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Organizational Behaviour Exam Study Notes.docx

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Management Core
MGCR 222
Patricia Hewlin

Organizational Behaviour Exam Study Notes Motivation (Chapter 6) Goal-Setting Theory  Goals tell an employee what needs to be done and how much effort will need to be expended. Specific goals increase performance; difficult goals result in higher performance than do easy goals, and that feedback leads to higher performance than does nonfeedback  Challenging goals get our attention and thus tend to help us focus. Difficult goals energize us because we have to work harder to attain them. When goals are difficult, people persist in trying to attain them. Difficult goals lead us to discover strategies that help us perform the job or task more effectively.  Assume an individual is committed to the goal and is determined not to lower or abandon it. In terms of behaviour, the individual believes he or she can achieve the goal, and wants to achieve it. Management by objectives – emphasizes participatively set goals that are tangible, verifiable, and measurable  Goal specificity, participation in decision making, an explicit time period, and performance feedback Equity Theory – employees perceive what they get from a job situation in relationship to what they put into it and then compare their outcome-input ratio with that of relevant others  Self-inside: an employee’s experiences in a different position inside the employee’s current organization  Self-outside: an employee’s experiences in a situation or position outside the employee’s current organization  Other-inside: another individual or group of individuals inside the employee’s organization  Other-outside: another individual or group of individuals outside the employee’s organization  Gender, length of tenure, level in the organization, and amount of education  moderating variables When ratios are equal: state of equity exists – there is no tension as the situation is considered fair When ratios are unequal: tension exists due to unfairness (underrewarded/overrewarded) Tension motivates people to act to bring their situation into equity 1. change their inputs (exert less effort if underpaid, or more if overpaid) 2. change their outcomes (individuals paid on a piece-rate basis can increase their pay by producing a higher quantity of units of lower quality) 3. distort perceptions of self 4. distort perceptions of others 5. choose a different referent 6. leave the field (quit the job) Distributive justice – the employee’s perceived fairness of the amount and allocation of rewards among individuals (most strongly related to organizational commitment and satisfaction with outcomes such as pay) Organizational justice – a larger perception of what is fair in the workplace Procedural justice – the perceived fairness of the process used to determine the distribution of rewards (relates most strongly to job satisfaction, employee trust, withdrawal from the organization, job performance, and citizenship behaviours)  process control – opportunity to present your point of view about desired outcomes to decision makers  explanations – clear reasons management gives for the outcome (consistent, unbiased, accurate information, open to appeals) Interactional justice – an individual’s perception of the degree to which she is treated with dignity, concern, and respect Communication (Chapter 10) Communication process  The sender initiates a message by encoding a thought  The message is the actual physical product of the sender’s encoding  The channel is the medium through which the message travels o Formal channels – established by the organization and transmit messages related to the professional activities of members. Traditionally follow the authority chain within the organization o Informal channels – spontaneous and emerge as a response to individual choices  The receiver is the person to whom the message is directed, who must first translate the symbols into understandable form (decoding)  Noise represents communication barriers that distort the clarity of the message, such as perceptual problems, information overload, semantic difficulties, or cultural differences  Feedback is the check on how successful we have been in transferring our messages as originally intended Downward Communication – flows from one level of a group or organization to a lower level  When engaging in downward communication, managers must explain the reasons why a decision was made  Generally, managers inform employees but rarely solicit their advice or opinions Upward communication – flows to a higher level in the group or organization  Keeps managers aware of how employees feel about their jobs, co-workers, and the organization in general  Ideas on how conditions can be improved  Increasingly difficult because managers are overwhelmed and easily distracted  Try to reduce distractions, communication in headlines not paragraphs, support your headlines with actionable items, and prepare an agenda to make sure you use your boss’s attention well Lateral communication – when communication takes place among members of the same work group, members of work groups at the same level, managers at the same level, or any other horizontally equivalent workers  Saves time and facilitates coordination  Can create conflict when the formal vertical channels are breached, when members go above or around their superiors to get things done, or when bosses find actions have been taken or decisions made without their knowledge Formal Small-Group Networks  Chain rigidly follows the formal chain of commands; this network approximates the communication channels you might find in a rigid three-level organization  Wheel relies on a central figure to act as the conduit for all the group’s communication; it simulates the communication network you would find on a team with a strong leader  All-channel network permits all group members to actively communicate with each other; it’s most often characterized in practice by self-managed teams, in which all group members are free to contribute and no one person takes on a leadership role Barriers to Effective Communication  Filtering – refers to how a sender purposely manipulates information so the receiver will see it more favourably. The more vertical levels in the organization’s hierarchy, the more opportunities there are for filtering  Selective perception  Information overload – when the information we have to work exceeds our processing capacity  Emotions  Language  Silence  Communication apprehension – experience undue tension and anxiety in oral communication, written communication or both Cultural Guide  Assume differences until similarity is proven  Emphasize description rather than interpretation or evaluation  Practice empathy  Treat your interpretations as a working hypothesis Leadership (Chapter 11) Leadership – the ability to influence a group toward the achievement of a vision or set of goals. The source of this influence may be formal Trait theories of leadership  Traits can predict leadership  Traits do a better job predicting the emergence of leaders and the appearance of leadership than actually distinguishing between effecting and ineffective leaders Behavioural theories of leadership – theories proposing that specific behaviours differentiate leaders from nonleaders  Initiating structure – the extent to which a leader is likely to define and structure his or her role and those of employees in the search for goal attainment. It includes behaviour that attempts to organize work, work relationships, and goals  Consideration – the extent to which a person’s job relationships are characterized by mutual trust, respect for employees’ ideas, and regard for their feelings.  Employee-oriented leader – emphasized interpersonal relationships by taking a personal interest in the needs of employees and accepting individual differences among them  Production-oriented leader – emphasized the technical or task aspects of the job Difference between theories of leadership:  Trait theory: leadership is inherent, so we must identify the leader based on his or her traits  Behavioural theory: leadership is a skill set and can be taught to anyone, so we must identify the proper behaviours to teach potential leaders Contingency Theories – while trait and behaviour theories do help us understand leadership, an important component is missing: the environment in which the leader exists  Contingency theory deals with this additional aspect of leadership effectiveness studies Fiedler contingency model – proposes that effective group performance depends on the proper match between the leader’s style and the degree to which the situation gives the leader control  If a situation requires a task-oriented leader and the person in the leadership position is relationship oriented, either the situation has to be modified or the leader has to be replaced to achieve optimal effectiveness (LPC questionnaire)  Leader-member relations – the degree of confidence, trust, and respect members have in their leader  Task structure – the degree to which the job assignments are procedurized (structured/unstructured)  Position power – the degree of influence a leader has over power variables such as hiring, firing, discipline, promotions, and salary increases Positives  Considerable evidence supports the model, especially if the original eight situations are grouped into three Problems  The logic behind the LPC scale is not understood  LPC scores are not stable  Contingency variables are complex and hard to determine Leader-Member Exchange Theory (LMX) – a response to the failing contingency theories to account for followers and heterogeneous leadership approaches to individual workers  Because of time pressures, leaders form a special relationship with a small group of followers: the “in- group”  This in-group is trusted and gets more time and attention from the leader (more exchanges)  All other followers are in the “out-group” and get less of the leader’s attention and tend to have formal relationships with the leader (fewer exchanges)  Leaders pick group members early in the relationship LMX Model  Follower characteristics determine group membership  Leaders control by keeping favourites close  Research has been generally supportive Transactional leaders – guide their followers toward established goals by clarifying role and task requirements  Contingent reward – contracts exchange of rewards for effort, promises rewards for good performance, recognizes accomplishments  Management by exception (active) – watches and searches for deviations from rules and standards, takes correct action  Management by exception (passive) – intervenes only if standards are not met  Laissez-faire – abdicates responsibilities, avoids making decisions Transformation leaders – inspire followers to transcend their self-interests for the good of the organization and can have an extraordinary effect on their followers. Pay attention to concerns and needs of individual followers, change followers’ awareness of issues by helping them look at old problems in new ways, and excite and inspire followers to put out extra effort to achieve group goals  Idealized influence – provides vision and sense of mission, instills pride, gains respect and trust  Inspirational motivation – communicates high expectations, uses symbols to focus efforts, expresses important purposes in simple ways  Intellectual stimulation – promotes intelligence, rationality, and careful problem solving  Individualized consideration – gives personal attention, treats each employee individually, coaches, advises Transformational leadership builds on transactional leadership approaches and produces levels of follower effort and performance beyond what transactional leadership alone can do Authentic leaders – know who they are, know what they believe in and value, and act on those values and beliefs openly and candidly. Their followers consider them ethical people Trust – psychological state that exists when you agree to make yourself vulnerable to another because you have positive expectations about how things are going to turn out  Encourages taking risks  Facilitates information sharing  More effective groups  Enhances productivity Power and Politics (Chapter 12) Power – refers to a capacity that A has to influence the behaviour of B so B acts in accordance with A’s wishes  function of dependency  The greater B’s dependence on A, the greater A’s power in the relationship. Dependence is based on alternatives that B perceives, and the importance B places on the alternatives A controls Leadership vs. Power  Leadership – focuses on goal achievement, requires goal compatibility with followers, focuses influence downward  Power – used as a means for achieving goals, requires follower dependency, used to gain lateral and upward influence Dependency increases when resources are important, scarce, and nonsubtitutable. Formal power – based on an individual’s position in an organization. It can come from the ability to coerce or reward, or from formal authority  Coercive power – depends on fear of the negative results from failing to comply  Reward power – people comply because it produces positive benefits; someone who can distribute rewards others view as valuable will have power over them  Legitimate power – represent the formal authority to control and use organizational resources based on structural position in the organization Personal power – comes from an individual’s unique characteristics  Expert power – influence wielded as a result of expertise, special skill, or knowledge  Referent power – based on identification with a person who has desirable resources or personal traits Personal sources of power are most effective. Both expert and referent power are positively related to employees’ satisfaction with supervision, their organizational commitment, and their performance, whereas reward and legitimate power seem to be unrelated to these outcomes Political behaviour – consists of activities that are not required as part of an individual’s formal role but that influence, or attempt to influence, the distribution of advantages and disadvantages within the organization  Legitimate – normal everyday politics: complaining to your supervisor, bypassing the chain of command, forming coalitions, obstructing organizational policies, developing contacts outside the organization through professional activities  Illegitimate – violated the implied rules of the game. Illegitimate activities include sabotage, whistle- blowing, symbolic protests  Extreme forms of illegitimate behaviour pose a very real risk of losing organizational membership or incurring extreme sanctions Causes and Consequences of Political Behaviour Factors Contributing to Political Behaviour  Individual factors – in terms of traits, we find that employees who are high self-monitors, possess an internal locus of control, and have a high need for power are more likely to engage in political behaviour. The high self-monitor is more sensitive to social cues, exhibits higher levels of social conformity, and is more likely to be skilled in political behaviour. Individuals with an internal locus of control are more prone to take a proactive stance and attempt to manipulate situations in their favour. In addition, an individual’s investment in the organization, perceived alternatives, and expectations of success influence the degree to which he or she will pursue illegitimate means of political action. The more a person expects increased future benefits, the more that person has to lose if forced out and the less likely they are to use illegitimate means. The more alternative job opportunities an individual has, the more likely that individual is to risk illegitimate political actions. If an individual has a low expectation of success in using illegitimate means, it is unlikely they will attempt to do so  Organizational factors – when an organization’s resources are declining, when the existing pattern of resources is changing, and when there is opportunity for promotions, politicking is more likely to surface. Cultures characterized by low trust, role ambiguity, unclear performance evaluation systems, will create breeding grounds for politicking. When organizations downsize to improve efficiency, reductions in resources have to be made. The opportunity for promotions or advancement encourages people to compete for a limited resource and to try to positively influence the decision outcome. o Role ambiguity means the prescribed employees behaviours are not clear. There are therefore fewer limits to the scope and functions of the employee’s political actions o The more subjective criteria in the appraisal, emphasize a single outcome measure, or allow significant time to pass between the time of an action and its appraisal, the greater the likelihood that an employee can get away with politicking o The more an organization’s culture emphasizes the zero-sum approach to reward allocation, the more employees will be motivated to engage in politicking. The zero-sum approach treats the reward “pie” as fixed, so any gain on person or group achieves has to come at the expense of others o The more pressure employees feel to perform well, the more likely they are to engage in politicking o When employees see the people on top engaging in political behaviour, a climate is created that supports politicking Factors (Lecture Notes) – Individual  High self-monitors  Internal locus of control  High Mach personality  Organizational investment  Perceived job alternatives  Expectations of success Organizational  Reallocation of resources  Promotion opportunities  Low trust  Role ambiguity  Unclear performance evaluation system  Zero-sum reward practices  Democratic decision making  High performance pressures  Self-serving senior managers How Do People Respond to Organizational Politics?  Decreased job satisfaction  Increased anxiety and stress  Increased turnover  Reduced performance  Politics-performance relationship appears to be moderated by an individual’s understanding of the “hows” and “whys” of organizational politics. When both politics and understanding are high, performance is likely to increase because the individual will see political actions as an opportunity. But when understanding is low, individuals are more likely to see politics as a threat, which would have a negative effect on job performance  When employees see politics as a threat, they often respond with defensive behaviours (reactive and protective behaviours to avoid action, blame, or change). In the short run, employ
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