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  • This uses an application of the figure-ground principle.
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    • 1. Module IIBasic psychological process − Perception − Factorsinfluencing perception − Attribution theory −Specific applications in organizations − Learning −Theories of learning − Using learning concepts forself management − implications for performanceand satisfaction − Remembering − Basicmotivational concepts − Theories of motivation −Implication for performance and satisfaction
    • 2. Topics under PERCEPTION• Basic psychological process• Perception• Factors influencing perception• Attribution theory• Specific applications in organizations
    • 3. Basic psychological process• Learning• Memory• Motivation• Personality• Perception• Attitude
    • 4. Definition of Perception• A processby which• individuals organizeand interpret theirsensory impressions• in order to givemeaning to theirenvironment.
    • 5. So perception means…• It is the process of receiving information– about the world around us– and making sense out of it• It involves:– deciding which information to notice,– how to categorize this information and– how to interpret it within the framework of existingknowledge Why is it Important? Because people’s behavior is based on theirperception of what reality is, not on reality itself.
    • 6. •Receiving Stimuli(External & Internal)Selecting StimuliExternal factors : Nature,Location,Size,contrast,Movement,repetition,similarityInternal factors : Learning,needs,age,Interest,OrganizingFigure Background ,Perceptual Grouping( similarity, proximity,closure, continuity)ResponseCovert: Attitudes ,Motivation,FeelingOvert: BehaviorPerceptual ProcessInterpretingAttribution ,Stereotyping,Halo Effect, Projection
    • 7. The Perceptual Process1. Sensation/ receive– An individual’s ability todetect stimuli in theimmediate environment.2. Selection– The process a personuses to eliminate some ofthe stimuli that havebeen sensed and to retainothers for furtherprocessing.3.Organization– The process of placingselected perceptualstimuli into a frameworkfor “storage.”4.Translation/ interpret– The stage of theperceptual process atwhich stimuli areinterpreted and givenmeaning.
    • 8. PRINCIPLES OF ORGANISATION• Figure and Ground• Principle of Similarity• Principle of Proximity• Principle of Continuity• Principle of Closure• Principle of SymmetryOrganizational Behavior8
    • 9. Organizational Behavior9Figure and groundFigure and groundHumans ability to separate elements based upon contrast
    • 10. Organizational BehaviorGestaltApproachFigureGroundBackgrounddemonstration-A vase... orTwo profiles offaces??
    • 11. IF YOU WANT TO REALLY TOUCH SOMEONE, SENDTHEM A LETTER(advertisement for the Australian postal service )Figure-Ground Principle
    • 12. SimilarityProximityContinuityClosure Symmetry
    • 13. Similarity: Health Unlimited logo (Save mothers’lives, improve basic health services, Prevent the spread of HIV/AIDS )-- the similarity between the cross and the movingperson is easily spotted-- Though each of the shapes between the first andthe last are slightly different, our minds still seesenough of a resemblance to unite them together-- The use of the solid black color for each of theshapes also serves to link each shape to the others.
    • 14. • Principle of similarity: when objects of similarshape, size or colour tend to be grouped together• Eg: all employees who wear tie- perceived asexecutives• All employees with yellow hats- belong to theproduction floor• Principle of proximity: tendency to perceivestimuli which are near one another as belongingtogether• Eg: several workers working on a machine areperceived to be one group and– the group as a whole is held responsible for any failurein the machine
    • 15. • Principle of closure: a person has a tendency toperceive as whole when none exists-- to close thegaps which are unfilled• A manager facing a complex decision may be ableto develop a fairly accurate understanding of theissues even though some details are missing• Based on experience and imagination, themanager can fill in the missing pieces needed tomake a decision• Principle of continuity: tendency to perceiveobjects as continuing patterns
    • 16. Organizational Behavior16ILLUSIONS- refers to false interpretationof sensory information(The Vertical lines are both the same))length.CONTRAST PRINCIPLE OFPERCEPTIONThe center circles are both the same size.
    • 17. PERCEPTUAL AMBIGUITYOrganizational Behavior 17
    • 18. PERCEPTUAL AMBIGUITYOrganizational Behavior 18
    • 19. Factors Influencing Perception:1.) Perceiver2.) Target3.) Situation
    • 20. • Factors influencing PerceptionFactors in the perceiver• Attitudes• Motives• Interests• Experience• ExpectationsPerceptionFactors in the Target• Novelty• Motion• Sounds• Size• Background• Proximity• SimilarityFactors in the situation• Time• Work Setting• Social Setting
    • 21. FACTORS THAT INFLUENCE PERCEPTION• How do we explain the fact that people can perceive the same thing differently?• A number of factors act to shape and sometimes distort perception• These factors can reside in the perceiver; in the object, or target, being perceived; or inthe context of the situation in which perception occurs.• The Perceiver: when an individual looks at target and attempts to interpret whathe/she sees, the individual personal characteristics will heavily influenceinterpretation(attitudes, personality, motives, interests, experiences and expectations)• The Target: the characteristics of the target being observed can also affect whatis perceived– Loud people are more likely than quiet people to be noticed in a group.– So, too, are extremely attractive/ unattractive individuals. Because targets arent looked at in isolation, therelationship of a target to its background and our tendency to group close/similar things together alsoinfluences perception• The Situation: the context (time, location, light, heat, color etc. ) in which we seeobjects/ events can influence attention
    • 22. Attribution Theory• Our perception of people differ from our perceptionsof objects because we make inferences aboutthe behaviors of people that we don’t make aboutobjects.• Objects dont have beliefs, motives, or intentions; likepeople• The result: when we observe an individualbehaviour, we try to develop explanations of why theybehave in certain ways.• Our perception and judgment ofa persons action, therefore, will be significantlyinfluenced by assumptions we make about the person
    • 23. Attribution TheoryTwo Types of Causes:1) Internal2) External
    • 24. • Attribution theory was developed to explain how we judgepeople differently depending on the meaning weattribute to a given behavior.• Basically, the theory suggests that whenwe observe anindividuals behavior, we attempt to determine whetherit was internally or externally caused• Internally caused behaviors are those that are believed tobe underthe personal control of the individual.• Externally caused behavior results from outsidefactors; that is, the person is forced into the behavior bythe situation.• The determination, depends on 3factors: distinctiveness, consensus and consistency
    • 25. Three Factors of theAttribution Theory:1.) Distinctiveness2.) Consensus3.) Consistency
    • 26. • Distinctiveness: the extent to which theperson behaves in the same way in similarsituations.• Consensus: the extent to which other peoplebehave in the same way in a similar situation.• Consistency: the extent to which the personbehaves like this every time the situationoccurs.
    • 27. Let’s look at an example• Our subject is called Tom. His behavior is laughter. Tom islaughing at a comedian.• 1. Consensus: Everybody in the audience is laughing.Consensus is high. If only Tom is laughing consensus is low.• 2. Distinctiveness: Tom only laughs at this comedian.Distinctiveness is high. If Tom laughs at everythingdistinctiveness is low.• 3. Consistency: Tom always laughs at this comedian.Consistency is high. Tom rarely laughs at this comedian-consistency is low.
    • 28. Attribution TheoryWhen individuals observe behavior, they attempt to determine whether it isinternally or externally caused.Observation Interpretation Attribution of causeConsistencyConsensusDistinctivenessIndividual behaviorInternalExternalInternalExternalInternalExternalHLHLHLH –high L- Low
    • 29. DistictivenessDoes this personbehave inthis mannerin other situationYes:HighConsistencyNo:LowConsistencyNo:LowConsensusYes:HighConsensusYES:LowDistinctivenessNO:HighDistinctivenessConsensusDo other personBehave in theSame manner?ConsistencyDoes this personbehavein this samemanner at othertimes ?InternalAttributionExternalAttribution
    • 30. Shortcuts in Judging Others:1.) Selective Perception2.) Halo Effect3.) Contrast Effects4.) Projection5.) Stereotyping6) Fundamental Attribution Error
    • 31. Shortcuts in judging others• Selective Perception : People selectively interpretwhat they see on the basis of theirinterests, background, experience and attitudes.• Eg: we are more likely to notice cars like our own• Halo Effect : Drawing a general impressions about anindividual on the basis of a single characteristic.Eg: a teacher awarding more marks to a well-likedstudentInformation from a ‘professional’ tends to be overratedand that from an ordinary person tends to bediscounted
    • 32. • Contrast Effect :Evaluation of a person’s characteristics that areeffected by comparisons with other people recentlyencountered who rank higher or lower on the samecharacteristics.– Could be better or worse depending on what it is compared to• All judgments are relative• The contrast effect is a phenomenon that occurs whenones perception of the differences of two things isexaggerated depending on the order in which they arepresented.• For example, "if you lift a light object and then a heavyobject, you will judge the second object heavier than ifyou had lifted it first or solo"
    • 33. • Projection :Attributing ones own characteristics to otherpeople.Eg: an individual who is not very energetic may seeothers as lazy, anda dishonest person may be suspicious of others• Stereotyping :Judging someone on the basis of one’s perceptionof the group to which that person belongs.Eg: People in Kerala don’t speak good English• Fundamental Attribution Error: the tendency tounderestimate the importance of external factorsand overestimate the importance of internalfactors when making attributions about thebehaviours of others
    • 34. Specific Applications in Organizations:1.) Employment Interview2.) Performance Expectations(Self Fulfilling Prophecy)3.) Performance Evaluation4.) Employee Effort
    • 35. • Employment interview- Managing impressionsto prospective employers– Impression management: efforts by individuals toimprove how they appear to others• Performance evaluation/ appraisal: theprocess of evaluating employees on variouswork-related dimensions
    • 36. Self-fulfilling prophecy• It occurs when our expectations about another personcause that person to act in a way that is consistent withthose expectations• Eg: if a supervisor believes a new employee will not be ableto perform the job, this expectation influences thesupervisor’s behaviour towards the employee and withoutrealizing it, may cause the new hire to perform the jobpoorly• Consequently, the supervisor’s perception, even if originallyincorrect, is confirmed• To block such negative self-fulfilling prophecy (= Golemeffect), firms need to fight negative stereotypes and avoidfirst impressions• Positive self-fulfilling prophecy= Pygmalion effect
    • 37. Topics under LEARNING• Learning• Theories of learning• Using learning concepts for self management• Implications for performance and satisfaction• Remembering
    • 38. Learning• A relatively permanent change in knowledgeor observable behavior that results frompractice or experience• With learning comes change, a relatively permanent one• Learning is an ongoing process in everyone’s life, both on and off the job• Employees must learn how to perform tasks and duties, and how toeffectively interact with others
    • 39. Learning• Intentional vs. incidental learning• Intentional: it is acquired after a deliberateattempt- a careful search for information-eg: to buy a brand new laptop• Incidental: (we learn even when we are not trying)acquired by accident without much effort-getting exposed to the Vodafone TV adwhile reading a newspaper article ormagazine rather than watching the TV
    • 40. Theories of Learning• Classical conditioning theory• Operant conditioning theory• Social learning theory• Cognitive learning theory
    • 41. Classical Conditioning Theory-Ivan Pavlov• By Ivan Pavlov, a Nobel Prize-winning psychologist fromRussia• The first type of learning to be discovered and studiedwithin the behaviorist tradition (hence the nameclassical).• a process in which a previously neutral stimulusacquires the ability to elicit a response by repeatedassociation with a stimulus that naturally produces asimilar response• Unconditioned Stimulus (UCS) elicits UnconditionedResponse (UCR)• The Neutral/Orienting Stimulus (NS) is repeatedly pairedwith the Unconditioned/Natural Stimulus (UCS).
    • 42. Classical ConditioningUnconditionedstimulus (UCS)Conditioned stimulus(CS)Conditioned stimulus(CS)UnconditionedResponse (UCR)ConditionedResponse (CR)AFTER REPEATED PAIRINGS:
    • 43. Pavlov’s experiment
    • 44. Classical Conditioning Theory•Pavlov was studying the digestive system of dogs andbecame intrigued with his observation that dogsdeprived of food began to salivate when one of hisassistants walked into the room.• The Neutral Stimulus (NS) is transformed into aConditioned Stimulus (CS)• That is, when the CS is presented by itself, it elicitsor causes the CR (which is the same involuntaryresponse as the UCR.• The name changes because it is elicited by adifferent stimulus• This is written CS elicits CR.
    • 45. Notes of this theory• When the dog was presented with a piece of meat (UCS orUS), there was salivation– Salivation in response to food is natural, unlearned response(UCR)- a reflex• When he rang a bell without meat, there was no salivation• Now, meat was given + ringing the bell• After repeatedly hearing the bell before getting thefood, there was salivation after the bell rang• After repetitions of this procedure, there was salivation(CR) merely at the sound of the bell (CS), withoutpresentation of meat• The dog LEARNT to respond (salivate) to the bell
    • 46. Operant conditioning/ instrumentalconditioning– B. F. Skinner• A type of learning in which the consequences ofbehaviour lead to changes in the probability of thatbehaviour’s occurrence• Behaviours with positive consequences are acquired• Behaviours with negative consequences areeliminated• According to this theory, people learn by connectingthe consequences of their behaviour with theirbehaviour itself
    • 47. OPERANT CONDITIONING PROCESSAntecedents(conditionsleading to thebhvr)Behaviour(activityperformed)Consequences(results of thebhvr)Manager showsemployee howto do a jobEmployeeperforms jobproperlyManagerpraisesemployeeAntecedent -- the stimulus that precedes the behavior- instructions/ rules/ goalsBehavior -- the behavior emitted in response to the stimulusConsequence -- the positive or negative consequence of the behaviorEXAMPLE
    • 48. Meaning of Operant conditioning A type of conditioning in which desired voluntarybehavior leads to a reward or prevents a punishment focuses on associations between work behaviors (such asjob performance, absenteeism, etc.) and consequences provided by an employee’senvironment (supervisor, co-workers). Example of desired consequences are pay and verbalpraise Examples of undesired consequences are reprimands(criticisms) and demotions.
    • 49. Examples of Operant Behaviorsand Their ConsequencesBEHAVIORS• works and• is late to work and• enters a restaurant and• enters a football stadium and• enters a grocery store andCONSEQUENCES• is paid• is deducted pay• Eats• watches a football game• buys food.THE INDIVIDUAL
    • 50. Types of Reinforcement/ The 4contingencies of reinforcementPositive reinforcement: Providing a reward for adesired behavior.Potential positive reinforcers: Pay, Bonuses, Promotions, Verbal praise, AwardsNegative reinforcement/ avoidance: Removingan unpleasant consequence when the desiredbehavior occurs- warning, demotion, terminationEg:Staying late night at office to finish an important task to avoid shoutingfrom the bossPunishment: Applying an undesirable conditionto eliminate an undesirable behavior.Being shouted at for long tea breaks, reduces the time taken for the sameExtinction: Withholding reinforcement of abehavior to cause its cessation.
    • 51. Negative Reinforcement vs. Punishment• Punishment reduces the probability of an undesiredbehavior(excessive web surfing during companytime, dangerous operation of heavyequipment, sexual harassment and excessiveabsenteeism)• Negative reinforcement increases the probability ofa desired behavior• Extinction and punishment are used to ensure thatemployees learn to avoid performing undesiredbehaviors.• Extinction: when a response that was oncerewarded is no longer rewarded, it tends to weakenand eventually EXTINGUISH• Eg: giving lift to a female colleague- thanked..continue..denies- no longer praised for yourgenerosity- behaviour dies out/ extinguishes
    • 52. Rewards Used by OrganizationsMATERIAL REWARDSPayPay raisesStock optionsProfit sharingBonuses/bonus plansIncentive plansSUPPLEMENTAL BENEFITSCompany automobilesHealth insurance plansPension contributionsVacation and sick leaveRecreation facilitiesChild care supportClub privilegesMaternity/ Paternity leavesSTATUS SYMBOLSCorner officesOffices with windowsCarpetingPaintingsPrivate restroomsSOCIAL/INTER-PERSONAL REWARDSPraiseFeedbackSmiles, pats on the back, andother nonverbal signalsRequests for suggestionsInvitations to coffee or lunchREWARDS FROMTHE TASKSense of achievementJobs with more responsibilityJob autonomy/self-directionPerforming important tasksSELF-ADMINISTEREDREWARDSSelf-congratulationSelf-recognitionSelf-praiseSelf-development throughexpanded knowledge/skillsGreater sense of self-worth
    • 53. Potential Negative Effects of PunishmentFear ofmanagerRecurrenceof undesirableemployee behaviorUndesirableemotional reactionAggressive,disruptivebehaviorApathetic,noncreativeperformanceHigh turnoverand absenteeismButleads tolong-termShort-termdecrease infrequencyofundesirableemployeebehaviorPunishmentbymanagerUndesirableemployeebehaviorAntecedentWhich tendsto reinforce
    • 54. How to Make Punishment Effective• Use the principles of contingent punishment, immediatepunishment, and punishment size• Praise in public, punish in private• Develop alternative desired behavior• Balance the use of pleasant and unpleasant events• Use “positive discipline” (i.e., change behavior throughreasoning, with an emphasis on personal responsibility or“self control,” rather than by imposing increasingly severepunishments)Managers should:
    • 55. Social Learning Theory/ vicariouslearning/ Observational learning• The ability of an individual to learn by observing others• Learner learns a behavior by watching the modelperform the behavior• Examples– Role playing– Demonstrations– Training films• Attention Retention Practice Motivation• The greater the attention, the more effective thelearning
    • 56. Social learning processModelBehaviourImitate the model’sbehavourPractise model’sbehaviourPay attention to themodel/ rememberwhat the model didMotivatedto imitatethe model?Observer
    • 57. Conditions Required for VicariousLearning• Learner observes the model when the modelis performing the behavior• Learner accurately perceives model’sbehavior• Learner must remember the behavior• Learner must have the skills and abilities toperform the behavior• Learner must see that the model receivesreinforcement for the behavior in question
    • 58. • To take advantage of vicarious learning inorganizations, managers should ensure thatgood performer models are available forothers to learn from.• Models that are most likely to be imitated byothers tend to be• 1) organizational members who are highlycompetent in the behavior and may even havea reputation as an expert,• 2) individuals with high status in theorganization,• 3) models who receive reinforcers that thelearner desires, and• 4) models who engage in desired behaviors ina friendly manner.
    • 59. Cognitive process of learningPeople draw on their experiences and use past learning as a basis for presentbehaviourPrior learningBehaviouralchoicePerceivedconsequencesFeedback
    • 60. Using learning concepts for selfmanagementThe 2 approaches to apply learning in organisationsare:• Training• Practicing systematic use of rewards andpunishments– Organisational behaviour management– Discipline• Training: process of systematically teachingemployees to acquire and improve job-relatedskills and knowledge
    • 61. Types of training• Classroom Training: process of teaching people how to dotheir jobs by explaining various job requirements and howto meet them• Apprenticeship programs: formal training programsinvolving both OJT and classroom training, over a longperiod, for training in the skilled trades• Cross-cultural training (CCT): a systematic way of preparingemployees to live and work in another country• Corporate universities: centres devoted to handling acompany’s training needs on a full-time basis• Executive training programs: sessions in which companiessystematically attempt to develop their top leaders, eitherin specific skills or general managerial skills• E-training: training based on disseminating informationonline- through internet or intranet
    • 62. 4 major principles of learning• Principles of learning: the set of practices that maketraining effective: participation, repetition, transfer oftraining and feedback• Participation: active involvement in the process oflearning; more active participation leads to moreeffective learning• Repetition: the process of repeatedly performing a taskso that it may be learned• Transfer of training: the degree to which the skillslearned during training sessions may be applied toperformance of one’s job• Feedback: knowledge of the results of one’s behaviour
    • 63. Implications of learning forperformance and satisfaction• Practicing rewards• Behaviours that are rewarded tend to be strengthenedand repeated in the future• Administer rewards selectively to reinforce behavioursthat we wish to be repeated in future• Practicing punishments– through discipline- eliminatesundesirable organisational behaviours• Discipline: the process of systematically administeringpunishments• Organisational behaviour management: the practice ofaltering behaviour in organisations by systematicallyadministering rewards
    • 64. Remembering• Remembering is ‘being able to recall themessage received’• How much you can store what you havelearned and apply in your work
    • 65. Motivation• A need or desire that causes a person to act;to have initiative, spirit or be enterprisingor• The set of processes that arouse, direct andmaintain behaviour toward attain some goal• Basic components of motivation: motivationinvolves arousal, direction and maintenanceof behaviour toward a goal
    • 66. Basic motivational concepts• Motivation and job performance are notsynonymous- just because someone performs atask well doesn’t mean that he/she is highlymotivated• Motivation is multifaceted- being as productiveas possible to please the boss might provokecoworkers• People are motivated by more than just money-eeg: the prospect of performing jobs that areinteresting andchallenging, recognition, responsibility etc.
    • 67. Employee’s Personal Motivation• The feeling that ‘We are making acontribution’• Supervisor’s praise• Respect of colleagues and peers• Being informed of happenings• Having meaningful & interesting work
    • 68. 2 types of Motivation• Intrinsic(Belonging to a thingby its very nature)– actuallyperforming thebehavior– Behaviorperformed for itsown sake• Extrinsic (arising ororiginating from theoutside)– Based onacquisition ofmaterial or socialrewards
    • 69. • Employees can be intrinsicallymotivated, extrinsically motivated, orboth.• When employees are extrinsicallymotivated, managers should make a linkbetween– the behaviors the organization wantsemployees to perform and– the outcomes or rewards employees desire.
    • 70. Theories of Motivation• Need Theory• There are four need theories:– Maslow’s hierarchy of needs,– Alderfer’s ERG theory,– McClelland’s learned needs theory, and– Herzberg’s two-factor (motivator-hygiene theory)• Non-need theories• Expectancy Theory– Victor Vroom– Porter Lawler• Equity Theory• Theory X and Theory Y
    • 71. I. Abraham Maslow’s Hierarchy ofNeeds
    • 72. • Physiological needs: hunger, thirst, shelter and otherbodily needs• Safety: security and protection from physical andemotional harm• Social: affection, belongingness, acceptance andfriendship• Esteem: internal esteem factors (self-respect, autonomy and achievement) and externalesteem factors (status, recognition and attention)• Self-actualisation: the drive to become what one iscapable of becoming; growth, achieving one’s potentialand self-fulfillment
    • 73. II. Clayton Paul Alderfer’s ERG theory
    • 74. Table Alderfer’s ERG TheoryNeed Level DescriptionGrowth Needs Needs for self-development andproductive workRelatedness Needs Needs to have goodinterpersonal relationsExistence Needs Basic needs for humansurvival
    • 75. Distinction between the 2 NeedTheories• Maslow’s Hierarchy ofNeeds– 5 universal needs– Hierarchy of importance– Once satisfied, need nolonger motivates• Alderfer’s ERG Theory– 3 universal needs– Hierarchy of importance– Flexible movementamongst levels
    • 76. Notes• A need is a requirement for survival and well-being.• Need theory is actually a group of theories about workmotivation• Focuses on employees’ needs as the sources ofmotivation.• Need theories propose that employees seek to satisfymany of their needs at work and that their behavior atwork is therefore oriented toward need satisfaction.• Managers must determine what needs an employee istrying to satisfy on the job• And then ensure that an employee can satisfy his or herneeds by engaging in behaviors that contribute toorganizational effectiveness.
    • 77. III. David McClelland’s theory of needs/3 need theory/ Learned needs theory
    • 78. David McClelland
    • 79. • This theory proposes that an individual’s specific needsare acquired over time and are shaped by one’s lifeexperiences• 3 needs: nAch, nPow and nAff• Need for achievement: the drive to excel, to achieve inrelation to set standards and to strive to succeed– People with high need of achievement (nAch) seek to exceland thus tend to avoid both low-risk and high-risksituations– High nAch individuals prefer work that has a moderateprobability of success, say 50% chance– They prefer either to work alone or with high achievers
    • 80. • Need for power: desire to make an impact, be influential andcontrol others– nPow: personal power needs and institutional/social power needs– Personal power: want to direct others– Institutional power: want to organise the efforts of others to furtherthe goals of the organisation. Mangers who possess this are moreeffective than those with personal power• Need for affiliation: desire for friendly and close interpersonalrelationship– nAff: need harmonious relationship with other people and need tofeel accepted by other people– High nAff: prefer work that provides significant personal interaction– They perform well in customer service and client interaction situations
    • 81. IV. Frederick Herzberg
    • 82. Frederick Herzberg’s Two Factor theory/Motivation-Hygiene theory• Dissatisfiers or hygiene factors, notmotivators: presence or existence of thesefactors does not motivate, but their absencewould result in dissatisfaction• Satisfiers or motivators: related to jobcontent- presence of these factors yieldfeelings of satisfaction
    • 83. Maintenance factors/ hygienefactors or dissatisfiers Motivational factors or satisfiers• Job context• Company policy andadministration• Quality of supervision• Relations with supervisors• Work conditions• Pay• Peer relations• Personal life• Relations with subordinates• Status• Job security• Job content• Achievement• Recognition• Work• Responsibility• Advancement• Possibility of growthHerzberg’s classification of maintenance& motivational factors
    • 84. • Non-need theories
    • 85. V. Equity Theory- J. Stacy Adams• What?• Equity theory was developed by J. StacyAdams in the 1960s.• Equity theory is based on the premise thatan employee perceives the relationshipbetween outcomes and inputs.– Compare inputs to outcomes
    • 86. • To motivate employees to contribute inputsthat the organization needs, managers needto administer outcomes to employees basedon their inputs.• Additionally, managers must ensure thatdifferent employees’ outcome/input ratios areapproximately equal so that employees whocontribute more inputs receive moreoutcomes and vice versa.
    • 87. Equity Theory• Inputs– Special skills– Training– Education– Work experience– Effort on the job– Time• Outcomes– Pay– Fringe benefits/perk– Job satisfaction– Status– Opportunities foradvancement– Job security
    • 88. Equity Theory• Inputs lead to outcomes• Objective level of outcomes does notdetermine work motivation, i.e : It is notthe objective level of outcomes and inputsthat is important in determining workmotivation.• But the way an employee perceives his orher outcome/input ratio compared to theoutcome/input ratio of another person.
    • 89. Referent• This other person is called a referent.• A referent is another employee or group ofemployees perceived to be similar to oneself.• The referent can also be oneself at a differentplace of time or it could be one’s expectations.• Regardless of the referent an employeechooses, it is the employee’s perceptions of thereferent’s outcomes and inputs that arecompared
    • 90. Table: Conditions ofEquity and Inequity
    • 91. • Equity exists when an individual’s outcome/input ratioequals the outcome/input ratio of the referent.• Inequity exists when outcome/input ratios are notproportionally equal. Inequity creates tension andunpleasant feelings inside an employee and a desire torestore equity.• Inequity motivates the individual to try to restore equityby bringing the two ratios back into balance.• There are two types of inequity:– overpayment inequity and underpayment inequity.• Overpayment inequity exists when an individualperceives that his or her outcome/input ratio is greaterthan that of a referent.• Underpayment inequity exists when a person perceivesthat his or her outcome/input ratio is less than that of areferent.
    • 92. (VI). Victor Vroom’s Expectancy theory
    • 93. Expectancy Theory• According to this theory, motivationdepends on the desired goal and thestrength of your expectation to achievethe goal• This theory was developed by VictorVroom in the 1960s.
    • 94. • According to this theory, an employee will bemotivated to exert a high level of effort when he or shebelieves that effort will lead to a good performanceappraisal– and that a good appraisal will lead to organizationalrewards such as a bonus, a salary increase or a promotion– and that the rewards will satisfy the employee’s personalgoals• Hence, the theory focuses on 3 relationships:• Individual effort  Individual Performance Organisational rewards  Personal goals
    • 95. Expectancy Theory• Arrow 1: effort-performance relationship– theprobability perceived by the individual that exerting agiven amount of effort will lead to performance• Arrow 2: Performance-reward relationship– the degreeto which the individual believes that performing at aparticular level will lead to the attainment of a desiredoutcome• Arrow 3: Rewards-personal goals relationship– thedegree to which organizational rewards satisfy anindividual’s personal goals or needs and theattractiveness of those potential rewards for theindividual
    • 96. • Effort  Performance  Rewards• Three major factors determine an employee’smotivation:• Expectancy: Effort → Performance (E→P)• Instrumentality: Performance → Outcome (P→O)• Valence: V(R)
    • 97. • Valence- V(R): Valence: the value the individual places on therewards. Factors associated with the individuals valence foroutcomes are values, needs, goals, preferences– How desirable is an outcome? How highly do I value the workoutcomes?• Instrumentality- Probability (P→O) (Performance  Outcome)• Instrumentality is the belief that a person will receive a reward ifthe performance expectation is met. This reward may come in theform of a pay increase, promotion, recognition or sense ofaccomplishment.– What is the connection between job performance and an outcome?What work outcomes will be received as a result of the performance?• Expectancy- Probability (E→P)• Expectancy is the belief that ones effort (E) will result in attainmentof desired performance (P) goals. Usually based on an individualspast experience, self confidence, and the perceived difficulty of theperformance standard or goal.– What is the connection between effort and job performance? Can Iachieve the desired level of task performance?
    • 98. Difference between need theoriesand expectancy theory• Need theories try to explain what motivates employees• Expectancy theory focuses on how employees decide whichspecific behaviors to perform and how much effort to exert.• In other words, expectancy theory is concerned with howemployees make choices among alternate behaviors and levels ofeffort.• It assumes that employees are motivated to receive positiveoutcomes and to avoid negative outcomes.• It assumes that– employees are rational processors of information and that– they use information about their jobs, abilities and desires todecide what they will do on the job and• how hard they will do it
    • 99. • Valence can be positive or negative and vary in size ormagnitude- measured on a scale of -1 to +1.• The valence refers the value the individual personallyplaces on the rewards. -1 →0→ +1• -1= avoiding the outcome, 0= indifferent to theoutcome, +1=welcomes the outcome• An instrumentality of +1 means that an employeeperceives that performance definitely will result inobtaining the outcome.• Expectancy is a probability and varies from 0 to 1 andreflects the chances that putting forth a certain amountof effort will result in a certain level of performance.• An expectancy of 1 signifies that an employee isabsolutely certain that his or her effort will lead to acertain level of performance.
    • 100. Figure- Expectancy TheoryIf just one of these three factors is zero, motivation will be zero.
    • 101. VII. Porter and Lawler Model ofExpectancy theory• Lyman W. Porter and Edward E. Lawler: studied the relationshipbetween motivation, satisfaction and performance• Performance is a function of three important factors:i. If an employee wants to perform, he must be motivatedii. Motivation alone does not ensure performance and hence a personmust have the necessary abilities and skills as welliii. An employee must have an accurate knowledge of the requirementsof the jobKey variables in this model:EffortPerformanceRewardSatisfaction
    • 102. The Porter-Lawler model of motivation
    • 103. VIII. Douglas McGregor
    • 104. Theory X & Y
    • 105. McGregor’s Theory X and Theory Y• Theory X assumptions:– The typical person dislikes work and will avoid it– He lacks responsibility, has little ambition and seeks security about all– Most people must be forced, controlled and threatened withpunishment to get them to work• Theory Y assumptions:– People view work as being as natural as rest or play– They exercise self-direction and self-control if they are committed tothe organisational objectives– The average person can learn to accept or seek responsibility– People are not inherently lazy– They have potential, imagination and creativity which can be appliedto work
    • 106. Implication of motivation forperformance and satisfaction• Job design: an approach to motivation suggestingthat jobs can be created so as to enhancepeople’s interest in doing them• Job enlargement: the practice of expanding thecontent of a job to include more variety and agreater number of tasks at the same level• Job enrichment: the practice of giving employeesa high degree of control over their work fromplanning, organization & implementing the jobsand evaluating the results
    • 107. 2 Case discussions• Submit as assignment• Deadline: 18.4.2013• Internal marks will be based on theoreticalsupport of answers.
    • 108. CASE STUDY 1- PERCEPTION AND INDIVIDUAL DECISION MAKING• Mahesh loves what he does. He just isn’t crazy about how others see him.He is the owner of RR Automotive Sales, a used car dealership in KarolBagh, Delhi, with about 30 cars on his lot at any time.• Used car dealers deal with a pretty bad reputation,? says Mahesh. Justwhy, he isn’t sure. He didn’t realize there was such a stigma attached toused-car dealers until he opened his dealership in 2007. At Diwali, whenfamily members would ask what I was doing, I’d tell them, and they’d askme why I’d want to do that?• Regardless of the public’s impression of used-car dealers, Mahesh loveshis business. He enjoys being his own boss. He likes being the solesalesman on his lot. He relishes the diversity of his work, he doeseverything from buying the vehicles, to fixing them up to sell, to helpingbuyers arrange financing. And, very importantly, he likes the opportunityto work with customers. There are a thousand guys out there selling carswho are better at selling than I am,? Mahesh says. I’m more interested inhaving a relationship.• One of the Mahesh’s strengths is that he loves cars. It’s in his blood- hisfather worked for a new-car dealer and frequently traded the family’s cars.Mahesh believes his intimate knowledge of cars makes it easier from himto sell them. I can tell you whether the car has 75% of its brake pad left orif the brake pads are new, because I did it.?
    • 109. • To build a meaningful relationship with a customer, Maheshhas to overcome the stereotype of a used-car salesman. Hethinks this might be coming from the hard-sell techniquesused by some in his business. “I don’t think it would take acustomer long to get jaded if they are out shopping for acar. That is a hard thing to overcome”.• It’s frustrating to Mahesh when potential customers seehim as just another shady salesman. Because he works hardto build a customer’s trust, it hurts him when he realizesthat he’s failed. If they (customers) question myintegrity, that is the hardest thing”.Questions• Explain how you think the stereotype of used-car dealersdeveloped?• What, if anything different, can Singh do to counter thisstereotype?• In what ways might this stereotype be beneficial to Singh?To potential customers?
    • 110. • Case discussion 2: Motivation
    • 111. Motivating nurses at a hospitalYou have been hired by the director of a largehospital to help resolve problems of poormorale that have been plaguing the nursingstaff. Unfortunately, the nurses don’t find theirjobs particularly interesting. As aresult, turnover and absenteeism have beenhigh, and patient care is at an all-time low. Theproblem is apparent to everyone; bothdoctors and patients have been complaining
    • 112. Question #1• After interviewing the nurses, you found thatthey believed that no one cared how well theywere doing.• What theories could help explain thisproblem?• Applying the theories you quoted, whatwould you recommend the hospital should doto resolve this problem?
    • 113. Question #2• Hospital officials tell you that nurses are wellpaid, adding to your surprise about the lowmorale.• However, your interviews reveal that thenurses themselves feel otherwise. Why mightthis occur and why is this a problem?• What could be done to help?
    • 114. Q# 3• “I’m bored with my job”, one highlyexperienced nurse tells you, and you believeshe speaks for many within the hospital. Whatcould be done to make their jobs moreinteresting?• What are the limitations of your plan?• Would it work equally well for other memberslike clerical and janitorial staff?
    • 115. End of Module IIReferences:• Behaviour in Organisations, Jerald Greenbergand Robert Baron, Pearson Education• OB, K. Aswathappa, HPH