Management Skills Management SkillsTechnical skillsThe ability to apply specialized knowledge or expertise.Conceptual SkillsThe mental ability to analyze and diagnose complexsituations.Human skillsThe ability to work with, understand, and motivate other people,both individually and in groups
Challenges and Opportunities for OB Challenges and Opportunities for OB• Responding to Globalization – Increased foreign assignments – Working with people from different cultures – Coping with anti-capitalism backlash – Overseeing movement of jobs to countries with low- cost labor• Managing Workforce Diversity – Embracing diversity – Changing demographics – Implications for managers • Recognizing and responding to differences
Major Workforce Diversity Categories Major Workforce Diversity CategoriesGenderGender National National Disability Disability Origin Origin Age Age Heterogeneous Heterogeneous Community/ Community/ religious mix religious mix Caste Caste Domestic Domestic Partners Partners
Challenges and Opportunities for OB (cont’d)Challenges and Opportunities for OB (cont’d)• Improving Quality and Productivity – Quality management (QM) – Process reengineering• Responding to the Labor Shortage – Changing work force demographics – Fewer skilled laborers – Early retirements and older workers• Improving Customer Service – Increased expectation of service quality – Customer-responsive cultures
Challenges and Opportunities for OB (cont’d)Challenges and Opportunities for OB (cont’d)• Quality management (QM) – The constant attainment of customer satisfaction through the continuous improvement of all organizational processes. – Requires employees to rethink what they do and become more involved in workplace decisions.• Process reengineering – Asks managers to reconsider how work would be done and their organization structured if they were starting over. – Instead of making incremental changes in processes, reengineering involves evaluating every process in terms of its contribution.
HAWTHORNE EXPERIMENTS• Conducted between 1924 and 1930• At Western Electric Company, Hawthorne works in Illinois• Elton Mayo, Harvard Professor• Three stages – conflicting results• Conclusions – novelty of the situation, type of supervision, involvement in the experiment
There Are Few Absolutes in OB There Are Few Absolutes in OBContingency variables Situational factors: variables that moderate the relationship between two or more other variables and improve the correlation x Contingency Variables y
Basic OB Model Basic OB ModelModelAn abstraction of reality.A simplified representation of some real-world phenomenon.
A Better Definition OB is the science of understanding,predicting, and managing human behaviour in organizations
Activity What do you think is the single most critical “people” problem facing your organisation today? What is the cause and what are the effects of this problem?Can you analyze the issue at all three (individual, group, and organizational) levels?
What Is Perception, and Why Is What Is Perception, and Why Is It Important? It Important?Perception ••People’s behavior is People’s behavior isA process by which based on their based on their individuals organize and perception of what perception of what interpret their sensory reality is, not on reality reality is, not on reality impressions in order to itself. itself. give meaning to their environment. ••The world as it is The world as it is perceived is the world perceived is the world that is behaviorally that is behaviorally important. important.
Factors ThatFactors That Influence Influence Perception Perception
Person Perception: Making Judgments About OthersAttribution TheoryWhen individuals observebehavior, they attempt todetermine whether it isinternally or externallycaused.Distinctiveness: shows different behaviors in different situations. Distinctiveness: shows different behaviors in different situations.Consensus: response is the same as others to same situation. Consensus: response is the same as others to same situation.Consistency: responds in the same way over time. Consistency: responds in the same way over time.
Errors and Biases in AttributionsFundamental Attribution ErrorThe tendency to underestimatethe influence of external factorsand overestimate the influenceof internal factors when makingjudgments about the behavior ofothers.
Errors and Biases in AttributionsSelf-Serving Bias (cont’d)The tendency for individuals toattribute their own successesto internal factors while puttingthe blame for failures onexternal factors.
Frequently Used Shortcuts in Judging OthersSelective PerceptionPeople selectively interpret what they see on thebasis of their interests, background, experience,and attitudes.
Frequently Used Shortcuts in Judging OthersHalo EffectDrawing a general impressionabout an individual on thebasis of a single characteristicContrast EffectsEvaluation of a person’s characteristics thatare affected by comparisons with otherpeople recently encountered who rank higheror lower on the same characteristics.
Frequently Used Shortcuts in Judging Others StereotypingProjection Judging someone on theAttributing one’s own basis of one’s perception ofcharacteristics to other the group to which thatpeople. person belongs.
Specific Applications in Organizations• Employment Interview – Perceptual biases of raters affect the accuracy of interviewers’ judgments of applicants.• Performance Expectations – Self-fulfilling prophecy (pygmalion effect): The lower or higher performance of employees reflects preconceived leader expectations about employee capabilities.• Ethnic Profiling – A form of stereotyping in which a group of individuals is singled out—typically on the basis of race or ethnicity—for intensive inquiry, scrutinizing, or investigation.
Specific Applications in Organizations (cont’d)• Performance Evaluations – Appraisals are often the subjective (judgmental) perceptions of appraisers of another employee’s job performance.• Employee Effort – Assessment of individual effort is a subjective judgment subject to perceptual distortion and bias.
ActivityAn employee does an unsatisfactory job on anassigned project. Explain the attribution processthat this person’s manager will use to formjudgments about this employee’s job performance.
What is Personality? Personality The sum total of ways in which an individual reacts and interacts with others.Personality Traits Personality PersonalityEnduring characteristics Determinants Determinantsthat describe an • •Heredity Heredityindividual’s behavior. • •Environment Environment • •Situation Situation
The Myers-Briggs Type IndicatorMyers-Briggs Type Indicator (MBTI)A personality test that taps four characteristics andclassifies people into 1 of 16 personality types. Personality Types Personality Types • •Extroverted vs. Introverted (E or I) Extroverted vs. Introverted (E or I) • •Sensing vs. Intuitive (S or N) Sensing vs. Intuitive (S or N) • •Thinking vs. Feeling (T or F) Thinking vs. Feeling (T or F) • •Judging vs. Perceiving (P or J) Judging vs. Perceiving (P or J)
The Big Five Model of Personality DimensionsExtroversionSociable, gregarious, and assertiveAgreeablenessGood-natured, cooperative, and trusting.ConscientiousnessResponsible, dependable, persistent, and organized.Emotional StabilityCalm, self-confident, secure (positive) versus nervous, depressed,and insecure (negative).Openness to ExperienceImaginativeness, artistic, sensitivity, and intellectualism.
Major Personality Attributes Influencing OB• Locus of control• Machiavellianism• Self-esteem• Self-monitoring• Risk taking• Type A personality
Locus of ControlLocus of ControlThe degree to which people believe theyare masters of their own fate. Internals Individuals who believe that they control what happens to them. Externals Individuals who believe that what happens to them is controlled by outside forces such as luck or chance.
MachiavellianismMachiavellianism (Mach)Degree to which an individual is pragmatic,maintains emotional distance, and believesthat ends can justify means. Conditions Favoring High Machs Conditions Favoring High Machs ••Direct interaction Direct interaction ••Minimal rules and regulations Minimal rules and regulations ••Emotions distract Emotions distract
Self-Esteem and Self-MonitoringSelf-Esteem (SE)Individuals’ degree of likingor disliking themselves.Self-MonitoringA personality trait that measuresan individuals ability to adjust hisor her behavior to external,situational factors.
Risk-Taking• High Risk-taking Managers – Make quicker decisions – Use less information to make decisions – Operate in smaller and more entrepreneurial organizations• Low Risk-taking Managers – Are slower to make decisions – Require more information before making decisions – Exist in larger organizations with stable environments• Risk Propensity – Aligning managers’ risk-taking propensity to job requirements should be beneficial to organizations.
Personality TypesType A’s1. are always moving, walking, and eating rapidly;2. feel impatient with the rate at which most events take place;3. strive to think or do two or more things at once;4. cannot cope with leisure time;5. are obsessed with numbers, measuring their success in terms of how many or how much of everything they acquire.Type B’s1. never suffer from a sense of time urgency with its accompanying impatience;2. feel no need to display or discuss either their achievements or accomplishments;3. play for fun and relaxation, rather than to exhibit their superiority at any cost;4. can relax without guilt.
Personality TypesProactive PersonalityIdentifies opportunities,shows initiative, takesaction, and perseveresuntil meaningful changeoccurs.Creates positive changein the environment,regardless or even inspite of constraints orobstacles.
Achieving Person-Job FitPersonality-Job FitTheory (Holland) Personality Types Personality TypesIdentifies six personalitytypes and proposes that ••Realistic Realisticthe fit between personality ••Investigative Investigativetype and occupational ••Social Socialenvironment determinessatisfaction and turnover. ••Conventional Conventional ••Enterprising Enterprising ••Artistic Artistic
TEAM EXERCISEWhat’s a “Team Personality”?It is the unusual organization today that is not using work teams. But noteverybody is a good team player. This prompts the questions: Whatindividual personality characteristics enhance a team’s performance? Andwhat characteristics might hinder team performance?(a) identify personality characteristics you think are associated with highperformance teams and justify their choices(b) identify personality characteristics you think hinder high performanceteams and justify their choices, and(c) resolve whether it is better to have teams composed of individuals withsimilar or dissimilar traits.
Defining MotivationMotivationThe processes that account for an individual’sintensity, direction, and persistence of effort towardattaining a goal. Key Elements Key Elements 1. Intensity: how hard a person tries 1. Intensity: how hard a person tries 2. 2. Direction: toward beneficial goal Direction: toward beneficial goal 3. 3. Persistence: how long a person tries Persistence: how long a person tries
Maslow’s Hierarchy of Needs Higher-Order Needs Needs that are satisfied internally; social, esteem, and self-actualization needs.Lower-Order NeedsNeeds that are satisfiedexternally; physiologicaland safety needs. Source: Motivation and Personality , 2nd ed,, by A.H. Maslow, 1970. Reprinted by permission of Prentice Hall, Inc., Upper Saddle River, NJ.
Theory X and Theory Y (Douglas McGregor)Theory XAssumes that employees dislikework, lack ambition, avoidresponsibility, and must bedirected and coerced to perform.Theory YAssumes that employees likework, seek responsibility, arecapable of making decisions,and exercise self-direction andself-control when committed to agoal.
Two-Factor Theory (Frederick Herzberg)Two-Factor (Motivation-Hygiene) TheoryIntrinsic factors are related to job satisfaction,while extrinsic factors are associated withdissatisfaction.Hygiene FactorsFactors—such as company policyand administration, supervision,and salary—that, when adequatein a job, placate workers. Whenfactors are adequate, people willnot be dissatisfied.
ERG Theory (Clayton Alderfer)ERG TheoryThere are three groups of core needs: existence,relatedness, and growth.Core Needs Core Needs Concepts: Concepts:Existence: provision of Existence: provision of More than one need canbasic material More than one need can basic material be operative at the same be operative at the samerequirements. requirements. time. time.Relatedness: desire for Relatedness: desire for If aahigher-level needrelationships. If higher-level need relationships. cannot be fulfilled, the cannot be fulfilled, theGrowth: desire for desire to satisfy aalower- desire to satisfy lower- Growth: desire for level need increases.personal development. personal development. level need increases.
David McClelland’s Theory of NeedsNeed for Achievement Need for AffiliationThe drive to excel, to achieve The desire for friendlyin relation to a set of and close personalstandards, to strive to relationships.succeed.Need for Power nPowThe need to make othersbehave in a way that theywould not have behavedotherwise. nAch nAff
Job Design TheoryJob CharacteristicsModel Characteristics: Characteristics:Identifies five job 1. Skill variety 1. Skill varietycharacteristics and their 2. Task identityrelationship to personal 2. Task identityand work outcomes. 3. 3. Task significance Task significance 4. 4. Autonomy Autonomy 5. 5. Feedback Feedback
Job Design Theory (cont’d)• Job Characteristics Model – Jobs with skill variety, task identity, task significance, autonomy, and for which feedback of results is given, directly affect three psychological states of employees: • Knowledge of results • Meaningfulness of work • Personal feelings of responsibility for results – Increases in these psychological states result in increased motivation, performance, and job satisfaction.
Computing a Motivating Potential ScorePeople who work on jobs with high core dimensions are People who work on jobs with high core dimensions aregenerally more motivated, satisfied, and productive. generally more motivated, satisfied, and productive.Job dimensions operate through the psychological states in Job dimensions operate through the psychological states ininfluencing personal and work outcome variables rather influencing personal and work outcome variables ratherthan influencing them directly. than influencing them directly.
Equity TheoryEquity TheoryIndividuals compare their job inputs and outcomeswith those of others and then respond to eliminateany inequities. Referent Referent Comparisons: Comparisons: Self-inside Self-inside Self-outside Self-outside Other-inside Other-inside Other-outside Other-outside
Expectancy TheoryExpectancy Theory (Victor Vroom)The strength of a tendency to act in a certain waydepends on the strength of an expectation that theact will be followed by a given outcome and on theattractiveness of that outcome to the individual.
Employee Recognition Programs• Types of programs – Personal attention – Expressing interest – Approval – Appreciation for a job well done• Benefits of programs – Fulfill employees’ desire for recognition. – Encourages repetition of desired behaviors. – Enhance group/team cohesiveness and motivation. – Encourages employee suggestions for improving processes and cutting costs.
What is Employee Involvement?Employee Involvement ProgramA participative process that uses the entire capacity ofemployees and is designed to encourage increasedcommitment to the organization’s success.
Examples of Employee Involvement ProgramsParticipative ManagementA process in which subordinates share a significantdegree of decision-making power with theirimmediate superiors.
Examples of EmployeeInvolvement Programs (cont’d)RepresentativeParticipation Works CouncilsWorkers participate in Groups of nominated or elected employees who must beorganizational decision consulted when managementmaking through a small makes decisions involvinggroup of representative personnel.employees. Board Representative A form of representative participation; employees sit on a company’s board of directors and represent the interests of the firm’s employees.
Examples of EmployeeInvolvement Programs (cont’d)Quality CircleA work group of employees who meet regularlyto discuss their quality problems, investigatecauses, recommend solutions, and takecorrective actions.
Examples of EmployeeInvolvement Programs (cont’d)Employee Stock Ownership Plans (ESOPs)Company-established benefit plans in whichemployees acquire stock as part of their benefits.
Linking EI Programs and Motivation Theories Employee Two-Factor Two-Factor Theory Y Theory Y EmployeeParticipative Involvement Theory Theory Participative Involvement IntrinsicManagement Programs IntrinsicManagement Programs Motivation Motivation ERG Theory ERG Theory Employee Employee Needs Needs
Job Design and SchedulingJob RotationThe periodic shifting of a workerfrom one task to another.Job EnlargementThe horizontal expansionof jobs.Job EnrichmentThe vertical expansion of jobs.
Guidelines for Enriching a JobSource: J.R. Hackman and J.L. Suttle, eds., Improving Life at Work (Glenview, IL: Scott Foresman, 1977), p. 138.
Work Schedule OptionsFlextimeEmployees work during a common core time periodeach day but have discretion in forming their totalworkday from a flexible set of hours outside the core.Job SharingThe practice of having two or more people split a 40-hour-a-week job.
Work Schedule OptionsTelecommutingEmployees do their work at home on a computerthat is linked to their office. Categories of telecommuting jobs: Categories of telecommuting jobs: • • Routine information handling tasks Routine information handling tasks • • Mobile activities Mobile activities • • Professional and other knowledge-related tasks Professional and other knowledge-related tasks
Variable Pay ProgramsVariable Pay ProgramsA portion of an employee’s pay is based on someindividual and/or organization measure ofperformance. • Piece rate pay plans • Profit sharing plans • Gain sharing plans
Flexible BenefitsEmployees tailor theirbenefit program to Core-Plus Plans: Core-Plus Plans:meet their personal aacore of essential core of essentialneed by picking and benefits and aamenu-like benefits and menu-like selection of other benefitchoosing from a menu selection of other benefit options. options.of benefit options.Modular Plans: Modular Plans: Flexible Spending Plans: Flexible Spending Plans:predesigned benefits predesigned benefits allow employees to use allow employees to usepackages for specific packages for specific their tax-free benefit their tax-free benefitgroups of employees. groups of employees. dollars purchase benefits dollars purchase benefits and pay service premiums. and pay service premiums.
Implications for Managers• Motivating Employees in Organizations – Recognize individual differences. – Use goals and feedback. – Allow employees to participate in decisions that affect them. – Link rewards to performance. – Check the system for equity.
Activity How would you go aboutmotivating low-skilled workers in any service industry of your choice?List the motivation initiatives and give justifications
LearningAny relatively permanent change in behaviorthat occurs as a result of experience. Learning Learning ••Involves change Involves change ••Is relatively permanent Is relatively permanent ••Is acquired through experience Is acquired through experience
Theories of Learning Theories of LearningClassical ConditioningA type of conditioning in which an individualresponds to some stimulus that would notordinarily produce such a response. Key Concepts Key Concepts ••Unconditioned stimulus Unconditioned stimulus ••Unconditioned response Unconditioned response ••Conditioned stimulus Conditioned stimulus ••Conditioned response Conditioned response
Theories of Learning (cont’d) Theories of Learning (cont’d)Operant ConditioningA type of conditioning in which desired voluntarybehavior leads to a reward or prevents a punishment. Key Concepts Key Concepts ••Reflexive (unlearned) behavior Reflexive (unlearned) behavior ••Conditioned (learned) behavior Conditioned (learned) behavior ••Reinforcement Reinforcement
Theories of Learning (cont’d) Theories of Learning (cont’d)Social-Learning TheoryPeople can learn through observationand direct experience. Key Concepts Key Concepts ••Attentional processes Attentional processes ••Retention processes Retention processes ••Motor reproduction processes Motor reproduction processes ••Reinforcement processes Reinforcement processes
Theories of Learning (cont’d) Theories of Learning (cont’d)Shaping BehaviorSystematically reinforcing each successive step thatmoves an individual closer to the desired response.Key Concepts Key Concepts••Reinforcement is required to change behavior. Reinforcement is required to change behavior.••Some rewards are more effective than others. Some rewards are more effective than others.••The timing of reinforcement affects learning The timing of reinforcement affects learning speed and permanence. speed and permanence.
Types of Reinforcement Types of Reinforcement• Positive reinforcement – Providing a reward for a desired behavior.• Negative reinforcement – Removing an unpleasant consequence when the desired behavior occurs.• Punishment – Applying an undesirable condition to eliminate an undesirable behavior.• Extinction – Withholding reinforcement of a behavior to cause its cessation.
Schedules of Reinforcement Schedules of ReinforcementContinuous ReinforcementA desired behavior is reinforcedeach time it is demonstrated.Intermittent ReinforcementA desired behavior is reinforcedoften enough to make thebehavior worth repeating but notevery time it is demonstrated.
Schedules of Reinforcement (cont’d)Schedules of Reinforcement (cont’d) Fixed-Interval Schedule Rewards are spaced at uniform time intervals. Variable-Interval Schedule Rewards are initiated after a fixed or constant number of responses.
Behavior Modification Behavior ModificationOB ModThe application of reinforcement conceptsto individuals in the work setting. Five Step Problem-Solving Model Five Step Problem-Solving Model 1. Identify critical behaviors 1. Identify critical behaviors 2. Develop baseline data 2. Develop baseline data 3. Identify behavioral consequences 3. Identify behavioral consequences 4. Develop and apply intervention 4. Develop and apply intervention 5. Evaluate performance improvement 5. Evaluate performance improvement
OB MOD Organizational OB MOD Organizational Applications Applications• Well Pay versus Sick Pay – Reduces absenteeism by rewarding attendance, not absence.• Employee Discipline – The use of punishment can be counter-productive.• Developing Training Programs – OB MOD methods improve training effectiveness.• Self-management – Reduces the need for external management control.
ActivityDiscuss how you would use OBMod to bring about behavioralchanges to improve punctuality in the workplace