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JOHN ARVI V. ARMILDEZ HUM BHV 1. Organization is a group of people who work interdependently towards same purpose.

An organizational behavior is the study of what people thinks, feel, and do in and around the organizations. 2. OB theories help people (a) make sense of the workplace, (b) question and rebuild their personal mental models, and (c) get things done in organizations. OB knowledge is for everyone, not just managers. OB knowledge is just as important for the organizations financial health 3. The goal attainment perspective, which states that organizations are effective if they achieve their stated objectives, is no longer accepted because (a) the goals set may be too easy, (b) goals may be too abstract to determine their accomplishment, and (c) achievement of some goals may threaten the companys survival. The open systems perspective views organizations as complex organisms that live within an external environment. They depend on the external environment for resources and then use organizational subsystems to transform those resources into outputs, which are returned to the environment. Organizations receive feedback from the external environment to maintain a good fit with that environment. Fit occurs by adapting to the environment, managing the environment, or moving to another environment. According to the organizational learning perspective, organizational effectiveness depends on the organizations capacity to acquire, share, use, and store valuable knowledge. The ability to acquire and use knowledge depends on the firms absorptive capacity. Intellectual capital consists of human capital, structural capital, and relationship capital. Knowledge is retained in the organizational memory; companies also selectively unlearn. The high-performance work practices (HPWP) perspective identifies a bundle of systems and structures to leverage workforce potential. The most widely identified HPWP are employee involvement, job

AC09301 autonomy, developing employee competencies, and performance-skill-based rewards. HPWP improve organizational effectiveness by building human capital, increasing adaptability, and strengthening employee motivation and attitudes. The stakeholder perspective states that leaders manage the interests of diverse stakeholders by relying on their personal and organizational values for guidance. Ethics and corporate social responsibility (CSR) are natural extensions of values-based organizations because they rely on values to guide the most appropriate decisions involving stakeholders. CSR consists of organizational activities intended to benefit society and the environment beyond the firms. KEY TERMS: Absorptive capacity The ability to recognize the value of new information, assimilates it, and applies it to commercial ends. Corporate Social Responsibility (CSR) is an organizations moral obligation toward its stakeholders. Deep-level Diversity is the differences in the psychological characteristics of employees, including personalities, beliefs, values, and attitudes. Ethics The study of moral principles or values that determine whether actions are right or wrong and outcomes are good or bad. Evidence-Based Management the practice of making decisions and taking actions based on research evidence. Globalization Economic, social, and cultural connectivity (and interdependence) with people in other parts of the World. High-Performance Work Practices a perspective which holds that effective organizations incorporate several workplace practices that leverage the potential of human capital. Human Capital is the stock of human knowledge, skills, and abilities among employees that provide economic value to the organization.

Intellectual Capital is the sum of an organizations human capital, and relationship capital. Open Systems Organizations that take their sustenance from the environment and, in turn, affect that environment through their output. Organizational Behavior (OB) The study of what people thinks, feel, and do in and around organizations. Organizational Effectiveness a broad concept represented by several perspectives including the organizations fit with the external environment, internal subsystems configuration for high performance, emphasis on organizational learning, and ability to satisfy the needs if key stakeholders. Organizational Efficiency is the amount of outputs relative to inputs in the organizations transformation process. Organizational Learning a perspective which holds that organizational effectiveness depends on the organizations capacity to acquire, share, use, and store valuable knowledge. Organizations Groups of people who work interdependently toward some purpose. Relationship Capital is the value derived from an organizations relationship with customers, suppliers, and other. Stakeholders Shareholders, customers, suppliers, governments, and any other groups with a vested interest in the organization. Structural Capital is the knowledge embedded in an organizations systems and structures. Surface-level Diversity is the observable demographic or physiological differences in people, such as their race, ethnicity, gender, age, and physical disabilities. Values Stable, long-lasting beliefs about what is important in a variety of situations, that guide our decisions and actions. Virtual teams Teams whose members operate across space, time, and organizational boundaries, and who are linked through information technologies to achieve organizational goals. Virtual Work is any work performed away from the traditional physical workplace by using information technology.

Worklife Balance occurs when there is minimizing conflict between work and non-work demands. LO3: Debate the organizational opportunities and challenges of globalization, workforce diversity, and emerging employment relationships. Globalization, which refers to various forms of connectivity with people in other parts of the world, has several economic and social benefits, but it may also be responsible for work intensification and reduced job security and worklife balance. Workforce diversity is apparent at both the surface level (observable demographic and other overt differences in people) and the deep level (differences in personalities, beliefs, values, and attitudes). There is some evidence of deep-level diversity across generational cohorts. Diversity may offer a competitive advantage by improving decision making and team performance on complex tasks, yet it also brings numerous challenges such as team fault lines, slower team performance, and interpersonal conflict. One emerging employment relationship trend is the call for more worklife balance (minimizing conflict between work and non-work demands). Another employment trend is virtual work, particularly working from home. Working from home potentially increases employee productivity and reduces employee stress, but it may also lead to social isolation, reduced promotion opportunities, and tension in family relations. LO4: Discuss the anchors on which organizational behavior knowledge is based. The multidisciplinary anchor states that the field should develop from knowledge in other disciplines (e.g., psychology, sociology, and economics), not just from its own isolated research base. The systematic research anchor states that OB knowledge should be based on systematic research, which is consistent with evidence-based management. The contingency anchor states that OB theories generally need to consider that there will be different consequences in different situations. The multiple levels of analysis anchor states that OB topics may be viewed from the individual, team, and organization levels of analysis.

JOHN ARVI V. ARMILDEZ HUM BHV LO1: Describe the FOUR FACTORS that directly influence individual behavior and performance. Four variables motivation, ability, rule perceptions, and situational factors, which are represented by the acronym MARS directly influence individual behavior and performance. Motivation represents the forces within a person that affect his or her direction, intensity, and persistence of voluntary behavior; Ability includes both the natural aptitudes and the learned capabilities required to complete a task successfully; Role perception is the extent to which people understand the job duties (roles) assigned to them or expected of them; Situational factors include conditions beyond the employers immediate control that constrain or facilitate behavior and performance.

AC09301 LO3: Describe personality, the Big Five personality dimensions, and four MBTI types, and explain how personality relates to individual behavior in organizations. Personality is the relatively enduring pattern of thoughts, emotions, and behaviors that characterize a person, along with the psychological processes behind those characteristics. Personality Traits are broad concepts about people that allow us to label and understand individual differences. Personality is developed through hereditary origins (nature) and socialization (nurture). The Big Five personality dimensions include conscientiousness, agreeableness, neuroticism, openness to experience, and extraversion. Conscientiousness and emotional stability (low neuroticism) predict individual performance in most job groups. Extraversion is associated with performance in sales and management job, whereas Agreeableness is associated with performance in jobs requiring cooperation, and openness to experience is associated with performance in creative jobs.

LO2: Summarize the five types of individual behavior to organizations. There are five main types of workplace behavior: Task performance refers to goal-directed behaviors under the individuals control that support organizational objectives. Organizational citizenship behaviors consist of various forms of cooperation and helpfulness to others that support the organizations social and psychological context. Counterproductive work behaviors are voluntary behaviors that have the potential to harm the organization directly or indirectly. Joining and staying with the organization refers to agreeing to become an organizational member and remaining with the organization. Presenteeism is when maintaining work attendance includes minimizing absenteeism when capable of working and avoiding scheduled work when not fit.

Based on JUNGIAN PERSONALITY THEORY, the MYERSBRIGGS TYPE INDICATOR (MBTI) identifies competing orientations for getting energy (extraversion vs. introversion); perceiving information (sensing vs. intuiting); processing information and making decisions (thinking vs. feeling); orienting to the external world (judging vs. perceiving). The MBTI improves self-awareness for career development and mutual understanding but is more popular than valid. Overall, it is useful to understand an individual personality, but testing for personality in organizations raises a few concerns.

LO4: Summarize SCHWARTZS MODEL of individual values and discuss the conditions under which values influence behavior Values are stable, evaluative beliefs that guide our preferences for outcomes or courses of action in a variety of situations. Compared with personality traits, values are evaluative (rather than descriptive), more likely to conflict, and formed more from socialization than heredity. Schwartzs model organizes 57 values into a circumflex of 10 dimensions along 2 bipolar dimensions: openness to change to conservation and selfenhancement to self-transcendence. Values influence behavior in three conditions: 1) When we can think of specific reasons for doing so; 2) When the situation supports those values; and 3) When we actively think about them. Values congruence refers to how similar a persons values hierarchy is to the values hierarchy of another source (organization, person, etc.) LO5 Describe three ethical principles and discuss FOUR FACTORS that INFLUENCE ETHICAL BEHAVIOR Ethics refers to the study of moral principles or values that determine whether actions are right or wrong and outcomes are good or bad. Three (3) Ethical Principles are: 1) Utilitarianism; 2) Individual rights; and 3) Distributive justice. Ethical Behavior is influenced by; 1) 2) the degree to which an issue demands the application of ethical principles (moral intensity), the individuals ability to recognize the presence and relative importance of an ethical issue (ethical sensitivity), situational forces, and The extent to which people actively evaluate their decisions and actions in comparison with ethical and personal values (i.e., mindfulness).

Ethical conduct at work is supported by codes of ethical conduct, ethics training, and mechanisms for communicating ethical violations, the organizations culture, and the leaders behavior.

LO6 Review FIVE VALUES commonly studied across cultures and discuss cultural diversity within the United States. Five values that are often studied across cultures are 1) Individualism valuing independence and personal uniqueness; 2) Collectivism valuing duty to in-groups and to group harmony; 3) Power distance valuing unequal distribution of power; 4) Uncertainty avoidance tolerating or feeling threatened by ambiguity and uncertainty; and 5) Achievement-nurturing orientation valuing competition vs. cooperation. Although cross-cultural knowledge is valuable, we need to be concerned that some of this knowledge is based on non-representative samples, old information, and lack of sensitivity to cultural differences within countries. Rather than being a homogeneous culture, the United States has diverse forms of surface-level and deep-level diversity. This cultural diversity also reflects some differences across regions. Regional diversity might exist because socialization practices are shaped by local institutions, the natural environment shapes culture to some extent, or people migrate to places that they believe are s\more consistent with their values and selfviews.

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JOHN ARVI V. ARMILDEZ HUM BHV LO1: Describe the elements of self-concept and explain how they affect an individuals behavior and wellbeing. Self-concept includes an individuals self-beliefs and selfevaluations. It has three (3) structural dimensions, complexity, consistency, and clarity, all of which influence employees well-being, behavior, and performance. Consists of: Personality identity Social Identity People are inherently motivated to promote and protect their self-concept (self-enhancement) and to verify and maintain their existing self-concept (self verification). Self-evaluation consists of: Self-esteem Self-efficacy Locus of control Social Identity Theory explains how people define themselves in terms of the groups to which they belong or have an emotional attachment. LO2: Outline the perceptual process and discuss the effects of categorical thinking and mental models in that process. Perception involves selecting, organizing, and interpreting information to make sense of the world around us. Perceptual organization applies categorical thinking the mostly nonconscious process of organizing people and objects into preconceived categories that are stoned in our long term memory. Mental models internal representations of the external world also help is to make sense of incoming stimuli. LO3: Discuss how stereotyping, attribution, self-fulfilling prophecy, halo, false-consensus primacy, and recency effects influence the perpetual process. Stereotyping occurs when people assign traits to others based on their membership in a social category. This assignment economizes mental effort, fills in missing

AC09301 information, and enhances our self-concept, but it also lays the foundation for prejudice and systematic discrimination. The attribution process involves deciding whether an observed behavior or event is caused mainly by the person (internal factors) or the environment (external factors). Attributions are decided by perceptions of the consistency, distinctiveness, and consensus of the behavior. This process is subject to fundamental attribution error and self-serving bias. A self-fulfilling prophecy occurs when our expectations about another person cause that person to act in a way that is consistent with those expectations. This effect is stronger when employees first join the work unit, when several people hold these expectations, and when the employee has a history of low achievement. Four other personal errors commonly noted in organizations are the halo effect, false-consensus effect, primary effect, and recency effect. LO4: Discuss three (3) ways to improve perceptions with specific applications to organizational situations. 1) To become more aware of their existence. Awareness of these biases makes people more mindful of their thoughts and actions, but training sometimes reinforces rather than reduces reliance on stereotypes and tends to be ineffective for people with deeply held prejudices. 2) To become aware of biases in our own decisions and behavior. Self-awareness increases through formal tests such as the IAT and by applying the Johari Windows, which is a process in which others provide feedback to you about your behavior, and you offer disclosure to them about yourself. 3) Meaningful interaction, which applies the contact hypothesis that people who interact will be less prejudiced or perceptually biased toward one another. Meaningful interaction helps improve empathy, which is in persons understanding and sensitivity to the feelings, thoughts, and situations of others.

LO5: Outline the main features of a global mindset and justify its usefulness to employees and organizations. A global mindset is a multidimensional competency that includes the individuals ability to perceive, know about, and process information across cultures. This includes: 1. An awareness of openness to, and respect for other views and practices in the world; 2. The capacity to empathize and act effectively across cultures; 3. An ability to process complex information about novel environments; and 4. The ability to comprehend and reconcile intercultural matters with multiple levels of thinking. A global mindset enables people to develop better crosscultural relationships, to digest huge volumes of crosscultural emerging global opportunities. Employees develop a global mindset through self-awareness, opportunities to compare their own mental models with people from other cultures, formal cross-cultural training, and immersion in other cultures. KEY TERMS:
Self-concept an individuals self-beliefs and selfevaluations Self-enhancement a persons inherent motivation to have a positive self-concept (and to have others perceive him favorably), such as being competent, attractive, lucky, ethical, and important Complexity number of distinct and important roles or identities that people perceive about themselves Consistency compatibility of persons self-concept identities with one another and with the persons personality, values, and other attributes Clarity degree to which there is a clear, confidently defined, and stable self-concept Self-verifications a persons inherent motivation to confirm and maintain his existing self-concept Self-esteem extent to which people like, respect, and are satisfied with themselves Self-efficacy a persons belief that he has the ability, motivation, correct role perceptions, and favorable situation to complete a task successfully. Locus of control a persons general belief about the amount of control he has over personal life events Social Identity Theory states that people define themselves in terms of the groups to which they belong or have an emotional attachment.

Selective attention process of attending information received by our senses and ignoring other information Confirmation Bias process of screening out information that is contrary to our values and assumptions and to more readily accept confirming information Categorical thinking organizing people and objects into preconceived categories that are stored in our long-term memory Mental Models visual or relational images in our mind representing the external world Stereotyping process of assigning traits to people based on their membership in a social category Categorization social identity is a comparative process and the comparison begins by categorizing people into distinct groups Homogenization people within each group are very similar to each other Differentiation good guy-bad guy contrast Fundamental attribution error tendency to see the person rather than the situation as the main cause of the persons behavior Self-serving bias tendency to attribute our favorable outcomes to internal factors and our failures to external factors. Halo effect general impression of a person, usually based on one prominent characteristic, distorts our perception of other characteristics of that person False-consensus effect similar-to-me effect Primacy effect tendency to quickly form an opinion of people on the basis of the first information we receive about them Recency effect occurs when the most recent information dominates our perceptions Johari Window a model of mutual understanding that encourages disclosure and feedback to increase our own open area and reduce the blind, hidden, and unknown areas. Contact Hypothesis theory stating that the more we interact with someone, the less prejudiced or perceptually biased we will be against that person Empathy a persons understanding of and sensitivity to the feelings, thoughts, and situations of others. Global mindset an individuals ability to perceive, appreciate, and empathize with people from other cultures, and to process complex cross-cultural information

JOHN ARVI V. ARMILDEZ HUM BHV LO1: Explain how emotions and cognition (conscious reasoning) influence attitudes and behavior. Emotions are physiological, behavioral, and psychological episodes experienced toward an object, person, or event that create a state of readiness. Attitudes represent a cluster of beliefs, feelings, and behavioral intentions toward a person, object, or event. Beliefs are a persons established perceptions about the attitude object. Feelings are positive or negative evaluations of the attitude object. Behavioral intentions represent a motivation to engage in a particular behavior with respect to the target. Beliefs Feelings
Behavioral intentions

AC09301 Emotional dissonance occurs when required and true emotions are incompatible with each other. Deep acting can minimize this dissonance, as can the practice of hiring people with a natural tendency to display desired emotions. Emotional intelligence is the ability to perceive and express emotion, assimilate emotion in thought, understand and reason with emotion, and regulate emotion in oneself and others. This concept includes four components arranged in a hierarchy: 1. 2. 3. 4. Self-awareness Self-management Social awareness Relationship management


Emotional intelligence can be learned to some extent, particularly through personal coaching. LO3: Summarize the consequences of job dissatisfaction, as well as strategies to increase organizational (affective) commitment. Job satisfaction represents a persons evaluation of his or her job and work context. The exit-voice-loyalty-neglect model outlines four possible consequences of job dissatisfaction. Exit includes leaving the organization, transferring to another work unit, or at least trying to get away from the dissatisfying situation. The traditional theory is that job dissatisfaction builds over time and is eventually strong enough to motivate employees to search for better work opportunities elsewhere. This is likely true to some extent, but the most recent opinion is that specific shock events quickly energize employees to think about and engage in exit behavior. For example, the emotional reaction you experience to an unfair management decision or a conflict episode with a co-worker motivates you to look at job ads and speak to friends about job opportunities where they work. This begins the process of redefining your self-concept more in terms of another company than in terms of your current employer. Voice is any attempt to change, rather than escape from, the dissatisfying situation. Voice can be a constructive response, such as recommending ways

Attitudes have traditionally been described as a purely rational process in which beliefs predict feelings, which predict behavioral intentions, which predict behavior. We now know that emotions have an influence on behavior that is equal to or greater than that of cognitions. This dual process is apparent when we internally experience a conflict between what logically seems good or bad and what we emotionally feel is good or bad in a situation. Emotions also affect behavior directly. Behavior sometimes influences our subsequent attitudes through cognitive dissonance. LO2: Discuss the dynamics of emotional labor and the role of emotional intelligence in the workplace. Emotional labor consists of the effort, planning, and control needed to express organizationally desired emotions during interpersonal transactions. It is more common in jobs requiring a variety of emotions and more intense emotions, as well as in jobs where interaction with clients is frequent and has a long duration. Cultures also differ on the norms of displaying or concealing a persons true emotions.

for management to improve the situation, or it can be more confrontational, such as filing formal grievances or forming a coalition to oppose a decision. In the extreme, some employees might engage in counterproductive behaviors to get attention and force changes in the organization. Loyalty. In the original version of this model, loyalty was not an outcome of dissatisfaction. Rather, it determined whether people chose exit or voice (i.e., high loyalty resulted in voice; low loyalty produced exit). More recent writers describe loyalty as an outcome, but in various and somewhat unclear ways. Generally, they suggest that loyalists are employees who respond to dissatisfaction by patiently waiting some say they suffer in silencefor the problem to work itself out or be resolved by others. Neglect. Neglect includes reducing work effort, paying less attention to quality, and increasing absenteeism and lateness. It is generally considered a passive activity that has negative consequences for the organization. Job satisfaction has a moderate relationship with job performance and with customer satisfaction. Affective organizational commitment (loyalty) is the employees emotional attachment to, identification with, and involvement in a particular organization. This contrasts with continuance commitment, which is a calculative bond with the organization. Companies build loyalty through justice and support, shared values, trust, organizational comprehension, and employee involvement.

assigning employees to jobs that match their skills and preferences o reducing excessive workplace noise o having a complaint system and taking corrective action against harassment o giving employees more control over the work process o facilitating better worklife balance flexible and limited work time job sharing telecommuting personal leave child care support withdrawing from the stressor o Permanent withdrawal occurs when employees are transferred to jobs that better fit their competencies and values. o Temporary withdrawing from stressors is the most frequent way that employees manage stress. Vacations and holidays are important opportunities for employees to recover from stress and reenergize for future challenges. o changing stress perceptions o Help employees improve their self-concept so that job challenges are not perceived as threatening. controlling stress consequences o fitness and wellness programs o Employee Assistance Program counseling services that help employees resolve marital, financial, or work-related troubles. receiving social support o Social support occurs when co-workers, supervisors, family members, friends, and others provide emotional and/or informational support to buffer an individuals stress experience. o It potentially improves the persons resilience (particularly her or his optimism and selfconfidence) because support makes people feel valued and worthy. o Social support also provides information to help the person interpret, comprehend, and possibly remove the stressor. o Seeking social support is called a tend and befriend response to stress, and research suggests that women often follow this route rather than the fight-or-flight response mentioned earlier.

LO4: Describe the stress experience and review three major stressors. Stress is an adaptive response to a situation that is perceived as challenging or threatening to a persons wellbeing. The stress experience, called the general adaptation syndrome, involves moving through three stages: alarm, resistance, and exhaustion. Stressors are the causes of stress and include any environmental conditions that place a physical or emotional demand on a person. Three stressors that have received considerable attention are harassment and incivility, work overload, and low task control. LO5: Identify five ways to manage workplace stress. Two people exposed to the same stressor may experience different stress levels. Many interventions are available to manage work-related stress, including: removing the stressor o begins by identifying areas of high stress and determining the main causes of the stress



LO1: Define Employee management. The employees emotional and cognitive motivation, selfefficacy to perform the job, perceived clarity of the organizations vision and his or her specific role in that vision, and belief that he or she has the resources to get the job done. LO2: Roles of Human Drive sand Emotions in Employee Motivation. Motivation consists of the forces within a person that affect his or her direction, intensity, and persistence of voluntary behavior in the workplace. Drives (also called primary needs) are neural states that energize individuals to correct deficiencies or maintain an internal equilibrium. They are the prime movers of behavior, activating emotions that put us in a state of readiness to act. Needs, goal-directed forces that people experience, are shaped by the individuals self-concept (including personality and values), social norms, and past experience. LO3: Maslows Needs Hierarchy, Mcclellands Learned Need Theory and Four (4) Drive Theory and Their implications for motivating people. Maslows needs hierarchy groups needs into a hierarchy of five levels and states that the lowest needs are initially most important but higher needs become more important as the lower ones are satisfied. Although very popular, the theory lacks research support, as does ERG theory, which attempted to overcome some of the limitations in Maslows needs hierarchy. Both models assume that everyone has the same hierarchy, whereas the emerging evidence suggests that needs hierarchies vary from one person to the next according to their personal values. McClellands learned needs theory argues that needs can be strengthened through learning. The three needs studied in this respect have been need for achievement, need for power, and need for affiliation. Four-drive theory states that everyone has four innate drivesthe drives to acquire, bond, learn, and defend. These drives activate emotions that we regulate through a skill set that considers social norms, past experience, and personal values. The main recommendation from four-

drive theory is to ensure that individual jobs and workplaces provide LO4: The Expectancy Theory Model, including its Practical Implications. Expectancy theory states that work effort is determined by the perception that effort will result in a particular level of performance (E-to-P expectancy), the perception that a specific behavior or performance level will lead to specific outcomes (P-to-O expectancy), and the valences that the person feels for those outcomes. The E-to-P expectancy increases by improving the employees ability and confidence to perform the job. The P-to-O expectancy increases by measuring performance accurately, distributing higher rewards to better performers, and showing employees that rewards are performance-based. Outcome valences increase by finding out what employees want and using these resources as rewards. LO5 OB Modification and Social Cognitive Theory and their relevance to employee. Organizational Behavior modification states that the environment teaches people to alter their behavior so that they maximize positive consequences and minimize adverse consequences. Antecedents are environmental stimuli that provide (not necessarily cause) behavior. Consequences are events following behavior that influence its future occurrence. Consequences include positive reinforcement, punishment, negative reinforcement, and extinction. The schedules of reinforcement also influence behavior. Social cognitive theory states that much learning and motivation occur by observing and modeling others, as well as by anticipating the consequences of our behavior. It suggests that people typically infer (rather than only directly experiences) cause-and-effect relationships, anticipate the consequences of their actions, develop selfefficacy in performing behavior, exercise personal control over their behavior, and reflect on their direct experiences. The theory emphasizes self-regulation of individual behavior, including self-reinforcement, which is the tendency of people to reward and punish themselves as a consequence of their actions

LO6 Describe the characteristics of Effective goal setting and feedback Goal setting is the process of motivating employees and clarifying their role perceptions by establishing performance objectives. Goals are more effective when they are SMARTER: Specific Measurable Achievable Relevant Time-framed Exciting Reviewed

Effective feedback is specific, relevant, timely, credible, and sufficiently frequent. Strength-based coaching (appreciative coaching) maximizes employees potential by focusing on their strengths rather than weaknesses. Employees usually prefer nonsocial feedback sources to learn about their progress toward goal accomplishment. LO7 Summarize equity theory and describe ways to improve procedural justice Organizational justice consists of distributive justice (perceived fairness in the outcomes we receive relative to our contributions and the outcomes and contributions of others) and procedural justice (fairness of the procedures used to decide the distribution of resources). Equity theory has four elements: outcome/input ratio, comparison other, equity evaluation, and consequences of inequity. The theory also explains what people are motivated to do when they feel inequitably treated. Companies need to consider not only equity of the distribution of resources but also fairness in the process of making resource allocation decisions.



LO1: Discuss the advantages and disadvantages of the four reward objectives. Types of Reward Practices membership and seniority job status competencies performance Membership and Seniority-Based Rewards Most common reward -- fixed wages, or pay increases as seniority increases Advantages Guaranteed wages may attract job applicants Seniority-based rewards reduce turnover Disadvantages Do not directly motivate job performance Discourages poor performers from leaving voluntarily May act as golden handcuffs Job Status-Based Rewards Job evaluation estimates job worth by measuring the job's required skill, effort, responsibility, and working conditions. Employees in more valued positions receive executive dining room, larger office, company-paid car etc. Advantages: Maintain feelings of pay equity Motivates employees to compete for promotions Disadvantages: Employees exaggerate duties, hoard resources Encourages bureaucratic hierarchy, and reinforces a status mentality. Inconsistent with market-responsive organizations with few layers of hierarchy that encourage initiative from all employees Competency-Based Rewards Pay increases with competencies acquired and demonstrated Organizations are shifting from job status to rewarding employees for their skills, knowledge and other competencies that lead to superior performance Skill-based pay -- pay increases with number of skill modules learned, even though only one skill area performed at a time Advantages More flexible, multi-skilled work force Better product/service quality Consistent with employability Disadvantages Competencies may become subjective personality assessments skill-based plans are more objective are expensive

Performance-Based Rewards Individual Rewards Awards and bonuses -- achieving a performance goal or for individual task accomplishment Commissions -- earnings based on sales volume Piece rate pay -- pay per number of units produced Advantages Motivates task performance Attracts performance-oriented applicants Organizational rewards create an ownership culture Pay variability may avoid layoffs during downturns Disadvantages May weaken job content motivation May distance reward giver from receiver May discourage creativity Tends to address symptoms, not underlying causes of behavior LO2: Identify several team and organizationallevel performancebased rewards. Team Rewards Bonuses -- team paid lump sum for reaching targets Gain sharing plans paid to the team based on cost reductions and increased labor efficiency Organizational Rewards Employee stock ownership plans employees own company stock -- some employees own company Profit sharing employees receive share of profits Stock options right to purchase company stock at a future date at a predetermined price Balanced scorecard (BSC) rewards for improving composite results (financial, customer, internal processes, employee) Evaluating organizational-level rewards Positive effects Creates an ownership culture Adjusts pay with firm's prosperity Scorecards align rewards with several specific organizational outcomes Concerns with performance pay Weak connection between individual effort and rewards Reward amounts affected by external forces


Describe Five Effectiveness





Identifies five core job characteristics, three psychological states, and individual moderators Core job characteristics Skill variety -- extent that job requires different skills e.g. sales clerks also stock inventory and change store-front displays Task identity -- completing a whole or identifiable piece of work e.g. employee assembles an entire computer modem Task significance -- impact on organization and/or society e.g. medical devices employee impacts life and death of patients Autonomy -- freedom, independence, and discretion e.g. employees (not boss) make decisions Job feedback -- receive performance info LO6: Identify three strategies to improve employee motivation through job design Job rotation Moving from one job to another Three functions 1. reduces repetitive strain injuries 2. increases multiskilling -- more flexible work force 3. potentially reduces job boredom Job Enlargement Adding tasks to an existing job Improves work efficiency and flexibility Example: video journalist performs several tasks previously performed by people in a few jobs also example of job enrichment due to increased autonomy Problem: Just adding more tasks will not increase job satisfaction or performance -- need job enrichment (adding autonomy and job knowledge) Job Enrichment Given more responsibility for scheduling, coordinating, and planning ones own work Outcomes of job enrichment Increases job satisfaction Increases performance when task identity and job knowledge increases Increases service quality due to more felt responsibility Two of the main ways to increase job enrichment: 1. Clustering tasks into natural groups Stitching highly interdependent tasks into one job e.g., video journalist, assembling entire product 2. Establishing client relationships Directly responsible for specific clients Communicate directly with those clients

1. Link rewards to performance (better performers should be rewarded more than those with poorer performance) increases P-to-O expectancy problems with organizational politics and difficulty measuring performance 2. Ensure rewards are relevant reward outcomes within employees control adjust for situational factors -- e.g. effect of economy on sales 3. Use team rewards for interdependent jobs easier to measure team output than individual increases cooperation and reduces competitiveness increases employee preferences for team-based work 4. Ensure rewards are valued people have different needs and wants 5. Watch out for unintended consequences difficult to anticipate effect of rewards on behavior LO4: Discuss the advantages and disadvantages of job specialization Advantages Increases work efficiency Employees master the tasks quickly Spend less time changing tasks Less training required Job is closely matched to their skills Disadvantages Reduce work motivation Create mental health problems Lower product or service quality Increases costs through discontentment, absenteeism, and turnover. LO5 Diagram the job characteristics model of job design.

LO7: Define empowerment and identify strategies that support empowerment Empowerment is a psychological concept with four dimensions: 1. Self determination - Employees are given freedom, independence, and discretion over their work activities 2. Meaning - Empowered employees care about their work and believe that what they do is important 3. Competence - Empowered employees have feelings of self-efficacy they are confident about their ability to perform the work well and have a capacity to grow with new challenges 4. Impact - Empowered employees view themselves as active participants in the organization their decisions and actions influence the companys success LO8: Describe the five elements of self-leadership 1. Personal goal setting Self-set goals Apply effective goal setting practices

Higher levels of conscientiousness and extroversion Positive self-evaluation (self-esteem, self-efficacy, internal locus) Organizational factors Job autonomy Participative leadership Measurement-oriented culture Self-leadership can be learned

2. Constructive thought patterns Self-talk: talking to yourself about your own thoughts or actions positive self-talk increases self-efficacy Mental imagery: mentally practicing a task and visualizing its successful completion 3. Designing natural rewards Finding ways to make the job more motivating e.g. use discretion in how a task is accomplished 4. Self-monitoring Keeping track of ones progress toward goal Checking naturally occurring feedback Design artificial feedback if no natural feedback 5. Self-reinforcement Controlling a reinforcer but dont take it until completing a self-set goal e.g. Watching a movie after writing two more sections of a report e.g. Starting a fun task after completing a task that you dont like LO9: Identify specific personal and work environment influences on self-leadership Self-leadership contingencies Self-leadership depends on the person and situation Individual factors