmitting – The sender delivers the message through a chosen communication channel (speech, email, text, etc.). Receiving: ​ Perceiving – The receiver detects the incoming message through their senses (hearing, reading, etc.). ​ Decoding – The receiver interprets and makes sense of the message. ​ Understanding – The receiver comprehends the message's meaning based on their knowledge and context. What is Communication? Process where information is exchanged between a sender and a receiver. Effective communication is when the right people receive the right information in a timely manner. Organizational Communication Manager-Employee Communication ​ The job expectations: what, why, how and with whom ​ How employees should allocate their time ​ How long it should take to learn a job ​ The importance employees attach to pay ​ The amount of authority employees have ​ Skills and abilities of employees ​ Employee performance and obstacles to good performance ​ The manager’s leadership style Effective Communication Voice: Voice is the opportunity for employees to express their ideas and concerns without fear of negative consequences, promoting open and inclusive communication. Psychological Safety: Psychological safety is the shared belief that it's safe to take social risks, like sharing ideas or admitting mistakes, without fear of punishment or humiliation. Mum Effect (Minimizing Unpleasant Message): Tendency to avoid sharing unfavorable news or feedback, leading to vague communication and misunderstandings. The Grapevine The organization's informal communication network (from a colleague in the lunchroom). Pros: Keeps Employees Informed: ○​ Scenario: In a large organization, news about an upcoming project spreads informally among employees before an official announcement, helping them prepare and plan ahead. ○​ Benefit: Reduces uncertainty and keeps employees in the loop when formal communication is slow. Creates a Sense of Unity: ○​ Scenario: During lunch breaks, employees from different departments share insights about company changes, building camaraderie and a sense of belonging. ○​ Benefit: Enhances team cohesion and morale by making employees feel connected. Tests Employee Reactions: ○​ Scenario: A manager casually mentions a potential policy change to gauge reactions before formally implementing it. ○​ Benefit: Helps leaders anticipate resistance and refine communication strategies. Cons: 1.​ Pipeline for Rumors:  ○​ Scenario: After hearing about potential layoffs through informal channels, employees speculate and spread exaggerated rumors, causing anxiety and decreased productivity. ○​ Drawback: Misinformation and rumors can create fear and distrust within the organization. 2.​ Distortion of Information: ○​ Scenario: A casual comment about a manager leaving the company is exaggerated into a story about massive leadership changes. ○​ Drawback: Like a game of broken telephone, messages can become distorted, leading to misunderstandings. 3.​ Undermines Formal Communication: ○​ Scenario: Employees hear about organizational changes through the grapevine before an official announcement, reducing trust in leadership. ○​ Drawback: Undermines the credibility of formal communication channels, leading to confusion and lack of trust. Verbal Language at Work Verbal language at work involves using words and specialized jargon to communicate information clearly and efficiently. ​ Pros: ○​ Efficiency: Speeds up communication among team members familiar with the terminology. ○​ Identification as an Insider: Fosters a sense of belonging and credibility within a professional group. ​ Cons: ○​ Barrier to Understanding: Can confuse those unfamiliar with the jargon or new employees. ○​ Miscommunication Across Departments: Different departments may interpret the same jargon differently. Non-Verbal Language at Work Non-verbal language includes body language, facial expressions, gestures, tone of voice, and even office decor and clothing, conveying messages beyond words. Pros: ​ Enhances Communication: Reinforces understanding and agreement without words. ​ Conveys Emotions and Intentions: Communicates emotions and intentions more effectively than verbal language alone. Cons:  ​ Misinterpretation Risk: Non-verbal cues can be easily misinterpreted, especially across cultures. ​ Unintentional Negative Signals: Body language can unintentionally convey disinterest or defensiveness. Gender Differences in Communication Cross-Cultural Communication Information Richness 1.​ Degree of Synchronization: ○​ High Synchronization: Real-time, two-way communication that allows immediate feedback and clarification. ​ Example: Face-to-face meetings, video calls, or phone conversations. ○​ Low Synchronization: One-way communication where feedback is delayed. ​ Example: Emails, memos, or recorded messages. 2.​ Degree of Nonverbal and Paraverbal Cues: ○​ Nonverbal Cues: Body language, facial expressions, and gestures that add context and emotion. ○​ Paraverbal Cues: Tone of voice, emphasis on words, and speech pace that influence meaning. Approaches to Improving Communication