Chapter 1: Introduction to the Field of Organizational Behavior

Organizational Behavior and Organizations

Organizational behavior- The study of what people think,
feel, and do in and around organizations
Organizations
Groups of people who work interdependently toward
some purpose
Organizational Effectiveness
The ultimate dependent variable in OB
Old approach -- achievement of stated goals
Problem with goal attainment
Could set easy goals
Company might achieve wrong goals
Four Perspectives of Organizational Effectiveness
A. Open Systems Perspective
Organizations are complex systems that live within (and
depend upon) the external environment
Effective organizations
Maintain a close fit with changing conditions
Transform inputs to outputs efficiently and flexibly
Foundation for the other three organizational effectiveness
perspectives
B. Organizational Learning Perspective
An organizations capacity to acquire, share, use, and store
valuable knowledge
Need to consider both stock and flow of knowledge
Stock: intellectual capital
Flow: org learning processes
of acquisition, sharing, use,
and storage
Intellectual Capital
Human capital
Knowledge, skills, and abilities that employees
carry around in their heads
Structural capital
Knowledge captured and retained in an
organizations systems and structures e.g.
documentation, finished products
Relationship capital
Value derived from an organizations
relationships with customers, suppliers, and
others who provide added mutual value for the
organization
Organizational Learning Processes
Knowledge acquisition ( Learning, Scanning, Grafting,
Experimenting)
Extracting information and ideas from the
external environment as well as through insight
Knowledge sharing (Communication, Training, Info
System, Observation)
Distributing knowledge to others across the
organization
Knowledge use ( Awareness, Sensemaking, Autonomy,
Empowerment)
Applying knowledge in ways that add value
Requires awareness that knowledge is available,
autonomy to apply knowledge, and a culture that
supports learning
Knowledge Storage (Human Memory, Documentation,
Practices/Habits, Databases)
Organizational Memory
Keeping knowledgeable employees
Transferring knowledge to others
Transferring human capital to
structural capital
Successful companies also unlearn
C. High-Performance Practices at American Express
Workplace practices that leverage the potential of human
capital
Four HPWPs (likely others)
1. Employee involvement
2. Job autonomy
3. Employee competence (training, selection)
4. Performance-based rewards
Need to bundle them work best together
D. Stakeholder Perspective
Stakeholders: entities who affect or are affected by the
firms objectives and actions
Personalizes the open systems perspective
Challenges with stakeholder perspective:
Stakeholders have conflicting interests
Firms have limited resources to satisfy all stakeholder
needs
Stakeholders: Values and Ethics
Values and ethics prioritize stakeholder interests
Stakeholders and CSR
Stakeholder perspective includes corporate social
responsibility (CSR)
Benefit society and environment beyond the
firms immediate financial interests or legal
obligations
Organizations contract with society
Triple bottom line
Economy, society, environment
Globalization
Economic, social, and cultural connectivity with people
in other parts of the world
Improved communication and transportation systems
have increased globalization
Effects of globalization on organizations
Cost efficiencies, innovation, knowledge
Increasing diversity
Increasing competitive pressures, intensification
Increasing Workforce Diversity
Surface-level vs. deep-level diversity
Implications
Better knowledge, decisions, representation,
financial returns
Manage challenges of diversity (e.g. teams,
conflict)
Ethical imperative of diversity
Emerging Employment Relationships
Work/life balance
Minimizing conflict between work and nonwork
demands number one indicator of career success
Virtual work
Using information technology to perform ones
job away from the traditional physical workplace
Telecommuting issues of social isolation,
emphasis on face time, employee self-leadership
Organizational Behavior Anchors
Systematic research anchor
OB knowledge is built on systematic research
Evidence-based management decisions and
actions based on research evidence rather than
fads, hype, and untested assumptions
Multidisciplinary anchor
Many OB concepts adopted from other disciplines
OB develops its own theories, but scans other
fields
Contingency anchor
A particular action may have different
consequences in different situations
Need to diagnose the situation and select best
strategy under those conditions
Multiple levels of analysis anchor
Individual, team, organizational level of analysis
OB topics usually relevant at all three levels of
analysis
CHAPTER 2 Individual Behavior, Personality, and Values
MARS Model of Individual Behavior
An individuals voluntary behavior and performance is
influenced by motivation, ability, role perceptions, and
situational factors represented by the acronym MARS
A. Employee Motivation
Internal forces that affect a persons voluntary choice of
behavior
direction
intensity
persistence
B. Employee Ability
Natural aptitudes and learned capabilities required to
successfully complete a task
Competencies - personal characteristics that lead to superior
performance
Person - job matching
selecting
developing/training
redesigning
C. Role Perceptions
Beliefs about what behavior is required to achieve the
desired results:
understanding what tasks to perform
understanding priority of tasks
understanding preferred behaviors
to accomplish tasks
D. Situational Factors
Environmental conditions beyond the individuals short-term
control that constrain or facilitate behavior
Constraints time, budget, facilities, etc
Cues e.g. signs of nearby hazards
Types of Individual Behavior
Task performance goal-directed behaviors under the
individuals control that support organizational objectives
Organizational citizenship various forms of cooperation
and helpfulness to others that support the organizations
social and psychological context i.e. go the extra mile
Counterproductive work behaviors voluntary behaviors
that have the potential to directly or indirectly harm the
organization
Joining & staying with the organization agreeing to
employment relationship and staying with the organization
Maintaining work attendance attending work at required
times
Presenteeism attending scheduled work when ones
capacity to perform is significantly diminished by illness or
other factorsmay be more serious than being absent when
capable of working
Defining Personality
Relatively enduring pattern of thoughts, emotions, and
behaviors that characterize a person, along with the
psychological processes behind those characteristics
External traits observable behaviors
Internal states thoughts, values, etc inferred from
behaviors
Some variability, adjust to suit the situation
Nature vs. Nurture of Personality
Influenced by Nature
Heredity explains about 50 percent of behavioral
tendencies and 30 percent of temperament
Minnesota studies twins had similar personalities
Influenced by Nurture
Socialization, learning
Personality stabilizes throughout adolescence
Executive function steers behavior guided by our self-
concept
Five-Factor Personality Model (CANOE)
Conscientiousness and emotional stability
Strongest personality predictors of performance
Extraversion
Linked to sales and mgt performance
Related to social interaction and persuasion
Agreeableness
Effective in jobs requiring cooperation and helpfulness
Openness to experience
Linked to higher creativity and adaptability to change
Jungian Personality Theory
Swiss psychiatrist Carl Jung
Identifies preferences for perceiving the environment and
obtaining/processing information
Commonly measured by Myers-Briggs Type Indicator (MBTI)
Myers-Briggs Type Indicator (MBTI)
Extroversion versus introversion
similar to five-factor dimension
Perceiving information
Sensing uses senses, factual, quantitative
Intuition uses insight, subjective experience
Judging (making decisions)
Thinking rational logic, systematic data collection
Feeling influenced by emotions, how choices affect
others
Orientation toward the external world
Perceiving flexible, spontaneous, keeps options open
Judging order and structure
Values in the Workplace
Stable, evaluative beliefs that guide our preferences
Define right or wrong, good or bad
Value system -- hierarchy of value
Schwartzs Values Model
Openness to change motivation to pursue innovative ways
Conservation -- motivation to preserve the status quo
Self-enhancement -- motivated by self-interest
Self-transcendence -- motivation to promote welfare of
others and nature
Values and Behavior
Habitual behavior usually consistent with values, but
conscious behavior less so because values are abstract
constructs
Decisions and behavior are linked to values when:
Have logical reasons to apply values in that situation
Situation allows/encourages values enactment
Mindful of our values
In Search of Congruent Values
Similarity of a persons values hierarchy to another source
Person-organization value congruence
Espoused-enacted value congruence
Organization-community values congruence
Three Ethical Principles
Utilitarianism- Seek the greatest good for the greatest
number of people; Focuses on the consequences of our
actions, not on how we achieve those consequences
Individual rights principle- Reflects the belief that everyone
has entitlements that let her or him act in a certain way e.g.
freedom of speech, fair trial
Distributive justice principle- People who are similar should
receive similar benefits and
Influences on Ethical Conduct
Moral intensity
degree that issue demands ethical principles
Ethical sensitivity
ability to recognize the presence and determine the
relative importance of an ethical issue
Situational influences
competitive pressures and other external factors
Mindfulness
actively evaluate whether action violates values
Supporting Ethical Behavior
Ethical code of conduct
Ethics training
Ethics hotlines
Ethical leadership and shared values
Individualism
The degree to which people value personal freedom, self-
sufficiency, control over themselves, being appreciated for unique
qualities
Collectivism
The degree to which people value their group membership and
harmonious relationships within the group
Power Distance
High power distance
Value obedience to authority
Comfortable receiving commands from superiors
Prefer formal rules and authority to resolve conflicts
Low power distance
expect relatively equal power sharing
view relationship with boss as interdependence, not
dependence
Uncertainty Avoidance
High uncertainty avoidance
feel threatened by ambiguity and uncertainty
value structured situations and direct communication
Low uncertainty avoidance
tolerate ambiguity and uncertainty
Achievement-Nurturing
High achievement orientation
assertiveness
competitiveness
materialism
High nurturing orientation
relationships
others well-being
Cultural Diversity within the United States
Increasing surface-level diversity
Also associated with some deep-level diversity
Regional differences in deep-level diversity
Regional variations likely caused by:
- local institutions (schools, religion)
- physical environment
- migration
CHAPTER 3: Perceiving Ourselves and Others in Organizations
Self-Concept Defined
An individuals self-beliefs and self-evaluations
Compare perceived job with our perceived and ideal selves.
Self-Concept Dimensions (3 Cs)
Complexity
People have multiple self-views
Consistency
Similar personality and values across multiple selves
Clarity
Clearly and confidently described, internally consistent,
and stable across time.
Four Selves of Self-Concept
A. Self-Enhancement
Drive to promote/protect a positive self-view
o competent, attractive, lucky, ethical, valued
Positive self-concept outcomes:
o better personal adjustment and mental/physical health
o inflates personal causation and probability of success
B. Self-Verification
Motivation to verify/maintain our self-concept
Stabilizes our self-concept
People prefer feedback consistent with their self-
concept
Self-verification outcomes:
o More likely to perceive information consistent with our
self-concept
o We interact more with those who affirm/reflect our
current self-concept
C. Self-Evaluation
Self-esteem
High self-esteem -- less influenced, more
persistent/logical
Self-efficacy
Belief in ones ability, motivation, role perceptions, and
situation to complete a task successfully
General vs. task-specific self-efficacy
Locus of control
General belief about personal control over life events
Higher self-evaluation with internal locus of control
D. Social Self
Social identity -- defining ourselves in terms of groups
to which we belong or have an emotional attachment
We identify with groups that support self-enhancement
Perception Defined
The process of receiving information about and making
sense of the world around us
Selective Attention
Selecting vs ignoring sensory information
Affected by object and perceiver characteristics
Emotional markers attached to selected information
Confirmation bias
o Information contrary to our values is screened out
Perceptual Organization/Interpretation
Categorical thinking
o Mostly nonconscious process of organizing people/things
Perceptual grouping principles
o Similarity or proximity
o Closure -- filling in missing pieces
o Perceiving trends
Interpreting incoming information
o Emotional markers automatically evaluate information
Mental Models in Perceptions
Internal representations of the external world
Stereotyping
Assigning traits to people based on social category
membership
Social identity and self-enhancement reinforce stereotyping
through:
Categorization -- Categorize people into groups
Homogenization -- Assign similar traits within a group;
different traits to other groups
Differentiation process -- Assign less favorable attributes to
other groups
Stereotyping Problems
Overgeneralizes doesnt represent everyone in the
category
Basis of systemic and intentional discrimination
Self-Serving Bias
attributing our successes to internal factors and our failures
to external factors
Self-Fulfilling Prophecy Cycle
Self-Fulfilling Prophecy Effect is Strongest...
...at the beginning of the relationship (e.g. employee joins
the team)
...when several people have similar expectations about the
person
...when the employee has low rather than high past
achievement
Other Perceptual Effects
Halo effect- One trait affects perception of persons other
traits
False-consensus effect- overestimate how many others have
similar beliefs or traits like ours
Primacy effect- First impressions
Recency effect- Most recent information dominates
perceptions
Strategies to Improve Perceptions
1. Awareness of perceptual biases
2. Improving self-awareness
3. Meaningful interaction
Close, frequent interaction toward a shared goal
Equal status
Engaged in a meaningful task
Global Mindset
An individuals ability to perceive, appreciate, and empathize
with people from other cultures, and to process complex
cross-cultural information.
Developing a Global Mindset
1. Self-awareness activities understand own values,
beliefs, attitudes
2. Compare mental models with people from other
cultures
3. Cross-cultural training
4. Immersion in other cultures
Perceiving Ourselves and Others in Organizations
Workplace Emotions, Attitudes and Stress
Psychological, behavioral, and physiological episodes that create
a state of readiness.
Most emotions occur without our awareness
Two features of all emotions:
All have some degree of activation
All have core affect evaluate that something is good/bad
Types of Emotions
Attitudes versus Emotions
Traditional Model of Attitudes
Purely cognitive approach
Beliefs: established perceptions of attitude object
Feelings: calculation of good or bad based on beliefs about the
attitude object
Behavioral intentions: calculated motivation to act in response to
the attitude object
Problem: Ignores important role of emotions in shaping attitudes
Attitudes: From Beliefs to Behavior
Emotions, Attitudes, and Behavior
How emotions influence attitudes:
1. Feelings and beliefs are influenced by
cumulative emotional episodes (not just
evaluation of beliefs)
2. We listen in on our emotions
Potential conflict between cognitive and emotional
processes
Emotions also directly affect behavior
1. e.g. facial expression
Generating Positive Emotions at Work
LeasePlan USA and other companies apply the dual cognitive-
emotional attitude process.
They actively create more positive than negative emotional
episodes, which produce more positive work attitudes.
Cognitive Dissonance
A condition whereby we perceive an inconsistency between our
beliefs, feelings, and behavior.
This inconsistency generates emotions (e.g., feeling hypocritical)
that motivate us to increase consistency.
Easier to increase consistency by changing feelings and beliefs,
rather than change behavior.
Emotional Labor Defined
Effort, planning and control needed to express organizationally
desired emotions during interpersonal transactions.
Higher in job requiring:
Frequent/lengthy emotion display
Variety of emotions display
Intense emotions display
Emotional Labor Across Cultures
Displaying or hiding emotions varies across cultures
Minimal emotional expression and monotonic voice in Ethiopia,
Japan, Austria
Encourage emotional expression in Kuwait, Egypt, Spain, Russia
Emotional Labor Challenges
Difficult to display expected emotions accurately, and to hide
true emotions
Emotional dissonance
Conflict between true and required emotions
More stressful with surface acting
Less stressful with deep acting
Emotional Intelligence Defined
Ability to perceive and express emotion, assimilate emotion in
thought, understand and reason with emotion, and regulate
emotion in oneself and others
Model of Emotional Intelligence
Emotional Intelligence Hierarchy
Improving Emotional Intelligence
Emotional intelligence is a set of abilities/skills
Can be learned, especially through coaching
EI increases with age -- maturity
Job Satisfaction
A person's evaluation of his or her job and work context
An appraisal of the perceived job characteristics, work
environment, and emotional experience at work
EVLN: Responses to Dissatisfaction
Job Satisfaction and Performance
Happy workers are somewhat more productive workers, but:
1. General attitude is a poor predictor of
specific behaviors
2. Job satisfaction effect on performance is
lower when employees have less control
over output
3. Reverse explanation: Job performance
affects satisfaction, but only when
rewarded
Service Profit Chain at Clydesdale Bank
Clydesdale Bank in Scotland improved customer service by
applying the service profit chain model. It gave its contact center
employees more positive experiences at work.
Service Profit Chain Model
Job satisfaction increases customer satisfaction and
profitability because:
1. Job satisfaction affects mood, leading to positive
behaviors toward customers
2. Job satisfaction reduces employee turnover, resulting
in more consistent and familiar service
Organizational Commitment
Affective commitment
Emotional attachment to, identification with, and involvement in
an organization
Continuance commitment
Calculative attachment stay because too costly to quit
Building Affective Commitment
What is Stress?
Adaptive response to situations perceived as challenging or
threatening to well-being
Prepares us to adapt to hostile or noxious environmental
conditions
Eustress vs. distress
General Adaptation Syndrome
Consequences of Distress
What are Stressors?
Stressors are the causes of stress -- any environmental condition
that places a physical or emotional demand on the person.
Some common workplace stressors include:
Harassment an incivility
Work overload
Low task control
Psychological Harassment
Repeated and hostile or unwanted conduct, verbal comments,
actions or gestures, that affect an employee's dignity or
psychological or physical integrity and that result in a harmful
work environment for the employee.
Work Overload and Task Control Stressors
Work Overload
Working more hours, more intensely than one can cope
Affected by globalization, consumerism, ideal worker norm
Task Control
Due to lack control over how and when tasks are performed
Stress increases with responsibility
Individual Differences in Stress
Individual differences that minimize distress:
Better physical health exercise, lifestyle
Appropriate stress coping strategies
Lower neuroticism
Higher extraversion
Positive self-concept
Lower workaholism
Managing Work-Related Stress
Remove the stressor
Minimize/remove stressors
Work/life balance initiatives
Withdraw from the stressor
Vacation, rest breaks
Change stress perceptions
Positive self-concept, humor
Control stress consequences
Healthy lifestyle, fitness, wellness
Receive social support
Workplace Emotions, Attitudes,
and Stress