14298626.doc

What Is Organizational Behavior?
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Chapter Learning Objectives
After studying this chapter you should be able to:
– Demonstrate the importance of interpersonal skills in the
workplace.
– Describe the manager’s functions, roles, and skills. –
Define organizational behavior (OB).
– Show the value to OB of systematic study.
– Identify the major behavioral science disciplines that
contribute to OB.
– Demonstrate why there are few absolutes in OB.
– Identify the challenges and opportunities managers have in
applying OB concepts.

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– Compare the three levels of analysis in this book’s OB
model.
The Importance of Interpersonal Skills
 Understanding OB helps determine manager
effectiveness
– Technical and quantitative skills are important
– But leadership and communication skills are CRITICAL
 Organizational benefits of skilled managers
– Lower turnover of quality employees

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– Higher quality applications for recruitment
– Better financial performance
 They get things done through other people.
 Management Activities:
– Make decisions
– Allocate resources
– Direct activities of others to attain goals
What Managers Do

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 Work in an organization
– A consciously coordinated social unit composed of two or
more people that functions on a relatively continuous basis
to achieve a common goal or set of goals.

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Management Functions
Control
Lead
Organize
Plan

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Management Functions: Plan
A process that includes defining
goals, establishing strategy, and
developing plans to coordinate
activities.
As managers advance, they do this
function more often.
Control
Lead
Organize
Plan

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Management Functions: Organize
Control
Lead
Organize
Plan
Determining what tasks are to be
done, who is to do them, how the
tasks are to be grouped, who
reports to whom, and where
decisions are to be made.

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Management Functions: Lead
Control
Lead
Organize
Plan
A function that includes
motivating employees, directing
others, selecting the most
effective communication
channels, and resolving
conflicts.
It is about PEOPLE!

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Management Functions: Control
Monitoring performance,
comparing actual performance
with previously set goals, and
correcting any deviation.
Control
Lead
Organize
Lead

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Mintzberg’s Managerial Roles
Discovered ten managerial roles

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 Separated into three groups:
– Interpersonal
– Informational
– Decisional
E X H I B I T 1–1

Source: Adapted from The Nature of Managerial Work by H. Mintzberg. Copyright ©
1973 by H. Mintzberg. Reprinted by permission of Pearson Education.
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Mintzberg’s Managerial Roles: Interpersonal

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Mintzberg’s Managerial Roles: Informational

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Mintzberg’s Managerial Roles: Decisional

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Katz’s Essential Management Skills
 Technical Skills
– The ability to apply specialized
knowledge or expertise
 Human Skills
– The ability to work with,
understand, and motivate other
people, both individually and in
groups
 Conceptual Skills

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– The mental ability to analyze and diagnose complex
situations
Luthans’ Study of Managerial Activities
 Is there a difference in frequency of managerial activity
between effective and successful managers?
 Four types of managerial activity:
– Traditional Management
• Decision-making, planning, and controlling.
– Communication
• Exchanging routine information and processing paperwork
– Human Resource Management

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• Motivating, disciplining, managing conflict, staffing and
training.
– Networking
• Socializing, politicking, and interacting with others.

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Successful vs. Effective Allocation by Time
Managers who promoted faster (were successful) did different
things than did effective managers (those who did their jobs well)

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A field of study that
investigates the impact that
individuals, groups, and
structure have on behavior
within organizations, for
the purpose of applying
such knowledge toward
improving an
organization’s effectiveness.
E X H I B I T 1–2
Organizational Behavior

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Intuition and Systematic Study
• Gut feelings
• Individual observation
• Commonsense
Intuition
• Looks at relationships
• Scientific evidence
• Predicts behaviors
Systematic
Study

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The two are complementary means of predicting
behavior.
An Outgrowth of Systematic Study…
Evidence-Based Management (EBM)

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Pose a
managerial
question
Search for
best
available
evidence
Apply
relevant
information
to case
Basing managerial decisions on the best available
scientific evidence
Must think like scientists:

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Managers Should Use All Three Approaches
The trick is to know when to go with your gut.
– Jack Welsh
 Intuition is often based on inaccurate information
 Faddism is prevalent in management
 Systematic study can be time-consuming
Use evidence as much as possible to inform your intuition
and experience. That is the promise of OB.

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Contributing Disciplines
Psychology
Sociology
Social
Psychology
Anthropology
Many behavioral sciences
have contributed to the
development of
Organizational
Behavior

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The science that seeks to measure, explain, and
sometimes change the behavior of humans and other
animals.
Unit of Analysis:
– Individual
Contributions to OB:
– Learning, motivation, personality, emotions, perception
– Training, leadership effectiveness, job satisfaction
– Individual decision making, performance appraisal attitude
measurement
Psychology

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– Employee selection, work design, and work stress
An area within psychology that blends concepts from
psychology and sociology and that focuses on the
influence of people on
one another.
– Group
Contributions to OB:
– Behavioral change
Social Psychology

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– Attitude change
– Communication
– Group processes
– Group decision making

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The study of people in relation to their fellow
human
beings.
-- Organizational
System
Contributions to
OB:
– Group dynamics
– Work teams
– Communication
– Power – Conflict
– Intergroup behavior
-- Group
Sociology

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– Formal organization
theory
– Organizational
technology
– Organizational change
– Organizational culture
The study of societies to learn about human beings
and their activities.
Anthropology

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-- Organizational System
Contributions to OB:
– Organizational culture
– Organizational environment
-- Group
– Comparative values
– Comparative attitudes
– Cross-cultural analysis
Few Absolutes in OB

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Situational factors that make the main relationship
between two variables change—e.g., the relationship
may hold for one condition but not another.
Contingency
Variable (Z)
Independent
Variable (X)
Dependent
Variable (Y)
In American
Culture
Boss Gives
“Thumbs Up”
Sign
Understood as
Complimenting
In Iranian or
Australian
Cultures
Boss Gives
“Thumbs Up”
Sign
Understood as
Insulting - “Up
Yours!”

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Challenges and Opportunities for OB
 Responding to Globalization
 Managing Workforce Diversity
 Improving Quality and
Productivity
 Improving Customer Service
 Improving People Skills
 Stimulating Innovation and
Change
 Coping with “Temporariness”
 Working in Networked Organizations

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 Helping Employees Balance Work-Life
Conflicts
 Creating a Positive Work Environment
 Improving Ethical Behavior

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 Managing people during the war on terror
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

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Managing Workforce Diversity
The people in organizations are becoming more
heterogeneous demographically
– Embracing diversity
– Changing U.S. demographics
– Changing management philosophy
– Recognizing and responding to differences
Disability
Domestic
Gender
Partners
RaceAge
Non- National

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Christian Origin
Developing an OB Model
 A model is an abstraction of reality: a
simplified representation of some real-world
phenomenon.
 Our OB model has three levels of analysis –
Each level is constructed on the prior level
See E X H I B I T 1–4

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Independent (X)
– The presumed cause of the
change in the dependent
variable (Y).
– This is the variable that OB
researchers manipulate to
observe the changes in Y.
Dependent (Y)
– This is the response to X
(the independent variable).
– It is what the OB
researchers want to predict
or explain.
– The interesting variable!
Interesting OB Dependent Variables
 Productivity
Types of Study Variables
X Y Predictive Ability

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– Transforming inputs to outputs at lowest cost. Includes the
concepts of effectiveness (achievement of goals) and
efficiency (meeting goals at a low cost).
 Absenteeism
– Failure to report to work – a huge cost to employers.
 Turnover
– Voluntary and involuntary permanent withdrawal from an
organization.
 Deviant Workplace Behavior
– Voluntary behavior that violates significant organizational
norms and thereby threatens the well-being of the
organization and/or any of its members.

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More Interesting OB Dependent Variables
 Organizational Citizenship Behavior (OCB)
– Discretionary behavior that is not part of an employee’s
formal job requirements, but that nevertheless promotes the
effective functioning of the organization.
 Job Satisfaction

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– A general attitude (not a behavior) toward one’s job; a
positive feeling of one's job resulting from an evaluation of
its characteristics.
The Independent Variables
The independent variable (X) can be at any of these
three levels in this model:

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Individual
– Biographical characteristics, personality and emotions,
values and attitudes, ability, perception, motivation,
individual learning and individual decision making.
Group
– Communication, group decision making, leadership and
trust, group structure, conflict, power and politics, and work
teams.
Organization System
– Organizational culture, human resource policies and
practices, and organizational structure and design.

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OB Model
E X H I B I T 1–6
Independent
Variables (X)
Dependent
Variables (Y)
Th
re
e
Le
ve
ls

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Summary and Managerial Implications
 Managers need to develop their interpersonal skills to
be effective.
 OB focuses on how to improve factors that make
organizations more effective.
 The best predictions of behavior are made from a
combination of systematic study and intuition.
 Situational variables moderate cause-and-effect
relationships – which is why OB theories are
contingent.
 There are many OB challenges and opportunities for
managers today.

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 The textbook is based on the contingent OB model.

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 After studying this chapter, you should be able to:
– Differentiate emotions from moods, and list the basic emotions
and moods.
– Discuss whether emotions are rational and what functions they
serve.
– Identify the sources of emotions and moods.
– Show the impact emotional labor has on employees.
– Describe Affective Events Theory and identify its applications.
– Contrast the evidence for and against the existence of emotional
intelligence.
– Apply concepts about emotions and moods to specific OB issues.

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– Contrast the experience, interpretation, and expression of
emotions across cultures.
Why Were Emotions Ignored in OB?
 The “Myth of Rationality”
– Emotions were seen as irrational
– Managers worked to make emotion-free
environments
 View of Emotionality
– Emotions were believed to be disruptive
– Emotions interfered with productivity

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– Only negative emotions were observed
 Now we know emotions can’t be separated from the
workplace

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What are Emotions and Moods?

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See E X H I B I T 8-1
 While not universally accepted, there appear to be six
 All other emotions are subsumed under these six
The Basic Emotions

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May even be placed in a spectrum of emotion:
– Happiness – surprise – fear – sadness – anger - disgust
Basic Moods: Positive and Negative Affect
 Emotions cannot be neutral.
 Emotions (“markers”) are grouped into general mood
states.
 Mood states affect perception and therefore perceived

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E X H I B I T 8-2
What Is the Function of Emotion?
 Do Emotions Make Us Irrational?
– Expressing emotions publicly may be damaging to social
reality.

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status
– Emotions are critical to rational decision-making – Emotions
help us understand the world around us
 What Functions Do Emotions Serve?
– Darwin argued they help in survival problem-solving
– Evolutionary psychology: people must experience emotions
as there is a purpose behind them
– Not all researchers agree with this assessment
Sources of Emotion and Mood
 Personality
– There is a trait component – affect intensity

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 Day and Time of the Week
– There is a common pattern for all of us
• Happier in the midpoint of the daily awake
period
• Happier toward the end of the week
 Weather
– Illusory correlation – no effect
 Stress
– Even low levels of constant stress can worsen moods
 Social Activities
– Physical, informal, and dining activities increase positive moods
See E X H I B I T 8-3 and 8-4 for Emotion Timing

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More Sources of Emotion and Mood
 Sleep
– Poor sleep quality increases negative affect
 Exercise
– Does somewhat improve mood, especially for depressed
people
 Age
– Older folks experience fewer negative emotions
 Gender
– Women tend to be more emotionally expressive, feel
emotions more intensely, have longer-lasting moods, and
express emotions more frequently than do men

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– Due more to socialization than to biology
An employee’s expression of organizationally desired
emotions during interpersonal transactions at work.
Emotional Dissonance:
– Employees have to project one emotion while simultaneously
feeling another
– Can be very damaging and lead to burnout Types of
Emotions:
– Felt: the individual’s actual emotions
– Displayed: required or appropriate emotions
Emotional Labor

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• Surface Acting: displaying appropriately but not feeling those
emotions internally
• Deep Acting: changing internal feelings to match display rules
- very stressful
See E X H I B I T 8-5 for Emotional Labor and Pay
Affective Events Theory (AET)
An event in the work environment triggers positive or
negative emotional reactions
– Personality and mood determine response intensity
– Emotions can influence a broad range of work variables

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1. An emotional episode is actually the result of a series of
emotional experiences triggered by a single event
2. Current and past emotions affect job satisfaction
3. Emotional fluctuations over time create variations in job
performance
4. Emotion-driven behaviors are typically brief and variable
5. Both negative and positive emotions can distract workers and
reduce job performance
 Emotions provide valuable insights about behavior
Implications of AET

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 Emotions, and the minor events that cause them, should
not be ignored at work: they accumulate
 A person’s ability to:
– Be self-aware
• Recognizing own emotions when experienced
– Detect emotions in others
– Manage emotional cues and information
 EI plays an important role in job performance
 EI is controversial and not wholly accepted
– Case for EI:
Emotional Intelligence (EI)

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• Intuitive appeal; predicts criteria that matter; is
biologicallybased.
– Case against EI:
• Too vague a concept; can’t be measured; its validity is
suspect.
OB Applications of Emotions and Moods
 Selection
– EI should be a hiring factor, especially for social jobs.
 Decision Making
– Positive emotions can lead to better decisions.
 Creativity
– Positive mood increases flexibility, openness, and creativity.
 Motivation

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– Positive mood affects expectations of success; feedback
amplifies this effect.
 Leadership
– Emotions are important to acceptance of messages from
organizational leaders.
More OB Applications of Emotions and Moods
 Negotiation
– Emotions, skillfully displayed, can affect negotiations
 Customer Services
– Emotions affect service quality delivered to customers
which, in turn, affects customer relationships
– Emotional Contagion: “catching” emotions from others
 Job Attitudes

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– Can carry over to home, but dissipate overnight
 Deviant Workplace Behaviors
– Negative emotions lead to employee deviance (actions that
violate norms and threaten the organization)
 Manager’s Influence
– Leaders who are in a good mood, use humor, and praise
employees increase positive moods in the workplace.
Global Implications
 Do people experience emotions equally?

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– No. Culture can determine type, frequency, and depth of
experienced emotions
 Do people interpret emotions the same way?
– Yes. Negative emotions are seen as undesirable and positive
emotions are desirable
– However, value of each emotion varies across cultures
Do norms of emotional expression vary?
– Yes. Some cultures have a bias against emotional
expression; others demand some display of emotion
– How the emotions are expressed may make interpretation
outside of one’s culture difficult

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 Moods are more general than emotions and less
contextual
 Emotions and moods impact all areas of OB
 Managers cannot and should not attempt to completely
control the emotions of their employees
 Managers must not ignore the emotions of their
coworkers and employees
 Behavior predictions will be less accurate if emotions
are not taken into account

It is the ability to monitor one’s own and
others’ feelings and emotions, to
Emotional Intelligence
WHAT IS EMOTIONAL INTELLIGENCE?

discriminate among them and to use this
information to guide one’s thinking and
actions.
FOUNDATION OF EMOTIONAL INTELLIGENCE

Self Awareness
WHY STUDY EMOTIONAL INTELLIGENCE?
 Emotional Self-
Awareness
 Self-Regard
 Reality Testing
Coping Skills
 Impulse Control
 Stress Tolerance
 Problem Solving
 Flexibility
 Optimism
Effective Relationships
 Interpersonal
Relationships
 Independence
Interpersonal Skills
 Empathy
 Social Responsibility
 Assertiveness
Personal & Interpersonal
Effectiveness
 Self-Actualization
 Happiness
plus
is related to
which predicts
and results in

 Increasing Emotional Intelligence makes individuals more
efficient, productive and successful.
 The workforce is using Emotional Intelligence all over the
place
 Organizations can become more productive by
recruiting/hiring emotionally smart people and by offering
opportunities to enhance these skills through involvement
 Emotional Intelligence can be a way to help maximize the
potential of your members and in turn your organization
WHY STUDY EMOTIONAL INTELLIGENCE Contd…

Possessing skills related to Emotional Intelligence
can help you be prepared to lead others
 Having the skills to lead are vital in managing complex
organizations
Every day we will interact with others who possess
varying degrees of Emotional Intelligence
 Being able to work with challenging people is a necessity for the
workplace and organization involvement

 You can assess the overall potential for your organization
Emotional Intelligence influences
organizational culture as individuals know
their abilities to interface with others .
Organizations with high levels of Emotional
Intelligence may be more apt to succeed.
EMOTIONAL INTELIGENCE:THE NEW SCIENCE OF SUCCESS

 Emotional Intelligence is the ability to control and
use one’s emotions in a constructive-rather than
destructive manner.
 Emotional Intelligence allows an individual
achieve his/her best performance, while inspiring
others.
EMOTIONAL INTELIGENCE:THE NEW SCIENCE OF SUCCESS
Contd…

 Emotional Intelligence is a composite of many
other qualities, such as effective oral
communication and ability to respond well to set
backs.
 The Four domains of Emotional Intelligence;
SELF-AWARENESS, SELF-MANAGEMENT,
SOCIAL AWARENESS and RELATIONSHIP
MANAGEMENT.

FOUR AREAS OF EMOTIONAL INTELLIGENCE

FO
UR
AR
EA
S
OF
E
M
OT
IO
NA
L
IN
TE
LL
IG
EN
CE
Self Others
Aw
are
nes
s
Ac
tio
ns
Self
Awareness
Social
Awareness
Self
Management
Relationship
Management

The ability to read one’s own emotions and recognize their
impact.
Self-awareness and self management are related to one’s
own personal competence.
The Three (3) core dimensions are an EMOTIONAL
SELF-AWARENESS, ACCURATE SELF ASSESSMENT
and SELF CONFIDENCE.
SELF-AWARENESS
EMOTIONAL INTELLIGENCE

SELF-AWARENESS
Emotional Self-Awareness
•Aware of one’s own feelings
•Aware of triggers
•Understands implications of
emotions
•Has emotional insight

SELF ASSESEMENT
Accurate Self-Assessment
•Aware of strengths and
limitations
•Open to feedback
•Has a sense of humor about
oneself

•Solicits honest critiques
Self Confidence
•Is confident in job capability
•Believes in oneself
•Is self-assured
•Has presence
SELF CONFIDENCE

EMOTIONAL INTELLIGENCE:
SELF MANAGEMENT
Consists of Six (6) core dimensions:
 EMOTIONAL SELF-CONTROL
 TRANSPARENCY
 ADAPTABILITY
 ACHIEVEMENT
 INITIATIVE

 OPTIMISM
SELF MANAGEMENT
Emotional Self control
–Shows restraint
–Has patience
–Responds calmly

–Stays composed/positive
SELF MANAGEMENT
Transparency
–Keeps promises

–Brings up ethical concerns
–Publicly admits to mistakes
–Acts on values
SELF MANAGEMENT
Adaptability
–Open to new ideas
–Adapts to situations

–Handles unexpected
demands
– Adapts or changes strategy
SELF MANAGEMENT

Achievement
–Improves performance –
Sets challenging goals
–Anticipates obstacles
–Takes calculated risks
SELF MANAGEMENT
Initiative

–Addresses current
opportunities
–Seeks information
–Makes extra efforts
–Initiates actions for the future
SELF MANAGEMENT
Optimism

–Has positive expectations
–Is optimistic about the future
–Is resilient
–Learns from setbacks
EMOTIONAL INTELLIGENCE: SOCIAL
AWARENESS

Social Awareness and relationship
management have to do with ones
competence in the social arena.
Consists of the following three (3) key
components:
Empathy
Organizational Awareness
Service Orientation.

SOCIAL AWARENESS COMPETENCES
Empathy
Listens
Reads nonverbal cues
Open to diversity

Sees others’ perspectives
SOCIAL AWARENESS COMPETENCES
Organizational Awareness
Understands informal structures
Understands climate and culture
Understands organizational
politics

Understands underlying issues
EMOTIONAL INTELLIGENCE: SOCIAL
AWARENESS COMPETENCIES
Service orientation
Makes self available
Monitors satisfaction
Takes personal responsibility

Matches customer needs
RELATIONSHIP MANAGEMENT
Social Awareness and Relationship
Management have to do with ones
competency in the Social arena.

It Consists of Six core (6)
areas
RELATIONSHIP MANAGEMENT SIX
CORE AREAS
 INSPIRATIONAL LEADERSHIP INFLUENCE.
 DEVELOPING OTHERS .
 CHANGE CATALYST .

 CONFLICT MANAGEMENT.
 TEAMWORK and COLLABORATION.
RELATIONSHIP MANAGEMENT
LEADING OTHERS:
 INSPIRATIONAL LEADERSHIP
 INFLUENCE
 DEVELOPING OTHERS

WORKING WITH OTHERS:
 CHANGE CATALYST
 CONFLICT MANAGEMENT
 TEAMWORK and COLLABORATION
EMOTIONAL INTELLIGENCE: RELATIONSHIP
MANAGEMENT
Inspirational leadership
Leads by example
Stimulates enthusiasm

Inspires others
Communicates a
compelling vision
MANAGEMENT Influence
•Engages others

•Anticipates impact of
actions/words
•Uses indirect influence
•Develops behind the scenes
support
MANAGEMENT

Developing others
Recognizes strengths
Provides support
Gives constructive feedback
Acts as a mentor
MANAGEMENT

Change catalyst
Defines general need for
change
Acts to support change
Personally leads change
Champions change

MANAGEMENT
Conflict management
•Airs disagreements
•Maintains objectivity
•Addresses conflict

•Orchestrates win-win
solutions
MANAGEMENT
Teamwork & collaboration
Cooperates
Solicits input

Encourages others
Builds bonds
GOOD NEWS!
• You can develop Emotional
Intelligence!
– “Rewire” your responses to feelings.
– Change how you think about this.
– Alter your behavior.

Emotions Thoughts Behavior Performanc
e

IMPROVING YOUR EMOTIONAL INTELLIGENCE
• Improving and sustaining Emotional Intelligence takes
a concerted effort over several months.

Prepackaged
Seminars
Minimal
results
In-house
Training
Some
behavioral
results
Individual
Development
Sustained
individual
performance
improvement
Integrated
Initiatives
with
Coaching and
Measurement
Critical mass
for sustained
group
performance
improvement
Organizational
Interventions
Sustained
organizational
improvement

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After studying this chapter, you should be able to:
– Describe the three elements of motivation.
– Identify four early theories of motivation and evaluate their
applicability today.
– Apply the predictions of Cognitive Evaluation theory to intrinsic and
extrinsic rewards.
– Compare and contrast goal-setting theory and Management by
Objectives.
– Contrast reinforcement theory and goal-setting theory.
– Demonstrate how organizational justice is a refinement of equity
theory.
– Apply the key tenets of expectancy theory to motivating employees.
– Compare contemporary theories of motivation.

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– Explain to what degree motivation theories are culture-bound.

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The result of the interaction between the individual and the
situation.
The processes that account for an individual’s
intensity, direction, and persistence of
effort toward attaining a goal –
specifically, an organizational goal.
Three key elements:
– Intensity – how hard a person tries
– Direction – effort that is channeled toward,
and consistent with, organizational goals
Defining Motivation

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– Persistence – how long a person can maintain effort
Early Theories of Motivation
These early theories may not be valid, but they do form the
basis for contemporary theories and are still used by
practicing managers.
Maslow’s Hierarchy of Needs Theory
– Alderfer’s ERG (Existence, Relatedness, and Growth)

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McGregor’s Theory X and
Theory Y Herzberg’s Two-
Factor Theory
McClelland’s Theory of Needs
Maslow’s Hierarchy of
Needs
There is a hierarchy of five needs. As each need is substantially
satisfied, the next need becomes dominant.

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Assumptions
– Individuals cannot
move to the next
higher level until
all needs at the
current (lower)
level are satisfied
– Must move in
hierarchical order
Self-Actualization
Esteem
Social
Safety
Physiological
Lower Order
External
Higher Order
Internal
Alderfer’s ERG Theory

4-115
A reworking of Maslow to fit empirical research.
Three groups of core needs:
– Existence (Maslow: physiological and safety)
– Relatedness (Maslow: social and status)
– Growth (Maslow: esteem and self-actualization)
Removed the hierarchical
assumption
– Can be motivated by all three at once
Popular, but not accurate, theory
E
G
R

4-116
McGregor’s Theory X and Theory Y
 Two distinct views of human beings: Theory X
(basically negative) and Theory Y (positive).
– Managers used a set of assumptions based on their view –
The assumptions molded their behavior toward employees
Theory X Theory Y
• Workers have little
ambition
• Dislike work
• Avoid responsibility
• Workers are
selfdirected
• Enjoy work
• Accept responsibility
 No empirical evidence to support this theory.

4-117
Herzberg’s Two-Factor Theory
Key Point: Satisfaction and dissatisfaction are not opposites
but separate constructs

4-118
Hygiene
Factors
Motivators
Achievement
Responsibility
Growth
Work
Conditions
Salary
Company
Policies
See E X H I B I T S 6-2 6
and -3
Extrinsic and
Related to
Dissatisfaction
Intrinsic and
Related to
Satisfaction

4-119
Criticisms of Two-Factor Theory
Herzberg says that hygiene factors must be met to remove
dissatisfaction. If motivators are
given, then satisfaction can occur.
Herzberg is limited by his
procedure
– Participants had self-serving bias
Reliability of raters questioned
– Bias or errors of observation
No overall measure of satisfaction was used

4-120
Herzberg assumed, but didn’t research, a strong
relationship between satisfaction and productivity
McClelland’s Three Needs Theory
 Need for Achievement (nAch)
– The drive to excel, to achieve in relation to a set of
standards, to strive to succeed
 Need for Power (nPow)
– The need to make others behave in a way that they would
not have behaved otherwise
 Need for Affiliation (nAff)

4-121
– The desire for friendly and close interpersonal relationships
People have varying levels of each of the three
needs.
– Hard to measure
Performance Predictions for High nAch
 People with a high need for achievement are likely to:
– Prefer to undertake activities with a 50/50 chance of success,
avoiding very low- or high-risk situations
– Be motivated in jobs that offer high degree of personal
responsibility, feedback, and moderate risk
– Not necessarily make good managers – too personal a focus.
Most good general managers do NOT have a high nAch

4-122
– Need high level of nPow and low nAff for managerial
success
 Good research support, but it is not a very practical
theory
Contemporary Theories of Motivation
 Cognitive Evaluation Theory
 Goal-Setting Theory
– Management by Objectives (MBO)
 Self-Efficacy Theory

4-123
– Also known as Social
Cognitive Theory or Social
Learning Theory
 Reinforcement Theory
 Equity Theory
 Expectancy Theory
Cognitive Evaluation Theory
Providing an extrinsic reward for behavior that had been
previously only intrinsically rewarding tends to decrease the
overall level of motivation
Major Implications for work rewards
– Intrinsic and extrinsic rewards are not independent

4-124
– Extrinsic rewards decrease intrinsic rewards
– Pay should be noncontingent on performance
– Verbal rewards increase intrinsic motivation; tangible rewards
reduce it
Self-concordance
– When the personal reasons for pursuing goals are consistent with
personal interests and core values (intrinsic motivation), people
are happier and more successful
Locke’s Goal-Setting Theory
Basic Premise:
– That specific and difficult goals, with self-generated
feedback, lead to higher performance Difficult Goals:

4-125
– Focus and direct attention
– Energize the person to work harder
– Difficulty increases persistence
– Force people to be more effective and efficient
Relationship between goals and performance depends
on:
– Goal commitment (the more public the better!)
– Task characteristics (simple, well-learned)
– Culture (best match is in North America)
Implementation: Management by Objectives
 MBO is a systematic way to utilize goal-setting.
 Goals must be:
– Tangible

4-126
– Verifiable
– Measurable
 Corporate goals are broken down into smaller, more
specific goals at each level of organization.
 Four common ingredients to MBO programs:
– Goal specificity
– Participative decision making
– Explicit time period
– Performance feedback
Bandura’s Self-Efficacy Theory
An individual’s belief that he or she is capable of
performing a task.

4-127
– Higher efficacy is related to:
• Greater confidence
• Greater persistence in the face of difficulties • Better
response to negative feedback (work harder) – Self-
Efficacy complements Goal-Setting Theory.
Increasing Self-Efficacy
 Enactive mastery
Given Hard Goal
Higher Self-Set Goal
Increased Confidence
Higher Performance

4-128
– Most important source of efficacy
– Gaining relevant experience with task or job
– “Practice makes perfect”
 Vicarious modeling
– Increasing confidence by watching others perform the task
– Most effective when observer sees the model to be similar to
himor herself
 Verbal persuasion
– Motivation through verbal conviction
– Pygmalion and Galatea effects - self-fulfilling prophecies
 Arousal
– Getting “psyched up” – emotionally aroused – to complete task
– Can hurt performance if emotion is not a component of the task

4-129
Reinforcement Theory
 Similar to Goal-Setting Theory, but focused on a
behavioral approach rather than a cognitive one.
– Behavior is environmentally caused
– Thought (internal cogitative event) is not important
• Feelings, attitudes, and expectations are ignored
– Behavior is controlled by its consequences – reinforcers
– Is not a motivational theory but a means of analysis of
behavior

4-130
– Reinforcement strongly influences behavior but is not likely
to be the sole cause
 Employees compare their ratios of outcomes-to-inputs
of relevant others.
– When ratios are equal: state of equity exists – there is no
tension as the situation is considered fair
– When ratios are unequal: tension exists due to unfairness
• Underrewarded states cause anger
• Overrewarded states cause guilt
Adams’ Equity Theory

4-131
– Tension motivates people to act to bring their situation into
• The person’s experience in a different job in a different
organization
– Other-Inside

4-132
• Another individual or group within the organization
– Other-Outside
• Another individual or group outside of the organization
Reactions to Inequity
 Employee behaviors to create equity:
 Can be four different situations:
– Self-Inside
• The person’s experience in a different job in the same
organization
– Self-Outside
Equity Theory’s “Relevant Others”

4-133
– Change inputs (slack off)
– Change outcomes (increase output)
– Distort/change perceptions of self
– Distort/change perceptions of others
– Choose a different referent person
– Leave the field (quit the job)
 Propositions relating to inequitable pay:
– Paid by time:
• Overrewarded employees produce more
• Underrewarded employees produce less with low quality –
Paid by quality:
• Overrewarded employees give higher quality
• Underrewarded employees make more of low quality

4-134
Justice and Equity Theory
Organizational
Justice
Distributive
Justice
• Fairness of
outcome
Procedural
Justice
• Fairness of
outcome process
Interactional
Justice
• Being treated
with dignity and
respect
Overall perception
of what is fair in the
workplace.

4-135
Vroom’s Expectancy Theory
The strength of a tendency to act in a certain way
depends on the strength of an expectation that the act
will be followed by a given outcome and on the
attractiveness of the outcome to the individual.

4-136
Integrating Contemporary Motivation Theories
 Based on Expectancy Theory
Expectancy of
performance
success
Instrumentality
of success in
getting reward
Valuation of the
reward in
employee’s eyes

4-138
 Motivation theories are often culture-bound.
– Maslow’s Hierarchy of Needs Theory
• Order of needs is not universal
– McClelland’s Three Needs Theory
• nAch presupposes a willingness to accept risk and
performance concerns – not universal traits
– Adams’ Equity Theory
• A desire for equity is not universal
Global Implications

• “Each according to his need” – socialist/former communists
Desire for interesting work seems to be
universal.
– There is some evidence that the intrinsic factors of
Herzberg’s Two-Factor Theory may be universal
 Need Theories (Maslow, Alderfer, McClelland,
Herzberg)
– Well known, but not very good predictors of behavior
 Goal-Setting Theory
– While limited in scope, good predictor
 Reinforcement Theory

4-140
– Powerful predictor in many work areas
 Equity Theory
– Best known for research in organizational justice
 Expectancy Theory
– Good predictor of performance variables but shares many of
the assumptions as rational decision making

Motivation: From Concepts to
Applications

After studying this chapter, you should be able to:
– Describe the Job Characteristics Model and evaluate the way
it motivates by changing the work environment.
– Compare and contrast the three main ways jobs can be
redesigned.
– Identify three alternative work arrangements and show how
they might motive employees.
– Give examples of employee involvement measures and show
how they can motivate employees.
– Demonstrate how the different types of variable-pay
programs can increase employee motivation.

– Show how flexible benefits turn benefits into motivators.
– Identify the motivational benefits of intrinsic rewards.
Motivation by Job Design: The JCM
Job Characteristics Model (JCM)
– Hackman and Oldham’s concept that any job can be
described through five core job dimensions:
• Skill variety – Requirements for different tasks in the
job.
• Task identity – Completion of a whole piece of work.
• Task significance – The job’s impact on others.
• Autonomy – Level of discretion in decision making.

• Feedback – Amount of direct and clear information on
performance.
– The way elements in a job are organized (job design)
impacts motivation, satisfaction, and performance.

Employee growth-need strength moderates the relationships.
The Job Characteristics Model

Source: J.R. Hackman and G.R. Oldham, Work Design (excerpted from pp. 78–80). © 1980 by Addison-Wesley Publishing Co., Inc. Reprinted by permission of
Addison-Wesley Longman, Inc.
Motivating Potential Score (MPS)
 Five dimensions combined into a single predictive
index of motivation.
– People who work on jobs with high core dimensions are
generally more motivated, satisfied, and productive.
– Job dimensions operate through the psychological states in
influencing personal and work outcome variables rather than
influencing them directly.
E X H I B I T 7-1

 While the JCM framework is supported by research, the
MPS model isn’t practical and doesn’t work well.

How Can Jobs Be Redesigned?
 Job Rotation
– The periodic shifting of
a worker from one task
to another
 Job Enlargement
– The horizontal
expansion of jobs
 Job Enrichment
– The vertical expansion
of jobs

Guidelines for Enriching a Job
Source: J.R. Hackman and J.L. Suttle, eds., Improving Life at Work (Glenview, IL: Scott Foresman, 1977), p. 138.

Alternative Work Arrangements
 Flextime
– Employees work during a common core time period each
day but have discretion in forming their total workday from
a flexible set of hours outside the core.
 Job Sharing
E X H I B I T 7-2

– The practice of having two or more people split a 40-hour-
aweek job
Another Alternative: Telecommuting
 Telecommuting
– Employees do their work at home at least two days a week
on a computer that is linked to their office.
 The Virtual Office
– Employees work out of their home on a relatively permanent
basis.
 Typical Telecommuting Jobs
– Professional and other knowledge-related tasks
E X H I B I T 7-3

– Routine information-
handling tasks
– Mobile activities

Reasons for and against Telecommuting
Advantages Disadvantages
–Larger labor pool Employer
–Higher productivity – Less direct supervision of employees
–Less turnover
–Difficult to coordinate
–Improved morale teamwork
–Reduced office-space costs – Difficult to evaluate non-
quantitative performance
Employee

–May not be as noticed for his or her efforts

Motivation Is Not the Whole Story
Performance
(P)
Motivation
(M)
Ability
(A)
Opportunity
to Perform
(O)

P = f(A x M x O)
A participative process that uses the input of employees to
increase their commitment to the organization’s success.
By increasing worker autonomy and control over work
lives (involvement), organizations:
– Increase employee motivation
– Gain greater organizational commitment
Employee Involvement

– Experience greater worker productivity
– Observe higher levels of job satisfaction
Types of Employee Involvement Programs
 Participative Management
– Subordinates share a significant degree of decision-making
power with their immediate superiors
 Representative Participation
– Works councils
• Groups of nominated or elected employees who must be
consulted for any personnel decisions
– Board representative
• An employee sits on a company’s board of directors and
represents the interests of the firm’s employees

 Quality Circle
– A work group of employees who meet regularly to discuss
their quality problems, investigate causes, recommend
solutions, and take corrective actions

Motivational Theory Links to EI Programs
Theory Y
• Employees
want to be
involved
• Managerial
viewpoint
Two-Factor
Theory
• Intrinsic
Motivation
• Growth
• Responsibility
• Involvement
ERG Theory
• Stimulate
nAch
• Growth
• Recognition
• Self-esteem

Four Major Strategic Reward Decisions
1. What to pay? pay
(
structure)
2. How to pay individuals?
variable pay plans and
(
skill-based pay plans)
3. What benefits to offer? Do
we offer choice of
benefits? )
flexible benefits
(
4. How to build recognition
programs?

1. What to Pay – Pay Structure
 Internal equity
– The worth of the job to the organization
– Determined by job evaluations
 External equity
– The competitiveness of the
company’s pay relative to pay
elsewhere in the industry
– Determined through pay surveys
 Choose organizational position
– Pay leaders

• Greater employee loyalty
• Attracts better-quality employees
– Pay laggards – accept high turnover for low hourly costs
2. How to Pay - Variable Pay Programs
Types of Variable Pay Programs
A portion of an employee’s pay is based on some individual
and/or organizational measure of performance –Piece
Rate:
• Workers are paid a fixed sum for each unit of production
completed
• Weakness: not feasible for many jobs –Merit-Based:
• Based on performance appraisal ratings
• Gap increasing between average and top-performers

• Weaknesses: validity of system based on annual appraisals,
pay pool can be small, unions strongly resist –Bonuses:
• Rewards recent performance
• Weakness: employees consider this a pay
2. How to Pay - Skill-Based Pay Programs
Types of Skill-Based Programs:
Also known as competency- or knowledge-based pay - sets
pay based on skills or number of jobs an employee can
perform
–Profit Sharing:
• Organization-wide programs that distribute compensation
based on some established formula designed around a
company’s profitability –Gain Sharing:

• An incentive plan in which improvements in group
productivity determine the total amount of money that is
allocated
–Employee Stock Ownership Plans (ESOPs)
• Company-established benefit plans in which employees acquire
stock as part of their benefits
Evaluation of Variable and Skill-based Pay
To some extent, variable pay does increase
motivation and productivity
Benefits of Skill-based Pay Plans
– Provide staffing flexibility
– Facilitate communication across the organization – Lessen
“protection of territory” behaviors

– Meet the needs of employees for advancement
– Lead to performance improvements Drawbacks:
– Lack of additional learning opportunities
– Continuing to pay employees for obsolete skills
– Paying for skills of no immediate use to the organization
– Paying for a skill, not for performance of the skill
3. What Benefits to Offer - Flexible Benefits
Employees tailor their benefit program to meet their
personal need by picking and choosing from a menu
of benefit options.
Modular Plans
– Predesigned benefits packages for specific groups of
employees

Core-Plus Plans
– A core of essential benefits and a menu-like selection of
other benefit options
Flexible Spending Plans
– Allow employees to use their tax-free benefit dollars to
purchase benefits and pay service premiums
4. How to Build Recognition Programs
 Intrinsic Rewards: Stimulate Intrinsic Motivation
– Personal attention given to employee
– Approval and appreciation for a job well done

– Growing in popularity and usage
Benefits of Programs
– Fulfill employees’ desire for
recognition
– Inexpensive to implement
– Encourage repetition of desired behaviors
 Drawbacks of Programs
– Susceptible to manipulation by management

Global Implications
 Job Characteristics and Job Enrichment
– Inconsistent results across cultures
 Telecommuting
– U.S. does this more, but EU workers are interested in it
 Variable Pay
– Not much research available, but some possible hypotheses
on relationships
 Flexible Benefits

– This concept is becoming more prevalent globally
 Employee Benefits
– Practices must be modified to match culture
To Motivate Employees
– Recognize individual differences
– Use goals and feedback
– Allow employees to participate in
decisions that affect them
– Link rewards to performance

– Check the reward system for equity

Attitudes and Job Satisfaction

– Contrast the three components of an attitude.
– Summarize the relationship between attitudes and behavior.
– Compare and contrast the major job attitudes.
– Define job satisfaction and show how it can be measured.
– Summarize the main causes of job satisfaction.
– Identify four employee responses to dissatisfaction.
– Show whether job satisfaction is a relevant concept in
countries other than the United States.
Evaluative statements or judgments concerning objects,
people, or events.
Attitudes

Three components of an attitude:
Does Behavior Always Follow from Attitudes?
Attitude
Behavioral
Cognitive
Affective
The emotional or
feeling segment
of an attitude
The opinion or
belief segment of
an attitude
An intention to behave
in a certain way toward
someone or something

 Leon Festinger – No, the reverse is sometimes true!
 Cognitive Dissonance: Any incompatibility between two or
more attitudes or between behavior and attitudes
– Individuals seek to reduce this uncomfortable gap, or
dissonance, to reach stability and consistency
– Consistency is achieved by changing the attitudes, modifying
the behaviors, or through
rationalization – Desire to reduce
dissonance depends on:
• Importance of elements
• Degree of individual influence

• Rewards involved in dissonance
 The most powerful moderators of the attitudebehavior
relationship are:
– Importance of the attitude
– Correspondence to behavior
– Accessibility
– Existence of social pressures
– Personal and direct experience of the attitude.
Moderating Variables

Predicting Behavior from
Attitudes
– Important attitudes have a strong relationship to
behavior.
Behavior
Predict
Attitudes
Moderating Variables

– The closer the match between attitude and behavior, the stronger the
relationship:
• Specific attitudes predict specific behavior
• General attitudes predict general behavior
– The more frequently expressed an attitude, the better predictor it is.
– High social pressures reduce the relationship and may cause
dissonance.
– Attitudes based on personal experience are stronger predictors.
What are the Major Job Attitudes?
 Job Satisfaction
– A positive feeling about the job resulting from an evaluation
of its characteristics

 Job Involvement
– Degree of psychological
identification with the job where
perceived performance is
important to self-worth
 Psychological Empowerment
– Belief in the degree of influence
over the job, competence, job
meaningfulness, and autonomy
Another Major Job Attitude
 Organizational Commitment

– Identifying with a particular organization and its goals, while
wishing to maintain membership in the organization.
– Three dimensions:
• Affective – emotional attachment to organization
• Continuance Commitment – economic value of staying
• Normative - moral or ethical obligations
– Has some relation to performance, especially for new
employees.
– Less important now than in past – now perhaps more of
occupational commitment, loyalty to profession rather than a
given employer.

And Yet More Major Job Attitudes…
 Perceived Organizational Support (POS)
– Degree to which employees believe the organization values
their contribution and cares about their well-being.
– Higher when rewards are fair, employees are involved in
decision-making, and supervisors are seen as supportive.
– High POS is related to higher OCBs and performance.
 Employee Engagement
– The degree of involvement with, satisfaction with, and
enthusiasm for the job.
– Engaged employees are passionate about their work and
company.

Are These Job
Attitudes Really
Distinct?
 No: these attitudes are
highly related.
 Variables may be
redundant (measuring the
same thing under a
different name)

 While there is some
distinction, there is also a lot of overlap.
Be patient, OB researchers are working on it!

 One of the primary job attitudes measured.
– Broad term involving a complex individual summation of a
number of discrete job elements.
How to measure?
– Single global rating (one question/one answer) - Best –
Summation score (many questions/one average) - OK Are
people satisfied in their jobs?
– In the U. S., yes, but the level appears to be dropping.
– Results depend on how job satisfaction is measured.
Job Satisfaction

– Pay and promotion are the most problematic elements.
Causes of Job Satisfaction
 Pay influences job satisfaction only to a point.
– After about $40,000 a year (in the U. S.), there is no
relationship between amount of pay and job satisfaction.
– Money may bring happiness, but not
necessarily job satisfaction.

 Personality can influence job satisfaction.
– Negative people are usually not satisfied with their jobs.
– Those with positive core self-evaluation are more satisfied
with their jobs.

Employee Responses to Dissatisfaction

Outcomes of Job Satisfaction
 Job Performance
–Satisfied workers are more productive AND more
productive workers are more satisfied!
–The causality may run both ways.
 Organizational Citizenship Behaviors
–Satisfaction influences OCB through perceptions of
fairness.
 Customer Satisfaction
–Satisfied frontline employees increase customer
satisfaction and loyalty.

 Absenteeism
–Satisfied employees are moderately less likely to miss
work.
More Outcomes of Job Satisfaction
 Turnover
– Satisfied employees are less likely to quit.
– Many moderating variables in this relationship.
• Economic environment and tenure
• Organizational actions taken to retain high performers and to
weed out lower performers
 Workplace Deviance

– Dissatisfied workers are more likely to unionize, abuse
substances, steal, be tardy, and withdraw.
Despite the overwhelming evidence of the impact of job
satisfaction on the bottom line, most managers are either
unconcerned about or overestimate worker satisfaction.
 Is Job Satisfaction a U. S. Concept?
– No, but most of the research so far has been in the U. S.
Global Implications

 Are Employees in Western Cultures More Satisfied With
Their Jobs?
– Western workers appear to be more satisfied than those in
Eastern cultures.
– Perhaps because Westerners emphasize positive emotions
and individual happiness more than do those in Eastern
cultures.
 Managers should watch employee attitudes:
– They give warnings of potential problems
– They influence behavior

 Managers should try to increase job satisfaction and
generate positive job attitudes
– Reduces costs by lowering turnover,
absenteeism, tardiness, theft, and
increasing OCB
 Focus on the intrinsic parts of the
job: make work challenging and
interesting
– Pay is not enough

Understanding Work Teams

– Analyze the growing popularity of teams in organizations.
– Contrast groups and teams.
– Compare and contrast four types of teams.
– Identify the characteristics of effective teams.
– Show how organizations can create team players.
– Decide when to use individuals isntead of teams.
– Show how our understanding of teams differs in a global
context.
Why Have Teams Become So Popular?
 Great way to use employee talents

 Teams are more flexible and responsive to changes in the
environment
 Can quickly assemble, deploy, refocus, and disband
 Facilitate employee involvement
 Increase employee participation in decision making
 Democratize an organization and increase motivation
 Note: teams are not ALWAYS effective
Differences between Groups and Teams
Work Group

– A group that interacts primarily to share information and to
make decisions to help each group
member perform within his or her
area of responsibility
– No joint effort required
Work Team
– Generates positive synergy through coordinated effort. The
individual efforts result in a performance that is greater than
the sum of the individual inputs

Comparing Work Groups and Work Teams

Types of Teams
 Problem-Solving Teams
– Groups of 5 to 12 employees from the
same department who meet for a few
hours each week to discuss ways of
improving quality, efficiency, and the
work environment
 Self-Managed Work Teams
– Groups of 10 to 15 people who take
on the responsibilities of their former
supervisors

More Types of Teams
Cross-Functional Teams
– Employees from about the same hierarchical level, but from
different work areas, who come together to accomplish a
task
– Very common
– Task forces
– Committees

– Teams that use computer technology to tie together
physically dispersed members in order to achieve a
common goal
Characteristics
– Limited socializing
– The ability to overcome time and space constraints
To be effective, needs:
– Trust among members
– Close monitoring
A Final Type of Team
 Virtual Teams

A Team-Effectiveness Model
E X H I B I T 10-3
Caveat 1: This is a
general guide only.
Caveat 2: The model
assumes that teamwork
is preferable to
individual work.

Key Components of Effective Teams
Context
Composition
Work Design
Process
Variables

Creating Effective Teams: Context
 Adequate Resources
– Need the tools to complete the job
 Effective Leadership and Structure
– Agreeing to the specifics of work and how the team fits
together to integrate individual skills
– Even “self-managed” teams need leaders
– Leadership especially important in multi-team systems
 Climate of Trust
– Members must trust each other and the leader
 Performance and Rewards Systems that Reflect Team

Contributions
– Cannot just be based on individual effort
Creating Effective Teams: Composition
 Abilities of Members
– Need technical expertise, problem-solving, decision-making,
and good interpersonal skills
 Personality of Members
– Conscientiousness, openness to experience, and
agreeableness all relate to team performance
 Allocating Roles and Diversity
– Many necessary roles must be filled
– Diversity can often lead to lower performance

 Size of Team
– The smaller the better: 5 to 9 is optimal
 Member’s Preference for Teamwork –
Do the members want to be on teams?

Creating Effective Teams: Work Design
 Freedom and Autonomy
– Ability to work independently
 Skill Variety
– Ability to use different skills and talents
 Task Identity
– Ability to complete a whole and identifiable task or product
 Task Significance
E X H I B I T 10-4

– Working on a task or project that has a substantial impact on
others
Creating Effective Teams: Process
 Commitment to a Common Purpose
– Create a common purpose that provides direction
– Have reflexivity: willing to adjust plan if necessary
Establishment of Specific Team Goals
– Must be specific, measurable, realistic, and challenging
 Team Efficacy
– Team believes in its ability to succeed
 Mental Models
– Have an accurate and common mental map of how the work gets
done
 A Managed Level of Conflict

– Task conflicts are helpful; interpersonal conflicts are not
 Minimized Social Loafing
– Team holds itself accountable both individually and as a team
Turning Individuals into Team Players
 Selection
– Make team skills one of the interpersonal skills in the hiring
process.
 Training
– Individualistic people can learn
E X H I B I T 10-5

 Rewards
– Rework the reward system to encourage cooperative efforts
rather than competitive (individual) ones
– Continue to recognize individual contributions while still
emphasizing the importance of teamwork
Beware! Teams Aren’t Always the Answer
Teams take more time and resources than does individual
work.
Three tests to see if a team fits the situation:

1. Is the work complex and is there a need for different
perspectives: will it be better with the insights of more than
one person?
2. Does the work create a common purpose or set of goals for
the group that is larger than the aggregate of the goals for
individuals?
3. Are members of the group involved in interdependent
tasks?
 Extent of Teamwork
Global Implications

– Other countries use teams more often than does the U.S.
 Self-Managed Teams
– Do not work well in countries with low tolerance for
ambiguity and uncertainty and a high power distance
 Team Cultural Diversity and Team Performance
– Diversity caused by national differences interferes with team
efficiency, at least in the short run
– After about three months the differences between diverse and
non-diverse team performance disappear

 Effective teams have common characteristics:
– Adequate resources
– Effective leadership
– A climate of trust
– Appropriate reward and evaluation systems
– Composed of members with correct skills and roles
– Are smaller
– Do work that provides freedom, autonomy, and the chance to
contribute
– The tasks are whole and significant
– Has members who believe in the team’s capabilities

 Managers should modify the environment and select
teamoriented individuals to increase the chance of
developing effective teams.

WELCOME
TO THE WORLD OF
CREATIVE SKILLS - ADSM
A REASONABLE PERSON ADAPTS
HIMSELF/HERSELF TO THE WORLD; (IN-BOX)
AN UNREASONABLE PERSON ADAPTS THE

WORLD TO HIMSELF/HERSELF. (OUT-0F-THE-
BOX)
SO ALL THE PROGRESS DEPENDS ON THE
UNREASONABLE PERSON
This MBA programme aims at making
you unreasonable

PERFORMANCE VERSES
SYSTEMS
SYSTEMS 100 %
0 %
High
PE
RF
OR
M
AN
CE
Low
Reasonable
(Analytical
)
Un
re
as
on
abl
e
(
)
Cr
ea
tiv
e

I Positive Traits
II Mental Blocks
III Lateral Thinking
CREATIVE SKILLS

PROBLEMS
• Situations that call for extra efforts
• Sudden deviations / Unexpected
happenings
•Things that are blocking our way
• Situations with no ready-made solutions
• Lack of resources
• Things not going as per your wish
• Confusing situations

• Situations where there are risks involved
• Situations where we don’t have control
Symptoms: BOTHERATION / UNEASINESS /

WORRY / ANGER / FEAR /
SADNESS / TENSION / IRRITATION
P R O B L E M
A PROBLEM IS THE
DIFFERENCE BETWEEN
WHAT I HAVE AND
WHAT I WANT

B R A I N S
RIGHT
Imagination
Music
Rhythm
Color
Humor
Daydreaming
LEFT
Logic
Analysis
Language
Number
Reasoning
Reading
Writing

NATURE OF PROBLEMS
1How much you have to pay income
tax?
2Which is the capital of India?
3How much does the shirt cost?

4How did it happen?
CLOSE-ENDED – Definite number of
RIGHT answers
1 What are the different ways by which we
can reduce income-tax?
2 How can terrorism be eliminated?
3 How to bring down the electricity bill?
4 How can we increase customer satisfaction?
5 How to make India an honest country?

OPEN-ENDED – As many answers
- No RIGHT or WRONG
- More or less appropriate
Which is more in
number –

Open-ended or
Closeended ?
Among the problems,
how many of them are
of your own creation ?

LEFT ORIENTED RIGHT ORIENTED
Love structure, systems, Get a kick in breaking rules
orderliness, rules etc.
Like stability Love changes
Focus on “what” (words) Focus on “how” (body language,
tone etc.)
Left Thumb up Right thumb up
Right-eyed Left-eyed
Source is important Content (Not insisting on
evidence)
Want data / proof Go by gut feelings

LEFT ORIENTED RIGHT ORIENTED
Good memory Absentminded
Choose to be a physician Explorer
Make good team members Soloists
Yes, but Yes, and
Prefer algebra Prefer geometry
Love competition Thrive on freedom
Digital Analogue
(Right / Wrong)

WHAT IS CREATIVITY?
* CONCEIVING OF NEW IDEAS
* A TOOL FOR SURVIVOL
* LOOKING WHERE ALL HAVE LOOKED
AND SEEING WHAT NO ONE HAS SEEN
* CONSCIOUS ESCAPE FROM ROUTINE
* SHAKING HANDS WITH TOMORROW

* RELATING OF UNRELATED THINGS
* DOING WHAT OTHERS HAVE NOT DONE
* LISTENING FOR SMELLS
WHAT IS CREATIVITY?
* EXPECTING THE UNEXPECTED
* MAKING YOUR OWN PRODUCT OBSOLETE

WHAT IS CREATIVITY?
* DYNAMIC TENSION BETWEEN OPPOSING
FORCES
* NOT ACCEPTING THE EXISTING AS BEST
* CHALLENGING ACCEPTED THINGS
* BRINGING OUT PRODUCTS THAT
CONSUMERS DIDN’T KNOW THEY NEEDED

A Necessary Condition to
the Development of Critical
and Creative Thinking is:
A Questioning
Mind

Understanding the Mind of Isaac Newton
 At the age of 19 Newton drew up a list of questions
under 45 headings.
 His title, Questions, signaled his goal: to constantly
question the nature of matter, place, time, and
motion.
 He worked hard to understand the thinking of others
working on his list of problems.
 For example, he bought Descartes's Geometry and
read it by himself.

 After two or three pages, when he could understand
no further, “he began again and advanced farther and
continued doing so till he made himself master of the
whole.”
Understanding the Mind of Albert Einstein
Einstein failed his entrance exam to Zurich
Polytechnic. When he finally passed (by
attending a cram school) he did not want

to think about scientific problems for a
year. His final exam was so non-
distinguished that afterward he was
refused a post as an assistant.
Thus critical thinking has a creative
component: to produce a better
product of thought

And creative thinking has a
critical component: to reshape
thinking in keeping with criteria
of excellence.
Critical thinking without a creative
output is merely negative thinking.

Creative thinking without a critical
component is merely novel thinking.
It is easy to be merely negative or novel
in one’s thought.
Every genuine act of figuring out
anything is a new making, a new series
of creative acts, however mundane.

To come to understand anything
requires that the mind construct
new connections in the mind.
No one can be given knowledge or
understanding; they must all create or
construct it for themselves.

Didactic teaching does not work because it
violates the essential conditions under which the
mind learns by acts of construction in the mind.
Didactic teaching refers to engaging students in
the subject being taught. This can be done
through various methods like diagrams, photos
and pictures of what's being taught.
At even the most fundamental level of
learning, at the earliest age of learning, the
learner must actively construct (create) to
learn.

We must abandon the notion that
knowledge can be “transmitted”
without active creative construction
on the part of the learner.
At even the most fundamental level of
learning, at the earliest age of learning, the
learner must actively assess its construction
to take genuine ownership.

Am I being clear?
Am I being accurate?
These are minimal criteria for the
construction of knowledge.
The essential need for criticality and
creativity applies to the work of the most
humble student as well as that of the
greatest genius

If we study the development of the greatest
minds Aristotle, Beethoven, Curie, Da Vinci,
Galileo, Michelangelo, Newton, Einstein we will
discover that each went through a period of
growth in which they internalized high standards
of criticality that played a significant role in the
manner in which they went about their later
creative production.
Creativity in

Entrepreneurship
Creative behaviors possessing an element of
newness, novelty, and difference.
Creativity is an act, an idea, or product that
changes an existing domain, or that
What is creativity?

transforms an existing domain into a new one,
and creative person is whose thoughts or
actions bring these changes.
Wallas’ description of creative thinking,
suggests a model in four stages:
–Preparation: problem definition
What is creativity?

–Incubation: resting phase, subconscious
mind
–Illumination: idea of a solution comes to
mind
–Verification: solutions are tested
Creativity and Innovation
Creativity leads to innovation

“Innovation is the specific instrument of
entrepreneurship. The act endows resources
with a new capacity to create wealth.
Innovation, indeed, creates a resource.”
(Drucker)
Entrepreneurship is all about innovation
Innovation is economic or social, rather than a
technical term

 “Entrepreneurship is a way of thinking, reasoning and
acting that is opportunity obsessed, holistic in approach
and leadership balanced.”
 Entrepreneurial qualities
– commitment and determination, leadership, opportunity
obsession, tolerance of risk, ambiguity and uncertainty,
creativity, selfreliance and ability to adapt, and the
Entrepreneurship

motivation to excel, ability to use failure experience as a
way of learning
Entrepreneurship and Creativity
 Creative in figuring out a way to work in a joint venture
 Creativity comes in writing an amazing sales letter or
visualizing the perfect logo
 For practicing innovation, they need to be aware of
change, and creatively use it to their advantage

– The Unexpected, Incongruities, Process Need, Industry
and Market Structures, Demographics, Changes in
Perception, New Knowledge
(Drucker)
Entrepreneurship and Creativity
Tolerance for ambiguity is related to
certain entrepreneurial styles
“Creative destruction”

– procedures and destroys or reallocates amassed
resources
Creative in identifying the gap in the
market and think up a product
Nurturing Creativity
 Several techniques to encourage creative thinking:
– Ask Questions, Lateral Thinking, Six Thinking Hats,
Brainstorming etc

 Technology and business incubators
– “complete innovation system”
– Provide financial, marketing and design support
– Generation of new creative ideas and business plans
– joint and cross-disciplinary learning
Negotiating

“Negotiating is the art of
reaching an agreement
by
resolving differences
through creativity”
Creative Negotiating, Stephen Kozicki, Adams Press, 1998

Negotiating Process
Style
Outcome
Principles

 Style is a continuum
between two styles:
– Quick
– Deliberate
– Middle is compromise
Style

 Negotiate in a hurry
 Use when you won’t negotiate with these people again
 Get the best deal without regard to the other side’s “win”
Quick Style

Use when long term relationship likely
Involves cooperation
and relationship building
to reach agreement
Needs much prep, hard
work
May move in fits and starts
Deliberate Style

 Realistic
– Both sides satisfied, win/win situation
– Usually results from deliberate style
 Acceptable
– Likely to result from quick style
– Something is better than nothing
– Always ask for a better deal
 Worst
Outcomes

– When you’re too stubborn to be flexible – Usually from quick
style
 Predetermine the outcomes before you start negotiations, you
have a better chance of getting a better result
 “Think carefully, think creatively, and think ahead”
Outcomes

 There are no rules
– Establish an agenda
 Everything is negotiable
 Ask for a better deal
Be creative
 Learn to say “NO” yourself
Principles

Are you a Motivated Negotiator?
Enthusiasm Social Skills
– Confidence – Enjoy people
–
Engaged
– Interest in others
Recognition Teamwork
– Accomplishment – Better as a team

– Pat on the back – Self-control
Integrity Creativity
– No trickery – Always looking for
– Trustworthiness ways to complete the
deal

Negotiation Model
 Investigate
 Presentation
 Bargaining
 Agreement

Investigate
 What do you want?
 What does the other side
need?
 Decide on style
 What are the consequences of
each choice.

 Prepare other side’s case
 Present the reasons for
your side better
 Planning sheet
– Issues involved
– Realistic, possible, worst
Presentation

“The” Presentation
Don’t give
Creative title concessions just to
keep things going
Reduce to “must
know” items Make note of
concerns and keep
Keywords going
Mini-speeches around keywords

Visuals
 When in doubt, ask questions!
 Open questions
 Reflective questions
 Tactics
Bargaining

Use
– Walk out
Don’t use
– Emotional outburst
– Argue special case –
Pretend ignorance –
Play for time
– Nibble and retreat
– “You go first”
– Bad environment
– Defer to higher
authority
– Not willing to
make any changes
– Silence
– Good guy/bad buy
Tactics

Arrangements should be neutral and
comfortable
Pay attention to what others say
Screen out all visual distractions
Ask open ended questions
Listen to responses
Proactive vs. reactive behavior
Agreement

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