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Department
Commerce
Course
COMM 292
Professor
Christopher Friedrichs
Semester
Winter

Description
Comm 292 – Organizational Behaviour CHAPTER 1 – WHAT IS ORGANIZATIONAL BEHAVIOUR? Page | 1 Organizational Behaviour (OB) – the field of study that looks at the impact that people have on organizations, to improve effectiveness & productivity Organization – group that functions to achieve a common goal Basic OB model: 1. Organization systems level 2. Group level 3. Individual level Challenges at the Work Place: Challenges at the Individual level: o Personality, perception, values, attitudes (individual differences) o Job satisfaction & motivation differs o Behaving ethically o Empowerment: managers as teammates; giving the lower level responsibility and the power to decide Challenges at the Group level: o Team building, priority management o Mix of generations -> different life experiences -> different expectations o Immigration means different ethnicity backgrounds o The challenge is to accommodate diverse groups (people don’t lose their cultural backgrounds, habits, and beliefs when they enter to a new country/workforce) o Managers need to recognize differences while not discriminating o Diversity can increase creativity and innovation Challenges at the Organizational level: Organizational Citizenship Behaviour (OCB) – discretionary behaviour that is not part of an employee’s formal job requirements, but still promotes the effective functioning of the organization Positive organizational scholarship /behaviour – concerns how organizations develop human strength, foster vitality and resilience, and unlock potential o Temporary employees lack the connection as full-time employees do o Contingent employees lack the security and stability o Downsizing has eliminated millions of permanent jobs o Temporary employees: paid less, no benefits, mostly between ages 15 -24 o Improving quality and productivity: concern for both effectiveness and efficiency o Preferred employees: go beyond usual job duties such as: high flexibility, constructive statements, helping others, volunteering for extra work, avoiding conflicts, and showing care for company’s property (BBDO Canada encourages entrepreneurial spirit) o Work life balance: global communication makes me hard and employees are expected of longer hours; workers unhappy work is interrupting personal life Page | 2 o Global competition lessens jobs b/c employers outsource jobs to countries with lower wages o Global connection and international sales make working with people from different cultures even more important The Building Blocks of OB: *Refer to p.18 Exhibit 1-2 o Behavioural science based on psychology, social psychology, sociology, and anthropology o Psychology > mainly on micro level (individual); other 3 > on macro concepts o Social psychology: focuses on people’s influence on one another, the most recent topic that received attention is change – how to implement it and how to reduce barriers to its acceptance; group behaviour, power, and conflict o Sociology: focuses on social system; studies people in relation to their social environment or culture; group behaviour o Anthropology: study of societies; cultures and environments; fundamental values, attitudes; people to culture The Rigour of OB: *Refer to pg.21 Exhibit 1-3 Systematic study – looking at relationships, attempting to attribute causes and effects, and drawing conclusions based on scientific evidence Evidence-based management – basing decisions on best available scientific evidence Contingency Approach – considers behaviour within the context in which it occurs o Fundamental consistencies allow predictability (how to act in specific settings) o OB supplements intuitive opinions with a more systematic approach o Managers must be more scientific in how they think about management problems o Limits of relying on intuition are that we overestimate the accuracy of what we think or know o Depending on the media is also a trap; business press tends to be dominated by fads o The goal of OB is to use evidence and research to inform your intuition and experience CHAPTER 2 – PERCEPTION, PERSONALITY, AND EMOTIONS What we perceive is substantially different from objective reality Perception – process which individuals organizes and interpret their impressions in order to give meaning to their environment Page | 3 Factors Influencing Perception: The Perceiver: o Interpretation is heavily influenced by the individual’s personality, motives, interests, past experiences, and expectations The Target: o Characteristics affect what is perceived. (Ex. Loud vs. quiet, attractive vs. unattractive, ethnicity) o Novelty, motion, sounds, size, shape, background, proximity The Situation: o Time, work setting, social setting o Context which we see objects influence us to have different feelings Perceptual Errors: Fundamental Attribution Error – tendency to underestimate the influence of external factors and overestimate the influence of internal factors when judging the behaviour of others Self-serving bias – tendency for individuals to attribute their own successes to internal factors and blaming for failures on external factors Selective perception- selective interpretation of what they see based on interests, background, and experience Attribution Theory: o When we observe atypical behaviour, we tend to reason whether it is internal or external behaviour o Internal: individual is responsible for the behaviour o External: something outside the individual caused the behaviour o Three rules about behaviour: (1) distinctiveness (2) consensus (3) consistency  Distinctiveness: whether individual acts similarly across variety of situations High/Seldom – external Low/Frequently - Internal (Ex. If always late, then most likely he always parties and forgets to wake up)  Consensus: compares how an individual’s behaviour compares with others in the same situation If the consensus is high (everyone who is faced with a similar situation behaves the same way) then the attribution made is likely external. Low consensus = internal attribution  Consistency: individual acts the same way over time High/Frequently – Internal Low/Seldom - External Selective perception: o The things we perceive are related to our own interests, background, attitudes, but these often contain the risk of being inaccurate Halo Effect: Page | 4 o Drawing a general impression of an individual on the basis of a single characteristic o Using one characteristic to determine the individual’s personality o Ex. Cold – mean, difficult, strict, unfriendly o Ex. Warm – wise, humorous, popular, imaginative Contrast Effect: o Our reaction to one person is often influenced by other people we have recently encountered o Ex. Considered good if the previous are bad, considered bad if previous are good Projection: o Tendency to attribute our own characteristics to other people (i am nice, others must be too) o Result, people tend to see people as more homogeneous than they really are Stereotyping: o Judging someone on the basis of one’s perception of the group to which that person belongs o Rely on generalizations to simplify the complex world o Heuristics allow us to have shortcuts in decision making (stereotypes) Prejudice: o Unfound dislike of a person/group based on their belonging to a particular stereotyped group o Can ultimately lead to negative consequences -> discrimination (Ex. Ethnicity, gender, etc) o Negative emotional content added as well Self-fulfilling Prophecy: o People’s expectations determine their behaviour; expectations become reality o Pygmalion effect Personality: Personality – the stable pattern of behaviour and consistent internal states that determine how an individual reacts to and interacts with others What is Personality? o Dynamic concept describing he growth and development of a person’s psychological system o Looks at the aggregate whole rather than just parts of the person o The dynamic organization within the individual of those psychophysical systems that determine his unique adjustments to his environment o The measureable traits that an individual possesses Measuring Personality: o Individuals fake answers to get better results on self-reporting tests o Observer ratings are better indicators and better predictors of the success on the job Personality Determinants: o Personality made up of hereditary and environmental factors, moderated by situational conditions Page | 5  Heredity refers to those factors that were determined at conception, made up of the individual’s genes, explains up to 50% of the personality differences Personality Traits: o Characteristics exhibited in a large number of situations are considered as traits o More consistent and frequent the trait occurs, the more important it is in describing the person o Myers-Briggs Type Indicator + Big Five Personality Traits  Myers-Briggs Type Indicator  Extraverted/Introverted – outgoing, sociable, assertive vs. quiet, shy; measures where we direct our energy when dealing with people  Sensing/Intuitive – practical, orderly, organized vs. unconscious processing; how we process information  Thinking/Feeling – reason and logic vs. relying on feelings  Judging/Perceiving – control, order, structure vs. flexibility and spontaneity  INTJ – visionaries; ESTJ – organizers; ENTP – conceptualizers  The Big Five Personality Model  Extraversion: captures a person’s comfort level with relationships; sociable, talkative, assertive  Agreeableness: refers to a person’s propensity to defer others; cooperative, trusting  Conscientiousness: measure of reliability; responsible, dependable, persistent  Neuroticism/Emotional stability: ability to withstand stress; calm, self- confident, secure  Openness: range of interests and fascination with novelty; imaginative, creativity Major Personality Attributes Influencing OB:  Core Self-Evaluation  The degree to which the individual likes or dislikes himself/how he sees himself  Those with high core self evaluation tend to perform better and persist longer  Machiavellianism  Degree to which someone is pragmatic (realistic), maintains emotional distance, and believes that ends can justify means  High: win more, manipulate more, persuaded less, persuade others more  High Mach perform better when (1) face to face interaction (2) minimum number of rules and regulations; allow improvising (3) emotional involvement with details irrelevant to winning distracts low Machs  Narcissism  Grandiose sense of self-importance, requires excessive admiration, sense of entitlement, arrogant Page | 6  Tend to be disagreeable extraverts  Selfish and exploitive and think others exist for their benefit  Self-Monitoring  Measures ability to adjust behaviour to external, situational factors  High: sensitive to external cues and able to adapt to different situations  High: able to pretend huge contradictions between public and private self  High: more likely to become leaders & more mobile in their careers  Risk Takers  Person’s willingness to take chances or risks  High: made more rapid decisions based on less information, but the results for high and low turned out to have the same accuracy  Type A and Type B Personalities  Type A:  Always moving, walking, and eating rapidly  Feel impatient with the rate at which most events take place  Strive to think or do two+ things at once  Cannot cope with leisure time  Obsessed with numbers, measuring their success in amounts they own  Type B:  Never suffer from time urgency, always patient  No need to display or discuss achievements or accomplishments  Play for fun and relaxation, not to exhibit superiority or to win  Can relax without guilt  Type A: more competitive, stressed, quantity over speed, easier to predict, great salesmen  Type B: usually senior execs, quality and effort, less stressed, healthier bodies  Proactive Personality  Identifies opportunities, shows initiative, takes action/charge  Select, create, and influence situations in their favour  Acting vs. reacting Emotions: Emotions – intense feelings that are directed at someone or something Moods – feelings that tend to be less intense than emotions and that lack a contextual stimulus What are Emotions? o Emotions are directed at an object (Ex. Mad at your friend for yelling at you) o Six universal emotions: anger, fear, sadness, happiness, disgust, and surprise o Moods describe a state of feeling (Ex. Dispirited from your friend yelling at you) Choosing Emotions: Emotional Labour: Emotional labour – employee’s expression of organizationally desired emotions while at work (faking happiness at work) Page | 7 Emotional dissonance – inconsistencies of what you are showing and what you really feel inside Felt emotions – individual’s actual emotions Displayed emotions – what the organization requires the employees to show Surface acting – hiding one’s inner feelings and hiding emotional expressions in response to display rules Display acting – trying to modify one’s true inner feelings based on display rules Why Should We Care about Emotions in the Workplace? o People who are good with their own emotions and reading others are more effective at work  Emotional Intelligence (EI):  EI is the ability to (1) be self-aware (2) detect emotions in others (3) manage emotional cues and information  The Case for EI:  Intuitive Appeal: good to possess street smart and social intelligence  EI Predicts Criteria that Matter: correlates with job performance; valuable skill to be able to gain information on the emotions displayed on others’ faces  EI is Biologically Based: unrelated to IQ, comes from another part of the brain  The Case Against EI:  EI is too Vague a Concept: to a degree it is a form of intelligence and the components are too broad to be measured in any way  EI cannot be Measured: no right or wrong answers on surveys  The Validity of EI is Suspect: hard to validate statistics, highly correlated to personality and emotional stability  Negative Workplace Emotions:  Employee deviance: voluntary actions that violate established norms and threaten organizations, members, or both  Negative emotions at work affect: productive, property (stealing), political (gossiping), and personal aggressive (verbal abuse)  Affective Events Theory:  Employees react emotionally to things that happen to them at work and it influences their job performance and satisfaction Emotions in the Workplace in a Global Context:  Does the Degree to which People Experience Emotions Vary across Cultures?  Experience same emotions, but intensity and frequency are different  Do People’s Interpretations of Emotions Vary across Cultures?  Some cultures value some emotions more than others (Ex. Enthusiasm) Page | 8  Pride seem as good in Western while seem as undesirable in Eastern cultures  Do the Norms for the Expression of Emotions Differ across Cultures?  Emotions can be interpreted differently in different cultures  Expressions are easier to recognize for people within the same culture CHAPTER 3 – VALUES, ATTITUDES, AND DIVERISTY IN THE WORKPLACE Values – basic convictions that a specific mode of conduct or end state of existence is personally or socially preferable Values: Rokeach’s Value Survey: Terminal values – goals that individuals would like to achieve during their lifetime (peace, beauty, salary) Instrumental values – preferable ways of behaving (cheerful, brave, forgiving, independent, logical) o Significant differences can be found in the rankings of different groups of people, such as activists, union members, and corporate managers. This makes negotiating very difficult Hodgson’s General Moral Principles: Ethics – the study of moral values or principles that guide our behaviour and inform us whether actions are right or wrong o The magnificent 7 are used to help us make principled, appropriate, and defensible decisions The Magnificent Seven Principles: 1. Dignity of human life: the lives of human are to be respected 2. Autonomy: everyone is valuable and have the right to self-determination 3. Honesty: the truth should be told to those who have a right to know 4. Loyalty: promises, contracts, and commitments should be honoured 5. Fairness: everyone should be treated justly 6. Humaneness: actions should be for good and we should avoid evil 7. The common good: actions should accomplish the greatest good for the greatest number of people Assessing Cultural Values: Hofstede’s Framework for Assessing Cultures: o This survey done on IBM employees in 40 countries found managers and employees vary on 5 value dimensions of national culture Page | 9 1. Power Distance: degree to which people in a country accept that power is distributed unequally. High rating means that large inequalities of power and wealth exist and are tolerated in the culture. Low rating characterizes societies that stress equality and opportunity. 2. Individualism vs. Collectivism: degree to which people prefer to act as an individual rather than as a member of a group. Collectivism emphasizes a tight social framework which people expect groups they are in to protect and look after them. 3. Masculinity vs. Femininity: high masculinity means culture favours traditional masculine roles, such as accomplishment, power, and control. High femininity means culture sees little differentiation between females and males. 4. Uncertainty Avoidance: degree to which people prefer structured over unstructured situations. 5. Long-term vs. Short-term Orientation: degree to how far the culture foresees into the future. The GLOBE Framework for Assessing Cultures: o 9 dimensions are identified that are differ across national cultures 1. Assertiveness 2. Future Orientation 3. Gender Differentiation 4. Uncertainty Avoidance 5. Power Distance 6. Individualism/Collectivism 7. In-group Collectivism: pride in which members of society take pride in their membership in groups 8. Performance Orientation: extent which society encourages and rewards group members for improvement and excellence 9. Humane Orientation: extent society rewards for fairness, generosity, altruism, and kindness Values in the Canadian Workforce: o Shared values between employee and organization will result in lower turnover, positive work attitudes, and greater productivity General Differences:  The Elders:  Characterized as “playing the rules”  Core values: order, authority, discipline, morals, Golden Rule  Baby Boomers:  Women’s movement, Beatles, Vietnam War, baby-boom competition  View: spoiled, hedonistic, rebellious group  Autonomous rebels (25%), anxious communitarians (20%), connected enthusiasts (14%), and disengaged Darwinists (41%)  Generation X: Page | 10  Globalization, two-career parents, MTV, AIDS, computers  View: flexibility, life options, achievement of job satisfaction  Rate higher on friendship, happiness, and pleasure than previous generations  Thrill-seeking materialists (25%), aimless dependents (27%), social hedonists (15%), Aquarians (13%), autonomous post-materialists (20%)  The Ne(x)t Generation:  High expectations and seek meaning in their work  Life goals more oriented toward becoming rich (81%), famous (51%)  Tend to be questioning, socially conscious, and entrepreneurial  The Generations Meet in the Workplace:  Hard to find a way to cope with both categories of people  Gen X become the managers, while Gen Net are the employees  When Gen Net fully take over, workplace will change significantly Cultural Differences:  Francophone and Anglophone Values  Francophone: collectivist, group-oriented, greater need for achievement, more concerned with aspects of the workplace than task competence  Anglophone: individualist, take more risks  On more recent studies, they are becoming more and more similar  Aboriginal Values:  Greater sense of family, greater affiliation, and loyalty  Power distance is small in Aboriginal cultures  Rules for developing business partnerships with Aboriginal people: 1. Reduce negative impact on wildlife species 2. Ensure community access to lands and resources 3. Protect all the areas identified by community members with significance 4. Recognize and protect Aboriginal treaty rights 5. Increase forest-based economic opportunities 6. Increase the involvement of community members in decision making  Asian Values:  Tend to exhibit greater power distance and collectivism  Based relationships on guanxi which are long lasting rather than immediate Attitudes: Attitudes – positive or negative feelings towards objects, people, or situations Job Satisfaction: *Refer to pg.103 Exhibit 3-5 o The general attitude toward his or her job o 40% of Canadians are not satisfied with their job  What Causes Job Satisfaction? Page | 11  When people live in comfortable standards, money is not the factor that brings satisfaction  Those with positive core self-evaluations are more satisfied with their jobs  Job Satisfaction and Productivity  These two factors are interrelated  Cannot figure out which is the cause of the other; could be both ways  Job Satisfaction and Organizational Citizenship Behaviour  OCB correlates with level of job satisfaction, but only through perception of fairness  If one doesn’t feel the manager is fair, they will not practice OCB; only through fairness and trust of the employer will job satisfaction increase  Job Satisfaction and Customer Satisfaction  Satisfied employees increase customer satisfaction and loyal  Satisfied employees are less prone to turnover so customers are likely to see these familiar faces again  How Employees can Express Dissatisfaction:  Deviant behaviour in the workplace (employee withdrawal)  Exit – actively seeking other jobs, resigning  Voice – suggesting improvements, discussing problems with superiors  Loyalty – passively waiting for conditions to improve, trusting organization  Neglect – passively allowing conditions to worsen, reduced effort, increased error rate, absent/late  Managers Often “Don’t Get It”  Mangers often overestimate the level of job satisfaction Organizational Commitment: Organizational Commitment – state which employee identifies with a particular organization and its goals and wishes to maintain membership in the organization o 3 types of commitment:  Affective commitment: emotional attachment, identification, involvement  Normative commitment: obligation that the individual feels to stay with the organization  Continuance commitment: best interest to stay with organization based on the perceived costs of leaving o Reasons why employees commit themselves:  Proud of companies’ accomplishments; share the same values  Know what each person is expected to do, know how to measure performance  In control of their own destinies, high reward environment  Recognized for the quality of individual work  Fun and enjoy the supportive and interactive environment Employment Engagement: Page | 12 o Involvement, engagement, enthusiasm in the work he/she does o Fewer accidents and when there are, costs much less than unengaged workers o Related to job satisfaction, commitment, and intrinsic motivation Managing Diversity in the Workplace: o Differences such as gender, national origin, age, disability, domestic partners, and religion o Rather than changing values, workplaces tries to direct attention to changing attitudes Responses to Diversity Initiatives: o Because of generational differences, tension make arise in the workplace Cultural Intelligence: o Ability to understand someone’s unfamiliar and ambiguous gestures in the same way as would people from that person’s culture o Most mangers fall into these intelligent profiles:  Provincial: work best with people with similar background  Analyst: analyze foreign cultures to figure out how to interact with them  Natural: use intuition rather than structured studying of the other cultures  Ambassador: communicate convincingly even if they do not know much about the culture  Mimic: control actions and behaviour to match others, even if they do not understand why  Chameleon: high levels of CQ; can be mistaken for being from the foreign country o 3 types of cultural intelligence:  Cognitive CQ  Physical CQ  Emotion/motivational CQ CHAPTER 4 – THEORIES OF MOTIVATION Motivation: Motivation – intensity, direction, and persistence of effort a person shows in reaching a goal Theory X – assumption that employees dislike work, will attempt to avoid it, and must be threatened with punishment to achieve goals Theory Y – assumption that employees like work, are creative, seek responsibility, and will exercise self-direction and self-control if they are committed to the objectives o Intensity is how hard a person tries; direction is where the effort is channelled at and effort requires persistence o Varies among individuals and within individuals at different times Page | 13 o Intrinsic motivators: internal desire to do something, due to interest, challenge, satisfaction o Extrinsic motivators: pay, bonuses, other tangible rewards Needs Theories of Motivation: o Needs theories describe the types of needs that must be met to motivate o Process theories help us understand the actual ways in which people can be motivated Maslow’s Hierarchy of Needs Theory: o 5 needs:  Physiological: hunger, thirst, shelter  Safety: security, protection, physical and emotional harm  Social: affection, belonging, acceptance, friendship  Esteem: self respect, autonomy, achievement, status, recognition, attention  Self-actualization: growth, achieving one’s potential o ERG Theory:  Made by Alderfer  Posits 3 core needs: existence, relatedness, growth  Unlike the hierarchy, individuals can be focusing on all 3 at once; no particular order o Motivation-Hygiene Theory  Relates intrinsic factors to job satisfaction and extrinsic factors with dissatisfaction  Proposed by Frederick Herzberg  Satisfaction No satisfaction; Dissatisfaction No Dissatisfaction  Factors leading to satisfaction (motivators); dissatisfaction (hygiene factors)  Critics on the motivation-hygiene theory:  Procedure used is limited by its methodology  Reliability of methodology is questionable  No real theory of motivation produced  No overall measure of satisfaction was used  Theory is inconsistent with previous research McClelland’s Theory of Needs: o Based on 3 needs:  Achievement: drive to excel, succeed, go beyond standards  Power: make others behave in a way that they would not have behaved otherwise  Affiliation: desire for friendly and close interpersonal relationships o Achievers avoid succeeding by chance; prefer challenge and failure rather than easy tasks; attain personal responsibility for finding solutions to problems o Need for power people like to influence others, placed in competitive situations, more concerned with gaining influence than being effective o Need for affiliation strive for friendship, prefer cooperative than competitive; mutuality o Best managers: high in need for power and low in their need for affiliation Page | 14 Summarizing Needs Theories: o Humans have needs and when we are unsatisfied, we are motivated o Needs vary by individual and time Process Theories of Motivation: o How someone can motivate another individual Expectancy Theory: o Proposed by Victor Vroom o Individual will be motivated because of the following: 1. Expectancy: Effort will lead to good performance 2. Instrumentality: Good performance leads to bonus, rewards 3. Valence: Rewards will satisfy his or her personal goals  Effort-Performance Relationship:  Expectancy  Refers to how probably an amount of effort will lead to good performance  Performance-Rewards Relationship:  Instrumentality  Individual’s perception whether performing at a level will lead to desired outcome  Rewards-Personal Goals Relationship:  Valence  Attractiveness of the potential rewards for the individual  Expectancy Theory in the Workplace:  Employers need to first improve expectancy Goal-Setting Theory: o Goals tell employees what needs to be done and how much effort is expected o Management by Objectives (MBO): performance goals that are tangible, verifiable, and measurable  How Does Goal Setting Motivate?  Goals direct attention: prioritizing  Goals regulate effort: suggest which is worth more effort  Goals increase persistence  Goals encourage the development of strategies and action plans  SMART: Specific, Measureable, Attainable, Results-oriented, Time-Bound Self-Efficacy Theory: o Refers to the individual’s belief that he or she is capable of performing a task o Also known as social cognitive theory or social learning theory o Four ways self-efficacy can be increased:  Enactive mastery – gaining relevant experience with the task or job  Vicarious modeling – gaining confidence from watching others similar to yourself able to perform the same task given  Verbal persuasion – being convinced verbally you have the skills necessary to be successful Page | 15  Arousal – an energized task which drives the person to complete the task o Pygmalion effect done by believing something to be true can make it true o Galatea effect done by high performance expectations are communicated directly to employees Responses to the Reward System: Equity Theory: o Suggests individuals compare their job inputs and outcomes with those of others (ex. Jane, acc.) o 4 referent comparisons that an employee can use:  Self inside – experiences in different position inside his current organization  Self-outside – experience in a position outside his current organization  Other-inside – another individual inside the employee’s organization  Other-outside – another individual outside the employee’s organization o Gender: make same gender comparisons; women tend to be paid lower for the same job o Length of tenure: new comers compare with past experience; old employees compare with coworkers o Level in the organization and amount of education: upper levels know more about the people in their organization, therefore they make more other-outside comparisons o People who feel unfair maybe have 6 responses:  Change their inputs (lower their effort)  Change their outcome (work harder to have better results)  Adjust perceptions of self (make self believe not as worthy or worthier as other)  Adjust perception of others (make self believe other is better or worse)  Choose a different referent (choose one with similar rewards)  Leave the field (look for a new job) Fair Process and Treatment: Distributive justice – the perceived fairness of the amount and allocation of rewards among individuals Organization justice – an overall perception of what is fair in the workplace, composed of distributive, procedural, and interactional justice Procedural justice – the perceived fairness of the process used to determine the distribution of rewards Interactional justice – the quality of the interpersonal treatment received from a manager o Of 3 forms, distributive justice is most strongly related to satisfaction with outcomes o Procedural justice is mostly related to job satisfaction, employee trust, withdrawal o Unfavourable outcomes combined with unfair procedures resentment and retaliation occurs Cognitive Evaluation Theory: Page | 16 o Offering rewards for tasks that were motivated intrinsically will tend to decrease motivation o Reason: individual feels a loss of control for his own behaviour when he is being rewarded by external resources Increasing Intrinsic Motivation: o 4 key rewards that increase intrinsic motivation:  Sense of choice: opportunity to select what one will do and perform  Sense of competence: sense of accomplishment for doing a good job  Sense of meaningfulness: doing something they know will matter  Sense of progress: feeling of accomplishment and moving forward o 4 key rewards managers can build intrinsic rewards for employees:  Leading for choice: empowering and delegating  Leading for competence: supporting and coaching  Leading for meaningfulness: inspiring and modelling  Leading for progress: monitoring and rewarding Motivating Employees through Reinforcement: Operant conditioning – which desired voluntary behaviour leads to a reward or prevents punishment o Behaviour is reinforced or avoided because of rewards or punishments Methods of Shaping Behaviour: o Positive/negative reinforcement, punishment, extinction o Negative reinforcement: doing something that will prevent something from happening again (Ex. Girl looks through her notes and the teacher will not pick on her) o Punishment: causing something unpleasant to happen to eliminate the behaviour (Ex. No pay for showing up work late) Schedules of Reinforcement: Continuous r. – desired behaviour reinforced each time it is demonstrated Intermittent r. – behaviour reinforced enough to make the behaviour worth repeating, but not everytime it is demonstrated Fix-interval schedule – rewarded at a fixed time interval; rapid extinction (Ex. Weekly paycheques) Variable-interval schedule – rewarded at variable time intervals; slow extinction (Ex. Pop quizzes) Fixed- ratio schedule – rewarded at fixed amounts of outputs; rapid extinction (Ex. Piece-rate pay) Variable-ratio schedule – rewarded at variable amount of outputs; slow extinction (Ex. Page | 17 Commission sales) CHAPTER 5 – MOTIVATION IN ACTION From Theory to Practice: The Role of Money: What to Pay: Establishing a Pay Structure: o Balance internal equity, worth of the job to the organization, and external equity, the competitiveness of the company’s pay to relative to the pay elsewhere in the industry o Tradeoffs between paying too much and paying too little (turnover vs. large costs) How to Pay: Rewarding Individuals through Variable Pay Programs: o Variable pay programs depend on piece-rate, measure of performance rather than seniority o More profitable, especially when company sales decline; more flexible o Individual based incentives:  Piece-rate wage:  Pure piece-rate or modified with a base pay as security net  Commissioned-based  Merit-based Pay:  Based on performance and appraisal ratings  Motivating because of the linkage between performance and rewards received  Limiting because based on annual performance, pay raise pool fluctuates with economy  Bonuses:  One time reward rather than ongoing entitlements  Reward for recent performance rather than historical performance  May lead to unethical behaviour (Ex. Lending loan to people who can’t pay back)  Skill-based pay:  Based on how many skills owned or can do  Facilitates communication because people understand each other’s jobs more  Downfall: paid for knowing the skill rather than performance  Downfall: learning a skill just for higher pay when there is no need of the skill o Group-based Incentives:  Gainsharing:  Group productivity determines the total amount of money to be shared  The excess money saved from productivity is divided among group members  Different from profits, can have incentive even when company is not profitable o Organization-based Incentives:  Profit-sharing Plans: Page | 18  Employer shares profits with employees based on a predetermined formula  Promotes consciousness of what things cost, and not wasting resources  May discourage employees when times are down and bonuses are unlikely  Stock Options and Employee Stock Ownership Plans:  Employees acquire stock as part of their benefits  Ownership will elevate the employee’s commitment to the organization  Teamwork:  When rewards are rewarded to individuals, they may start to compete against each other, causing more conflict; the sales and productivity may actually drop  Unions:  May not be able to hand out rewards because of agreement  Violates the union’s right to bargain on behalf of its members  Public sector employees:  Use goal difficulty and goal specificity to motivate employees  Hard to monitor the performance and quality  Ethical Considerations:  May need to unethical behaviour (Ex. Forcing employees to work longer unpaid hours so that costs are limited -> manager will get bonuses) Flexible Benefits: Developing a Benefits Package: o Allows each employee to put together a benefits package individually tailored o Accommodate age, marital status, spouses’’ benefit status, dependants, etc o Modular plans: predesigned packages of benefits with each module specifically meeting the needs of a specific group of employees (Ex. Single employee with no dependants, single parents) o Core-plus plans: consists of core benefits and a selection of other benefit options for purchase o Flexible spending accounts: allowed to set up a dollar amount offered in the plan to pay for services Intrinsic Rewards: Employee Recognition Programs: o Linking employee recognition programs and reinforcement theory:  Rewarding behaviour with recognition immediately will encourage its repetition o Employee recognition in Practice:  Will reduce turnovers (34% leave because lack of recognition) Caveat Emptor: Apply Motivation Theories Wisely: Motivation Theories are Culture-Bound: o Countries that rate high on uncertainly avoidance prefer pay based on objective measures (seniority) o High on individualism place more emphasis on individual’s responsibility for performance o High on humane orientation offer social benefits and programs that provide work family Page | 19 balance (child car, maternity leave) o Evaluating motivation Theories Cross-Culturally:  Different cultures have different categories at the top of their hierarchy  We need to understand the cultures norms before implementing North American methods Provide Performance Feedback: o Managers ignore this responsibility because: (1) fear of confrontation of group’s weakness when present negative feedback (2) employees may become defensive when their weakness is pointed out; employees may blame others or criticize authority (3) employees have an inflated assessment of their own performance Beware the Signals are Sent by Rewards: o Individuals are unable to break out of old ways of thinking about reward and recognition practices o Organizations often don’t look at the big picture of their performance o Both management and shareholders often focus on short-term results Can We Just Eliminate Rewards? o Commitment and passion will be more productive and effective than rewarding every step Creating a Motivating Work Environment: o Actions that can provide a more supportive, motivating work environment:  Abolish incentive pay:  Pay generously so that they are able to focus on the goals of the organization  Re-evaluate Evaluation:  Performance evaluation can be treated as a conversation to trade inputs, rather than tied to compensation  Create the Conditions for Authentic Motivation:  Change the way workers may be treated, rather than how much they are paid  Encourage Collaboration:  Support from feedback and able to learn from each other  Enhance Content:  Motive when they have opportunity to learn new skills, provide variety in the tasks they do and enable them to demonstrate competence  Provide Choice:  Extrinsic rewards/punishments will remove choice because the goal is not focused on the task, but rather if they will be rewarded/punished. Job Redesign: o How tasks are assigned to form a job Job Rotation: o Practice of shifting an employee to another task; when an activity is no longer challenging, the employee is rotated to another job at the same level that has similar Page | 20 skill requirements o Helps give employees in different areas a sense of the big picture o Absenteeism is less of a problem; rotating jobs decrease the frequency of repetitive stress injuries o Drawbacks: training costs increase, productivity decreases; disruptions in employee relationships Job Enlargement: o Horizontally expanding jobs o Increase the number and variety of tasks that an individual performs (Ex. Instead of just mailing letters, also classify letters and parcels into groups before mailing) o Attacks the lack of diversity of overspecialized jobs, but does not add motivation and challenge Job Enrichment and the Job Characteristics Model: o Model that identifies five core job dimension and their relationship to personal and work outcomes o Focuses on job content rather than context; considered as motivating and increasing job satisfaction o Job enrichment: the vertical expansion of jobs; completion of task, more responsibility, planning o Core job dimensions:  Skill variety: degree which the job requires variety of different activities so the employee can use a number of different skills and talents  Task identity: degree which the job requires completion of a whole and identifiable piece of work  Task significance: degree to which the job has a substantial impact on the lives or people of work  Autonomy: degree which the job provides freedom, independence, and discretion of the individual in scheduling the work and determining the procedures to be used in carrying it out  Feedback: degree which carrying out the work activities required by the job results in the individual obtaining direct and clear information about the effectiveness of performance o Critical Psychological States:  Experienced meaningfulness (make the job worthwhile)  Experienced responsibility for outcome (personal responsibility increases autonomy)  Knowledge of the actual results (feedback helps to know if one is performing effectively) o Motivating Potential Score (MPS):  Calculated as the following:   Jobs high on MPS must be high on at least one of the 3 factors and must be high on autonomy and feedback Page | 21 Job Redesign in the Canadian Context: The Role of Unions: o Job redesign made easier when included the unions in it to make decisions and improvements Creating More Flexible Workplaces: Compressed Workweek: o Two common forms:  Four 10 hour days per week  9 days over two week plan o Flextime:  Must work specific amount of hours but free to vary the house within limit  Able to balance outside life and work  Downfall: most jobs are that interact with customers cannot use this method, such as sales representative, receptionist o Job Sharing:  Have 2 or more people split up the 40 hour work week (part-time)  May be hard to find compatible pairs who can coordinate successfully o Telecommuting:  Doing work 2 days at home a week on a computer linked to their office  Telecommuting: How and Why it Works:  Reduced transportation time and interruptions  Routing-information handling, mobile activities, professional and other knowledge related tasks  Telecommuting: The Downside:  Miss the social network; decrease commitment and feel isolated to the organization  Employees without strong willpower will be disturbed by their surroundings Motivation: Putting it all Together: o Drives: Acquire, Bond, Comprehend, Defend CHAPTER 6 – GROUPS AND TEAMWORK Teams vs. Groups: What’s the Difference? Group – two or more people with a common relationship (coworkers, bus riders, etc) Team – small number of people who work closely together toward a common objective and are accountable to one another o All teams can be considered as groups, but not all groups are teams Why Have Teams Become so Popular? Page | 22 o Potential for greater outputs with same amount of inputs o Allow for greater task identity Types of Teams: o Teams are classified based on their objectives. The most common type are:  Problem-solving  Self-managed  Cross-functional  Virtual Problem-Solving Teams: o Typically made up of 5-12 people discussing how to improve quality, efficiency, environment o Rarely are these teams given authority to implement their suggested actions Self-Managed Teams: o Typically made up of 10-15 people, perform highly related or interdependent jobs and take on many of the responsibilities of their former manager o Typically includes work such as assigning tasks to members, controlling pace of work o Fully self-managed teams can reduce or eliminate external managerial positions o Even though job satisfaction increases, there is higher absenteeism and turnover rates o Influenced by type of tasks undertook, the strength and make up of team, reward structure Cross-Functional Teams: o Group of employees from the same level in the hierarchy, different areas in the work area, come together to accomplish one task o Effective way of exchanging info, develop new ideas, solve problems, coordinate complex tasks o May take long time for workers to get used to the diversity in experience and perspectives o Skunkworks:  Cross-functional teams that develop spontaneously to create new products or work on complex problems  Usually isolated from other organizational members, especially in the creative stage Virtual Teams: o Use computer technology to tie together physically dispersed members to achieve a common goal o Wide-area networks, video conferencing, and email o More task oriented and less social-emotional interaction exchanged o Does not build the same type of trust that face-to-face teams build o For virtual teams to succeed and be effective, they have to (1) build trust among its members (2) monitor team progress closely (3) publicize the effort and products of the virtual team From Individual to Team Member: Page | 23 Roles: o Set of expected behaviour of a person in a given position in a social unit o Role Conflict:  Role expectations is how others believe a person should act given a situation  Role conflict occurs when one finds that complying with one role requirement may make it more difficult to comply with another  Conflicts imposed by different expectations affect behaviour o Role Ambiguity:  One is unclear about the expectations of his or her role  May cause confusion, stress, and even bad feelings (Ex. Each things the other is doing it)  Role overload and role under load will make role ambiguity increase Norms: o Acceptable standards of behaviour within a group that are shared by the group’s members o Most norms have to do with: performance, appearance, social arrangement, allocation of resources o The “How” and “Why” of Norms:  Norms develop from the following methods:  Explicit statements made by a group member (specific rules given by authority)  Critical events in the group’s history (learning from previous events)  Primacy (first behaviour sets team expectations; sitting together in set seats)  Carry-over behaviours from past situations (bring expectations from past experience)  Norms are important because of:  It facilitates a group’s survival (protection from interference from other groups)  It increases the predictability of a group member’s behaviour (anticipate each other’s actions and to prepare appropriate responses)  It reduces embarrassing interpersonal problems for group members (ensure satisfaction of their members and prevent much interpersonal discomfort)  Allows members to express central values of the group and clarify what is distinctive about the group’s identity (solidify and maintain the group) o Conformity:  Adjusting to one’s behaviour to align with the norms of the group  Solomon Asch’s experiment (saying which is the same length and people copied answers) Stages of Group and Team Development: The Five-Stage Model: o Stage 1: Forming – uncertainty of group’s purpose, structure, and leadership; will move Page | 24 onto next stage when each member thinks of themselves as part of the team o Stage 2: Storming – the stage of conflicts, problems arise on who wants to be the leader; will move out of this stage when a clear hierarchy is developed o Stage 3: Norming – resolve interpersonal conflicts; close relationships develop and group identity emerges; stage is complete when team structure solidifies and has common set of expectations o Stage 4: Performing – come together and start to do work; the energy used to set hierarchy or resolve conflicts is used to work on the tasks assigned o Stage 5: Adjourning – energy is directed to wrapping up activities; some groups are proud of accomplishments, and some groups are sad to lose the comrades and friendships developed  Putting the 5-stage Model into Perspective:  The development of groups are more complex than the model makes it seem  Groups with more defined structures and rules given go through the beginning stages faster The Punctuated-Equilibrium Model: o The model for temporary groups with deadlines o Phase 1: the first meeting sets the group’s direction o Phase 2: occurs halfway between first meeting and deadline; start moving to get tasks done Creating Effective Teams: o Characteristics of effective teams:  Clear purpose  Informality (no tension or boredom)  Participation  Listening  Civilized disagreement (no signs of avoiding or suppressing conflict)  Consensus decisions Page | 25  Open communication  Clear rules and work assignments  Shared leadership (leader shifts from person to person)  External relations  Style diversity  Self-assessment Context: o Adequate resources:  Must receive necessary support from management and organization to succeed o Leadership and Structure:  Creating a real team rather than in name only  Clear and meaningful directions  Team structure has to support work effectively  Ensure the team is operated through a supportive organizational context  Provide expert coaching o Climate of Trust:  Trust will make teams more effective o Performance Evaluation and Rewards:  Group-based appraisals, profit sharing, gain sharing, small- group incentives Composition: o Skills:  Technical expertise  Problem- solving and decision-making skills  Interpersonal skills o Personality:  Teams that rate high on conscientiousness and openness perform better  Researchers found it’s better to group conscientious people together rather than seeding o Roles:  Task oriented roles (keep people on task) and maintenance roles (keep good relationships between members)  Individual roles taken up (member is more concerned with himself than the team) o Diversity:  Value differences influence greater than functional, demographic and cultural differences  Heterogeneous groups provide greater creativity and variety o Size:  Most effective teams have members less than 10 people  Social loafing: tendency to expend less effort when working collectively than working alone o Members’ Flexibility:  Flexibility allows members to do each other’s jobs o Members’ Preference for Teamwork Page | 26  Some people prefer to work individually rather than in a group Work Design: o Includes freedom and autonomy o Increases responsibility and ownership over work Process: o Common purpose:  This purpose is a vision; broader than specific goals  Reflexivity: reflecting on and adjusting the master plan when necessary  Teams need a good plan and willing to adapt when condition calls for it o Specific Goals:  Allows teams to focus on a direction and evaluate progress toward the goal  Should create milestones for achieving the mail goal o Team Efficacy:  The belief that they (team) can succeed)  Cohesiveness – the degree to which members are attracted to each other and are motivated to stay on the team  Greater the team ability, greater the likelihood to developing confidence and delivering it o Mental Models:  Knowledge and beliefs about how the work gets done  More similar the beliefs are, better the team performance o Managed Level of Conflict:  Groups with no conflict will lead to bad performance  Effective teams are characterized by an appropriate amount of conflict o Accountability:  Members clearly define what they are individually responsible for and waht they are jointly responsible for Beware! Teams aren’t Always the Answer: o To determine whether work is done better individually or team, use these 3 tests:  Can the work be done better by more than one person?  Does the work create a common purpose or set of goals for the people in the group that is more than the sum of individual goals?  Are the members of the group interdependent? CHAPTER 7 – COMMUNICATION The Communication Process: Individuals spend 70% of waking hours communicating, transferring and understanding of a message o Encoding and Decoding:  Encoded by sender and decoded by receiver  Four factors that affect: skill, attitudes, knowledge, and socio-cultural system Page | 27 o The Message:  Physical product from the source after being encoded  The message in contracts is depended on the encoding of their negotiations o The Channel:  The medium in which the message travels  Communication apprehension: undue tension and anxiety about oral communication, therefore memos, letters are used instead  Some channels have the ability to (1) handle multiple cues simultaneously (facial expressions, gestures, posture) (2) facilitate rapid feedback (3) very personal (presence) o The Feedback Loop:  Final link in the communication process; puts the message back into the system as a check against misunderstandings o The Context:  The surrounds make the message being sent different (informal at bus stop, while formal at office) Barriers to Effective Communication: Filtering: o Sender manipulates information so that receiver sees it as favourable (leaving parts out to make news seem good) Selective Perception: o Receivers process selectively based on what they want to hear and see Defensiveness: o Using sarcasm in tone to defend oneself, thus verbal attacking begins Information Overload: o Having more information that one can process o Will result in information loss and less effective communication Language: o Same words may possess different meanings depending on age, education, and cultural background o Causes confusion and may be ineffective when communicating Communicating under Stress: o Tips on how to converse effectively under stress: (1)speak clearly (2) be aware of nonverbal part of communicating (3) think carefully about how you state things Direction of Communication: o Downward:  From upper hierarchy to lower (boss to employees) o Upward:  A form of providing feedback, relay current problems o Lateral:  Across members in the same group, level Small Group Networks: o Communication networks: channels which information flows Page | 28 o Formal networks: task-related communications that follow authority chain o 3 types: chain (one direction in a circle), wheel (all going up towards one), all-channel (everywhere) The Grapevine: o Informal networks: communications that flow along social and relational lines o Grapevine: organization`s most common informal network o Rumours have 4 purposes  Structure and reduce anxiety  Make sense of l
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