summary of organizational behaviour, langton

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COMM 292: Organizational Behaviour - Final Exam Review

Final Exam Review: Chapters 1-14

Chapter 1

Defining Organizational Behaviour Organizational behaviour: field of study that looks at the impact that individual groups, and

structure have on behaviour within an organizationo

Behaviour: what people do in an organization and how they perform OB most often is applied to business but can go beyond the traditional work place

What Do We Mean by Organization? Organization: a coordinated social unit that functions to continuously achieve a common

goalso

Manufacturing firms, schools, hospitals, churches, military, retail stores, the policeetc.

Business that supply 10 people or less make up 75% of the Canadian marketplaceo

Small to midsized business make up 45% of Canada's GDP (up 25% in 20 years) There are different types/sizes of organizations, but most theories are applicable to all

OB is for Everyone: Employees are now being asked to play a more proactive role in the workplace

o The roles of managers and employees are beginning to become blurredo

Managers rely more on employees to make decisions rather than follow orders OB is also for entrepreneurs and self-employed as they interact with others in the

marketplace OB is relevant anywhere people come together to share/work on goals or to solve problems

The Importance of Interpersonal Skills: Until the 1980's business schools only focused on the technical aspects of business

o Business schools have shifted to teach human behaviour and organizational

effectiveness Quality of the employee's job and support in the work place are more important than

money Technical skills are sufficient but not enough to strive and succeed in the workplace

o In an increasingly competitive workplace employees need intrapersonal skills

Today's Challenges in the Canadian Workplace

Organizations are made up of individual groups and the entire organizational structureo

Each level has a unique role that must be fulfilled at the workplaceo

Each level is constructed/dependent on the previous levelo

Each level has challenges that may affect how the levels above/below operate Basic OB model: 1. individual level, 2. group level, 3. organization system level

Challenges at the Individual Level: Managers and employees need to learn how to deal with others (different from themselves)

o Dimensions such as personality, perception, values, and attitudes

Individuals have different levels of job satisfaction/motivationo

This affects the how managers manage employees The greatest issues is how to behave ethically when facing competition

Individual Differences: People enter organizations with a unique behaviour, perception, values, and attitude

o It is difficult for an organization to change these characteristics of an employee

Job Satisfaction: Employees are demanding satisfaction out of their jobs

o Higher satisfied employees leads to higher productivity (basic assumption)

Researchers believe employees want challenges and intrinsic rewards from their work Job satisfaction is negatively related to absenteeism and turnover

o This costs organizations considerable amounts of money annually

Motivation: Only 24% of Canadian employees were recognized to a great extent for work well done

Empowerment: In many organizations employees have become associates and teammates

o Employees are becoming more a part of the business and managers and facilitating

this processo

Employees' roles within many organizations have grown Self-managed teams instead of employees and managers have become a new trend

o Teamwork and employee responsibility are essential

Empowerment: giving employees responsibility for what they doo

Managers are beginning to learn how to give up powero

Employees are learning to take responsibility for their work and make appropriatedecisions

Behaving Ethically: Organizations with cutbacks, expectations of increasing worker productivity suffer

consequenceso

Employees cut corners, break rules, engage in questionable practices etc. Ethics: the study of moral values and principles that guide behaviour and inform us

whether actions are right or wrongo

Ethical principles help/guide us to do the right thing Individuals that have ethical values, and organizations that encourage them will do the right

Challenging at the Group Level: People's behaviour differs when they are in a group to when they are alone

o Behaviour of a group is more than the sum total of individuals acting on their own

Organizations with more teamwork develop employees with greater intrapersonal skills

o Learning to work with people from different backgrounds also have become

important

Working with Others: A foundation for high-quality work force includes communications, problem solving,

critical thinking, learning continuously, and the ability to work with otherso

A positive attitude/behaviour and taking responsibility for actions are also keyo

Team building and priority management are essential for small to mid-sized businesses

Workforce Diversity: Adapting to different people is a broad based challenge facing organizations Workforce diversity: the mix of people in organizations (gender, race, age, education etc.)

o More organizations are moving towards workforce diversity

Different generations working side by side bring together different values and experiences Workforce diversity has spread in different countries through different ways

The increase in women in the workforce has changed the workforce diversityo The European Union has opened up borders and allowed for more diverse

organizations Employees don't set aside cultural values and lifestyle preferences when at work

o It is challenging for organizations to accommodate these diverse needs and lifestyles

Different employees have different preferences and organizations must find the happymedium

Managers need to shift their philosophy to treat each employee uniquelyo

They must respond to differences to ensure employee retention and productivityo

Includes diversity training and revising benefit programs (family friendly etc.) Diversity can increase creativity and innovation in organizations

o Improves decision making by providing different perspectives on problemso

Diversity that is not well managed can lead to higher turnover and conflicts

Challenges at the Organizational Level: The design of an organization has an impact on how effective an organization is

o Change may be in order if an organization's design in not effective

Canadian businesses now face greater competition from the global economyo

The structure of the workplace is becoming more and more challenging

The Use of Temporary (Contingent) Employees: Part time or temporary employees are a growing part of the overall workforce

o Full-time/permanent jobs have been downsized by millions over the years

Some contingent employees prefer part-time/temporary to do other things (school, childrenetc.)

Contingent employees don't identify with the organization or display commitmento

Temporary workers lack benefits and are also paid less Organizations are challenged with motivating temporary employees to feel more connected

Improving Quality and Productivity:

Increased competition forces managers to reduce costs and increase the quality and productivity

Organizations are productive if goals are achieved and costs are minimized Productivity: a concern for both effectiveness and efficiency

o Effectiveness: the achievement of goalso

Efficiency: the ratio of effective work output to input required to produce the work

Developing Effective Employees: Organizational citizenship behaviour (OCB): behaviour that is not part of an employee's

job requirements, but that promotes the effective functioning of an organizationo

Employees that are striving and providing performance beyond expectationso

Making constructive comments, being flexible, volunteering extra time etc. Organizations want and need employees who will work beyond their job description

o Organizations that obtain these types of employees outperform other organizations

Putting People First:

Managers should spend more time recognizing the value of their employeeso Putting people first generates a committed workforce and a better bottom line

When organizations strive to develop employees, they are more successful The people first strategy leads to lower turnover, greater sales, market value and profits

o Workers are more responsible when they are given more responsibilitieso

Workers are smarter when encouraged to build skills and competence

Helping Employees with Work-Life Balance: Employees complain it is difficult to differentiate between work and personal time

o Work places allow workers to create and structure their own work roleso

Global organizations have offices world-wide and work never sleepso

Communication technology has take work home, in the car or on holidayso

Organizations are asking employees to put in more hours More employees want flexible jobs in order to better manage their personal lives

o Organizations without time for personal life have difficulty hiring employees

Creating a Positive Work Environment: Organizations are starting to create a competitive advantage by encouraging a positive

work environment Positive organizational scholarship: how organizations develop human strengths, create

vitality and resilience, and unlock potentialo

Researchers believe we should study what is good rather than bad about anorganization

Asking employees to determine when they are at their personal best in order toexploit strengths

o Challenges organizations to exploit strengths rather than dwell on limitations

Global Competition: Canadian business have growing competition domestic and internationally

o To compete they must lower cost, increase productivity or merge with other

businesses Businesses must often outsource jobs internationally in order to stay competitive

o Employees and managers are thus in a constant stat of fluxo

Employees must increase knowledge and skills in order to meet job requirements

Employees, managers and organizations must become flexible to changing conditionso

Must learn how to shift demand, technology and stay on top of the economy

Managing and Working in a Multicultural World: Trade agreements and unions have reduces tariffs and barrier to trade

o The internet has allowed organizations to become more internationally connected

Increases opportunities and consumer base Managers and employees must become capable of working with people from different

cultureso

Managing interpersonal dynamics are not just important for Canadian organizations When workers travel to other countries practices may be different and workers must adapt

Business in Asia is done respectfully and at a slower pace compared to the Westernworld Organizations in foreign nations must adapt cultures and traditions

OB: Making Sense of Behaviour in Organizations

The Building Blocks of OB: OB emerged as a distinct field in the 1940's in the U.S.A.

o Built upon contributions from a number of behavioural disciplineso

Psychology, social psychology, sociology and anthropologyo

Psychology has contributed on a micro level, while the others on a macro level

Psychology: The science to measure/explain and change the behaviour of humans and other animals

o Psychologists study and attempt to understand individual behaviouro

Theorists, organizational psychologist and other have contributed to OB Industrial/organization psychologists study how fatigue, working conditions etc. are linked

to performanceo

Expanded to learning, perception, personality, job satisfaction and others

Social Psychology: Generally blends concepts from psychology and sociology (considered a branch of

psychology)o

Focus on people's influences on one another A main study is change, and how to implement it, and reduce barriers to its acceptance Measure understanding and changing attitudes, communication pattern and building trust

o Made important contributions studying group behaviour, power and conflict

Sociology:

Study the system in which individuals fill their roleso

People in relation to their social environment or culture Greatest contribution to OB was their study of group behaviour in organizations

o Particularly formal and complex organizationso

Group dynamics, design or work teams, organizational culture, power, conflict etc.

Anthropology: The study of societies to learn about human being and their activities

o They work on cultures and environments (fundamental values, attitudes etc.)

Contributed to the understanding of organizational culture/environment and culturaldifferences

The Rigour of OB: OB provides a systematic approach to the study of behaviour in organizations

o We believe/assume that behaviour in organizations is not random

Individuals believe rightly, or wrongly in his or her best interest

Can Finance Learn Anything from OB? Marketing has the closer overlap with OB

o Predicting consumer behaviour is not much different from predicting employee

behaviouro

Both require an understanding of the dynamics and underlying causes of human behaviour

Behavioural finance, accounting and economics have all grown in importance recentlyo

Researches from these professions have found it useful to draw from OB concepts Investors tend to rely more on private info rather than more accurate public info

o Researchers study how feedback affects auditors' behaviour and future work

OB Looks at Consistencies: All people are different but there are consistencies underlying behaviour of most people

o These consistencies allow us to make predictions

There are rules (written or unwritten) in almost all settingso

Common habits and general actions that are alike across genders, cultures etc. The systematic study of behaviour is a means to make reasonably accurate predictions

OB Looks Beyond Common Sense: We as humans watch others and often predict what they will do under certain conditions

o Often these predictions will be inaccurate but can be enhanced with a more

systematic approach This means believing behaviour is not random and can be accurately predicted

There are certain fundamental consistencies that can reflect individual differences Systematic study: looking at relationships, attempting to attribute cause and effects, and

draw conclusions based on scientific evidenceo

Data gathered under controlled conditions are measures and interpreted in a rigorousmanner

Evidence-based management (EBM): basking managerial decisions on the best scientificevidenceo

Management decisions must be made with an evidence backing not on the fly Intuition: a gut feeling not necessarily supported by research

o Making decisions just on intuition is the same as making a decision with half the infoo

Most managers overestimate the accuracy of what they knowo

Research must always be done, even if one decides to go with intuition instead

OB Has Few Absolutes: There are few, if any, simple and universal principles that explain OB

o Other subjects such as science have laws that definitively explain things

As humans are all unique it is difficult to make simple, accurate, sweeping generalizations

OB Takes a Contingency Approach: Even though people are different we can still make predictions about human behaviour Contingency approach: an approach taken by OB that considers behaviour within a certain

contexto OB does not always have to consider the context (depends on the situation)

The Fundamentals of OB: OB considers the multiple levels in an organization: individual, group and organizational OB is built from the wisdom and research of multiple disciplines

o Including psychology, sociology, social psychology, and anthropology

OB takes a systematic approach to the study of organizational phenomena (research based) OB takes a contingency approach to the consideration of organizational phenomena

o Recommendations depend on the situation

Chapter 2

Perception Defined Perception: process by which individuals organize/interpret their impressions in different

environmentso

Perception can be much different from the objective reality People's behaviour is based on perception of reality, not on reality itself

o The world that is perceived is the world that is behaviourally important

Factors Influencing Perception

A number of factors affect perception and the factors can reside in the perceiver or targeto

Also in the context of the situation in which the perception is made

The Perceiver: Perceiver: an individual that looks at a target and attempts to interpret what he/she sees

o The interpretation is heavily influenced by the perceiver's personal characteristicso

Characteristics include attitude, personality, motives, interests, experiences etc. All shape the way we perceive an event

The Target: A target's characteristics also affect what is perceived by the target

o Novelty, motions, sounds, size and other characteristics of a target shape how they are

The relationship of a target to its background also influences perception

The Situation: The context (time, location, light etc.) we see objects or events is also important

o The situation may change and therefore the perception

Neither the perceiver nor the target have changed

Perceptual Errors Techniques have been developed to better manage perceiving and interpreting other's

actionso

Allow us to make accurate perceptions rapidly and provide valid data for making

predictionso There are errors that distort the perception process

Attribution Theory: Attribution theory: how we judge people differently depending on the meaning given to

behaviouro

Basically we observe what seems like atypical behaviour by an individual and makesense of it

o Cause is internal: whether the individual is responsible for the behaviour

Behaviour is believed to beo

Cause is external: whether something outside the individual caused the behaviour Behaviour is believed to result from outside causes

Distinctiveness: Distinctiveness: whether an individual acts similarly across a variety of situations

o External attribution: behaviour is unusualo

Internally caused: behaviour is not unusual

Consensus: Consensus: how an individual's behaviour compares with others in the same situation

o If an individual responds like everyone else, their behaviour shows consensus

If consensus is high, the wrong doing or odd would be attributed externally

Consistency: Consistency: a behavioural rule that considers whether the individual has been acting in the

same way over time

How Attributions Get Distorted: There are usually errors or biases that distort attributions

Fundamental attribution error: when we judge the behaviour of others, we tend tooverestimate the influence of external factors and overestimate the influence of internal, or personal factors

Self-serving bias: attribute one's own success to internal factors and failure to externalo

Individuals tend to overestimate their own good behaviour and underestimate others

Selective Perception: Any characteristic that makes a person/object stand out will increases that it will be

perceivedo

More likely to notice objects that you own or that look familiar Selective perception: selective interpretation of what is seen based on backgrounds etc.

o Allows us to speed-read others, but has risks of inaccurate conclusions

Halo Effect: Halo effect: when we draw general impressions of people based on one characteristic

o Based on intelligence, likeability, appearance and others

A single trait influences the overall impression of the person being judged

Contrast Effect: Contrast effect: reaction of one person is influenced by other people recently encountered

o Most often we do not evaluate a person in isolationo

Job candidates can be distorted by a result of their place in the schedule

Projection: Projection: attributing one's own characteristics to other people

o Judging others based on the fact that they are similar to uso

Tend to judge people as being similar to themselves When people observes others similar to themselves, their perception is naturally corrected

o People not like themselves, perceptions are not as accurate

Stereotyping: Judging someone on the basis of our perception of the group to which they belong

o Generalizations allow us to simplify decisionso

Heuristics: judgment shortcuts in decision making Stereotypes may only provide a little bit of truth when applied to an individual

o Can lead to negative reactions, such as prejudice

Prejudice: Prejudice: an unfounded dislike of a person/group based on their belonging to a group

Dislike based on religion, state, ethnicity etc.o

Can lead to negative consequences in the workplace, such as discrimination

Why Do Perception and Judgment Matter? People in organizations are always judging each other (interviews, workplace etc.)

o Interviews make perceptual judgments during the interviewo

Negative info that arises in interviews is heavily weighted than if it arises later

An employee's future is closely tied to appraisal (promotions, pay raises, stability etc.) Evaluator's perception of good/bad has a large impact on organizational decision making

o Often employees that are promoted are similar to managers that make the decision

Performance appraisals also takes place between employees and team members

Self-Fulfilling Prophecy: People will attempt to validate their perceptions, even when perceptions are faulty

o Important when we consider performance expectations on the job

Self-fulfilling prophecy: concept that proposes a person will behave in ways consistentwith how he or she is perceived by others

Personality

What is Personality? Dynamic concept describing the growth and development of a person's psychological

systemo

Looks at some aggregate whole that is greater than the sum of the parts Personality: the stable patterns of behaviour and consistent internal states that determine

how an individual reacts and interacts with others

Measuring Personality: Researchers have found personality tests are useful in hiring decisions

o Scores on personality help managers forecast the best candidateso

Also used to better understand and more effectively manage people Commonly measured through self-report surveys in which people rate themselves

o The respondents might lie or practise impression managemento

Difficult to determine the accuracy of these reports (several variations)o

Research suggests that observer ratings are better predictions of success on the job

Personality Determinants: Personality is a result of both nature (hereditary) and nurture (environment)

o Situation also in incorporated into the development of personality

An adults personality is made up of hereditary and environmental factors with additionsfrom situations

Heredity: Heredity: factors that were determined at conception (birth)

o Physical stature, facial attractiveness, gender, temperament etc.

Your parent' biological, physiological and inherent psychological makeup Traits such as shyness, fear and distress are likely caused by genetic characteristics

o May be built into the same genetic code that affects height, hair colour etc.

Genetics can explain up to 50% of the personality differences, 30% of occupational/leisureinterestso

Personalities do change over time (conscientiousness tends to increase with age)

Personality Traits:

Personality traits: enduring characteristics that describe an individual's behaviouro

More consistent the characteristic the more frequently it occurs in diverse situations Myers-Briggs Type Indicator and Big Five Personality Model are used to identify/clarify

traits

Myers-Briggs Type Indicator: Myers-Briggs Type Indicator (MBTI): personality test that taps four characteristics and

classifies people into 1 of 16 personality types E/I measures where we direct our energy when dealing with people and things

o Extraverted: outgoing, sociable and assertiveo

Introverted: quite and shy S/N dimensions looks at how we process information

o Sensing: practical and prefer routine and ordero

Intuitive: rely on unconscious process and look at the big pictureo

Thinking: reason and logic to handle problemso

Feeling: rely on their personal values and emotionso

Judging: want control and prefer their world to be ordered and structuredo Perceiving: flexible and spontaneous

INTJs are visionaries that have original minds and great drive for their own ideas and purposes

ESTJs are organizers that are realistic, logical, analytical, decisive and are business naturals ENTPs are conceptualisers that are innovative, individualistic, versatile, entrepreneurial Forces people into one category or the other, may not be very accurate, more of a guidance

Big Five Personality Model: Five basic personality dimensions underlie all others and encompass human variation Extraversion: person's comfort level with relationships (sociable, talkative, and assertive) Agreeable: person's propensity to defer to others (good-natured, cooperative and trusting) Conscientiousness: measure of reliability (responsible, dependable, persistent and goal

oriented) Emotional stability: person's ability to withstand stress (calm, self-confident, and secure) Openness to experience: person's range of interests and fascination (imagination,

intellectual)

Research Findings: The Big Five Employees with some or all of the big five have higher job performance in most

occupationso

People with higher conscientiousness have greater job knowledgeo

Emotionally stable people have less stress, job and life satisfactiono

Extroverts are happier, have more friends, more social, stronger leaderso

Openness to experience people are more creative, better and more effective leaderso

Agreeableness are happier, first choice for others, better liked, more compliant Concerned more with pleasing others, bad negotiators

o Conscientious people live longer, less risky, organized, adaptable

Major Personality Attributes Influencing OB:

Specific personality traits have been found to be power predictors of behaviour inorganizationso

Machiavellianism, narcissism, self-monitoring, propensity, Type A/B and proactive

Core Self- Evaluation:

Core self-evaluation: degree to which an individual like/dislikes themselves, the personsees themselves as capable/effective, and the person feels in control or powerless in theirenvironmento

Positive: effective, capable and in control of their environmentso

Negative: dislike themselves, question their capabilities and view themselves as powerless

Must be confident in our abilities, if we don't believe we can do it, we wont accomplishanything

Machiavellianism: The degree to which an individual is pragmatic, maintains emotional distance, believes in

the processo High: manipulate more, win more, persuaded less, and persuade others more

Better when acting face to face, and likes minimum rules/regulations(improvising)

Better at jobs with negotiations or commission sales jobs

Narcissism: Tendency to be arrogant, excessive sense of self-importance/admiration and entitlement

o Combination of extraversion and agreeable (disagreeable extraverts)o

Tend to over rate their power than in actuality, talk down to others below themo

Less effective on the job when it come to helping other people

Self-Monitoring: Personality trait measuring the ability to adjust behaviour to external situational factors

o Able to change behaviour based on different situationso

High: capable of presenting contradictions between public and private behaviours More attention paid to others, and more capable of conforming Tend to be more mobile and receive more promotions than low self-monitors

o Low: cannot disguise themselves in the same way (true personality all the time)

Risk-Taking: Tendency to assume/avoid risk can have an impact on managers decision making times

o High risk takers made more rapid decisions and use less info than lower risk-takerso

Large organizations tend to be more risk adverse than growth oriented entrepreneurs

Type A and B Personalities: Type A: aggress involvement in a struggle to achieve more and more in less time

o More rapidly moving, impatient, multitasks, lack of leisure time and obsesses with

numbers

o Impatient, hurriedness , competitiveness and hostility (more stress, quantity over

quality)o

Working long hours, but making poor decisions as they make them too fasto

Easier to predict, less creative (more focused on productivity) Type B: an easy going, relaxed and patient

No urgency, no need to discuss accomplishments, play for fun/relaxation, relax withno guilt Type A's tend to be better at sales jobs, but Type B's are more likely to be executives

o Type A's trade for quality, and Type B's are more tactful in their approacheso

Type A's have higher stress and other health issues (higher early death rate)

Proactive Personality: Person who identifies opportunities, shows initiative, takes action and perseveres until

change occurso

Creative positive change in their environment, regardless of constraints or obstacleso

More likely to be leaders and change agents within the organizationo

More likely to leave organizations to start their own businesso Seek out info, develop strong contacts, engage in career planning and demonstrate

persistence

Emotions Strong emotions, particularly anger, interfere with an employee's ability to effectively work

o Either constructive or a simulative to performance-enhancing behaviourso

Employees bring an emotional component with themselves to work

What are Emotions? Intense feelings that are directed at someone or something

o Reactions to an object (anger, fear, sadness, happiness, disgust, surprise)o

Can turn into moods when you stop focusing on the contextual object Moods: feeling that are less intense than emotions and that lack a contextual stimulus

o Are not directed at an object, not your normal self

Choosing Emotions: Emotional Labour Emotional labour: when an employee expresses organizationally desired emotions during

interactions Emotional dissonance: inconsistencies between the emotions people feel and they show

o Can take a toll on employees (bottles up feelings)

Felt emotions: an individual's actual emotions Displayed emotions: emotions that are organizationally required and considered

appropriate Surface acting: hiding one's inner feelings to display what is expected Deep acting: trying to modify one's true inner feelings to match what is expected

Why Should We Care About Emotions in the Workplace? People who know their emotions and are good at reading other are more effective in their

The entire workplace can be affected by positive/negative emotions

Emotional Intelligence (EI): Person's ability to be self-aware, detect emotions in others, and manage emotional cues and

People who know their own emotions, and others are more likely to be effectiveo

Particularly important for leaders (communication, political skill, vision etc.)

The Case for EI: Good to possess street smarts and social intelligence (handle social situations better) People who can detect other's emotions have better control over their own emotions EI predicts criteria that matter (correlation between high EI and strong performance) Predicting emotions helps with peer ratings and picking/grooming employees People with damage to the prefrontal cortex have much lower EI scored (biologically

based) EI is neurologically based that is unrelated to standard measures of intelligence

The Case Against EI: It is unclear what EI is, whether it is a form of intelligence or not Difficult to definitively define EI as many researchers define it in different ways As EI measures intelligence the tests must have right or wrong answers, not a variety Measures of EI are diverse and researchers have not subjected them to rigorous studies EI is so closely related to intelligence and personality, EI has nothing unique to offer Not enough research on whether EI adds insight on personality and intelligence in job

performance

Negative Workplace Emotions: Voluntary actions that violate norms and threaten the organization and members

o Leaving early, laziness, stealing/sabotage, gossiping/blame, harassment etc.

Negative emotions can lead to malicious deviant behaviour in the workplaceo

Can negatively affect one's own accomplishments and other employeeso

Members of groups/organizations tend to adopt emotions of others

Affective Events Theory (AET): Theory that employees react emotionally to things that happen to them at work and that this

emotional reaction influences their job performance and satisfactiono

Emotions are a response to an event in the work environmento

Hassles: not carrying share of work, conflicts in direction, excessive time pressureso

Uplifts: meeting goals, getting support from a colleague, receiving recognition Emotions influence a number of job performance variables (OCB, and organizational

commitment) An emotional episode is actually a series of emotional experiences precipitated by a single

event Job satisfaction is influenced by current emotions at any given time along with the history

of emotions Moods and emotions fluctuate over time, and their effect on performance also fluctuates

Emotion driven behaviours are typically short in duration and of high variability Emotions tend to be incompatible with behaviours, they can influence negatively on job

performance

Emotions in the Workplace in a Global Context:

Degree to which people experience emotions across cultures People's interpretations of emotions vary across cultures

Does the Degree to Which People Experience Emotions Vary Across Cultures? In China people experience fewer positive/negative emotions than people in other cultures People in most cultures tend to experience certain positive and negative emotions

o The frequency of their experience and their intensity varies to some degree

Do People's Interpretations of Emotions Vary Across Cultures? In generally people all over the world interpret negative/positive emotions the same

o Some cultures value certain emotions more than others

Pride is seen as a positive emotion in Western cultures, but are undesirable in China andJapan

Do the Norms of the Expression of Emotions Differ Across Cultures? Yes they do, and in collective countries, people are more likely to believe that the

emotional display of another have something to do with their own relationship with the person

Easier for people to recognize emotions of those of their own culture Some cultures lack words from emotions that we are accustomed too Managers need to know the emotional norms in each culture they do business in

o If they don't they might send unintended signals or misread the reaction of others

Chapter 3

Values Basic convictions that a specific model or conduct or end-state of existence is personally or

socially preferable to an opposite or converse mode of conduct or end-state of existenceo

A judgmental element that separates an individual's ideas of what is right, good, ordesirable

o Most values are formed by parents, friends, teachers, media etc.

Rokeach's Value Survey: The survey classifies the values that people hold in two sets (each containing 18 value

items)o

Terminal values (desirable end-state): goals individuals would like to achieve duringtheir lifetime

o Instrumental values: preferable ways of behaving

People in the same occupation/category tend to have similar valueso

Differences in groups makes it difficult to communicate and negotiate

Hodgson's General Moral Principles: Ethics: study of moral values/principles that guide our behaviour (what is right or wrong) Seven general principles should be followed to be principled, appropriate and defensible

o Respect people, people are intrinsically valued and have the right to self-

determination, tell the truth, promises/contracts should be honours, people should betreated justly, actions should accomplish good, and the greatest good for the greatestnumber

Accessing Cultural Values:

Hofstede's Framework for Assessing Cultures: Power distance: degree to which people in a country accept the unequal distribution of

powero

High: large inequalities of power and wealth, and are tolerated (class or caste system) Individualism: degree to which people act as individuals rather than part of a group

Collectivism: tight social framework, people look after and protect each other Masculinity: degree to which culture favours traditional masculine roles (power, control

etc.)o

Femininity: cultures see little difference between male and female roles (equals) Uncertainty avoidance: degree to which people prefer structure to unstructured situations

o High: increased anxiety, ambiguity, fewer laws and controls to reduce uncertainty

Long-term orientation: a national culture that focuses on the future, thrift and persistence Short-term orientation: a national culture with emphasis on the past and present

The Globe Framework for Assessing Cultures: Global Leadership and Organizational Behaviour Effectiveness (GLOBE)

o Cross-cultural investigation of leadership and national culture

Assertiveness: extent to which a society encourages people to be tough Future orientation: extent to which society encourages and rewards planning, investing etc. Gender differentiation: extent to which society maximizes gender role differences Uncertainty avoidance: society's reliance on social norms and procedures for future

predictions In-group collectivism: extend to which society takes pride in membership in small groups Performance orientation: extent to which society encourages group members for

improvement Humane orientation: extend to which society encourages individuals for being fair,

generous etc. The GLOBE study confirmed the findings of Hofstede's study

Values in the Canadian Workplace When individual values align with organizational values, it is positive

o Lead to positive work attitudes, lower turnover, greater productivity

Generational Differences: Elders, Baby Boomers, Generation X represent 12 distinct value tribes

o Broad generalizations, there are individual differenceso

Most of the generation has the same values and mindset

The Elders: Play by the rules, and there core values are in order (authority, discipline etc.)

80% represent traditional values

Baby Boomers: Influenced by civil rights movement, women's movement, Vietnam war, Beatles

o Rebellious, anxious communitarians, connected enthusiast and disengaged Darwinistso

Rejection of authority, concern for environment, equality

Generation X: Shaped globalization, two-career parents, MTV, AIDS and computers

o Value flexibility, life options and job satisfaction, skeptical, particularly of authorityo

Thrill seeking, aimless dependants, social hedonists, Aquarians and post-materialists

The Ne(x)t Generation: prosperous times, high expectations and seek meaning in work, life goals (wealth oriented) Technologically advanced, socially conscious, and entrepreneurial

The Generations Meet in the Workplace: By using generational differences we can predict social values and behaviour Managers must be flexible to manage different generations in the same workplace

Cultural Differences: Even though we have a multicultural society there are tensions among people of different

raceso

Canadian's define themselves as not American (different values) Generally country's/society's values change based on major events or changes/shifts (9/11,

Obama)

Francophone and Anglophone Values: Francophones are more collective, group-oriented, need for greater achievement, intrinsic

valueso

Committed to organizations, reducing ambiguity and uncertainty at worko

Introverted, sensing, thinking and judging Anglophones are more individualistic, I-centred, take more risks

o Intuitive, feeling and perceiving

Aboriginal Values: Increasing entrepreneurship by aboriginals and other business partnerships

o Believe in traditional culture, value and languages, self-sustaining economieso

More likely to reflect goals that advance the community

Asian Values:

Chinese and South Asian are the largest visible minorities in Canadao

Tend to exhibit greater power distance and greater collectivism Gaunxi: connection between two independent individuals to enable a bilateral flow of

personal or social transactions Western firms must understand Gaunxi in order to conduct business with Asian firms

Attitudes Evaluative statements (positive/negative) about people, objects or events (responses to

situations) Employees may be negatively affected by the attitudes of their co-workers or clients

Job Satisfaction: An individual’s general attitude toward his or her job Most people in Canada/USA would not recommend their work and are not satisfied

What Causes Job Satisfaction:

Most people prefer challenging and stimulating work over predictability and routine After a comfortable living ($40,000) money satisfaction changes (less important) Core self-evaluation: people who believe in their inner worth and basic competence

Job Satisfaction and Productivity: The correlation between job satisfaction and job performance is moderately strong Job satisfaction and productivity both effect each other positively

o Higher productivity will bring in a larger salary and better working conditions

Job Satisfaction and Organizational Citizenship Behaviour: OCB can help an organization function more efficiently and effectively

o Job satisfaction is a major determinant of an employee's OCBo

If the workplace is not fair, job satisfaction and OCB are likely to be effected

Job Satisfaction and Customer Satisfaction: Employee satisfactions is related to positive customer outcomes (customer service etc.)

o Familiar and happy employees increases customer appreciationo

Employees that encounter customer dissatisfaction will not satisfied

How Employees Can Express Dissatisfaction: Employees can complain, steal property, be slow or not perform their duties (deviant

behaviour) Exit: dissatisfaction expressed actively attempting to leave the organization Voice: dissatisfaction expressed by actively and constructively attempting to improve

conditions Loyalty: dissatisfaction expressed by passively waiting for conditions to improve Neglect: dissatisfaction expressed by passively allowing conditions to worsen Exit/neglect represent lowered productivity, absentees, and turnover

Managers Often Don't Get It:

Some managers are unconcerned or overestimate job satisfaction Mismatch between what managers think, and about how employees feel

Organizational Commitment: An employee identifies with an organization and its goals, yet stays with their own

organization Affective commitment: emotional attachment/identification/involvement with an

organization Normative commitment: the obligation an individual feels to staying with the organization Continuance commitment: calculation to stay with an organization base on cost of leaving Commitment and performance is better for newer employees than experienced Employees with high organizational commitment are likely to engage in OCB

Employee Engagement: An individual's involvement/satisfaction/enthusiasm for the work he/she does

o Higher engaged employees leads to higher productivity, profits and customer

satisfaction

Managing Diversity in the Workplace Companies that design and publicize diversity are producing value statements

o Companies hope to change/influence the behaviour of employees, but it is difficult

Responses to Diversity Initiatives: Generation X embraces egalitarian and pluralistic values

o As they move through the workplace, diversity tensions will lessen (fewer initiatives

needed) Employees may exhibit negative reactions to diversity even if the organization supports it

Cultural Intelligence (CQ): Ability to understand someone's unfamiliar and ambiguous gestures in the same way as

would people from that person's cultureo

Determine if a person's behaviour is representative of a group or just that person

Research Findings: Cultural Intelligence People who have CQ look for clues to help identify a culture's shared understanding

o Looking for consistencies across a variety of people from the same group

Provincial: work best with people of similar backgrounds, difficulties working with others Analyst: analyze a foreign culture's rules/expectations to determine how they interact Natural: use intuition to understand those from other cultural backgrounds Ambassador: communicate convincingly that they fit in, even if they don't know much Mimic: control actions/behaviours to match others Chameleon: have high levels of CQ components, mistaken as from another culture

Chapter 4

What is Motivation? Motivation: the intensity, direction and persistence of effort a person shows in reaching a

Intensity: how hard a person trieso

High intensity is unlikely to be beneficial unless it is channeled correctly Effort requires persistence (measure of how long a person can maintain his/her effort) Theory X: suggests that employees dislike work, will attempt to avoid it, and must be

coerced, controlled, or threatened with punishment to achieve goalso

Suggests that people are extrinsically motivated Theory Y: suggests that employees like work, are creative, seek responsibility, and will

exercise self-direction and self-control if they are committed to the objectiveso

Suggests that people are intrinsically motivated Motivation is the result of the interaction of the individual and the situation

o The level of motivation differs both among individuals and within individual at

different times Intrinsic motivators: a person's internal desire to do something, due to such things as

interest, challenge, and personal satisfaction Extrinsic motivators: motivation that comes from outside the person and includes such

things as pay, bonuses and other tangible rewards Punishment by Rewards: suggests that if the right environment is provided, people will be

motivated

Needs Theories of Motivation Needs theories: describes the types of needs that must be met to motivate individuals Process theories: help us understand the actual ways in which we and other can be

motivated Needs theories have been criticized for not holding up to scientific review

o The theories represent a foundation from which contemporary theories have growno

Managers still use these theories and terminology in explaining employee motivation

Maslow's Hierarchy of Needs Theory: A hierarchy of five needs - psychological, safety, social, esteem and self-actualization - in

which as soon as each need is substantially satisfied, the next need becomes dominanto

Physiological: includes hunger, thirst, shelter, sex and other bodily needso

Safety: includes security and protection from physical and emotional harmo

Social: includes affection, belongingness, acceptance and friendshipo

Esteem: self-respect, autonomy, achievement, status, recognition and attentiono

Self-actualization: growth, achieving one's potential, and self-fulfillment No need is ever fully met, but substantially satisfies allows for advancement

o To satisfy someone, you must determine what level of the hierarchy the are currently

present Higher order needs are satisfied internally, while lower order externally

ERG Theory:

Version of Maslow's hierarchy that includes three core needs: existence, relatedness andgrowth

Believed that an individual could be focused on all three levels at once

Motivation-Hygiene Theory:

Relates intrinsic factors to job satisfaction and associates extrinsic factors withdissatisfaction Achievements, recognition, responsibility, advancement and growth are related to job

satisfactiono

People that felt good about work, attributed these characteristics to themselves Extrinsic factors like policies, administration, supervision etc. are related to dissatisfaction

o People that are dissatisfied, they attribute the extrinsic factors

Herzberg proposed satisfaction/no satisfaction and dissatisfaction/no dissatisfaction Factors of job satisfaction (motivators) are different factors of dissatisfaction (hygiene

factors)o

Hygiene factors: policy, salary, admin, supervision, interpersonal relations etc.

When these factors are satisfied, people will not be dissatisfied Motivation is emphasized through achievement, recognition, responsibility and growth The procedures used in the theory are limited, as it attends to blaming/attributing certain

characteristics The reliability of the theory is questionable as there may have been tainted results No theory was actually created, and no measure of satisfaction was used The theory ignores previous research such as situational variables

McClelland's Theory of Needs: Achievement, power and affiliation are three important needs that help explain motivation Achievement: drive to excel, to achieve in relation to a set of standards, to strive to succeed

o People striving to do things better, seeking more responsibility, challenging taskso

High probability tasks, that are not too easy, or too hard, but that can be accomplishedo

More focused on individual performance rather than the firm or organization Power: need to make others behave in a way that they would not have behaved otherwise

o Desire to impact others and have control over situations and otherso

Tend to be more competitive and focused on status/prestige rather than effective performance

Affiliation: desire for friendly and close interpersonal relationshipso

Strive for friendly relationships rather than competitive/high understandingrelationships

The best managers tend to have a high need for power and low need for affiliation

Summarizing Needs Theories: Individuals have needs that, when unsatisfied, will result in motivation There are different needs that must be met before other needs can be considered

Process Theories of Motivation:

Expectancy Theory:

Individuals act depending upon their evaluation of whether their effort will lead to good performance, whether good performance will be followed by a given outcome, and whetherthat outcome is attractive

Effort-Performance Relationship:

Expectancy: the belief that effort is related to performance Individual perception of how probably it is that a given effort will lead to good

performance Employee expectancy is influenced by self-esteem, previous success, help from

supervisors, information and proper materials/equipment

Performance-Rewards Relationship: Instrumentality: the belief that performance is related to rewards

o Negative instrumentality indicated that high performance reduces the chances of a

desired outcomeo

0 instrumentality indicates no relationship between performance and receiving the

desired outcome Individual perception of whether performing at a given level will lead to a desired outcome

o Whether the performance will be acknowledge by those who allocate rewards

Rewards-Personal Goals Relationship: Valence: the value or importance an individual places on rewards

o Ranges from -1(very undesirable reward) to +1(very desirable reward)

Degree to which organizational rewards satisfy goals/needs and attractiveness of potentialrewards

Managers often do not have the resources to reward, or reward the wrong things foraccomplishments

Expectancy Theory in the Workplace: Research of the theory, even in cross-cultural settings have supported the expectancy

theory

Goal-Setting Theory: Intentions of working toward a goal are a major source of work motivation

o Goals tell employees what needs to be done and with how much effort

Some firms leave goal setting up to managers, although goals may then not be set Management by objective (MBO): managers and employees jointly set performance goals

that are tangible, verifiable and measurableo

Progress on goals is often reviewed and rewards are allocated on the basis of the progress

How Does Goal Setting Motivate? Goals indicate where individuals should direct their efforts when prioritizing Goals suggest how much effort an individual should put into a given task Goals create persistence so effort will be spent on a task over time Goals will help people develop plans for achieving specific goals

All effective goals must include the acronym SMARTo

S pecific: individuals know exactly what is to be achievedo

Measurable: the goals proposed can be tracked and reviewedo

Attainable: goals, even if difficult, are reasonable and achievableo

R esults-Oriented: goals should support the vision of the organizationo

Time-Bound: goals are to be achieved within a stated time

Research Findings: The Effect of Goal Setting Specific goals increase performance, under certain conditions

o Specific goals can be linked to poorer performance in complex tasks (not focused on

alternatives) Difficult goals, when accepted, result in higher performance than do easy goals

o This does not work when employees believe the goals are unattainable

Feedback leads to higher performanceo

Let’s people know how they are doing, and if necessary how to adjust effort, direction

Goals are equally effective whether anticipatively set, assigned, or self-seto Employees are more likely to accept goals if they are anticipatively set

Goal commitment and financial incentive affect whether goals are achievedo

Financial incentives can lower commitment to difficult goals (leads to problems) The implication of goal setting is that achievement will result in intrinsic satisfaction

Self-Efficacy Theory: Refers to an individual's belief that he/she is capable of performing a task

o Higher self-efficacy means the more confidence in the ability to succeed in a task

Respond to negative feedback with increased effort and motivation Setting difficult goals for people communicates confidence in that person

o Creates confidence in yourself and you set higher personal goals which creates better

performance Self-efficacy is increased through enactive mastery, vicarious modelling, verbal persuasion

and arousalo

Enactive mastery: gaining relevant experience with the task or job (increasedconfidence)

o Vicarious modelling: becoming more confident because you see someone else doing

the tasko

Verbal persuasion: becoming more confident because someone convinces you thatyou have the skills necessary to be successful

o Arousal: leads to an energized state, which drives a person to complete a task

Training programs work because it increases self-efficacy Pygmalion effect: form of self-fulfilling prophecy in which believing something is true can

make it trueo

Self-efficacy is increased to a higher individual that the person is of high ability Galatea effect: when high performance expectations are communicated directly to an

employee Intelligence and personality, conscientiousness and emotional stability, can increase self-

efficacy

Self-efficacy may only be present in smart, confident people (may besuperfluous/unnecessary)

Responses to the Reward System Equity theory suggests that individuals evaluate and interpret rewards

Employees are sensitive to fairness issues that extend beyond the reward system and effectmotivation

Equity Theory: Individuals compare their job inputs and outcomes with those of others, and then respond

as to eliminate any inequitieso

If the situation is fair, then the relationship is in a state of equity

To Whom Do We Compare Ourselves? There are four referent comparisons that an employee can use:

o Self-inside: employee's experiences in a different position inside their current

organizationo Self-outside: employee's experiences in a situation/position outside their current

organizationo

Other-inside: another individual/group of individuals inside the employee'sorganization

o Other-outside: another individual/group of individuals outside the employee's

organization Four moderating variables that effect comparisons:

o Gender: women and men compare each other (pay, expectancy, equality)o

Length of tenure: short tenure will mean little info about their current organization Rely more on persona experiences, rather than in-organization comparisons

o Level in the organization: higher ranked employees tend to have more info about their

organization

What Happens When We Feel Treated Inequitably: When employees perceive an inequality, they can be predicted to make one of six choices:

o Change their inputs (ex. Exerting less effort)o

Change their outcome (ex. Work harder to show that he/she deserves something)o

Adjust perceptions of self (ex. Maybe I am not comparable to others similar to me)o

Choose a different referent (ex. Consider other individuals with similarities)o

Leave the field (ex. Change job, or organization)

Research Findings: Inequitable Pay When paid by time worked, over rewarded employees will produce more than will

equitable paid employees When paid by time worked, under rewarded employees will produce less or poorer quality

output When paid by number of units produces, over rewarded employees will produce fewer, but

higher-quality, units than will equitable paid employees

When paid by number of units produces, under rewarded employees will produce a largenumber of low quality units in comparison with equitably paid employees

Those who are over rewarded do not seem to change their behaviour Some people simply do not worry about how their rewards compare with those of others For most employees, motivation depends on relative rewards

Fair Process and Treatment: Distributive justice: perceived fairness of the amount of allocation of rewards among

individuals Organizational justice: an overall perception of what is fair in the workplace, composed of

distributive, procedural, and interactional justice Procedural justice: perceived fairness of the process used to determine the distribution of

rewardso

Includes having a voice in a decision and feeling the outcome is adequate Interactional justice: quality of interpersonal treatment received from a manager When employees are treated in an unjust manner, they respond by retaliating

Perceptions of injustice are more closely related to one's supervisor Distributive justice is strongly related to satisfaction with outcome and organizational

commitment Procedural justice relates to job satisfaction, employee trust, withdrawal from the

organization, job performance and organizational citizenship behaviour Employees are sensitive to unfairness in procedures when bad news is communicated When addressing perceived injustices, managers need to focus their actions on the source

of the problem

Cognitive Evaluation Theory: Introduction of extrinsic rewards for an effort that was previously intrinsic will decrease

productivityo

Tend to decrease the overall level of a person's motivation People in a way punished by rewards, and do inferior work when they are enticed by

money, grades etc.

Extrinsic vs. Intrinsic Rewards Theory suggest that has extrinsic rewards are given intrinsic rewards are reduced When an individual’s experiences a loss of control over their behaviour when it is being

rewarded by external sources Show have pay non-contingent on performance in order to avoid decreasing intrinsic

motivationo

Instead pay fairly and allow individual's intrinsic motivation to guide performance

Research of Findings: Cognitive Evaluation Theory Extrinsic rewards that are verbal can have different effects on an individuals' intrinsic

motivatorso

Verbal rewards increase intrinsic motivation, while tangible decrease it Self-concordance: degree to which a person's reasons for pursuing a goal is consistent with

the person's interests and core values

People who pursue goals for intrinsic reasons are more satisfied with their jobso

Feel like they fit into their organization better, and may perform better

Increasing Intrinsic Motivation: Four key rewards that increase an individual's intrinsic motivation:

Sense of choice: opportunity to select what one will do and perform the way onethinks besto

Sense of competence: feeling of accomplishment for doing a good jobo

Sense of meaningfulness: opportunity to pursue worthwhile taskso

Sense of progress: feeling of accomplishment that one is making progress on a task Four sets of behaviours managers can use to build intrinsic rewards for their employees:

o Leading for choice: empowering employees and delegating taskso

Leading with competence: support and coaching employeeso

Leading for meaningfulness: inspiring employees and modelling desired behaviourso

Leading for progress: monitoring and rewarding employees

Motivating Employees Through Reinforcement: People learn how to behave to get something they want or to avoid something they don't

want Operant conditioning: behaviour is influenced by reinforcement or lack of reinforcement

brought about by the consequences of the behaviour People are likely to engage in desired behaviours if they are positively reinforced for doing

Rewards are most effective when directly followed by the desired behaviour If a behaviour fails to be positively reinforced, the probability that the behaviour will be

repeated declines

Methods of Shaping Behaviour: Positive reinforcement: following a response with something pleasant Negative reinforcement: following a response by the termination or withdrawal of

something pleasant Punishment: causing an unpleasant condition in an attempt to eliminate an undesirable

behaviour Extinction: eliminating any reinforcement that is maintaining a behaviour

Schedules of Reinforcement: Continuous reinforcement: desired behaviour is reinforced each and every time it is

demonstrated Intermittent reinforcement: desired behaviour is reinforced often enough to make the

behaviour worth repeating, bot not every time it is demonstrated Fixed interval: the reward is given at fixed time intervals Variable-interval: reward is given at variable time intervals Fixed-ratio: reward is given at fixed amounts of output Variable-ratio schedule: reward is given at variable amounts of output

Motivation for Whom?

These theories may just be a way for managers to get what they want from employeeso

Does not necessarily mean an increase in employee productivity

Putting It All Together: Recognize individual differences: employees have different needs and should not be treated

alikeo

Managers should understand what is important to each employee and aligngoals/rewards

Use goals and feedback: employees should have challenging, specific goals and feedback Allow employees to participate in decisions that affect them

o Employees can set goals, solve productivity, quality problems, job satisfactions etc.

When giving rewards, be sure that they reward desired performanceo

Rewards should be linked to the type of performance expected Check the system for equity: employees should be able to perceive rewards as equating

with the input they bring to the job

Chapter 5

From Theory to Practice: The Role of Money There are personality traits and demographic factors that correlate with and individuals

attitude toward money People who value money highly score higher on competitiveness, materialism and control

o Score higher on self-esteem, need for achievement and Type A personality measures

Organizations need to understand individuals' needs when rewarding

Creating Effective Reward Systems

What to Pay: Establishing a Pay Structure The worth of the job in the organization and relative to the market determines job pay

structure Paying more may attract better qualified and more motivated employees Firms that pay below market level may have high turnover or not be able to afford higher

salaries

How to Pay: Rewarding Individuals through Variable-Pay Programs Variable-pay programs: a portion of an employee's pay is based on some individual and/or

organizational measure of performance

Costs for organizations decline as productivity declines as pay is variable

Individual-Based Incentives: Piece-rate pay: employees are paid a fixed sum for each unit of production completed

o Many firms modify this plan and add a base salary to the variable pay plan

Merit-based pay: based on performance appraisal ratingso

Individuals perceive a strong relationship between performance and rewards

o Separation between the most productive and blow average producers (lower pay

increases) Bonuses: rewards employees for recent performance rather than historical performance

o Focus on the recent past, and rewards employees for high productivity or better work

ethico

Rewarding individuals based on bonuses can cause problems (financial crisis 2008) Skill-based pay: sets pay based on how many skills employees have/how many jobs they

can doo

Employees may top out and not be able to have any more pay increaseso

Employees may be paid for skills they may not need immediately or evero

Pay is not based on the level of performance which may vary

Group-Based Incentives: Gainsharing: improvements in group productivity determine the total amount of money to

be sharedo

Focuses on productivity gains rather than profitso

Rewards specific behaviours that are less influenced by external factors

Organizational-Based Incentives: Profit-sharing: employer shares profits with employees based on a predetermined formula

o Employees may ignore customer service and employee developmento

Companies in cyclical industries would see varied results, thus varied profit-sharingo

Best in organizations with more teamwork, and managerial philosophy encouraging participation

Stock options and employee stock ownership plans (ESOP): company-established benefit plan in which employees acquire stock as part of their benefitso

Employees will think more about their actions if they have ownership in theorganization

Teamwork: incentive pay to individuals can lead to problems in group productivity andcohesivenesso

Organizations focused of teamwork must focus incentives on the team not individuals Unions: employees are usually paid based on seniority and job categories, with little

movemento

Against variable pay as it may lead to competition and increased work stress Public Sector Employees: difficult to link productivity as most of these jobs are service

basedo

The goal setting theory is better applied to these types of employees

Research Findings: ESOPs Have the potential to increase job satisfaction and work motivation Takes ownership and participative style to achieve improvements in the firm's performance

Research Findings: Variable-Pay Programs Variable-pay programs increase motivation and productivity

o Does not mean this is true for all organizations or employees

Teamwork, unions, public sectors, and ethics are problems to the pay-for-performance program

Flexible Benefits: Developing a Benefits Package Different employees have different needs and ideas about their benefits

Flexible benefits: employees put together a benefits package individually tailored to theirown needs Modular plans: predesigned packages of benefits that fit a specific group of employees Core-plus plans: consist of a core benefits package with other added options available Flexible spending accounts: given money to purchase of package of benefits

Intrinsic Rewards: Employee Recognition Programs Recognition given to employees may not be enough in some jobs, organizations

Linked Employee Recognition Programs and Reinforcement Theory: Recognition is the best motivator in the workplace according to employees

Team celebrations can enhance group cohesiveness and motivation

Employee Recognition in Practice: Recognition programs are attractive to organizations as they are cost effective Recognition may reduce turnover, particularly in good employees

Caveat Emptor: Apply Motivation Theories Wisely

Motivation Theories are Culture-Bound: Being a member of a successful team with shared goals and values, rather than financial

rewards, drives Japanese sales representatives to succeed Countries with high uncertainty prefer pay based objective, because it is guaranteed Countries with high value on individualism place emphasis on individual responsibility to

perform Countries with high humane orientation offer social benefits and programs to employees

and families

Evaluating Motivation Theories Cross-Culturally: Other cultures focus on motivating a group of employees rather than individuals Different cultures/countries place different benefits and needs above others Employees expect that outputs will be greater than their inputs It is important to determine the internal norms of a country when developing an incentive

Provide Performance Feedback: Employees need to be given performance feedback to determine if rewards are equitable Managers are often uncomfortable discussing weakness with employees Many employees become defensive when their weaknesses are pointed out Organizations must train managers to provide and give employee feedback

Beware the Signals that are Sent by Rewards: Individuals are unable to break out of old ways of thinking about reward and recognition

practices Organizations often don't look at the big picture of their performance system

o Units often end up competing against each other, instead of working together

Both management and shareholders often focus on short-term resultso

They don't reward employees for longer-range planning This all happens when organizations hope for one thing but then reward for something else

Can We Just Eliminate Rewards: Employee commitment benefits organizations as they work harder, and have more

devotion, rather than waiting to be rewarded for each action or success

Creating a Motivating Work Environment: Must determine if employees have the adequate tools, equipment, materials, and supplies

o Working conditions, helpful co-workers, supportive work rules and procedures,

sufficient information and adequate time are also very important Abolish incentive pay: paying employees generously allows them to focus on the goals of

the organization rather than pay Re-evaluate Evaluation: change the evaluation system structure to reflect a two-way

conversation between the employees and management/ownership Create the conditions for authentic motivation: help employees rather than survey them,

provide lots of feedback so they now how to improve and be the best they can be Encourage collaboration: people are more likely to perform better in well-functioning

groupso

Allows team members to provide feedback for each other Enhance content: people are generally more motivated when their jobs require them to

learn new skills, partake in a variety of tasks, and enable them to demonstrate competenceo

Can make a job role more important or enhance the level, or toughness of work Provide choice: more likely to like their jobs if employees are given the ability to free make

decisions and carry out taskso

Can lead to a different workplace and create incentives better than extrinsicmotivators

o This process does not take immediate affect, but rather effects will be seen in the

long-term

Job Redesign: Job design: how tasks are assigned to form a job

o The way the elements in a job are organized can increase/decrease effort

Job Rotation: The periodic shifting of an employee from one task to another When an activity is no longer challenging, an employee is rotated to another job at the

same levelo

The job will have similar skill requirements as the last one Used to ensure new employees learn different tasks and the skills that are associated

o Helps if there are absentees, more employees are able to cover a variety of jobso

Decreases the frequency of repetitive stress injuries Reduces boredom and increases motivation by diversifying employee activities

o Helps organizations develop better employees with more flexibility

Job Enlargement: The horizontal expansion of jobs

o Increasing the number and variety of tasks that an individual performs

Results in jobs with greater diversity Employees learn to complete the tasks in different units and levels of the organization

o Reduces the need for meetings, reduces the cost of office equipment and allows for

job continuity during holidays or sick days

Job Enrichment and the Job Characteristics Model: Job characteristics model (JCM): identifies five core job dimensions and their relationship

to personal and work outcomeso

Focuses on the content of jobs rather than the context of jobso Cab be used to motivate employees by increasing job satisfaction

Job enrichment: the vertical expansion of jobso

Increases the degree to which workers control the planning, execution, and evaluationin their work

o Enriched jobs organizes tasks so that employee does a complete activityo

Expands freedom and independence, increases responsibility, and provides feedback

Core Job Dimensions: Skill variety: degree to which the job requires a variety of different activities so the

employee can use a number of different skills and talents Task identity: degree to which the job require completion of a whole and identifiable piece

of work Task significance: degree to which the job has a substantial impact on the lives/work of

other people Autonomy: degree to which the job provides substantial freedom, independence, and

desecration to the individual in scheduling the work and determining the procedures to beused in carrying it out

Feedback: degree to which carrying out the work activities required by the job results in theindividual obtaining direct and clear information about the effectiveness of his/her performance

Critical Psychological States: Experienced meaningfulness: if an employee's task is meaningful, the employee will view

the job as important, valuable and worthwhile Experienced responsibility for outcome: employees feel a sense of personal responsibility

for results when their jobs given them greater autonomy Knowledge of the actual results: feedback helps employees know whether they are

performing effectively

The more employees experience meaningfulness, responsibility, and knowledge, thegreater motivation, performance and satisfactiono

Less likely employees will be absent, and reduces turnover

Motivating Potential Score:

JCM can be viewed as increasing employee motivation by creating better jobs Motivating potential score (MPS): a predictive index suggesting the motivation potential in

a jobo

Jobs with high motivation potential must be high on one or more of skill variety, taskidentity or task significance Predicts high motivation leads to higher satisfaction

Research Findings: JCM It is argued that there are better ways of deriving motivation that the JCM

o Could also add employee perception of their workload compared to otherso

Moderate the link between the core job dimensions and personal/work outcomes

It is inconclusive whether job enrichment actually affects job productivity

Job Redesign in the Canadian Context: The Role of Unions Job redesign often results in job loss, and labour unions have tried to prevent this In the 1990's some unions decided to partake in negotiations for job redesign for union

members Management must gain employees' acceptance whether they are in a union or not

Creating More Flexible Workplaces Flexible workplaces allow for employees to ease the stress of juggling family needs

alongside work

Compressed Workweek: A four-day week, with employees working 10 hours a day; or nine days of work over two

weekso

Gives employees more leisure and shopping timeo

Allows for travel to and from work outside rush hours Can increase enthusiasm, morale, and commitment to the organization

o Also can make it easier to recruit employees to the organization

Flextime: Employees work during a common core period each day, but can form their total workday

from a flexible set of hours outside the coreo

Gives employees discretion about when they go and leave worko

Extra hours can be accumulated and made up to be the equivalent of a free day Improves productivity and satisfaction while reducing absenteeism and turnover

Job Sharing: The practice of having two or more people split a 40-hour-a-week job

Allows organizations to acquire skilled workers who might not be available on a full-time basis

Telecommuting: Employees do their work at home on a computer that is linked to their offices

Could be at least two days a week on a computer linked to their officeo

Can increase productivity and decrease stress while providing better service to clients Employees may miss out on in-workplace activities such as meetings and events

o Telecommuting can decrease the commitment to the organization as there is increased

distance

Chapter 6

Teams vs. Groups: What's the Difference?

Group: two or more people with a common relationship (do not necessarily engage incollective work) Team: small number of people that work closely together toward a common objective

(accountable)o

Share leadership, individually accountable, purpose or mission, problem solving andeffective

Why Have Teams Become So Popular? Teams have greater flexibility compared to traditional departments/structures Teams have the potential to be more productive, but must have the key characteristics

o More motivation, quickly assembly, deploy, refocus and disband

Types of Teams

Problem-Solving Teams: 5-12 employees from the same department who meet a once a few hours a week

o Discuss ways of improving quality, efficiency and the work environmento

Also be planning teams, task forces or committees organized to get tasks done Employees share ideas or suggestions, but do not get to implement suggested actions

Self-Managed Teams: 10-12 employees who take on many responsibilities of their former managers

o Includes planning/scheduling of work, assigning tasks, taking action etc.

Fully self-managed have their own members/leader and evaluate each other Self-managed teams often perform better than teams with formally appointed leaders Effectiveness of the team depends on the makeup, tasks being done and reward structure

Cross-Functional Teams: Group of employees from about the same level of different areas that work to accomplish

o Task force: a temporary cross-functional teamo

Committee: group composed of members from different departmentso

Allows employees to exchange info, develop new ideas, solve problems andcoordinate

Skunkworks: Cross-functional teams that develop to create new products or work on complex problems

o Gives teams the ability to work on projects without being watched by the

organization

Virtual Teams: Uses computers to tie together physically dispersed members in order to achieve a goal

o Most teams today are virtual by sharing links, documents, video conferencing etc.

Virtual teams do not have physical interaction and are less satisfiedo

Difficult to build trust, when team members have not met in persono

Virtual teams build trust through the tone or attitude of the conversations

From Individual to Team Member

Roles: A set of expected behaviours of a person in a given position in a social unit

Role Conflict: Role expectations: how others believe a person should act in a given situation Role conflict: one role requirement may make it more difficult to comply with another role

o Creates internal tension, frustration

Role Ambiguity: When a person is unclear about the expectations of his or her role

o Leads to confusion, stress, bad feelings

Role overload/underload: too much or too little is expected of someone

Norms: Acceptable standards of behaviour within a group that are shared by the group's members

o Act as a means of influencing the behaviour of the group

Common social norms: performance, appearance, social arrangement, and allocation ofresources

The How and Why of Norms: Norms develop gradually as group members become acquainted and determine

functionalityo

Explicit statements: instructions from the group's powerful member establishes normso

Critical events: things that have happened in the past that have change the group'sdynamic

o Primacy: first behaviour pattern that emerges in a group often sets team expectations

o Carry-over behaviour: expectations brought with members from other group

situations Norms facilitate the group's survival, increases predictability of group members' behaviour,

reduces embarrassing interpersonal problems for group members and createsindividual/group identity

Conformity: Adjusting one's behaviour with the norms of the group

o Can impact members by forcing them to act/behave that is consistent with other

members Conformity explains why some work groups are more prone to anti-social behaviour than

otherso

Anti-social groups may lead to individuals being anti-social on their own time

Stages of Group and Team Development

The Five-Stage Model: Shows how individuals move from being independent to working interpedently with group

members Stage 1 Forming: first stage in a group development, characterized by much uncertainty

o Testing the behaviour of the group and starting to become a team

Stage 2 Storming: group development, characterized by intragroup conflicto

Conflict of ideas, leadership, and planning Stage 3 Norming: development characterized by close relationships and cohesiveness

o Conflict resolution, developing relationships, and solidified structure

Stage 4 Performing: development when the group is fully functionalo

Team comes together and starts task progress (understanding tasks at hand) Stage 5 Adjourning: when temporary groups' attention is directed to wrapping up activities

The Punctuated-Equilibrium Model: Temporary groups often do not follow the five-stage model and have different actions

Phase 1: First meeting creates a framework of behaviour and assumptions for the team During inertia teams tend to stand still or become locked into a fix course of action (phase

Usually team members do not complete assigned tasks or work relatively slow

Phase 2: Moves out of the inertia stage and recognizes that work needs to be completed

o Most often happens at the halfway point of the teams timeline (halfway to the

deadline)o

Transition from phase 1 to 2, drops old patterns and the group adopts new ones The teams productivity bursts and there is often a last chance burst to finish all work at the

Applying the Punctuated-Equilibrium Model: Characterizes deadline-oriented teams in which there are stages of low and high

productivity Combined forming and norming, then lower performing, storming, high performing then

adjourning

Creating Effective Teams Effective team characteristics: resources, team composition, work design and team process Model of team effectiveness is a generalization and cannot be applied to all teams

o Assumes that teamwork is preferable or individual work in a give circumstance

Context: Teams need to manage support, and organize structure that supports teamwork Adequate resources, effective leadership, climate of trust of performance evaluation are key

Adequate resources:

Teams rely on resources from outside the team to complete tasks and meet goalso Teams rely on support from the organization (technology, encouragement, info etc.)o

Critical for teams to receive necessary support from organizations to achieve theirgoals

Leadership and Structure: Leaders must help groups set a direction, bond, work effectively, receive support and

provide coaching Help team members find rolls and integrate individual skills into the overall team plans Managers are still important in self-managed teams as they manage the outside

circumstances Multi-team system: different teams in the same system that work towards a common

goal/outcomeo

Managers act as coordinators between the different teams (increased efficiency)

Climate of Trust: Trust reduces the need to monitor behaviour, and help members believe in the group Trusting groups will allow for members to take more risks and expose vulnerabilities

Performance Evaluation and Rewards: Group appraisals, profit sharing, gain sharing, group incentives and others will reinforce

team effort When there are large salary variations in a group, collaboration is lowered

Composition: How a team is staffed depends on many variable that will affect the dynamic/efficiency of

the team

Skills: Teams need people with technical expertise

Problem solving and decision making skills help generate alternatives and identify problems

Interpersonal skills such as feedback, conflict resolution and listening are favourable forteams

Group members may take on learning or enhancing one of these three types of skills

Teamwork Skills: Orienting teams to problem-solving situations: provides an understanding or direction Organize/mange team performance: establish team goals, monitors, evaluates, and provides

feedback Positive team environment: creating norms, helps supports other team members, model

behaviour Facilitates/manages task conflict: recognizes conflict and resolves/manages conflicts Promotes perspective: argues for different points, knowledge based arguments

Personality:

Teams with higher levels of conscientiousness, and openness to experience perform bettero Teams with more than one disagreeable members tend to be worse off

Team performance is often better when members are relatively on the same levelo

High conscientious members must compensate for low conscientious people

Roles: Task-oriented roles: roles performed by group members to ensure that tasks are

accomplishedo

Initiators, information seekers, information providers, elaborators, summarizers etc. Maintenance roles: roles performed by members to maintain good relations within the

groupo

Harmonizers, compromisers, gatekeepers, and encouragers Selecting members that are more flexible prevents the group from being reliant on one

member Individual roles: roles performed members that are not productive for keeping on the group

on task

Roles Required for Effective Team Functioning: Roles that build task accomplishment: initiating, seeking information and opinions,

providing information and opinions, clarifying, elaborating, summarizing and consensustesting

Roles that build and maintain a team: harmonizing, compromising, gatekeeping andencouraging

Diversity: The presence of a heterogeneous mix of individuals within a group

o Different characteristics (jobs, positions, experience) and demographic/cultural (age,

race, sex) Diversity can generate different types of conflict such as interpersonal conflict

Team Diversity Research: Diversity may create more opinions but it will be more difficult to unify the group

members Teams with friends are more concerned with maintaining a relationship than productivity Diverse teams often spend time discussing issues which allows for better decision making

Diverse teams have difficult working together but is often resolved after time Diverse groups provide extra value once team members become more familiar with each

other Research shows individuals respond to visual differences when interacting with diverse

groups

Size: Smaller team sizes will be more effective (4-10 people)

o Uneven team numbers will help break ties and resolve conflicts

Larger groups have lower cohesiveness and mutual accountability, increased social loafingo

Large groups can be more efficient if they are split into sub-sections or groups

Social loafing: tendency for individuals to put in less effort when working in a groupo Increases in team size are inversely related to individual performanceo

There will be a reduction in efficiency if members believe their productivity wont bemeasured

Members' Flexibility: Flexible team members are able to complete a wide range and variety of different tasks

o Improves a team’s adaptability and makes it less reliant on one group member o

People who value flexibility are better than a cross trained person

Members' Preference for Teamwork: When selecting teams, individual preference, abilities, personality and skills should all be

consideredo

High-performance teams are likely to be composed of people who like team/teamwork

Work Design: Effective teams need to work together and take collective responsibility to complete tasks

o Includes freedom, autonomy, utilizing different skills, participation and other

characteristics These enhance member motivation and increases team effectiveness

Motivates teams by increasing responsibility and ownership over the work

Process: Process variable make up the final component of team effectiveness

Common Purpose: Common and meaningful purpose provides direction, momentum and commitment for

members Teams that don't have good planning skills will not succeed

Reflexivity: team characteristic of reflecting on and adjusting the master plan whennecessary

A team must have a good plan and be able to adapt when conditions change or call for it

Specific Goals:

Specific goals facilitate clear communication between group members (maintains focus)o

Difficult goals have been found to raise team performance on the criteria that is set Teams should be encouraged to develop milestones to focus on working toward their goal

Team Efficacy: Effective teams that have confidence, and know that they can succeed

o Teams that have been successful raise their believe about the future, increases

motivation Cohesiveness: degree to which team members are attracted to each other and are motivated

as a teamo

If performance norms are high, a cohesive group will be more productiveo

High cohesiveness and low performance norms will return low productivityo High norms and low cohesiveness will return moderate productivity

Instrumental cohesiveness: members don't believe they can complete a goal without the restof the group

Small successes build team confidence and creates a stronger performance record

Mental Models: Knowledge and beliefs (psychological map) about how it gets done

o Effective teams have accurate and common mental models

If members have wrong or different mental models, performance will suffer

Managed Level of Conflict: Teams that have no or avoid conflict do not create alternatives and are less effective

o Effective teams have an appropriate level of conflict

Reducing Team Conflict: Group members should try to focus on the issues rather than on personalities (achieve

fairness) More information creates debates and provides helpful alternatives and arguments Developing commonly agree upon goals, using humour, and balanced power reduces

conflict

Accountability: Successful teams make members individually and jointly accountable for the team's

purpose/goalso

Clearly define what they are individually responsible for and jointly responsible for

Beware! Teams Aren't Always the Answer Teamwork takes more time and often uses more resources than individual work

o Teams have increased communication demand, conflicts and meetings

o Not all settings are suitable for teamwork (may decrease efficiency and turnover)

Team fits the situation: Determine if the work can be done by one person, will the team provide for productivity than an individual, and are members of the group interdependent

Teams more useful: speed is more important, organization mirrors a complex, changingmarket environments, innovation and learning have priority and online integration of

interdependent performers

Chapter 7

The Communication Process Transfer and understanding of a message between two or more people The sender establishes the message, encodes the message and chooses the channel in which

to send it The receiver decodes the message and provides feedback to the sender

o Communication problems happened when there is a disruption during these processeso

The process is affected by the sender's perception of the receiver and visa-versa

Encoding and Decoding: Encoded: converting a message to a symbolic form Decoded: interpreting a sender's message Skill, attitudes, knowledge and socio-cultural system affect message encoding and

decoding Communicative success includes speaking, listening, and reasoning skills

o Interactions with others are affected by our attitudes, values and beliefs

Messages sent/received by people of equal rank are interpreted different than if received bysomeone else

The Message: What is communicated, the actual physical product from the source after it is encoded

o Affected by the code, or group of symbols, we use to transfer meaning, the message

itself, and the decision that we make in selecting and arranging both codes andcontent

Messages may not always encapsulate what one or both parties intended/feel

The Channel: The medium through which a message travels

o Selected by the source who must determine which channel is formal and which is

informalo

Formal channels are established by organizations and transmit messages relating tothe job

o Informal channels are forms such as personal/social messages

Communication apprehension: undue tension and anxiety about oral communication,written communication or both

Some channels are rich in the ability to handle multiple cues simultaneously, facilitaterapid feedback and be very personal

Channel richness: amount of info that can be transmitted during a communication episode The frequency of the messages also determines the channel in which messages are sent

o Non-routine messages are more effective through rich channels

Managers find it easier to deliver bad news through emails, and these messages aredelivered more accurately through this channel

The Feedback Loop: The final link in the communication process; it puts the message back into the system as a

check against misunderstandingso

The receiver needs to give feedback and the sender needs to check it If the sender or receiver fails to provide feedback the communication becomes one-way

o Two-way communication involves both talking and listening

The Context: All communication takes place within a context

o The context prevents different expectations (ex. The workplace, or the bus stop)

Informal communication can look informal and therefore unprofessional (viewednegatively)o

Formal communication can make others feel uncomfortable It is important to consider the context in both encoding the message and choosing the

channel

Barriers to Effective Communication

Filtering: A sender's manipulation of information so that it will be seen more favourable by the

receivero

As information is passed on it needs to be synthesized, and filter out irrelevantinformation

o Personal interest affects what is filtered, how things are synthesized, what is

important The size and levels of an organization affect how information is filtered

Selective Perception: Receivers process selectively what they see/hear based on their needs, motivation,

experience, background and other personal characteristicso

Also project their interests and expectations into communications as they decodethem

Defensiveness: When people feel they are being threatened they tend to react in ways to reduce their ability

to achieve mutual understandingo

Engage is behaviours such as verbally attacking others, making sarcastic remarks, being overly judgmental and questioning others' motives

Information Overload:

State of having more information than one can processo

Employees suffer from having too much information (ex. Email, IM, faxes, phonecalls, etc.)

Language:

Age, education and cultural backgrounds influence the language we use and definitions ofwordso

Different departments develop their own jargon, or technical language Senders often assume the language they use means the same to the receiver as it does to

Communicating Under Stress: While under stress, it is often the most difficult time to communicate

o Speak clearly: be direct about what you want to say and avoid hiding behind wordso

Be aware of the nonverbal part of communicating: tone, facial expression, bodylanguage

Think carefully about how you state things: better to be restrained that to offend thereceiver

Organizational Communication

Direction of Communication: Communication can flow downward, upward and laterally in organizations Downward: communication flows from one level of an organization to a lower one

o Managers communicating with employees, giving orders and creating rules/regulationo

Managers must explain why decisions are made Upward: communication flows to a higher level in the organization

o Used to provide feedback to managers/executives, inform them on progress, relay

problems, etc. Lateral: communication occurs with the same work group, among members, the same level

o Also know an horizontal communication, saves time, used for coordination

Small-Group Networks: Communication networks: channels by which information flows Formal networks: task-related communications that follow the authority chain

o Chain, wheel and all-channel are the three most common formal small-groupso

Chain: follows the formal chain of commando

Wheel: rely on leaders to act as the central conduit for all the group's communicationo

All-channel: permits all group members to communicate actively with each other

Grapevine: Informal networks: communications that flow along social and relational lines

o Communication is free to movie in any direction, skips authority, etc.

Grapevine: the organization's most common informal networko

75% of employees hear about matters first through rumours on the grapevine

o Used to structure and reduce anxiety, make sense of limited/fragmented info, serve as

a vehicle to organize group members into coalitions, signal a sender's status of power Rumours start as a response to situations that are important to us

o Where there is ambiguity, and under conditions that arouse anxiety

Grapevine Patterns: Single strand: each person tells information to just one other person Gossip pattern: one person tells everyone the information

o These people are commonly called gossips (about 10% of organizational member

Probability pattern: individuals are randomly told info, with no apparent pattern Cluster pattern: individuals selectively choose individuals to whom they tell relay

informationo

Individuals may strategically choose who they pass information onto Liaison individuals: friendly, outgoing people who are in position to cross departmental

lines Grapevine is not managed, it is perceived as being more believable and reliable than formal

information and it is largely used to serve the self-interest of the people within it

Electronic Communications: Make it possible to work, even if employees are not at their workstation/workplace Organizational boundaries have become less relevant as more electronic communications

become integrated into the workplace

Email: The high volumes of email create longer/continuous work days for employees Misinterpreting the message: misinterpret the message, intent, or tone of the email Communicating negative messages: emails are always the best way to communicate this

type of info Overuse of email: receive or have to send too many emails Email emotions: emails sometimes allow senders to say things they wouldn’t have in

person Privacy concerns: emails may be monitored, cannot always trust the senders of emails

Instant Messaging and Text Messaging: IM and texts are meant more for short messages

o These types of messages are informal than email, and not as rich

Other Issues in Communication

Nonverbal Communication: Messages conveyed through body movements, facial expressions and physical distance

between the sender and receiver Kinesics: study of body motions (gestures, facial configurations and other body

movements) Body language conveys the extent to which an individual likes another and is interested is

their views, and the relative perceived status between a sender and receiver

Proxemics: study of physical space in interpersonal relationships

Silence as Communication: Silence represents inaction or non-behaviour

o Silence can mean someone is thinking or contemplating a response to a questiono

Silence can mean a person is fearful of speakingo

Silence can signal agreement, dissent, frustration or anger

Communication Barriers between Women and Men: Men typically use talk to emphasize status, while women use it to create connection

o For men conversations are a means to preserve independence and maintain statuso

For women conversations are negotiations for closeness, seek conformation andsupport

Women will provide evidence for discrepancies, men will just point them out

Cross-Cultural Communication:

Effective communication is affected by cross-cultural factors that create the potential forcommunication problems

Cultural Barriers: Words often are difficult to translate between different languages, interpreted differently Words imply different things in different languages, direct translation but different

meaning Tone differences are interpreted differently depending on specific cultures Barriers are caused by differences among perceptions (different cultures, backgrounds, etc.)

Cultural Context: High-context cultures: rely heavily on nonverbal and subtle situational cues in

communicationo

Status, place in society, and reputation are considered in communicationso

Must desire to build a relationship and build the trust of both parties Low-context cultures: rely heavily on words to convey meaning in communication

o Body language and written words are

Overcoming Cross-Cultural Difficulties: Assume differences until similarity is proven Emphasize description rather than interpretation or evaluation Be empathetic, understand others' values, experiences and frames of reference, etc. Treat your interpretations as a working hypothesis

Chapter 8

A Definition of Power Power: capacity that A has to influence the behaviour of B, so that B acts in accordance to

A's wishes

o There is potential for power if someone is dependent on another

Power is a function of dependency, the more dependency on a person, the more power a person holds

The IT group of larger organizations often have considerable power (from employees to theCEO)

Bases of Power

Coercive Power: Power that is based on fear

o One reacts to this power base out of fear of the negative results that might occur

without complianceo

Includes infliction of pain, restriction of movement, controlling by force, etc. In organizations, coercive power includes firing people, or assigning employees to

unpleasant work

Reward Power: power that achieves compliance based on the ability to distribute rewards that others view

as valuableo

In organizations this is money, performance appraisals, promotions, information, etc.o

Do not have to be a manager to exert reward power

Legitimate Power: Power that a person receives as a result of their position in the hierarchy of an organization

o Positions of authority include coercive and reward powerso

Includes acceptance by members of an organization of the authority of a position

Expert Power: Influence based on special skills or knowledge

o Relies on trust that all relevant information is given out honestly and completelyo

The more information that is shared, the less expert power a person has

Referent Power: Influence based on possession by an individual of desirable resources or personal traits If people admire someone to the point of modelling their behaviour and attitudes, that

person possess referent power over people

Information Power: Power that comes from access to an control over information

Data/knowledge that others need can make others depend on them

Evaluating the Bases of Power: Commitment: person is enthusiastic about the request, and shows initial and persistence in

carrying it outo

Associated with expert and referent power

Compliance: person goes along with the request grudgingly, puts in minimal effort andtakes little initiative carrying out the requesto

Associated with reward and legitimate power Resistance: person is opposed to the request and tries to avoid it with such tactics as

refusing, stalling or arguing about ito

Associated with coercive power

Dependency: The Key to Power

The General Dependency Postulate: When you possess anything that others require but that you alone control, you make them

dependent on you, and therefore you gain power over themo

The person who has the most need is the one most dependent on the relationship The more options you have, the less power you place in the hands of others

What Creates Dependency?

Dependency is increased when the resources you control is important, scarce, and cannot be substituted

Importance: To create dependency, the thing(s) that you control must be perceived as important

o What is important is situationalo

Varies among organization and overtime within any given organization

Scarcity: A resource must be perceived as scarce to create dependency Possession of a scarce resource make those who don't have it dependent on those who do

Non-substitutability: The fewer substitutes there are for a resource, the more power comes from control over the

resource People are often able to ask for special rewards because they have skills that others do not

Influence Tactics There are nine tactics managers and employees use to increase their power1.

Rational persuasion: using facts/data to make logical or rational presentation of ideas2.

Inspirational appeals: appealing to values, ideals, and goals when making a request3.

Consultation: getting others involved to support one's objectives4.

Ingratiation: using flattery, creating goodwill, and being friendly prior to making a request5.

Personal appeals: appealing to loyalty and friendship when asking for something6.

Exchange: offering favours or benefits in exchange for support7.

Coalitions: getting the support of other people to provide backing when making a request8.

Pressure: using demands, threats, and reminders to get someone to do something9.

Legitimacy: claiming the authority or right to make a request, or showing that it supportsorganizational goals or policies

Rational persuasion, inspirational appeals, and consultation tend to be the most effectiveo

Pressure often backfires and tends to be the least effective Rational persuasion works across all levels of the organizational hierarchy Better to begin with softer tactics and then rely on harder tactics Political skill: the ability to influence others in such a way as to enhance one's objectives

The culture of the organization in which a person works will influence the best tactics to beused

Empowerment: Giving Power to Employees Movement towards sharing power with employees by putting them in teams and by making

them responsible for some of the decisions regarding their jobo

Empowerment: increasing responsibility

Definition of Empowerment: The freedom and the ability of employees to make decisions and commitments

o Delegating decision making within a set of clear boundaries

Empowerment can either start at the top or bottom of the organizational hierarchyo Top: specific goals and tasks would be assigned, responsibility would be delegated,

and people would be held accountable for their resultso

Bottom: considering employee needs, showing them what empowered behaviourlooks like, building teams, encouraging risk-taking, and demonstrating trust inemployees ability to perform

Employees must be able to access information and carry out decisionso

Must also understand how they fit into the organization

Degrees of Empowerment: Job content: the tasks and procedures necessary for carrying out a particular job Job context: the reason for doing the job; it reflects the organizational mission, objectives,

and settingo

Includes the organization's structure, culture, and rewards system No discretion: the typical assembly-line job (highly routine and repetitive)

o Employees is assigned the task, given no discretion, and most likely monitored by a

supervisoro

Employees may be un-satisfied and do not show initiative Participatory empowerment: represents the situation of autonomous work group that are

given some decision-making authority over both job content and job context Self-management: employees who have total-decision making power for both job content

and job contexto

Granting an employee greater power requires faith from management that theemployee will carry out the goals and mission of the organization

For employees to be empowered, and have ownership:o

There must be a clear definition of the values and mission of the companyo

The company must help employees acquire the relevant skillso

Employees need to be supported in their decision making, and not criticized whenthey try to do something extraordinary

o Employees need to be recognized for their efforts

Effects of Empowerment: At an individual level and the team level, empowerment leads to greater productivity

o Some managers do not empower employees because this can take away some of their

powero

Some employees have little/no interest in being empowered and thus resist attemptso

Empowerment is not something that works well in every workplace throughout theworld

The Abuse of Power: Harassment in the Workplace Managers control the resources that most employees consider important and scarce Coworkers exercise power by withholding information, cooperation and support

Workplace Bullying: Shaming people, embarrassing people, holding them up to ridicule, constantly being on

their case for no apparent reason, being unreasonable, etc.

Sexual Harassment: Sexual harassment is more likely to occur in workplace environments that tolerate bullying,

intimidation, yelling, innuendo, and other forms of discourteous behaviour Sexual harassment: unwelcome behaviour of a sexual nature in the workplace that

negatively affects the workplace environment or leads to adverse job-related consequencesfor the employeeo

Undermines the victims' mental and physical health Make sure there are policies in place that outline the rules, and consequences

o Investigate every complain and include the legal and human resource departmentso

Make sure offenders are disciplined or terminatedo

Raise employee awareness about the issues surrounding sexual harassment

Politics: Power in Action

Definition of Political Behaviour: Those activities that influence, or attempt to influence, the distribution of advantages and

disadvantages within the organizationo

Efforts to influence the goals, criteria, or process used for decision makingo

Withholding information, spreading rumours, leaking confidential info, exchangingfavours with other organizations, lobbying, etc.

The Reality of Politics: Organizations are made up of individuals and groups with different values, goals, and

interestso

Allows for the potential of conflict over resources People disagree about the allocation of resources (budgets, space allocation,

responsibilities, etc.)o

Gains by one department/employee are often sees as loses for another

People will try to use whatever influence they have to spin the facts to support theirgoals/interests

Organizations can be politics free if all the members hold the same goals and interest,organizational resources are not scarce, and performance outcomes are completely clearand objective

Types of Political Activity: Attacking or blaming others: used when trying to avoid responsibility for failure Using information: withholding or distorting information, particularly to hid negative

information Managing impressions: bringing positive attention to oneself or taking credit for positive

accomplishments of others Building support for ideas: making sure that others will support one's ideas before they are

present Praising others: making important people feel good Building coalitions: joining with other people to create a powerful group

Associating with influential people: building support networks Creating obligations: doing favours for others so they will owe you favours later

Impression Management: The process by which individuals attempt to control the impression others form of them Being perceived positively by others should have benefits for people in organizations

o May help them bring more advantages their way

The impression manager must be cautious not to be perceives an insincere or manipulative

Making Office Politics: Organizational politics is associated with less organizational commitment, lower job

satisfaction, and decreased job performance Greater organizational politics are associated with higher levels of job anxiety, and are

more likely to leave the organization Nobody wins unless everybody wins: successful proposals look for ways to acknowledge,

if not include, the interest of others.o

Building support for your ideas across the organizationo

Packaged ideas to look like they are best for the organization as a whole and will helpother, are harder for others to counteract the proposal

Don’t ask for opinions, change them: helpful to find out what people think, if necessary set

out to change their opinions so that they can see what you want to doo

Important to seek out the opinions of those you don't know well, or less likely toagree with

Everyone expects to be paid back: building good relationships with colleagues, supportingthem in their endeavours, and showing appreciation for what they accomplish, helps build afoundation of support for your own ideas

Success can create opposition: success can be viewed as a win-lose strategyo

Some people may feel that your success comes at their expense

Chapter 9

Conflict Demand A process that begins when one part perceives that another party has negatively affected, or

is about to negatively affect, something that the first party cares abouto

From incompatible goals, differences over interpretations, disagreements, etc.

Functional vs. Dysfunctional Conflict: Functional conflict: conflict that supports the goals of the group and improves its

performance Dysfunctional conflict: conflict that hinders group performance Cognitive conflict: conflict that is task-oriented and related to differences in perspectives

and judgments Affective conflict: conflict that is emotional and aimed at a person rather than an issue

Sources of Conflict:

There are a number of conditions that can give rise to conflicto

They don't have to be directly related to conflict

Communication: Conflict through semantic difficulties, misunderstandings, and noise in communication

channels Conflict increases with either too much or too little communication

Structure: Conflict related to the requirements of the job or the workplace more than personality Size, specialization, and composition of the group act as forces to stimulate conflict

The greater the ambiguity in precisely defining where responsibility for actions lies, thegreater the potential for conflict to emerge

Reward systems create conflict when one member's gain is at another's expense Leadership style can create conflict if managers tightly control and oversee the work of

employees, allowing employees little discretion in how they carry out tasks The diversity of goals among groups is a major source of conflict If one group is dependent on another, or if interdependence allows one group to gain at

another's expense, opposing forces are stimulated

Personal Variables: There may be personal variables that you are not in agreement with that creates conflict

Includes the individual value system, and personality characteristics

Conflict Resolution

Conflict Management Strategies: Forcing: imposing one's will on the other party Problem solving: trying to reach an agreement that satisfies both one's own and the other

party's aspirations as much as possible

Avoiding: ignoring or minimizing the importance of the issues creating the conflict Yielding: accepting and incorporating the will of the other party Compromising: balancing concern for oneself with concern for the other part in order to

reach a solution

What Can Individuals Do to Manage Conflict? Problem solving: request face-to-face meeting to identify the problem and resolve it Developing overarching goals: creating a shared goal that requires both parties to work

together Smoothing: play down differences while emphasizing common interest with the other party Compromising: agreeing with the other part that each will give up something Avoidance: withdrawing from or suppressing the conflict

Resolving Personality Conflicts: A variety of factors lead to personality conflicts

o Misunderstanding based on age, race, or cultural differenceso

Intolerance, prejudice, discrimination, or bigotryo Perceived inequitieso

Misunderstandings, rumours, or falsehoods about an individual or groupo

Blaming for mistakes or mishaps (finger-pointing)

Third-Part Conflict Resolution: Facilitation: generally acquainted with both parties, suggests that the two parties work

together to resolve the issueo

Informal solution that is aimed at getting both parties to talk directly with each other Conciliation: trusted third party who provides an informal communication link between the

negotiator and the opponento

Used in international, labour, family, and community disputes Ombudsperson: an official role for a person to hear disputes between parties Peer Review: panel of peers put together to hear both sides of the issue from parties

involved and to recommend a solution Mediation: neutral third party who facilitates a negotiated solution by using reasoning,

persuasion, and suggestions for alternatives Arbitration: third part to a negotiation who has the authority to dictate an agreement

Conflict Outcomes Agreement: equitable and fair agreements are the best outcome

o If agreement means that one party feels exploited or defeated, this will likely lead to

further conflict Stronger relationships: when conflict is resolved positively, this can lead to better

relationships and greater trusto

If the parties trust each other, they are more likely to keep the agreements they make Learning: handling conflict successfully teaches one how to do it better next time

o It gives an opportunity to practise the skills one has learned about handing conflict

Negotiation:

Process in which two or more parties exchange goods or services and try to agree on theexchange rate for themo

Positions: the individual's stand on the issueso

Interests: the underlying concerns that are affected by the negotiation resolution

Bargaining Strategies: Distributive bargaining: negotiation that seeks to divide up a fixed amount of resources

o A win-lose situation

Integrative bargaining: negotiation that seeks one or more settlements that can create a win-win solution

How to Negotiate: Negotiation is made up of a five step process1.

Developing a strategy2.

Defining group rules3.

Clarification and justification

Bargaining and problem solving5.

Closure and implementation BATNA: the best alternative to a negotiated agreement

o The outcome an individual faces if negotiations fail

Bargaining zone: the zone between each party's resistance point, assuming there is overlapin this range

Contemporary Issues in Negotiation

Cultural Differences in Negotiating Style: France: they like conflict and frequently gain recognition and develop reputations by

thinking and acting against each other China: the Chinese draw out negotiations because they believe negotiations never end Japan: the Japanese also negotiate to develop relationships and commitment to work

together USA: Americans are known around the world for their impatience and their desire to be

Chapter 10

What Is Organizational Culture?

Definition of Organizational Culture: Patterns of shared values, beliefs, and assumptions considered to be the appropriate way to

think and act within an organizationo

Culture is shared by the members of the organizationo

Culture helps members solve and understand the thinks that it encounters (internallyand externally)

o Members believe the belief, expectations are valid and are taught to new members

o Assumptions, beliefs, expectations influence how people perceive/feel within the

organization Groups with high turnover or that face challenges may not develop cultures

Levels of Culture:

Artifacts: aspects of an organization's culture that you see, hear, and feel Beliefs: understanding of how objects and ideas relate to each other Values: stable, long-lasting beliefs about what is happening Assumptions: taken-for-granted notions of how something should be

Characteristics of Culture: There are seven primary characteristics that capture the essence of an organization's culture Innovation and risk-taking: degree to which employees are encouraged to be innovative

and risk-taking Attention to detail: employees are expected to work with precision, analysis and attention

to detail

Outcome oriented: management focuses on results, or outcomes, rather that on techniquesand processes People orientation: management decisions take into consideration the effect of outcomes on

people within the organization Team orientation: work activities are organized around teams rather than individuals Aggressiveness: people are aggressive and competitive rather than easygoing and

supportive Stability: organizational activities emphasize maintaining status quo is contrast to growth

Culture's Functions: Culture has boundary-defining roles because it creates distinction between organizations Culture conveys a sense of identity to organization members Culture helps create commitment to something larger than an individual's interest Culture enhances stability, holds the organization and it members together Culture serves as a control to guide and shade attitudes and behaviours of employees Culture lays out the rules, both explicit and implicit

Do Organizations Have Uniform Cultures? Employees from different backgrounds and levels should have the same organizational

culture Dominant culture: system of shared meaning that expresses the core values shared by a

majority of the organization's members Subcultures: mini-cultures within an organization, typically defined by department

designations and geographical separationo

Strong subcultures can make it hard for managers to implement organizational change Core values: primary, or dominant, values that are accepted throughout the organization

Reading an Organization's Culture Strong culture: culture in which the core values are intensely held and widely shared

o Weak cultures may not create attachment to the organization for employees

Strong culture demonstrates high agreement among employees and builds cohesiveness,loyalty and organizational commitment

Stories: Stories about organizations, their employees and managers tell about the organizations

legitimacy for current practices

Rituals: Repetitive sequences of activities that express and reinforce the key values of the

organizationo

What goals are important, which people are important, and which ones areexpendable

Material Symbols: Size of offices, elegance of furnishings, executive perks, dress code, uniform, etc.

o Corporate logos, signs, brochures, advertisements real aspects of the organization's

culture Material symbols convey to employees, customers and clients who is important, and the

kinds of behaviour that are appropriate

Language: Organization use language as a way to identify members of a culture or subculture Organizations develop unique terms to describe equipment, offices, staff, suppliers,

customers, etc.

Creating and Sustaining an Organization's Culture Culture is often derived from the philosophy of its founders

o This creates a selection criteria that top managers use to choose future employees

How a Culture Begins: Founders only hire and keep employees who think and feel the way they do Founders indoctrinate and socialize these employees of their way of thinking and feeling Founders' behaviour acts as a role model, encouraging employees to identify with the

founderso

Internalize those beliefs, values and assumptionso

Founders' personality becomes embedded in the culture of the organization

Keeping a Culture Alive: Human resource practices act to maintain a culture within an organization

Selective process, performance evaluation criteria, training and development, etc.o

Ensure employees fit in with the culture, with rewards or penalties

Selection: Identify and hire individuals who have the knowledge, skills and ability to perform the job

o How the candidate will fit into the organization will often be the main determinanto

Perspective employees may find a conflict with the culture or the other way around

Top Management: Actions of tap management have a major impact on the organization's culture

o What they say, and how they behave establishes norms that filter through the

organizationo

Establishes the level of risk, what is appropriate, etc.

Socialization: Process that adapts new employees to an organization's culture

o Training programs that help new employees adapt and learn about an organization's

culture Socialization can be conceptualizes as a process with three stages Pre-arrival Stage: period of learning in the socialization process that occurs before a new

employee joins the organizationo

Learn the values, attitudes, and expectations of the organization Encounter stage: new employees see what the organization is really like and confronts the

possibility that expectations and reality may divergeo Proper selection will reduce the chance of new employees not adapting to the culture

Metamorphosis stage: new employees adjust to the values and norms of the job, workgroup, etc.o

The more formal the socialization process the better chance the culture will beadopted

o New employee becomes comfortable with the organization and their jobo

New employee has internalized the norms of the organizationo

New employee feels accepted, trusted, valued and is self-confidento

New employee understands how they will be evaluated and the associated criteria thatis used

The Liabilities of Organizational Culture

Culture as a Barrier to Change: Employees are less likely to share values if the work environment is dynamic

o Rapid change in organizations reduces the effect of an entrenched organizational

culture Organizations with strong cultures may fail when those practices no longer match up well

with the needs of the environment or the market

Culture as a Barrier to Diversity: Management wants new employees to accent the organization's core cultural values

Openly acknowledge and support the differences employees bring to the organization Strong cultures can be liabilities when they effectively eliminate the unique strengths of

individualso

Institutional bias may become insensitive to people who are different

Culture as a Barrier to Mergers and Acquisitions: Most often financial advantages or product synergy are looked at first

o Cultural compatibility has most recently become the primary concerno

The merger or acquisition needs to actually work for both parties involved

Strategies for Merging Cultures: Assimilation: new organization takes on the culture of one of the merging organizations

Works best when one firms is stronger than the other (rarely works) Separation: organizations remain separate and keep their individual cultures

o Best when the organizations have little overlap in their operating industries

Integration: new culture is formed by merging parts of each of the organizationso

Strategy works best when aspects of each organization's culture need to be improved Bicultural audit: examination of the differences between two potential merger partners

prior to a merger to determine whether the culture will be able to work togethero

Defines a structure that is appropriate for both organizations (includes reorganization plan)

o Identify and implement a management style that is appropriate for both organizationso

Reinforcing internal communication to make employees aware of the changeso

Getting agreement on what is considered in performance evaluations (criteria, behaviour)

Changing Organizational Culture Culture change is a lengthy process, and is often measured in years not months

Creating an Ethical Culture: Content and strength of a culture influence an organization's ethical climate for employees High ethical standards are associated with high risk tolerance and low-moderate

aggressiveness Be a visible role model: managers are role models for employees (send a positive message) Communicate ethical expectations: distribute organization's code of ethics

o Organization's primary values and ethical rules that are expected to be followed

Provide ethics training: seminars, workshops, and similar ethical training programs Visibly reward ethical acts and punish unethical ones Provide protective mechanisms: formal mechanisms so employees can discuss ethical

dilemmas and report unethical behaviour without fear or reprimand

Creating a Positive Organizational Culture: Positive organizational culture: culture that emphasizes building on employee strengths,

rewards more than punishes and emphasizes individual vitality and growth Building on Employee Strengths: knowing what individual employee strengths are Rewarding more often than punishing: giving appropriate compliments, and punishing bad

habits/deeds Emphasizing vitality and growth: emphasizing organizational effectiveness and individual

growth Limits of positive culture: risks of having a culture that is too positive (lack of focus,

profitability)

Chapter 11

Are Manager and Leaders the Same? Managers promote stability while leader press for change and only organizations that

embrace both sides of the contradiction can survive in turbulent times

Leadership as Supervision There are three general types of theories that emerged1.

Trait theories: propose leaders have a particular set of traits that make them different fromnon-leaders

Behavioural theories: propose that particular behaviours make for better leaders3.

Contingency theories: proposes the situation has an effect on leaders

Trait Theories: Are Leaders Different from Others: Trait theories of leadership: theories that propose traits (personality, social, physical, or

intellectual) differentiate leaders from non-leaders

Recent studies have shown that emotional intelligence may also have an effect onleadership

Behavioural Theories: Do Leaders Behave in Particular Ways? Behavioural theories of leadership: theories that propose that specific behaviours

differentiate leaders from non-leaders

Ohio State Studies: Initiating structure: extend to which a leader is likely to define and structure his/her role

and the roles of employees in order to attain goals Consideration: extend to which a leader is likely to have job relationships characterized by

mutual trust, respect for employees' ideas, and regard for their feelings

The Michigan Studies: Employee-oriented leaders: a leader who emphasizes interpersonal relations Production oriented leaders: a leader who emphasizes the technical or task aspects of the

The Leadership Grid: A two dimensional grid outlining 81 different leadership styles

Contingency Theories: Does the Situation Matter?

Situational or contingency theories: theories that propose leadership effectiveness isdependent on the situation

Fiedler Contingency Model:

A leadership theory that proposes effective group performance depends on the propermatch between the leader's style of interacting with his/her followers and the degree towhich the situation gives the leader control and influence

o Leader-member relations: degree of confidence, trust, and respect members have for

their leaderso

Task structure: degree to which job assignments are procedurized Structured or unstructured

o Position power: degree of influence a leader has over power-based activities

Hiring, firing, discipline, promotions, and salary increases

Hersey and Blanchard's Situational Leadership Theory: A leadership theory that focuses on the readiness of followers

o Based on follower readiness, and relationship behaviour

Able and willing → Delegating Able and unwilling/apprehensive → Participating Unable and willing → Selling Unable and unwilling/insecure → Telling

Path-Goal Theory:

A leadership theory that says it's the leader's job to assist followers in attaining their goalsand to provide the necessary direction and/or support to ensure that their goals arecompatible with the overall objectives of the group or organizationo

Determine the outcome subordinates wanto

Reward individuals with their desired outcomes when they perform wello

Let individuals know what they need to do to receive rewards The theory identifies four leadership behaviours

o Directive leader lets followers know what is expected of themo

Supportive leader is friendly and shows concern for the needs of followerso

Participative leader consults with followers and uses their suggestions before makinga decision

o Achievement-oriented leader sets challenging goals and expects followers to perform

at their highest level

Substitutes for Leadership: If employees have proper experience, training, or professional orientation

o Or if employees are indifferent to organizational rewards, the effect of leadership can

be replaced or neutralized

Inspirational Leadership Framing: a way of using language to manage meaning

Charismatic Leadership: Charismatic leadership theory: a leadership theory that states that followers make

attributions of heroic or extraordinary leadership abilities when they observe certain behaviours

Vision: a long-term strategy for attaining a goal or goals Vision statement: formal articulation of an organization's vision or mission Level 5 leaders: leaders who are fiercely ambitious and driven, but their ambition is

directed toward their company rather than themselves

Transformational Leadership: Transactional leaders: leaders who guide or motivate their followers in the direction of

establish goals by clarifying role and task requirement Transformational leaders: leaders who inspire followers to transcend their own self-interest

and who are capable of having profound and extraordinary effect on followers

Mentoring: A senior employee who sponsors and supports a less experienced employee

Self-Leadership (or Self-Management): There are several approaches that can be used to help leaders create self-leaders

o Model self-leadership: practise self-observation, setting challenging goals, self-

direction, and self-reinforcemento

Encourage employees to create self-set goalso

Encourage the use of self-rewards to strengthen and increase desirable behaviourso

Create positive thought patternso Create a climate of self-leadershipo

Encourage self-criticism

Team Leadership: There are four specific roles that team leaders play

o Liaisons with external constituencieso

Troubleshootso

Conflict managerso

Coaches

Online Leadership: The structure of words in a digital communication has the power to motivate or demotivate

the receiver Online leaders face the difficulty of developing and maintaining trust

o Online negotiations are affected because there is a lack of trust between parties

Leading Without Authority: There are three benefits of leading without authority

o Latitude of creative deviance: easier to raise harder questions and look for less

traditional solutionso

Issue of focus: individuals can focus on a single issue, rather than severalo

Front-line information: individual is closer to the detailed experiences of some of thestakeholders

Contemporary Issues in Leadership

Authentic Leadership: Leaders who know who they are, know what they believe in and value, and act on these

values and beliefs openly and candidly

o Their followers could consider them to be ethical people

Moral Leadership: Socialized charismatic leadership: a leadership concept that states that leaders convey

values that are other-centred vs. self-centred and who role model ethical conducto

Truth tellingo

Promise keepingo

Fairnesso

Respect

Chapter 12

How Should Decisions Be Made? Decision: the choice made from two or more alternatives

The Rational Decision-Making Process: Rational: refers to choices that are consistent and value-maximizing within specific

constraints Rational Decision Making Model: a six-step decision making model that describes how

individuals should behave in order to maximize some outcome1.

Define the problem2.

Identify the criteria3.

Allocate weights to the criteria4.

Develop alternatives5.

Evaluate the alternatives6.

Select the best alternative

Assumptions of the Model: Problem clarity: the problem is clear and unambiguous Known options: assumed the decision maker can identify all the relevant criteria and can

list alternatives Clear preferences: rationality assumes the criteria and alternatives can be ranked and

weighted Constant preferences: assumed that specific decision criteria are constant and the weights

are constant No time or cost constraints: decision maker can obtain full info about criteria and

alternatives

Maximum payoff: decision maker will choose the alternative that yields the highest perceived value

How Do Individuals Actually Make Decisions?

Bounded Rationality in Considering Alternatives: Bounded rationality: limitations on a person's ability to interpret, process, an act on

information

Satisfice: to provide a solution that is both satisfactory and sufficient

Intuition: Intuitive decision making: a subconscious process created out of a person's many

experiences

Judgment Shortcuts: Overconfidence bias: error in judgment that arises from being far too optimistic about one's

own performance Anchoring bias: a tendency to fixate on initial information, from which one then fails to

adequately adjust for subsequent information Confirmation bias: tendency to seek out information that reaffirms past choices and to

discount information that contradicts past judgments Availability bias: tendency for people to base their judgments on information that is readily

available to them rather than complete data Escalation of commitment: an increased commitment to a previous decision despite

negative information Randomness error: tendency of individuals to believe that they can predict the outcome of

random events Winner's curse: tendency for the winning participants in an auction to pay too much for the

item won Hindsight bias: tendency to believe falsely, after an outcome of an event is actually known

that one could have accurately predicted that outcome

Improving Decision Making Through Knowledge Management Knowledge management: process of organizing and distributing an organization's

collective wisdom so that the right information gets to the right people at the right timeo

Organization that can quickly and efficiently tap into their employees' collectiveexperience and wisdom are more likely to outsmart the competition

Group Decision Making

Groupthink and Groupshift: Groupthink: phenomenon in which group pressures for conformity prevent the group from

critically appraising unusual, minority or unpopular views Groupshift: phenomenon in which the initial positions of individual group members

became exaggerated because of the interactions of the group

Group Decision-Making Techniques: Interacting groups: typical groups, where members interact with each other face to face Brainstorming: an idea-generation process that specifically encourages any and all

alternatives, while withholding any criticism of those alternatives Nominal group technique: a group decision-making method in which individual members

meet face to face too pool their judgments in a systematic but independent fashion Electronic meetings: a meeting where members interact on computers, allowing for

anonymity of comments and aggregation of votes

Creativity in Organizational Decision Making Creativity: ability to produce novel and useful ideas

Three-Component Model of Creativity: The proposition that individual creativity requires expertise, creative-thinking skills, and

intrinsic task motivation

Organizational Factors That Affect Creativity: Expected evaluation: focusing on how your work is going to be evaluated Surveillance: being watched while you are working External motivators: focusing on external, tangible rewards Competition: facing win-lose situations with peers Constrained choice: being given limits on how you can do your work

What About Ethics in Decision Making? Ethics: study of moral values or principles that guide our behaviour and inform us whether

actions are right or wrong

Four Ethical Decision Criteria: Unitarianism: a decision focused on outcomes or consequences that emphasizes the greatest

good for the greatest number Whistle-blowers: individuals who report unethical practices by their employer to outsiders Justice: individuals to impose and enforce rules fairly and impartially so there is an

equitable distribution of benefits and costs Care: the morally correct action is the one that expresses care in protecting the special

relationships that individuals have with each other

Factors That Individuals Ethical Decision-Making Behaviour: Stages of moral development: the development stages that explain a person's capacity to

judge what is morally right Locus of control: if a person believes their lives are controlled by outside forces (external)

or by themselves (internal) Organizational environment: an employee's perception of organizational expectations

Making Ethical Decisions: Is the decision motivated by self-serving interests? Does the decision respect the rights of individuals affected? Is the decision fair and equitable?

Chapter 13

What Is Organizational Structure? How job tasks are formally divided, grouped, and coordinated There are usually flat and pyramidal organizational structures

Work Specialization: The degree to which tasks in the organization are subdivided into separate jobs (division of

labour)o

Jobs are broken down into steps and a person specializes in one of the stepso

Increases efficiency and productivity, and encourages special inventions/innovationso

Can lead to boredom, fatigue, stress, poor quality, high turnover

Individual Responses to Work Specialization: Generally contributes to higher employee productivity but lower job satisfaction There diminishing marginal returns that is associated with specializing for too long in one

Departmentalization: Basis on which jobs are grouped together

o Departments protect their own and do not interact with other departmentso

This can lead to a narrow vision with respect to organizational goals

Functional Departmentalization: Activities are most often grouped by the types of functions that are performed Increased efficiency from grouping people of the same common skills together into one

Product Departmentalization: Tasks can also be departmentalized by the type of product the organization produces

o Creates an increased accountability for product performanceo

All activities are related to a specific product line are under the direction of onemanager

Geographic Departmentalization: Departmentalization can also be bases on geographic location or territory

o Can be divided regionally (B.C., Ontario, Atlantic Canada, West, etc.)o

Best when customers are in one geographic location with similar needs or wants

Process Departmentalization: Companies organize departments based on the processing that occurs

o Ex. Finishing, inspecting, packaging, shipping, etc.o

Can be used for processing customers, as well as products

Customer Departmentalization: Departmentalization can be categorized on the basis of particular types of customers (target

markets)o

Specific departments can provide specialized services to different customers Service retail, wholesale, customer service, technical support

o Customer needs can be best met through specialized departments

Organizational Variety in Departmentalization:

Large organizations change their departmentalization to reflect new needs or emphaseso

Many organizations have a greater emphasis to customer departmentalizationo

Rigid/functional departmentalization is being increasingly complemented by teamsthat cross over traditional departmental lines

As tasks have become more complex and more diverse skills are needed to complete the

tasks, managers turn to cross-functional teamso

One step further is turning departments into separate divisions that are separate profitcentres

o Each division sets it own strategic goals and plans to accomplish them

Chain of Command: The continuous line of authority that extends from upper organizational levels to the lowest

level and clarifies who reports to whomo

Tells employees who to go to if they have a problem and who they report to Delegation: assignment of authority to another person to carry out specific duties, allowing

the employee to make some of the decisionso

Employees can become empowered to make decisions that were previously formanagers Self-managed and cross-functional teams have decreased the relevance of chain-of-

command

Span of Control: The number of employees that report to a manager Determined by the number of employees a manager can efficiently and effectively direct

o The wider of larger the span the more efficient the organization

At some point managers manage too many employees and it becomes lessefficient

Employee performance suffers as managers have limited time to supportindividuals

Narrow spans are more expensive, they make communication complex, and are sometimesoverly tight for supervision and lack employee autonomy

Individual Responses to Span of Control: There is no research to show that there is a best type of span of control

o Each employee is different and will prefer different things compared to the next

employee

Centralization and Decentralization: Centralization: degree to which decision making is concentrated at a single point in the

organizationo

Top managers or executives make decisions without input from lower-levelemployees

Decentralization: degree to which decision making is distributed to lower-level employeeso

Action can be taken more quickly to solve problemso

More people provide input for decisions, and are closer to the management levels

Individual Responses to Centralization: Decision making is positively related to job satisfaction

o Decentralization is strongest with employees who have low self-esteem

Employees are not held solely responsible for decision outcomes

Formalization: The degree to which jobs within the organization are standardized

o Highly formalized jobs have explicit job descriptions and lots of organization ruleso

Clearly defined procedures covering work processes in the organization Low formalization means employees have freedom to exercise discretion in their work

o The greater the standardization, the less input the employee has into their own worko

Standardization eliminates the possibility of employees engaging in alternative behaviours

Mechanistic and Organic Organizations: Mechanistic model: structure characterized by high specialization, rigid

departmentalization, a clear chain of command, narrow spans of control, a limitedinformation network, and centralizationo

Includes little participation by lower-level members in decision making processeso

Adopted by government bureaucracies Organic model: structure that is flat, uses cross-functional and cross-hierarchical teams,

possesses a comprehensive information network, has wide spans of control and lowformalizationo

Involves high level of participation in decision making processeso

Adopted by high-tech firms, individuals collaborating with each other, dynamicfirms, etc.

Individual Responses to Organizational Structure: Organization with high levels of bureaucratic orientation have heavy reliance on higher

authorityo

Prefer formalized and specific rules, and formal relationships with others on the job Organizations with a low degree of bureaucratic orientation fit better with organic models Cultural differences along with individual differences need to be considered

o Included employee performance and satisfaction with each different model

Traditional Organizational Designs

Simple Structure: Organizational design characterized by a low degree of departmentalization, wide spans of

control, authority centralized in a single person, and little formalizationo

Flat organizational structure with usually only two or three vertical levelso

Best fit for small organizations, as the manager is often the owner and can handleeverything

The Family Business: Represent 70% of Canadian employment and 30% of Canada's GDP

o Governance can help family businesses manage conflicts that may ariseo

A sense of direction, values to work/live by and understood policies for employees

The Bureaucracy: An organizational design with highly routine operating tasks achieved through

specialization, formalized rules and regulations, tasks that are grouped into functionaldepartments, centralized authority, narrow spans of control and decision making thatfollows the chain of command

Strengths of Bureaucracy: Ability to perform standardized activities in a highly efficient manner

o Put together similar specialities in functional departments results in economies of

scale, minimum duplication of staff/equipment and employees who talk with their peers

An effective structure for ensuring consistent application of policies and practices andaccountability

Weaknesses of Bureaucracy: Can create subunit conflict, as units begin to compete with each other instead of working

together Can lead to power being concentrated in just the hands of a few people

The Matrix Structure: An organizational design that combines functional and product departmentalization

o It has a dual chain of commando

Advertising agencies, research and development, construction, hospitals,governments, etc.

Employees would have two bosses (function and product managers) Matrix structures reduce the bureaucratic downfalls such as competition between

departments/divisions Matrix structures may also create confusion and power struggles and place stress on

employeeso

Unclear of who to report to, confusion, ambiguity, role conflict, unclear expectations,etc.

New Design Options

The Team Structure: The use of teams as the central device to coordinate work activities

Breaks down departmental barriers and decentralizes decision making to the level ofthe work team

Modular Organization: A small core organization that outsources major business functions

o Outsources many functions and concentrates on what is does best

Managers in modular organizations spend some time coordinating and controlling externalrelationso

Can respond more quickly to environmental changeso

Increased focus on customers and marketso

Devote their technical and managerial talents to their most critical activities

Management may lose partial control of the key parts of the businesso

Organizations may be forced to rely on outsiders, this decreases operational control

The Virtual Organization: A continually evolving network of independent companies linked together to share skills,

costs, and access to one another's marketso

Units of different firms join together in an alliance to pursue common strategicobjectives

o Give up some control and act more independently

Allow organizations to share costs and skills, provide access to global markets and increaseresponses

The Boundaryless Organization: An organization that seeks to eliminate the chain of command, have limitless span of

control, and replace departments with empowered teamso

Relies heavily on information technology (technology-based organization)o

Flatten the hierarchy, create cross-hierarchal teams and use participative decision-making

o Also breaks down barriers from external constituencies and geographical

displacement

What Major Forces Shape and Organization's Structure?

Strategy: A means to help management achieve its objectives

o Structure of an organization should support the strategy

Innovation Strategy: Strategy that emphasizes the introduction of major new products and services

o Meaningful and unique innovations

Cost-Minimization Strategy: Strategy that emphasizes tight cost controls, avoidance of unnecessary innovation or

marketing expenses, and price cutting

Imitation Strategy Strategy of moving into new products or new markets only after their viability has already

been proveno

Seek to minimize risk and maximize opportunity for profito

Move into new products that have already been proven by innovators

Imitators use a mechanistic structure to maintain tight controls and low costs, and createorganic subunits to pursue new undertakings

Organizational Size: Size of an organization greatly affects its structure

Large organizations tend to have more specialization, departmentalization, vertical levelsand ruleso

Impact of size becomes less important as an organization expands

Technology: The way in which an organization transfers its inputs into outputs Organizational structures adapt to their technology

Variations in Technology: Degree to routineness: technologies tend toward either routine or non-routine activities

o Routine: automated, standardized operations, assembly line, etc.o

Non-routine: customized, furniture restoring, custom shoe making, etc.

The Relationship Between Technology and Structure: Routine tasks are associated with taller and more departmentalized structures Routineness is associated with job descriptions and other formalized documentation Technology centralization is moderated by the degree of formalization

o Formal/central decision making are control mechanismso

Routine technology can lead to centralization, only if formalization is low

Environment: Those institutions or forces outside the organization that potentially affect the

organization's performanceo

Suppliers, customers, competitors, regulators, public groups, etc. The uncertainty of the organizations environment will affects it's structure

Capacity: Degree to which an organization can support growth Growing environments can generate excess resources for times of relative scarcity

o Leaves room for an organization to make mistakes, while scare capacity does not

Volatility: Degree of instability in an environment

o High degree of unpredictable change, and the environment is dynamico

Difficult for managers to predict accurately the probabilities of decision alternatives

Complexity: Degree of heterogeneity and concentration among environmental elements

o Organizations with high complexity usually operate with greater unpredictabilityo

Little room for error, a diverse set of elements in the environment to monitorconstantly

Chapter 14

What Causes Change? The changing nature of the workforce

o Human resource policies and practices have to change to reflect the needs of an aging

labour force Technology is changing jobs and organizations Economic shocks have continued to impose changes on organizations Competition is changing with globalization and better transportation Social trends don't remain static, and continually change with time

Change Agents: People who act as catalysts and assume the responsibility for managing change activities

Approaches to Managing Change

Lewin's Three-Step Model: Unfreezing: change efforts to overcome the pressures of both individual resistance and

group conformity Moving: efforts to get employees involved in change process Refreezing: stabilizing a change intervention by balancing driving and restraining forces Driving forces: forces that direct behaviour away from the status quo Restraining forces: forces that hinder movement away from the status quo

Kotter's Eight-Step Plan for Implementing Change:1.

Establish a sense of urgency by creating a compelling reason for why change is needed2.

Form a coalition with enough power to lead the change

Create a new vision to direct the change and strategies for achieving the vision4.

Communicate the vision throughout the organization5.

Empower others to act on the vision by removing barriers to change and encouraging risk-taking and creative problem-solving

Plan for, create, and reward short-term wins that move the organization toward the newvision

Consolidate improvements, reassess changes, and make necessary adjustments in the new programs

Reinforce the changes by demonstrating the relationship between new behaviours andorganizational success

Action Research: A change process based on the systematic collection of data and then selection of a change

action based on what the analyzed data indicateo

Two step process, first diagnosis followed by analysis and feedback

Appreciative Inquiry: An approach to change that seeks to identify the unique qualities and special strengths of an

organization, which can then be built on to improve performance

o Discovery: to find out what people think are the strengths of the organizationo

Dreaming: information from the discovery phase is used to speculate on possiblefutures for the organization

o Design: participants focus on finding a common vision of how the organization will

look, and agree on its unique qualitieso

Destiny: participants discuss how the organization is going to fulfill its dream

Resistance to Change

Individual Resistance: Self-interest: people worry that they will lose something of value if change happens

o People look after their own self-interest rather than those of the organization

Misunderstanding and lack of trust: people resist change when they don’t understand the

nature of the change and fear that the cost of change will outweigh any potential gains forthem

Different assessments: people resist change when they see it differently than their managers

do and think the costs outweigh the benefits, even for the organization Low tolerance for change: people resist change because they worry that they do not have

the skills and behaviour required of the new situationo

May feel they are being asked to do too much, too quickly

Cynicism: Employees often feel cynical about the change process

o Feeling uninformed about what was happeningo

Lack of communication and respect about one's managero

Lack of communication and respect from one's union representativeo

Lack of opportunity for meaningful participation in decision making

Organizational Resistance: Structural inertia: organizations have built in mechanisms to produce stability Limited focus of change organizations are made up of a number of independent subsystems Group inertia: even if individuals want to change their behaviour, group norms may act as a

constraints Threat to expertise: changes in organizational patterns may threaten the expertise of

specialized groups Threat to establish resource allocation: groups in the organization that control sizable

resources often see change as a threat

Overcoming Resistance to Change Education and communication Participant and involvement Building support and commitment Implementing changes fairly Manipulating and co-optation Selecting people who accept change Explicit and implicit coercion

The Politics of Change: First-order change: change that is incremental and straightforward Second-order change; change that is multidimensional, multilevel, discontinuous, and

radical

Contemporary Change Issues for Today's Managers

Stimulating Innovation: Innovation: a new idea applied to initiating or improving a product, process, or service Source of innovation

o Organic structures positively influence innovationo

Long tenure in management is associated with innovationo

Innovation is nurtured when there are slack resourceso

Inter-unit communication is high in innovative organizations Idea champions: individuals who actively and enthusiastically promote an idea, build

support for it, overcome resistance to it, and ensure that the idea is implemented

Creating a Learning Organization: Learning organization: an organization that has developed the continuous capacity to adapt

to change Single-loop learning: a process of correcting errors using past routines and past policies Double-loop learning: a process of correcting errors by modifying the organization's

objectives, policies, and standard routines

summary of organizational behaviour, langton

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