Organizational Behavior - Session 2

Foundations of Individual Behavior Lecturer: Do Tien Long 09 04 51 54 46 dotienlong_mc@yahoo.com.vn Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005

The changing nature & scope of managing individuals In the 21st century there are new demands for an unpredictable future – There is ever-increasing change There are flatter, matrix-based structures There are new work methods More need to balance family demands & work Increased consumerism Organizational Behavior, Do Tien Long

Embracing diversity – an organisation’s perspective We ought to reflect the style, taste & opinions of our consumers, who represent sexes, all colours & creeds, all ages & disabilities. Cultural diversity will strengthen the quality of the company & will make us much more outward- looking. Barry Gibson, Littlewoods Organizational Behavior, Do Tien Long

Defining diversity Relating & working with people who hold different perspectives & views, bringing different qualities to the workplace Diversity consists of visible & non-visible differences which will include sex, age, background, race, disability, personality and workstyle. Kandola & Fullerton Organizational Behavior, Do Tien Long

Managing diversity Does not mean managers champion their own values & try & shift other people’s values to conform & match their own Does mean encouraging individuality & at the same time expecting group co-operation & team work Organizational Behavior, Do Tien Long

How do individuals differ? Ethnic origin Motivation Physique Attitudes Gender Personality Early family Intelligence & experiences abilities Social & cultural Perception factors National culture Organizational Behavior, Do Tien Long

Personality Defined as the combination of stable physical and mental characteristics that give the individual his or her identity Including how one looks, thinks, acts and feels Are the product of interacting genetic and environmental influences Organizational Behavior, Do Tien Long

The big five personality dimensions Personality Dimension Characteristics of a person scoring positively on the dimension 1. Extraversion Outgoing, talkative, sociable, assertive 2. Agreeableness Trusting, good natured, cooperative, soft hearted 3. Conscientiousness Dependable, responsible, achievement oriented, persistence 4. Emotional stability Relaxed, secure, unworried 5. Openness to experience Intellectual, imaginative, curious, broad minded Source: Organizational Behavior, 5th, Robert Kreitner & Angelo Kiniki Organizational Behavior, Do Tien Long

Personality and job performance Studies showed that: Generally Conscientiousness had the strongest positive correlation with job and training performance Extraversion associated with success for managers and salesperson; stronger predictor of job performance than Agreeableness Being courteous, trusting, straightforeward, and soft-hearted had smaller impact on job performance than being talkative, active, and assertive One shoes does not fit all people, one personality does not fit all job situations Organizational Behavior, Do Tien Long

Personality and Self-concept Self-concept is the view individuals have of themselves as physical, social, and spiritual or moral beings Is a key personality dynamic in study of OB 3 related and crucial aspects are: Self-esteem: one’s overall self-evaluation Self-efficacy: a person’s belief about his or her chances of successfully accomplishing a specific task Self-monitoring: observing one ‘s own behavior and adapting it to the situation Organizational Behavior, Do Tien Long

Conceptual model for individual differences The unique individual Forms of self-expression Personality traits Attitudes Self-concept Abilities •Self-esteem •Self-efficacy •Self-monitoring Emotions Source: Organizational Behavior, 5th, Robert Kreitner & Angelo Kiniki Organizational Behavior, Do Tien Long

Attitude Is a predisposition to respond in a positive or negative way to someone or something in one’s environment An attitude results in intended behavior; this intention may or may not be carried out in a given circumstance In general, the more specific attitudes and behaviors are, the stronger the relationship Organizational Behavior, Do Tien Long

Attitude The cognitive component of an attitude reflects the beliefs, opinions, knowledge, or information a person possesses Beliefs represent ideas about someone or something and the conclusions people draw about them The effective component of an attitude is a specific feeling regarding the personal impact of the antecedent The behavioral component is an intention to behave in a certain way based on your specific feelings or attitudes Organizational Behavior, Do Tien Long

Example of 3 components of attitudes ANTECEDENTS ATTITUDE RESULT beliefs and create feelings that Intended values influence behavior “My job lacks “I don’t like my “I’m going to quit responsibility” lob”. my job”. “Job responsibility is important”. Source: Organizational Behavior, 5th, Robert Kreitner & Angelo Kiniki Organizational Behavior, Do Tien Long

Attitudes and values Values defined as broad preferences concerning appropriate courses of action or outcomes. It tends to influence to attitudes and behavior Values reflect a person ‘s sense of right or wrong, or what “ought” to be: “equal rights for all” or “people should be treated with respect and dignity” Sources of values are parents, friends, teachers and external reference group Organizational Behavior, Do Tien Long

Attitudes Provide a state of readiness or tendency to respond in a particular way Are learned through life and are embodied within our socialisation process Organizational Behavior, Do Tien Long

Abilities and Emotion Ability represents a broad and stable characteristic responsible for a person’s maximum physical or mental performance Intellectual ability Physical ability Emotions are intense feelings that are directed at someone or something Organizational Behavior, Do Tien Long

Is intelligence inherited Nativists – believe intelligence is mostly inherited (nature) Empiricists – believe that our environment shapes our behaviour & mental abilities (nurture) Galton suggests that genius runs in families & so intelligence must be inherited Organizational Behavior, Do Tien Long

Emotional intelligence (EI) Expands classical view of intelligence to include emotional qualities of individuals Can predict top performance 18 competencies including items such as empathy, developing others, service orientation, change catalyst, initiative, adaptability, self-confidence Goldman Organizational Behavior, Do Tien Long

IQ vs. EQ IQ EQ Abilities of logic, Ability to recognize, conculation, languege, understand, monitor the and spaces emotions, and use it to From birth develop thinking Control reason Possible to grow Little impact to others Can control the behavior of the individual and others Suit to managerial responsibility Have influence to others Suit to managerial relations Organizational Behavior, Do Tien Long

The Ability-Job Fit Ability-Job Employee’s Fit Job’s Ability Abilities Requirements Organizational Behavior, Do Tien Long

What Is Perception, and Why Is It Important? Perception A process by which ••People’s behavior is People’s behavior is individuals organize and based on their based on their interpret their sensory perception of what perception of what impressions in order to reality is, not on reality is, not on give meaning to their reality itself. environment. reality itself. ••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. Organizational Behavior, Do Tien Long

Errors and Biases in Attributions Fundamental Attribution Error The tendency to underestimate the influence of external factors and overestimate the influence of internal factors when making judgments about the behavior of others. In general, we tend to blame the person first, not the situation. Organizational Behavior, Do Tien Long

Errors and Biases in Attributions (cont’d) Self-Serving Bias The tendency for individuals to attribute their own successes Thought: When student to internal factors while gets an “A” on an exam, they often say they studied putting the blame for failures hard. But when they don’t on external factors. do well, how does the self serving bias come into play? Hint: Whose fault is it usually when an exam is “tough”? Organizational Behavior, Do Tien Long

Frequently Used Shortcuts in Judging Others Selective Perception People selectively interpret what they see on the basis of their interests, background, experience, and attitudes. Organizational Behavior, Do Tien Long

Frequently Used Shortcuts in Judging Others Halo Effect Drawing a general impression about an individual on the basis of a single characteristic Contrast Effects Evaluation of a person’s characteristics that are affected by comparisons with other people recently encountered who rank higher or lower on the same characteristics Organizational Behavior, Do Tien Long

Frequently Used Shortcuts in Judging Others Projection Attributing one’s own characteristics to other people. Stereotyping Judging someone on the basis of one’s perception of the group to which that person belongs. Organizational Behavior, Do Tien Long

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. Organizational Behavior, Do Tien Long

Specific Applications in Organizations (cont’d) Performance Evaluations Appraisals are often the subjective (judgmental) perceptions of appraisers of another employee’s job performance. Organizational Behavior, Do Tien Long

The Link Between Perceptions and Individual Decision Making Problem A perceived discrepancy between the current state of affairs and a desired state. Perception Perception of the of the decision decision Decisions maker maker Choices made from among alternatives developed from data perceived as relevant. Outcomes Organizational Behavior, Do Tien Long

Assumptions of the Rational Decision-Making Model Rational Decision- Model Assumptions Model Assumptions Making Model •• Problem clarity Problem clarity Describes how •• Known options individuals should Known options behave in order to •• Clear preferences Clear preferences maximize some •• Constant outcome. Constant preferences preferences •• No time or cost No time or cost constraints constraints •• Maximum payoff Maximum payoff Organizational Behavior, Do Tien Long

Steps in the Rational Decision- Making Model 1. Define the problem. 2. Identify the decision criteria. 3. Allocate weights to the criteria. 4. Develop the alternatives. 5. Evaluate the alternatives. 6. Select the best alternative. Organizational Behavior, Do Tien Long

The Three Components of Creativity Creativity The ability to produce novel and useful ideas. Three-Component Model of Creativity Proposition that individual creativity requires expertise, creative-thinking skills, and intrinsic task motivation. E X H I B I T 5–4 E X H I B I T 5–4 Organizational Behavior, Do Tien Long

Creative thinking process Creativity – the application of imaginative thought which results in innovative solutions to many problems 1. Preparation 2. Incubation 3. Illumination 4. Verification Wallas Organizational Behavior, Do Tien Long

How Are Decisions Actually Made in Organizations? Bounded Rationality Individuals make decisions by constructing simplified models that extract the essential features from problems without capturing all their complexity. Organizational Behavior, Do Tien Long

Common Biases and Errors Overconfidence Bias Believing too much in our own ability to make good decisions Anchoring Bias Using early, first received information as the basis for making subsequent judgments Confirmation Bias Using only the facts that support our decision. Organizational Behavior, Do Tien Long

Common Biases and Errors Availability Bias Using information that is most readily at hand. Representative Bias “Mixing apples with oranges” Assessing the likelihood of an occurrence by trying to match it with a preexisting category using only the facts that support our decision Organizational Behavior, Do Tien Long

Common Biases and Errors Escalation of Commitment In spite of new negative information, commitment actually increases! Randomness Error Creating meaning out of random events Hindsight Bias Looking back, once the outcome has occurred, and believing that you accurately predicted the outcome of an event Organizational Behavior, Do Tien Long

Intuition Intuitive Decision Making An unconscious process created out of distilled experience. Conditions Favoring Intuitive Decision Making A high level of uncertainty exists There is little precedent to draw on Variables are less scientifically predictable “Facts” are limited Facts don’t clearly point the way Analytical data are of little use Several plausible alternative solutions exist Time is limited and pressing for the right decision Organizational Behavior, Do Tien Long

Individual Differences in Decision Making Personality Aspects of conscientiousness and escalation of commitment. Self Esteem High self serving bias Gender Women tend to analyze decisions more than men. Organizational Behavior, Do Tien Long

Organizational Constraints on Decision Makers Performance Evaluation Evaluation criteria influence the choice of actions. Reward Systems Decision makers make action choices that are favored by the organization. Formal Regulations Organizational rules and policies limit the alternative choices of decision makers. System-imposed Time Constraints Organizations require decisions by specific deadlines. Historical Precedents Past decisions influence current decisions. Organizational Behavior, Do Tien Long

Cultural Differences in Decision Making Problems selected Time orientation Importance of logic and rationality Belief in the ability of people to solve problems Preference for collective decision making Organizational Behavior, Do Tien Long

Ethics in Decision Making Ethics and National Culture There are no global ethical standards. The ethical principles of global organizations that reflect and respect local cultural norms are necessary for high standards and consistent practices. Organizational Behavior, Do Tien Long

Ways to Improve Decision Making 1. Analyze the situation and adjust your decision making style to fit the situation. 2. Be aware of biases and try to limit their impact. 3. Combine rational analysis with intuition to increase decision-making effectiveness. 4. Don’t assume that your specific decision style is appropriate to every situation. 5. Enhance personal creativity by looking for novel solutions or seeing problems in new ways, and using analogies. Organizational Behavior, Do Tien Long

Toward Reducing Bias and Errors Focus on goals. Clear goals make decision making easier and help to eliminate options inconsistent with your interests. Look for information that disconfirms beliefs. Overtly considering ways we could be wrong challenges our tendencies to think we’re smarter than we actually are. Don’t try to create meaning out of random events. Don’t attempt to create meaning out of coincidence. Increase your options. The number and diversity of alternatives generated increases the chance of finding an outstanding one. Source: S.P. Robbins, Decide & Conquer: Making Winning Decisions and Taking Control of Your Life (Upper Saddle River, NJ: Financial Times/Prentice Hall, 2004), pp. 164–68. Organizational Behavior, Do Tien Long

Learning Learning Any relatively permanent change in behavior that 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 Organizational Behavior, Do Tien Long

Theories of Learning Classical Conditioning A type of conditioning in which an individual responds to some stimulus that would not ordinarily produce such a response. Key Concepts Key Concepts ••Unconditioned stimulus Unconditioned stimulus ••Unconditioned response Unconditioned response ••Conditioned stimulus Conditioned stimulus ••Conditioned response Conditioned response Organizational Behavior, Do Tien Long

Theories of Learning (cont’d) Operant Conditioning A type of conditioning in which desired voluntary behavior 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 Organizational Behavior, Do Tien Long

Theories of Learning (cont’d) Social-Learning Theory People can learn through observation and direct experience. Key Concepts Key Concepts ••Attentional processes Attentional processes ••Retention processes Retention processes ••Motor reproduction processes Motor reproduction processes ••Reinforcement processes Reinforcement processes Organizational Behavior, Do Tien Long

Theories of Learning (cont’d) Shaping Behavior Systematically reinforcing each successive step that moves 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. Organizational Behavior, Do Tien Long

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. Organizational Behavior, Do Tien Long

Schedules of Reinforcement Continuous Reinforcement A desired behavior is reinforced each time it is demonstrated. Intermittent Reinforcement A desired behavior is reinforced often enough to make the behavior worth repeating but not every time it is demonstrated. Organizational Behavior, Do Tien Long

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. Organizational Behavior, Do Tien Long

Schedules of Reinforcement (cont’d) Fixed-ratio Organizational Behavior, Do Tien Long

Reinforcement Theory When professors give random pop quizzes or take random attendance, students often complain that they are adults, old enough to make their own decisions, and should therefore not be required to come to class. How do you reconcile this argument with what we know about reinforcement theory? Discuss with a classmate. What kind of reinforcement schedule are these professors using? Would a different schedule be preferable? If so, which one? Organizational Behavior, Do Tien Long

Reinforcement Theory Recall and write down the three criteria that indicate learning has occurred. Do you think that learning, according to these criteria, really occurs as a result of a one semester college class? Discuss with a neighbor. What kinds of things would you recommend to a college professor to increase the likelihood of students learning? Use theories from the text to frame your answer. Organizational Behavior, Do Tien Long

Factors influencing the learning process Organizational Behavior, Do Tien Long

The significance of learning for managers • Powerful processes which can lead to positive outcomes, e.g. increased competence, understanding, self esteem & morale • Individuals who enjoy learning are more likely to be flexible in times of constant change & therefore more adaptable to organisational turbulence • Growing evidence that a learning culture can affect an organisation’s effectiveness Organizational Behavior, Do Tien Long

Components of the thinking environment Attention Encouragement Incisive questions Feelings Equality Information Appreciation Place Ease Diversity Kline Organizational Behavior, Do Tien Long

Action learning sets Small groups of people who all wish to develop themselves through tackling live issues The sets provide opportunities for each individual to report in turn on their actions and reflect on the progress they have made Organizational Behavior, Do Tien Long

Applying theories of learning to organisations 1. Self development – learning what to do, how to be, learning the ropes 2. Development of others – personal development, development of planned learning events 3. Development of learning culture – policy development Organizational Behavior, Do Tien Long

Develop a life plan Think about where you are going/want to go/want to achieve Work out what it is that is important to you Identify stability zones in your life Involve your family/friends, take account of their need Set clear and realistic goals and priorities Eliminate the less value aspects of your life Organizational Behavior, Do Tien Long

Organizational Behavior - Session 2

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