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Organizational Behavior Chapter # 6 and 7


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Chapter # 6: Applied Performance Practices
Chapter # 7: Work Related Stress and Stress Management

Published in: Business, Health & Medicine
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Organizational Behavior Chapter # 6 and 7

  1. 1. APPLIED PERFORMANCE PRACTICES LEARNING OUTCOMES Four Reward Objectives its Advantages & disadvantages Team and Organization based Rewards Ways to improve performance based rewards WORK RELATED STRESS AND STRESS MANAGEMENT LEARNING OUTCOMES Introduction to stress and employees stress experience Outlining stress process from stressors Stressor varying effect on people Physiological and Psychological effects of stress Five Work life balance initiatives Five Strategies to manage workplace stress
  2. 2. FOUR REWARD OBJECTIVES Legacy Pay roll system versus Applied Performance Practices Legacy Pay roll system – Based on fixed guaranteed pay and allowances Applied Performance Practices – In a mega steel company in USA, average steel worker earns $70,000 in a typical year , only one third of that is guaranteed so real low base wage but high weekly bonuses, based on quality and tons produced Avg Base Pay = $10 per hour Additional team Bonuses = $ 15 to 20 per hour Profit Sharing Bonus = $ 15000 per year Note : Penalties are given to employees for bad batch of steel production
  3. 3. APPLIED PERFORMANCE PRACTICES Four Reward Objectives its Advantages & disadvantages: Reward Objectives Sample Rewards Advantages Disadvantages Membership /Seniority Fixed pay Most employee benefits Paid time off May Attract applicants Minimizes stress of insecurity Reduce Turnover Doesn,t directly motivates performance May discourage poor performers from leaving Job Status Job Evaluation is the basis Promotion- based pay increase Status based benefits Tries to maintain internal equity Minimizes Pay Discrimination Motivates employees to compete for promotions Encourages hierarchy Which may increase costs and reduce responsiveness Reinforces status differences Motivates job competition Competencies Pay increase based on competency Skill based pay Improves workforce flexibility Tends to improve quality Consistent with employability Subjective measurement Of competencies Skill based pay plans are expensive Task Performance (ESOPs) Commissions Gain sharing Profit sharing Stock options Motivates Task performance Attracts performance oriented applicants Organizational rewards creates an ownership culture Pay variability may avoid layoffs during downturns May weaken job content motivation May distance reward giver from receiver May discourage creativity Tends to Address Symptoms not underlying
  4. 4. APPLIED PERFORMANCE PRACTICES Job Design : Process of assigning tasks to a job, including the interdependency of those tasks with other jobs Job Evaluation : Systematically evaluating the worth of jobs within an organization by measuring their required skill, effort, responsibility and working conditions Gain Sharing Plan : A reward system in which team members earn bonuses for reducing costs and increasing labor efficiency in their work process Employees Stock ownership Plans (ESOPs) : A reward system that encourages employees to buy stock in the company Stock Options : A reward system that gives employees the right to purchase company stock at a future date at a predetermined price
  5. 5. APPLIED PERFORMANCE PRACTICES Empowerment : A psychological concept in which people experience more self- determination, meaning, competence and impact regarding their role in the Organization 4 dimensions, any one weakens, employee sense of empowerment weakens Self Determination : Empowered employees have feeling of freedom, independence and discretion over their work activities Meaning : They care for work and give importance to their work Competence : Confident about abilities & have capacity to handle challenges Impact: having feeling that their decisions & actions have influence on success NB: Determinants are Managers empowering and job description. Concluding Right individuals, job characteristics, organizational environment, and empowerment have a direct effect on motivation and performance
  6. 6. APPLIED PERFORMANCE PRACTICES Self - Leadership Practices Companies look in employees: Leadership potential Ability to work in a team Good communication skills Survey of 800 British employers reveals “Self Motivation“ is most important All motivation and other theories and practices studied overlooks the fact That “Successful employees motivates and manages themselves” i.e Self Leadership. Self Leadership : Process of influencing oneself to establish the self direction and self motivation needed to perform a task Constructive Thought Patterns Designing Natural Rewards Self Monitoring Self Reinforcement Elements of Self Leadership
  7. 7. WORK RELATED STRESS AND STRESS MANAGEMENT Stress : An individual’s adoptive response to a situation that is perceived as challenging or threatening to the person’s well being General Reason / Causes (Stressors): People stressed from work, job insecurity, information overload & increasing pace of life Following happens in stress condition: Negative side, creates distress to human Heart rate increases, muscles tighten, breathing speeds up and perspiration Increases Body moves more blood to brain, Body fuels the system by releasing more glucose & fatty acids, activates systems that sharpen one’s senses, Result : Body conserves resources by shutting down immune system Positive Side of Stress called Eustress: It is stress generated that is enough to activate and motivate people so that one can achieve goals, change environment &succeed in challenges
  8. 8. WORK RELATED STRESS AND STRESS MANAGEMENT Ability Normal State To cope HIGH Low Stage 1 Alarm Reaction Stage 2 Resistance Time Stage 3 Exhaustion Selye’s General Adaption Syndrom
  9. 9. WORK RELATED STRESS AND STRESS MANAGEMENT Causes and Consequences of Stress: Work Related Stressors Individual Difference Consequences of distress Interpersonal Stressors Role-related Stressors Task Control Stressors Organizational/ Physical Environment Stressors Non work Stressors Personal health Knowledge/skill Coping skills Resilience Workaholism Physiological Heart diseases Ulcers Headaches Sleep disturbances Increased illness Psychological Job dissatisfaction Low commitment Exhaustion Depression Moodiness Burnout Behavioral Lower job performance Faulty decision Higher absenteeism Work place aggression
  10. 10. WORK RELATED STRESS AND STRESS MANAGEMENT • Work Related Stressors Interpersonal Stressors – Most pervasive, generated by Team work Organizational Politics Bad Bosses Workplace Violence – Survey in US 600 employees murdered on job per year 2 mill. Experience lesser physical violence, similar in rest of the world, violence generates stress not only to effected person but to other employees Psychological : Includes Repeated hostile or unwanted conduct, verbal comments, actions or gestures effecting dignity or integrity – world over trends sexual Harassment : Person’s employment or job appraisal conditional on unwanted sexual relations (called “quid pro quo”), andor person experiences sexual conduct from others (such as posting prono material that interfers work performance or not wanted by co-worker called “ hostile work environment” stress is more aggravated once the victim reports the matter Role Related Stressors: It includes conditions whereby employees face difficulty in understanding, reconciling, or performing the various roles in their lives
  11. 11. WORK RELATED STRESS AND STRESS MANAGEMENT Three types of role related stressors: Role Conflict : Degree of Incompatibility of expectations associated with a person’s role, e.g, mismatch between employees personal and organizational values Role Ambiguity : A lack of clarity and predictability of the outcomes of a person’s behavior e.g joining a new org. or working in a new joint venture Work Load : Working more hours and more intensely doing work than they can reasonably handle, Ist reason; Combined effects of technology and globalization 2nd reason; Because consumer intensive society people want to earn more 3rd reason; Ideal worker norm, professional expects themselves and others to work longer working hours Task Control Stressors : Stress generated by the situation that employee does not have control on the task, with more responsibility it increases, e.g traffic
  12. 12. WORK RELATED STRESS AND STRESS MANAGEMENT • Work Related Stressors : Last stressors in this category is Organizational/ Physical Environment Stressors – these appear in many forms e.g downsizing stressful for both who loses job and for survivors. Physical Environment Stressors: Stress generated by excessive noise and poor lighting, also employees working in dangerous environment Work – Non-work Stressors : Three types of work spill over to non-work stressors are Time based – Refers to challenge of balancing time demanded by work with family and other non-work activities, Reasons may be, longer working hours, inflexible work schedules, business travel & rotating shift, acute for women Strain Based – Occurs when stress of one domain spills over to the other, e.g, relationship problems, financial difficulties, or loss of loved ones, cell phones used for this purpose Role Behavior conflict – Occurs when people are expected to act differently at work than in non-work roles, at work place acts logically and impartially but more compassionate behavior in personal lives
  13. 13. WORK RELATED STRESS AND STRESS MANAGEMENT Stressors in Occupations Accountant Artist Auto mechanic Forester Hospital Manager Physician (GP) Psychologist School Principal US President Prison Officer Teacher Nurse Low Stress Medium-Stress High Stress Occupations
  14. 14. WORK RELATED STRESS AND STRESS MANAGEMENT Individual Differences in Stress : People have different stress experience when exposed to the same stressors Reasons : Personal health Knowledge/skill coping skill: (a) Different threshold levels of resistance to the stressors - Age factor and life style/regular exercise etc. (b) Different stress copping strategies - Some people deny/ignore stress in short run faces stress consequences severally (c) People have different beliefs and ability to handle stress – Those who are optimistic, often face similar stress and are confident to handle stress, the second category of people who have more knowledge and skill feels better in stress Resilience and Stress: Capability of individuals to cope successfully when faced with significant change, adversity or risk so meaning thereby more resilience a person will result in better handling of stress, it really means “ leap back” i.e capability to withstand stress , recovery from stress is a separate issue Different PERSPECTIVES Personality traits generating positive emotions Intelligence and skills Self Actualization / Inner force
  15. 15. WORK RELATED STRESS AND STRESS MANAGEMENT Individual Difference Workaholism – A person who is highly involved in work, feels compelled to work and has a low enjoyment of work – Work Addict Contrary to resilience this personal characteristic attracts more stresses & weakens capacity to cope with it, these people become less social with family members effecting WLB. Results in TYPE “A” behavior pattern – because being pre-occupied with work, people tend to lose their tempers and interrupt others in conversation, results in sever body disorders etc in the long run. Consequences of Distress – Effects of stress may appear on physical, mental or behavioral deterioration: (a) Physiological (b) Psychological (c) Behavioral
  16. 16. WORK RELATED STRESS AND STRESS MANAGEMENT Consequences of Distress Physiological Consequences Behavioral Consequences Psychological Consequences Shuts Down Immune System Tension Headaches Muscle pain & back problems Cardiovascular Diseases Strokes Hyper Tension Job dissatisfaction Moodiness Depression Lower organization Commitment Emotional Exhaustion Cynicism – Indifferent Attitude Reduced Efficiency Moderate Stress Positive, Concentrate Resources Where required In distress Job Performance Falls Memory Impaired Decisions less Effective Forgetfulness Overstressed Aggressive Behavior With coworkers Frustration
  17. 17. WORK RELATED STRESS AND STRESS MANAGEMENT Managing Work-Related Stress Conclusion: Non existence of Work Life Balance is main stressor Stress Management Strategies Remove the Stressor WLB Flexi timings Job Sharing Telecommuting Leave Child care support Control Stress Consequences Fitness Centers Fitness & relaxation mediation EAPs Change Stress Perception Enhancing Confidence, self esteem & self- leadership Receive Social Support From Coworkers, Supervisors, Family members, Friends Others as Info etc Withdraw From Stressors Temporary With-drawl Strategies (Games/ relaxing Rooms, leave, TV rooms etc) Social Support reduces Stress at least three ways - Improves perception, they Are valued & worthy, it Increases resilience -Provides info & help interpret, Comprehend & remove stressors -Emotional support help To buffer stress experience