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BUSI 2101 Review Notes.docx

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Department
Business
Course
BUSI 2101
Professor
Troy Anderson
Semester
Winter

Description
WEEK 1 CHAPTER 1: THE PSYCHOLOGICALCONTRACT & COMMITMENT What is an Organization? - Organizations: a consciously coordinated social unit, composed of a group of people, that functions on a relatively continuous basis to achieve a common goal or set of goals; examples: schools, charities, sports teams, etc. - Organizational behavior: a field of study that investigates the impact of individuals, groups, and structure on behaviour within organizations; its purpose is to apply such knowledge toward improving an organization’s effectiveness, and to understand and predict human behavior. - Basic OB model and the challenges at each level: a) Challenges at the individual level: - Individual differences - Job satisfaction - Motivation - Empowerment: managers asked to share more of their power with their employees; giving employees more responsibility for what they do - Behaving ethically; ethics: study of moral values or principles that guide our behaviours and inform us whether actions are right or wrong b) Challenges at the group level: - Working with others - Workforce diversity: mix of people in organizations in terms of gender, race, ethnicity, disability, sexual orientation, age, demographic characteristics, such as education and socio-economic status; also generational mix c) Challenges at the organizational level:  Use of temporary (contingent) employees  Improving quality and productivity: productivity: performance measure including effectiveness (achievement of goals) and efficiency (ratio of effective work output to the input required to produce the work)  Developing effective employees: - Organizational citizenship: discretionary behaviour that is not part of an employee’s formal job requirement, but that nevertheless promotes effective functioning of the organization, ex. Staying late, helping others, etc.  Putting people first: “people first strategies  Helping employees with work-life balance  Creating positive work environmentcreates competitive advantage  Global competition  Managing and working in a multicultural world Building blocks of OB: a) Psychology: science that seeks to measure, explain, and sometimes change the behaviour of humans and other animals b) Social psychology: focuses on peoples’influence on one another c) Sociology: study the social system in which individuals fill their roles; studies people in relation to their social environment or culture d)Anthropology: study of societies to learn about human beings and their activities; mainly focus on cultures and environments * OB looks at consistencies behaviour is generally predictable, and the systematic study of behaviour is a means to making reasonably accurate predictions * OB looks beyond common sense - Systematic study: looking at relationships, attempting to attribute causes and effects, and drawing conclusions based on scientific evidence Research methods in OB: a) Field studies: real-life organizations b) Laboratory studies: simulated and controlled settings c) Case studies: in-depth studies of single situation d) Survey studies: questionnaires and interviews in sample populations e) Meta-analysis: statistics that pool results of different studies *OB takes a contingency approach: considers behaviour in the context in which it occurs Fundamental of OB: 1-Considers multiple levels of an organization: individual, group, and organizational 2-Built from the wisdom and research of multiple disciplines 3-Takes a systematic approach to the study of organizational phenomena; it is research-based 4- Takes contingency approach to the consideration of organizational phenomena recommendations depend on the situation -Work, Environment and its impact  Satisfied employees means satisfied customers, which equals higher profitability  It can lead to better employee morale, which translates, into an environment where employees are more likely to provide better service.  The best workplaces tend to have higher productivity and profitability as well as better customer satisfaction. In turn, lower staff turnover.  Organizations with reputations as good employers also tend to attract high quality staff. The better quality of the staff, the better able the staff will be in performing their duties. -CreatingA“Great Place To Work” Employees insist that the most important factor that distinguished their workplace was a very high level of trust between employees and the management. a) Credibility- employees’thoughts about the managements’ believability, competence and integrity. Whether they can believe what someone tells them -This is achieved by sharing information broadly -Accessibility of themselves to employees (open door policy for example, being able to walk in to the CEO’s office with questions or concerns instead of top-down communication) -Delivering on promises Following through on what has been said will be done is important to employees. Employees feel that management has a high degree of credibility, is believable, and demonstrates competence and integrity. They must feel that management has their best interest at heart to genuinely extend their trust. -Showing recognition and appreciation -Demonstrating personal concern “Management shows a sincere interest in me as a person, not just an employee.” 1. When individuals join an organization, they form an unwritten, implicit or (less frequently) explicit, psychological contract with the organization known as psychological contracts. Psychological contacts are defined as an individual’s beliefs, shaped by the organization, regarding the terms and conditions of a reciprocal exchange agreement between individuals and their organization. a) Such contacts help predict both the type of outputs employers will get from employees as well as the rewards employees will receive for their efforts from an organization. b) Also based heavily on people’s perception on what they have been promised in the future. The concept is rooted in social exchange theory, which argues that people enter relationships in which not only economic but also social obligations play a role and that people are most comfortable when the exchange is balanced. c) Psychological contracts also differ from employment contracts because they reflect each party’s perception of the expectations involved, which means their interpretations may not be similar. d) Violations cause less damage to the relationship if employees believe that employers were unable rather than unwilling, to keep a promise. b) RJP’s-Realistic Job Preview, are a recruitment technique that gives accurate information about job duties, and especially about the major sources of job satisfaction and dissatisfaction prior to organizational entry. a) Provide an accurate preview to the psychological contract. 2. The current Psychological Contract a) The tremendous rate of change that businesses undergo as they adapt to global competition and changing markets, technology, and economic conditions has resulted in marketed changes in work-place expectations and psychological contracts. b) Employees were willing to work their way up to the corporate ladder slowly in return for the promise of a sufficiently high promotion in their middle age to allow them to live comfortably during their retirement years. This contract was somewhat unbalanced because the company was expected to be loyal to employees, while the employees could resign whenever they wished. c) The current employment contract has changed long term employment relationships and paternalism to employment based on business needs. a) Employees are rewarded for skills and performance (with higher pay in some cases) rather than tenure, and they are responsible for maintain their own employability via personal reskilling and retraining. 3. Employee Commitment a) Commitment includes these aspects- emotional attachment to the organization; identification with the organization’s goals and values; a willingness to exert considerable effort on behalf of the organization; and a string desire to remain in the organization. b) Committed employees yield several advantages for employers: higher performance and job satisfaction, greater ability to adapt to unforeseen circumstances, higher attendance, longer job tenure, and more organizational citizen behavior (OCB). a) OCB refers to “discretionary contributions that are organizationally related but are neither explicitly required nor contractually rewarded by the organization, yet nevertheless contribute to its effective functioning. c) Recommended ways to earn employee commitment are clarifying and communication the organization’s mission, guaranteeing organizational justice, creating a sense of community, and supporting employee development. d) Another factor that influences both commitment and turnover is workplace incivility. a) Workplace incivility is defined as low-intensity deviant behavior that violates workplace norms for mutual respect, it may or may not be intended to harm the target. e) Commitment is fostered by teamwork that builds important social relationships at work, challenging jobs that develop employees and allow them to utilize their talents and pride in their organization. f) The seven values found in such organizations are a) Commitment to self knowledge and development (continuous learning) b) Firm belief in decency (fair treatment, equity) c) Respect for individual differences (celebration of diversity) d) Spirit of partnership (strong belief in community, shared effort, teamwork, widespread participation) e) High priority for health and wellbeing f) Appreciation for flexibility and resilience (change is managed well) g) Apassion for products and process (concern for both what is produced and how that happens) 4. External Influences and Changing expectations a) Such as adapting to a global economy, economic and employment conditions, demographics, and societal change, affect workplace expectations and psychological contracts. 5. Cultural Differences a) Rosseau and Schalk identified three primary ways the psychological contacts vary internationally b) Promises mean different things in different cultures. c) The zone of negotiability refers to which employment conditions are under negotiate in different countries. d) Group identity influences psychological contracts because the way that people define “we” and “they” has a critical influence on trust and promise making. Two job factors predicted across all cultures-job satisfaction and an intrinsic orientation toward work(valuing work for itself, rather money or external outcomes). 6. The Self-Fulfilling Prophecy a) The phenomenon that occurs when people perform in accordance with a rater’s expectations of them. b) Bright rats vs dull rats although no inherent differences….bright rats learned to maneuver the maze better and they were treated better. c) Critical variable in these examples is the teacher’s (or rat handler’s) expectation: Higher expectations were associated with higher learning. The children( and the rats) became what the teachers thought they were which is a perfect example of self fulfilling prophecy. d) Employees who are expected to do well will likely perform better than those who are not, even thought there may be no differences between them. e) Supervisors and managers who have high expectations of their employees will be more likely to have their expectations met. 7. AModel For Managing Psychological Contracts-The Pinch Model 8. a) Illustrates how to manage psychological contract and avoid major disruptions by heeding early warning signs that expectations have changed and need to be reconsidered. In approaching any new organization, people make two classes of decisions: a decision to join and a decision to participate. Good managers and leaders are skilled at gaining participation. EXTRADefinitions, terms and theory: • Inadvertent violation-Willing and able to keep terms to the contract but there was a misunderstanding, miscommunication. Nobody is at fault but impossible to think of every contingency that can come up when making some sort of contract, or something written. (Least damaging if people understanding why and how it happened) • Breach-Able but not willing (avoid this because it will impact negatively) Disruption-Willing but not able • Violation- When the contract is not respected, but not necessarily permanent, can or cannot be fixed. • Reaction to Violation- 1. Exit i. You have tried fixing but you abandon ii. No repercussions iii. Breach iv. Alternatives v. Short-term 2. Voice(Exit is not an option, no alternatives to both sides for mutual financial repercussions, more likely to be used for inadvertent and breach) i. Negotiate ii. Complaining iii. Filling Grievance iv. Channels official or unofficial i.e if there is a particular process you have to follow 3. Neglect(work slow down) i. Sabotage ii. Destruction 4. Silence(Bite the bullet) i. No channels ii. Have an interest in the company not necessarily money iii. Not worth fighting. SUPPLEMENTALCHAPTER 1 Values: basic convictions that a specific mode of conduct is preferable to an opposite mode of conduct; way of behaving or end goal; values generally stable and enduring and generally influence attitudes and behaviours - Value System: a set or hierarchy of values - Two frameworks for understanding values: i) Milton Rokeach’s value survey: classified people’s values into two sets, each set with 18 individual value items: - Terminal values: end goals (knowledgeable); examples: comfortable life; happiness - Instrumental values: values you use to get to the end (open minded); examples: ambitious; clean ii) Hodgson’s general moral principles: - Ethics: study of moral values or principles that guide our behaviour, and inform us whether actions are right or wrong; ethical values are related to moral judgments about right and wrong. - The magnificent seven: dignity of human life; autonomy; honesty; loyalty; fairness; humanness; the common good *Values can change but it is more likely that situations change and you are forced to choose where your values are Cognitive dissonance: condition of conflict or anxiety resulting from inconsistency between one's beliefs and one's actions  Opposing the slaughter of animals and eating meat.  Selling a faulty product  Forcing a worker to work late  When personal values conflict with work behaviour people will attempt to reduce cognitive dissonance Assessing Cultural Values - Hofstede’s Framework forAssessing Culture: one of the most widely referenced approaches for analyzing variations among cultures; is 30 years old; found that managers and employees vary on five value dimensions of national culture i) Power Distance: degree to which a society accepts that power in institutions and organizations is distributed equally; low=democratic; high=autocratic ii) Individualism vs. Collectivism: individualism: degree to which people prefer to act as individuals rather than members of a group; collectivism: tight social framework; expect others in their group to look out for them iii) Masculinity vs. Femininity: masculinity:; men and women not equals, men dominating; femininity: sees men and women as equal iv) Uncertainty Avoidance: degree to which a society feels threatened by uncertain and ambiguous situations and tries to avoid them v) Long Term vs. Short Term Orientation: degree of a society’s long-term devotion to traditional values; long-term: emphasizes the future, thrift and persistence; short-term: emphasizes past and present, respect for tradition, and fulfillment of social obligations - Canada: individualistic; short-term; low in power distance; japan-highly collectivist Values in the Canadian workplace - Two major factors lead to the potential clash of values: i) Diversity in the workplace:  Age; Gender; National Origin; Disability; Domestic Partners; Non- Christian ii) Generational value differences: 1) The Elders » over 60 years old - Core values: order, authority, discipline, and the Golden Rule - Major Events: WW2, Great Depression 2) Baby Boomers » born mid-1940s to mid-1960s - Core Values: rejection of authority; skeptical of big business’s motives; concern for environment; desire for equality; career focus; 4 major groups: autonomous rebels, anxious commutarians; connected enthusiasts; disengaged Darwinists - Major Events: Post War baby boom, competition for jobs; civil rights movement; women’s movement; the Beatles; Vietnam war 3) Generation X » born mid-1960s to early 1980s - Core Values: pessimistic, intellect, promotion, fun at work; flexibility; life options; job satisfaction; skeptical of authority; enjoy team work; 5 groups: thrill- seeking materialists; aimless dependents, social hedonists; newAquarians, autonomous post-materialists, - Major Events: Economic downturn; globalization; 2-career parents; MTV;AIDS; computers 4) The Ne(x)t Generation (Millennials) » born 1977 to 1997 - Core Values: “Creators, not recipients”, curious, contrarian, flexible, collaborative, high in self-esteem, change is ok, get bored easily; want to be rich; good with technology; entrepreneurial; needy Major Events: Economic prosperity, technological advance, and globalization Cultural differences:  Canadian vs.American values: - Canadians more supportive of govt; believe more than US that religion should not be in govt policy; more accepting of homosexuality; more optimistic about globalization; less supportive of a free market; believe more than US that immigrants indicate how well things are going  Francophone vs.Anglophone: - Francophone: - More collectivist or group-oriented - Greater need for achievement - Concerned with interpersonal aspects of workplace - Value affiliation - Anglophone: - Individualist or I-centered - More task-centered - Take more risks - Value autonomy  Aboriginal values: - More collectivist in orientation - More community-oriented - Greater sense of family in the workplace - Greater affiliation and loyalty - Power distance lower than non-Aboriginal culture -Greater emphasis on consensual decision-making  Asian Values:  NorthAmerica: - Networked relations: based on self-interest - Relationships viewed with immediate gains - Enforcement relies on institutional law - Governed by guilt (internal pressures on performance)  East and SoutheastAsia - Guanxi relations: based on reciprocation - Relationships meant to be long-term and enduring - Enforcement relies on personal power and authority - Governed by shame (external pressures on performance) Attitudes: positive or negative feelings concerning objects, feelings, or events - Attitudes are important because they tend to influence behavior - Attitudes less stable than values - 3 important attitudes that affect organizational performance: a) Job satisfaction: individual’s general attitude towards his or her job - Key sources of job satisfaction: the work itself; pay advancement opportunities; supervision; coworkers - Some evidence to say that individual and organizational productivity is linked to job satisfaction; satisfaction may lead to high productivity, while for others, high productivity is satisfying OCB: organizational citizenship behavior job satisfaction determines OCB, only when fairness is considered (when you trust employers, job satisfaction increases, and more likely to voluntarily engage in behaviors that go beyond your formal job requirements)  Satisfied employees increase customer satisfaction and loyalty customers like happy, friendly people; customer like seeing familiar faces, and more experienced employees (due to less turnover)  How employees can express dissatisfaction: - Exit: active, destructive: leave workplace - Voice: active, constructive: talk to managers - Loyalty: passive, constructive: not noticed enough - Neglect: passive; destructive; most concerning b) Organizational commitment  how much you feel that organization represents you and how likely you are to stick with them i) Affective commitment: emotional attachment to, identification with, and involvement within the organization; relationships with coworkers, managers, etc. ii) Normative commitment: obligation felt by employee to stay with the organization; obligation; contract ii) Continuance commitment: calculation to stay with the organization based on the perceived costs of leaving; staying because can’t really find anything better Managing diversity in the workplace: Major workforce diversity categories: a) Gender increasing women b) National origin increasing immigrants c)Age: aging workforce d) Disability e) Domestic partners same-sex couples increasing f) Religion Cultural intelligence (CQ): the ability to understand someone’s unfamiliar and ambiguous gestures in the same way as would people from that person’s culture; people with high CQ have an easier time dealing with cultural diversity - Cognitive CQ: look for cues to identify culture and shared understanding - Physical CQ: learn customs and gestures - Emotional/motivational CQ: capability to understand people from other cultures STRESS: Ten Most Stressful Jobs 1. Inner-city high school teacher 2. Police officer 3. Miner 4.Air traffic controller 5. Medical intern 6. Stockbroker 7. Journalist 8. Customer service/complaint worker 9. Secretary 10. Waiter Ten Least Stressful Jobs 1. Forester 2. Bookbinder 3. Telephone line worker 4. Toolmaker 5. Millwright 6. Repairperson 7. Civil engineer 8. Therapist 9. Natural scientist 10. Sales representative Stress: a situation that creates excessive psychological or physiological demands on a person.  The stress process:  Am I in trouble?  What can I do about it? Causes of workplace stress: - Environmental: uncertainty, things going on outside of organization but that impact you, global trends; economic uncertainty and technological change - Organizational factors: work overload, cannot manage work, categorized under: task demands; role demands; interpersonal demands - Personal factors: job experience, social support, personality and perception, feel like its not just work, more control means more you can do about a situation, emotions effect how you asses situations Consequences of stress: 1-Physiological symptoms 2-Psychological symptoms: job-dissatisfaction; tension, anxiety, irritability; procrastination; distraction 3-Behavioral symptoms: changes in productivity; absence; turnover; changes in eating habits; drug/alcohol usage; rapid speech; fidgeting; sleep disorders; aggression; violence  Stress leave is one of number one causes of workplace loss - Stress matters to organizations because people start to get sick, stress leave, lower productivity - People who have high stress and overloaded work but still doing well, had reframed initial assessment, can go back at it and try again Why am I stressed changes to why would I give up, how can I resolve? - Successful at dealing with stress means good at reframing Individual differences in stress: 4 variables moderate stress: - Perception; job experience; social support; personality Managing stress: - Individual approaches: reframing the initial threat; physical activity; time- management; relaxation techniques; building social supports - Organizational approaches: improved processes for choosing employees; placement in appropriate jobs; realistic goal setting; designing jobs with employee needs and skill in mind; increased employee involvement; improved organizational communication; offering employee sabbaticals; establishment of corporate wellness programs -Avoid electronic monitoring of staff; allow employees time to recharge after periods of intense or demanding work; deliver important information that significantly affects employees face-to-face; encourage positive social interactions between staff to promote problem solving around work issues and increase emotional support WEEK 2 CHAPTER 5: THEORIES OF MOTIVATION: Motivation: the intensity, direction, and persistence of effort that a person shows in reaching a goal - Douglas McGregor: two views on human beings: - Theory X: assumption that employees dislike work, will attempt to avoid it, and must be coerced, or 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; our generation responds better to this theoryY managers - Extrinsic motivators: motivation that comes from outside the person and includes such things as pay, bonuses, and other tangible rewards; ex. Money, status, promotions, etc.  theory X suggests people are driven by extrinsic motivators - Intrinsic motivators: internal desire to do something, due to interest, challenge, or personal satisfaction, ex. Liking the job itself; sense of self worth theoryY suggest people are mostly intrinsically motivated Theories of motivation: fall into 2 categories: needs and process theories: 1) Needs theories of motivation: if you want to motivate someone, find out what they need and offer it as a reward or consequence.  Only an unfulfilled need will motivate a) Maslow’s Hierarchy: a substantially satisfied need no longer motivates; in order to motivate someone, you must understand what level of the hierarchy they are on and focus on satisfying the needs at or above that level  Lower Order Needs  Physiological: hunger, thirst, shelter, sex, and other bodily needs  Safety: security and protection from physical and emotional harm  Higher Order Needs  Social: affection, belongingness, acceptance, and friendship  Esteem: internal esteem factors such as self-respect, autonomy, and achievement; and external esteem factors such as status, recognition, and attention  Self-actualization: the drive to become what one is capable of becoming; includes growth, achieving one’s potential, and self-fulfillment b) ERG (Alderfer): more than one need can be important at the same time  refined version of Maslow tells us that achievers will be motivated by jobs that offer personal responsibility, feedback and moderate risks; however, this theory ignores situational variables; three groups of core needs: ▪ Existence ▪ Relatedness ▪ Growth c) McClellend’s Theory of Needs: people vary in the type of needs they have; achievement, power, and affiliation are three important needs that help explain motivation ▪ Need for Achievement: the drive to excel, to achieve in relation to a set of standards, to strive to succeed; high achievers prefer tasks at an intermediate level of difficulty ▪ Need for Power: need to make others behave in a way they would not have behaved otherwise ▪ Need for Affiliation: desire for friendly and close interpersonal relationships ** The best managers are high in their need for power and low in their need for affiliation; high achievers do not always make good managers, as they are more interested in how well they do personally and not in influencing others to do well d) Herzberg’s Hygiene Theory: relates intrinsic factors to job satisfaction and associates extrinsic factors with dissatisfaction; two categories: hygiene factors and motivators; dual continuum:  Hygiene factors: extrinsic factors (context of work): status, pay, poor working conditions, poor working relationships - Dissatisfaction no dissatisfaction continuum  Motivators: Intrinsic factors (content of work) - Sources of satisfaction - No satisfaction satisfaction continuum 2) Process theories of motivation: understanding the process of going from an unmotivated state to a motivated one a) Expectancy theory: an employee will be motivated to exert a high level of effort when he or she believes the following three relationships: i) Expectancy: effort-performance relationship: the belief that effort is related to performance  To improve expectancy: improve the ability of the individual to perform: make sure employees have skills for the task; provide training; assign reasonable tasks and goals ii) Instrumentality: performance-rewards relationship: the belief that performance is related to rewards  To improve: increase the individuals belief that performance will lead to a reward: observe and recognize performance; deliver rewards as promised; indicate to employees how previous good performance led to greater rewards iii) Valence: rewards-personal goals relationship: the value or importance an individual places on a reward  To improve: make sure the reward is meaningful to the individual: ask employees what rewards they value; give rewards that are valued b) Goal setting theory: - Goal: what an individual is trying to accomplish - Specific and difficult goals can: - Direct attention - Regulate effort - Increase persistence - Encourage strategies for achieving goals - SMART Goals - Specific - Measurable -Attainable - Realistic/results-oriented - Time-constrained - MBO: management by objectives: an approach to goal setting in which specific measurable goals are jointly set by managers and employees; progress on goals is periodically reviewed, and rewards are allocated on the basis of this progress c) Self-efficacy theory: - Self- Efficacy: an individual’s belief that he or she is capable of performing a task. - 4 ways self-efficacy can be improved: enactive mastery; vicarious modeling; verbal persuasion; arousal Three additional theories to consider how individuals respond to rewards: a) Equity theory: we compare inputs and outcomes to others  Perceptions of inequity can be demotivating  When we feel treated inequitably: 6 choices  Change inputs (exert less effort)  Change outcomes (work harder)  Adjust perceptions of self  Adjust perceptions of others  Choose a different referent  Leave b) Fair process and treatment:  Organizational justice: overall perception of what is fair in the workplace composed of distributive, procedural, and interactional justice; used more today:  Distributive Justice: perceived fairness of the amount and allocation of rewards among individuals  Procedural Justice: perceived fairness of the process used to determine the distribution of rewards  Interactional Justice: quality of the interpersonal treatment received from a manager; degree to which people are treated fairly on a personal level c) Cognitive Evaluation Theory: offering extrinsic rewards, such as pay, for work effort that was previously intrinsically rewarding, will tend to decrease the overall level of the person’s motivation  Pay fairly  Find intrinsic motivators  Research findings on this theory: - Verbal rewards increase intrinsic motivation; tangible rewards undermine it - Self-concordance: degree to which a person’s reasons for pursuing a goal is consistent with the person’s interests and core values  How can businesses increase their employees’intrinsic motivation?  Choice: using own judgements for tasks  Leading for choice: delegated authority; trust in workers; no punishment for mistakes; clear purpose; information  Competence: sense of accomplishment  Leading for competence: knowledge; positive feedback; skill recognition; challenge; high, non-comparative standards  Meaningfulness: worthwhile work  Leading for meaningfulness: non-cynical climate; clearly identified passions; exciting vision; relevant task purposes; whole tasks  Progress: spending time wisely  Leading for progress: collaborative climate; milestones; celebrations; access to customers; measurement of improvement Motivating employees through reinforcement: Skinner: Operant Conditioning: type of conditioning where desired voluntary behaviour leads to a reward or prevents punishment - 4 ways to shape behaviour: i) Positive Reinforcement: following a response with something pleasant; ex. If a dog "sits" on command and this behavior is followed by the reward of a dog treat, then the dog treat serves to positively reinforce the behavior of "sitting." ii) Negative Reinforcement: the termination or withdrawal of something unpleasant; ex. Achild cleans his or her room, and this behavior is followed by the parent stopping "nagging" or asking the child repeatedly to do so. Here, the nagging serves to negatively reinforce the behavior of cleaning because the child wants to remove that aversive stimulus of nagging. iii) Punishment: causing an unpleasant condition in order to decrease the likelihood of certain behaviours - Positive Punishment: causing an unpleasant condition in an attempt to eliminate an undesirable behavior. Amother yells at a child when he or she runs into the street. If the child stops running into the street, the yelling acts as positive punishment because the mother presents (adds) an unpleasant stimulus in the form of yelling. - Negative Punishment: the removal of something pleasant after the behavior. Ateenager comes home after curfew and the parents take away a privilege, such as cell phone usage. If the frequency of the child coming home late decreases, the removal of the phone is negative punishment because the parents are taking away a pleasant stimulus (the phone) and motivating the child to return home earlier. iv) Extinction: eliminating any reinforcement/punishment that is maintaining a behaviour Schedules of Reinforcement: i) Continuous: reward given after each desired behaviour fast learning of new behaviours but rapid extinction, ex. Compliments ii) Fixed-interval: reward given at fixed time intervals average and irregular performance with rapid extinction; ex. Weekly paycheques iii) Variable-interval: reward given at variable time intervals moderately high and stable performance with slow extinction, ex. Pop quizzes iv) Fixed-ratio: reward given at fixed amounts of output high and stable performance attained quickly but also with rapid extinction; ex. Piece-rate pay (paid fixed amount for each unit of production completed) v) Variable-ratio: reward given to variable amounts of output very high performance with slow extinction; ex. Commissioned sales **Intermittent: reinforced often enough to make the behavior worth repeating, but not every time it is demonstrated; can be interval or ratio **Extinction motivation disappears ** Variable-ratio and variable-interval produce the best results for improving behaviours; BUT most organizations rely on fixed-interval (weekly/ monthly) pay or fixed-ratio (piece-rate) pay WEEK 3 CHAPTER 22: MANAGING CHANGE: Forces for change: - Competition: global competitors; mergers and consolidations; growth of e- commerce - Technology: faster, cheaper, more mobile computers; online music sharing; deciphering of the human genetic code - Economic shocks: rise and fall of dotcom stocks; record low interest rates; 2007-2009 financial markets collapse - Social trends: Internet chat rooms; retirement of baby boomers; rise in discount and ‘big-box’retailers - Political change and world politics: Iraq-US war; opening of markets in china; Tsunamis and earthquakes worldwide - Environmental concerns - Nature of the workforce: more cultural diversity; aging population; many new entrants with inadequate skills - Generational changes generation Y entering workforce Organizational targets for change (POSCPTST): - Purpose: mission and objectives - Objective: performance targets - Strategy: strategic and operational plans - Culture: core beliefs and values - People: update recruiting and selection practices; improve training and development - Tasks: update job designs for individuals and groups - Structure: update organizational design and coordination and mechanisms - Technology: improve equipment facilities, and work flows Change agents: people or groups that act as catalysts and assume the responsibility in managing change activities - Teams, managers, employees Approaches to managing change: a) Lewin’s three-step change model: key feature is change as an episodic activity i) Unfreezing the status quo: change effort to overcome the pressures of both individual resistance and group conformity - Unfreezing can occur in one of three ways: o Increase driving forces: forces that direct behaviour away from status quo o Decrease restraining forces: hinder movement away from status quo o Combine first two approaches ii) Moving to a new state: effort to get employees involved in the change process iii) Refreezing the new change to make it permanent: stabilizing a change intervention by balancing driving and restraining forces b) Kotter’s 8-step plan for implementing change: more detailed approach; builds on Lewin’s model: first 4 steps represent ‘unfreezing’; steps 5-7 represent ‘moving’; final step represents ‘refreezing’(UCVCEWAR) 1. Establish a sense of urgency: create compelling reason for why change is needed 2. Form a coalition: enough power to lead change 3. Create a new vision: to direct change and strategies for achieving the vision 4. Communicate the vision through the organization 5. Empower others to act; removing barriers to change and encouraging risk-taking and creative problem-solving 6. Plan for, create, and reward short-term “wins” that move the organization towards the new vision 7. Consolidate improvements, reassess changes, and make necessary adjustments to the new program 8. Reinforce changes by demonstrating the relationship between new behaviours and organizational success  Common failures when management tries to initiate change: - Inability to create a sense of urgency about the need for change; failure to create a coalition for managing the change process; absence of vision for change and effectively communicating the vision; not removing obstacles that could impede the achievement of the vision; failure to provide short-term and achievable goals; tendency to declare victory too soon; not anchoring the changes in the organization’s culture c)Action research: scientific method for managing planned change; consists of 5 steps (DAFAE): 1. Diagnosis: change agent gathers information 2. Analysis: change agent organizes concerns into primary concerns, problem areas, and possible actions 3. Feedback: sharing with employees 4. Action 5. Evaluation  Benefits of action research: problem-focused (rather than solution centered); resistance to change is reduced because employees are so heavily involved in the process d)Appreciative inquiry: seeks to identify the unique qualities and special strengths of an organization; which can then be built on to improve performance - Focuses on successes rather than problems - Makes more sense to refine and enhance what organization is already doing well - 4 steps (4 D’s): 1. Discovery: what are strengths of company 2. Dreaming: visualizing ‘what might be’(possible futures for the organization) 3. Design: ‘what should be’(common vision established) 4. Destiny: implementing ‘what will be’; how organization will fulfill its dream Resistance to change: - Our egos are fragile, and we often see change as threatening - Resistance to change hinders adaptation and progress - Challenge is to manage resistance that is o Implicit: subtle: loss of loyalty, absenteeism, etc. o Deferred: clouds link between source of resistance and the reaction to it; resistance may surface long after a change - Sources of resistance: o Individual resistance to change:  Self-interest  Misunderstanding and lack of trust  Different assessments: see change differently than their managers do  Low tolerance for change: worry they may not have skills required o Cynicism about the change process: • Feeling uninformed • Lack of communication and respect from managers or union representatives • Lack of opportunity for meaningful participation in decision making o Sources of organizational resistance to change: • Threat to established resource allocations • Structural inertia: built-in mechanisms • Limited focus of change: interdependent subsystems in organizations • Group inertia: group norms • Threat to expertise • Threat to established power relationships Life-cycle of change: - Overcoming resistance to change:  Not all change is good: speedy decisions can lead to bad decisions; “fog of change”; 7 tactics used by change agents to deal with resistance to change: (EC.PI.FS.F.MC.S.EI.)  Education and communication: communicate with employees: fights effects of misinformation and poor communication and can “sell’the need for change  Participation and involvement  Facilitation and support: low emotional commitment to change results in favoring the status quo and resisting change  Implementing changes fairly  Manipulation and co-optation: manipulation: covert influence attempts; co-optation: manipulation and participation (giving key role in change decision)  Selecting people who accept change: positive attitudes towards change; open to experience; take risk; flexible; positive self-concept; high risk tolerance  Explicit and implicit coercion The politics of change: - First-order change: change that is incremental and straightforward; usually implemented by senior positions in hierarchy - Second-order change: change that is multidimensional, multi-level, discontinuous, and radical Contemporary change issues for today’s managers: i) Stimulating innovation:  Innovation: a new idea applied to initiating or improving a product, process, or service.  Sources of Innovation a) Structural variables: most studied  Organic structures positively influence innovation  Long tenure in management is associated with innovation  Innovation is nurtured when there are slack resources  Inter-unit communication is high in innovative organizations b) Similar cultures: encourage experimentation; reward both success and failure; celebrate mistakes c) Human resources - Idea champions: individuals who actively and enthusiastically promote an idea, build support for it, overcome resistance to it, and ensure that the idea is implemented Personality: high self- confidence; persistence; energy; risk-takers; transformational leadership traits; decision-making discretion ii) Creating a learning organization: an organization that has developed the continuous capacity to adapt and change.  Single-loop learning: a process of correcting errors using past routines and present policies.  Double-loop learning: a process of correcting errors by modifying the organization’s objectives, policies, and standard routines; challenges deeply rooted assumptions and norms; provides opportunities for radically different solutions to problems  Characteristics of a Learning Organization  Shared vision.  Discard old ways of thinking and standard routines.  Organizational processes as part of a system of interrelationships.  Open communication without fear of criticism or punishment.  Sublimate own interests and work together to achieve the organization’s shared vision  To establish learning organizations, managers can:  Establish a strategy  Redesign the organization’s structure: flattening; interdependence  Reshape the organization’s culture: risk-taking; openness; growth; rewarding people who take chances and make mistakes; encourage functional conflict  Managing change is culture bound:  Iran and SaudiArabia: passive approach to change as they believe they are subjugated to their environment  Japan focuses on long-term change, Canada and US have short- term focus and except fast results  Resistance to change influenced by society’s reliance on tradition: Italians focus on past and are more resistant thanAmericans who focus on present  High power distance cultures such as Mexico and Indonesia, change will be autocratically implemented by top management; low power distance cultures value democratic methods; greater use of participation in countries likeAustria and Denmark  Collectivist cultures: cross-functional support for innovation efforts; high power distance cultures: prefer champions to work closely with authority to approve innovative activities; higher uncertainty avoidance: champions should work within the organization’s rules and procedures to develop the innovation WEEK 4 CHAPTER 8/9: COMMUNICATION; PERCEPTION &ATTRIBUTION Perception: process by which individuals organize and interpret their impressions in order to give meaning to their environment - The world as it is perceived is the world that is behaviorally important - Manage people’s perceptions and you will manage their behaviors Factors influencing perception: - The situation: time, work setting, social setting - The perceiver: attitudes, experience, motives, expectations, and interests - The target: (object being perceived) novelty, size, motion, background, sounds, and proximity Attribution theory: when individuals observe behavior that seem atypical, they seek to find out whether it is internally or externally caused; after observing the person’s behaviour, we rely on three rules about behaviour to decide whether the cause is attributed to internal or external causes: i) Distinctiveness: considers whether the individual act similarly across a variety of situations - High (seldom): external cause - Low (frequently): internal cause ii) Consensus: considers if everyone faced with a similar situation responds in the same way; how often other people do this in similar situations - High (frequently): external cause - Low (seldom): internal cause iii) Consistency: considers whether the individual has been acting in the same way over time; how often the person did this in the past - High (frequently): internal cause - Low (seldom): external cause Perception errors: a)Attributions can get distorted:  Fundamental attribution error: tendency to underestimate external factors and overestimate internal factors when making judgments about the behavior of others  Self-serving bias: tendency for individuals to attribute their own successes to internal factors while blaming failures on external factors b) Selective perception: people’s selective interpretation of what they see based on their interests, background, experience and attitudes c) Halo effect: drawing a general impression of an individual on the basis of a single characteristic d) Contrast/recency effect: concept that other people often influence our reaction to one person we have recently encountered; ex. Evaluation of candidate in job interview can be distorted as a result of their place in the interview schedule e) Projection: attributing one’s own characteristics to other people; managers may see people as more homogenous than they really are f) Stereotyping: judging someone on the basis of ones perception of the group to which that person belongs - Heuristics: judgment shortcuts in decision-making - Prejudice: an unfounded dislike of a person or group based on their belonging to a particular stereotyped group g) Central tendency: tendency to avoid extreme judgments h) Perceptual defense: process of screening out, shutting down; ex. Not acknowledging your boyfriend cheating on you i) Implicit person theories: when you know a person has a certain characteristic, you tend to interpret their behavior in a certain way Power of perception: - Self-fulfilling prophecy (or Pygmalion effect): concept that proposes a person will behave in ways consistent with how he or she is perceived by others; expectations may become reality Personality: the stable patterns of behaviour and consistent internal states that determine how an individual reacts to and interacts with others - Personality tests are useful in hiring decisions  Personality determinants: - Heredity: factors determined at birth; ultimate explanation for personality - The environment - Situational factors  Personality Traits: enduring characteristics that describe an individual  Personality tests: a) The Big Five: degree to which people are… i. Conscientiousness: responsible, dependent, persistent, and achievement-oriented • Low: easily distracted, disorganized, unreliable ii. Extraversion: sociable, talkative, and assertive • Low: reserved, timid, quiet iii. Agreeableness: good-natured, cooperative, and trusting • Low: cold, disagreeable, antagonistic iv. Emotional Stability: calm, self-confident and secure • Low: hostile, depressed, anxious, insecure v. Openness to Experience: imaginative, artistically sensitive, and intellectual - Low: unimaginative, inflexible literal-minded, dull  How the big five traits influence OB: Trait Relevance What it affects Emotional stability Less negative; less hyper- Higher job and life vigilant (look for problems) satisfaction; lower stress Extraversion Better interpersonal skills; Higher performance; greater social dominance; enhanced leadership; higher more emotionally job and life satisfaction; expressive may be more impulsive Openness Increased learning; more Training performance; creative; more flexible and enhanced leadership; autonomous adaptable to change Agreeableness Better liked; more Higher performance; lower compliant and conforming levels of deviant behaviours; poorer negotiators; too concerned with pleasing others Conscientiousness* Greater effort and Higher performance; persistence; more drive and enhanced leadership; discipline; better organized greater longevity; may not and planners adapt well ** Conscientiousness is most consistently related to job performance, as they develop higher levels of job knowledge, they exert greater effort on their jobs b) Myers Briggs (more common recently): classifies people in to 1 of 16 personality types; valuable tool for increasing self-awareness; should not be used as selection test for job candidates i. Extraverted (E) or introverted (I) ii. Sensing (S) or intuitive (N) iii. Thinking (T) or feeling (F) iv. Perceiving (P) or judging (J)  Drawbacks of trait-based personality tests: they lack context; do they really measure what they want to measure? PersonalityAttributes influencing OB: a) Locus of Control: in control of your destiny b) Machiavellianism: degree to which an individual is pragmatic, maintains emotional distance, and believes that ends can justify the means • Doing things that aren’t favored, or could be potentially morally wrong, but will result in a better situation • High machs do better when they interact face-to-face, when situation has less rules to allow for improvising; when emotional involvement distracts low machs • High machs will be productive in jobs requiring bargaining skills, and that offer substantial rewards for winning c) Core Self Evaluation: degree to which an individual likes or dislikes him or herself; whether they see themselves as capable or not and effective or not; whether that person feels in control of their environment or powerless d) Self Monitoring: ability to adjust behavior to external, situational factors; can present striking contradictions between their public personae and their private selves e) Risk Taking: high risk takers make more rapid, less informed decisions f) TypeAvs. Type B: • Type A: aggressive involvement in a chronic, incessant struggle to achieve more and more in less and less time, and if necessary, against the opposing efforts of other things or people; does everything rapidly; feels impatient a lot; multi-taskers; obsessed with numbers; may suffer more serious health problems • Type B: easy-going, relaxed, patient; never suffer from time-urgency or impatience; no need to discuss or display accomplishments; play for fun and relaxation, not to display superiority; can relax without guilt; more likely to make it to the top g) Proactive Personality: a person who identifies opportunities, shows initiative, takes action, and perseveres until meaningful change occurs h) Narcissism: tendency to be arrogant, have a grandiose sense of self-importance, require excessive admiration, and have a sense of entitlement; extent to which a person believes the world revolves around them 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 Emotional labour: when an employee expresses organizationally desired emotions during interpersonal interactions; ex. Flight attendant Emotional dissonance: inconsistencies between the emotions people feel and the emotions they show danger: bottled-up feelings may lead to exhaustion and burnout Emotional intelligence: an assortment of non-cognitive skills, capabilities, and competencies that influence a person’s ability to succeed in coping with environmental demands and pressures; people high in EI can: - Be self-aware (to recognize one’s own emotions when one experiences them) - Detect emotions in others - Manage emotional cues and information. - Limits of emotional intelligence measures: - EI too vague a concept - Cannot be measured - Validity is suspect: EI too closely related to intelligence and personality - Women right now score a higher EI and are perceived as more social Negative Workplace Emotions: - Emotional deviance: voluntary actions that violate established norms and threaten the organization, its members, or both all traced to negative emotions - Production: leaving early, working slowly - Property: stealing, sabotage - Political: gossiping, blaming coworkers - Personal aggression: sexual harassment, verbal abuse • Emotional affect: how emotions affect external feelings • Feelings: less intense, directed at someone or something • Six universal emotions: anger, fear, disgust, surprise, sadness, happiness Affective Events Theory: the theory that employees react emotionally to things that happen to them at work and that this emotional reaction influences their job performance and satisfaction CHAPTER 11: LEADERSHIP: Leadership: ability to influence an individual or group towards the achievement of goals  Leaders: establish direction by developing a vision of the future, and then they align people by communicating this vision and inspiring them to overcome hurdles  Managers: implement the vision and strategy provided by leaders, coordinate and staff the organization, and handle day-to-day problems Leadership Management Formulates long-term objectives for Engages in day-to-day caretaker activities: reforming the system: plans strategy and maintains and allocates resources tactics Exhibits leading behaviour: acts to bring Exhibits supervisory behaviour: acts to about change in others congruent with make others maintain standard job long-term objectives behaviour Innovates for the entire organization Administers subsystems within organizations Asks what and why to change standard Asks how and when to engage in standard practice practice Creates vision and meaning for the Acts within established culture of the organization organization Uses empowering strategies to make Relies on control strategies to get things followers internalize values done by subordinates Uses transformational influence: induces Uses transactional influence: induces change in values, attitudes, and behaviour compliance in manifest behaviour using using personal examples and expertise rewards, sanctions, and formal authority Status quo challenger and change creator Status quo supporter and stabilizer Th
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