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Organizational Behaviour final exam review COMM 151 (MINERS)
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Department
Commerce
Course
COMM 151
Professor
Christopher Miners
Semester
Winter

Description
Organizational Behaviour (COMM 151) Final Exam Review Shannon Bailey Chapter 1 / Lecture 1 & 2 Organizations – social inventions for accomplishing common goals through group effort Organizational behaviour – the attitudes and behaviours of individuals and groups in organizations. The field of OB is about understanding people and managing them to work effectively, is concerned with how organizations can survive and adapt to change, and with how to get people to practice effective teamwork Management – the art of getting things accomplished in organizations through others History of Organizational Behaviour  In early 1900s, rapid industrialization and factory work, movement toward efficiency Scientific Management – Taylor’s system for using research to determine the optimum degree of specialization and standardization of work tasks Bureaucracy – Max Weber’s ideal type of organization that included a strict chain of command, detailed rules, high specialization, centralized power, and selection and promotion based on technical competence Classical Viewpoint/Scientific management/Taylorism: 1. high degree of specialization in jobs 2. routinized procedures 3. decision making power concentrated in upper management 4. promotion for conformity problems: boring, easy to lose sight of significance of work, can lead people to do the bare minimum, entry level employees have no means to influence upper management  In 1920s and 1930s, human relations were analyzed, they found that psychological and social factors influence the behaviour of workers Hawthorne studies – research conducted at the Hawthorne plant of Western Electric near Chicago in the 20s and 30s that illustrated how social and psychological processes affect productivity and work adjustment Human relations movement – a critique of classical management and bureaucracy that advocated management styles that were more participative and oriented toward employee needs  Today, Contingency approach, there is no one best way to manage – an appropriate management style depends on the demands of the situation Formal Managerial Roles: Authority and Status Informational Interpersonal Decisional Roles Roles Roles Monitor Figurehead Entrepreneur Disturbance Disseminator Leader Handler Resource Spokesperson Liaison allocator Negotiator Managerial Activities:  Routine communication – handling of paperwork, meetings  Traditional management – planning, decision making & controlling  Networking – interacting with people outside organization  Human Resource Management – employee management Managerial Agendas:  Agenda setting – goals, plans  Networking  Agenda Implementation – using network to implement agendas Talent Management – an organization’s processes for attracting, developing, retaining and utilizing people with the required skills to meet current and future business needs Corporate social responsibility (CSR) – an organization taking responsibility for the impact of its decisions and actions on its stakeholders Chapter 5 / Lecture 3 Motivation – the extent to which persistent effort is directed toward a goal Intrinsic motivation – motivation that stems from the direct relationship between the worker and the task; it is usually self applied Extrinsic motivation – motivation that stems from the work environment external to the task, it is usually applied by others -even if upper management thinks a motivation technique is working well in the short run, it may not be helpful (or may even be harmful) in the long run (linebacker terry tate commercial example) -money is a motivator but if you’re only 5 or 10 percent underpaid, the other perks are probably stronger motivators Motivation techniques:  Perks i.e. day care, gym facilities, monetary bonus  Flexibility i.e. telecommuting, casual dress, flex hours  Growth i.e. offer career management, invest in training Self Determination theory – a theory of motivation that considers whether people’s motivation is autonomous or controlled Autonomous motivation – when people are self-motivated by intrinsic factors Controlled motivation – when people are motivated to obtain a desired consequence or extrinsic award Performance – the extent to which an organizational member contributes to achieving the objectives of the organization Factors Contributing to Job Performance Amount, Persistence, General Task Emotional and Motivation Personality Cognitive Understandi Intelligence Chance Performance Directionof ability ng Effort General cognitive ability – a person’s basic information processing capacities and cognitive resources Emotional intelligence – the ability to understand and manage one’s own and other’s feelings and emotions 1. Perceiving emotions accurately in oneself and others 2. Using emotions to facilitate thinking 3. Understanding emotions, emotional language, and the signals conveyed by emotions 4. Managing emotions so as to attain specific goals Need theories – motivation theories that specify the kinds of needs people have and the conditions under which they will be motivated to satisfy these needs in a way that contributes to performance Maslow’s hierarchy of needs – a five level hierarchical need theory of motivation that specifies that the lowest level unsatisfied need has the greatest motivating potential 1. Physiological needs – needs that must be satisfied for the person to survive I.e food, water, shelter 2. Safety needs – needs for security, stability, freedom from anxiety, and a structured and order environment. May include safe working conditions, fair rules and regulations, job security, pension plans, etc 3. Belongingness needs – needs for social interaction, affection, love, friendship i.e. opportunity to interact with others on the job, friendly and supportive supervision 4. Esteem needs – needs for feelings of adequacy, competence, independence, strength, and confidence, and the appreciation and recognition of these characteristics by others i.e. the opportunity to master tasks leading to feelings of achievement and responsibility, awards, promotions, professional recognition 5. Self-actualization needs – involve the desire to develop one’s true potential as an individual to the fullest extent and to express one’s skills, talent, and emotions in a manner that is most personally fulfilling i.e. absorbing jobs with the potential for creativity and growth as well as a relaxation of structure to permit self development and personal progression Alderfer’s ERG theory – a three-level hierarchical need theory of motivation that allows for movement up and down the hierarchy (a lower-level need mustn’t be satisfied to fulfill a higher level need). ERG theory assumes that if the higher level needs are unsatisfied, individuals will increase their desire for the gratification of lower level needs. 1. Existence needs – needs that are satisfied by some material substance or condition. Correspond to Maslow’s physiological needs and to those safety needs that are satisfied by material conditions rather than interpersonal relations. i.e. shelter, food, pay, safe working conditions 2. Relatedness needs – needs that are satisfied by open communication and the exchange of thoughts and feelings with other organizational members. They correspond to Maslow’s belongingness needs and to those esteem needs that involve feedback from others. However, Alderfer stresses that relatedness needs are satisfied by open, accurate, honest interaction rather than by uncritical pleasantness 3. Growth needs – the needs satisfied by strong personal involvement in the work setting, full utilization of one’s skills and abilities and the development of new skills and abilities. This corresponds to Maslow’s self actualization needs and the aspects of esteem needs that concern achievement and responsibility McClelland’s Theory of Needs – a non hierarchical need theory of motivation that outlines the conditions under which certain needs result in particular patterns of motivation Need for achievement – a strong desire to perform challenging tasks well. Individuals who are high in need for achievement will have a preference in which personal responsibility can be taken for outcomes, a tendency to set moderately difficult goals that provide for calculated risks, and a desire for performance feedback Need for affiliation – a strong desire to establish and maintain friendly, compatible interpersonal relationships Need for power – a strong desire to influence others, making a significant impact or impression Process theories – motivation theories that specify the details of how motivation occurs Expectancy Theory – a process theory that states that motivation is determined by the outcomes that people expect to occur as a result of their actions on the job Instrumentality – the probability that a particular first level outcome will be followed by a particular second level outcome Valence – the expected value of work outcomes; the extent to which they are attractive or unattractive -the valence of a first level outcome depends on the extent to which it leads to favourable second level outcomes Expectancy – the probability that a particular first level outcome can be achieved Force – the effort directed toward first level outcome Force = first level valence x expectancy E = expectancy, V = Valence, I = instrumentality I I I E I I E I I I Expectancy theory says:  People will be motivated to perform in those work activities that they find attractive and that they feel they can accomplish  The attractiveness of various work activities depends on the extent to which they lead to favourable personal consequences Equity Theory - a process theory that states that motivation stems from a comparison of the inputs one invests in a job an the outcomes one receives in comparison with the inputs and outcomes of another person or group. Fairness matters to us: individuals are motivated to maintain an equitable exchange relationship When inequity is present, people will devote considerable energy to reducing inequity by:  Perceptually distorting one’s own inputs or outcomes  Perceptually distorting the inputs/outcomes of the comparison person or group  Choose another comparison person or group  Alter one’s inputs or outcomes  Leave the exchange relationship For example, if your performance is very high with an $85000 salary, and your coworker’s performance is high with a $95000 salary: You will feel cheated – you may ask for a raise, wait & hope mgmt. notices, or resign, but most likely you will just decrease your performance Your coworker might feel guilty, lucky, or happy – he/she may increase performance, but most likely he/she will come up with reasons why they are paid more – self serving bias Goal – the object or aim of an action Goal setting theory – a process theory that states that goals are motivational when they are specific, challenging, and when organizational members are committed to them and feedback about progress toward goal attainment is provided -goals are most effective when workers are actively involved in setting them – the worker has a sense of ownership and ensures the goal is realistic -if you make a goal public, you become publicly accountable – good motivator Goal orientation – an individual’s goal preferences in achievement situations Learning goal orientation – a preference to learn new things and develop competence in an activity by acquiring new skills and mastering new situations Performance goal orientation – a preference to obtain favourable judgments about the outcome of one’s performance Performance-avoid goal orientation – a preference to avoid negative judgments about the outcome of one’s performance -a performance prove orientation is not related to learning or performance outcomes -a learning goal orientation is most effective for learning and performance outcomes, while a performance avoid goal orientation is detrimental for learning and performance Distal goal – long term or end goals Proximal goal – short term or sub-goals. Proximal goals involve breaking down a distal goal into smaller, more attainable sub goals. They provide clear markers of progress toward a distal goal. Chapter 6 / Lecture 4 Piece-rate – a pay system in which individual workers are paid a certain sum of money for each unit of production completed Benefits – increased productivity and decreased turnover Potential Problems – lowered quality, differential opportunity (might be less opportunity to produce a lot for fault of equipment or resources at different factories), reduced cooperation, incompatible job design, restriction of productivity) Wage incentive plans – various systems that link pay to performance on production jobs -wage incentives will increase productivity, but can cause lowered quality and reduced cooperation -also, a threat to the establishment of wage incentives exists when workers have different opportunities to produce at a high level, or the way the job is designed is incompatible with wage incentives (i.e on an assembly line, difficult to identify and reward individual contributions to productivity) Restriction of productivity – the artificial limitation of work output that can occur under wage incentive plans. This happens if workers come to an informal agreement about what constitutes a fair day’s work. This happens because employees may fear that increased productivity may result in reductions in the workforce or that if employees produce at an exceptionally high level, employer may reduce the rate of payment Merit pay plans – systems that attempt to link pay to performance on white-collar jobs The problems with merit pay plans are: Low discrimination – managers might be unwilling or unable to discriminate between good and bad performers Small increases - merit increases may be simply too small to be good motivators Pay secrecy – even if merit pay is administered fairly, is contingent on performance, and is generous, employees may remain ignorant of these facts as they have no way of comparing their own merit treatment with that of others. Employees are inclined to ‘invent’ salaries of other members: they underestimate their bosses pay, overestimate their peers’ pay, and overestimate their subordinates pay. These tendencies reduce satisfaction with pay, damage perceptions of the linkage between performance and rewards, and reduce the valence of promotion to a higher level of management. Lump sum bonus – merit pay that is awarded in a single payment and not built into base pay Profit sharing – the return of some company profit to employees in the form of a cash bonus or a retirement supplement. However, difficult to see one employee’s impact on a company’s profit, so likely not too motivational. Employee stock ownership plans (ESOPs) – incentive plans that allow employees to own a set amount of a company’s shares and provide employees with a stake in the company’s future earnings and success Gain sharing – a group pay incentive plan based on productivity or performance improvements over which the workforce has some control Skill based pay – a system in which people are paid according to the number of job skills they have acquired Pay Plan Description Advantages Disadvantages Profit Employees -employees have a sense of -many factors beyond the control Sharing receive a cash ownership of employees can affect profits bonus based on -aligns employee goals with -it is difficult for employees to see organization organization goals the impact of their actions on profits -only pays when the profits organization makes a profit Employee Employees can -creates a sense of legal and -many factors influence the value Stock own a set psychological ownership for of a company’s shares, regardless Ownership amount of the employees of employees’ effort and Plans organization’s -aligns employee goals and performance (ESOPs) shares interests with those of the -difficult for employees to see organization connection between stock price and their effort -motivational potential lost in a weak economy (value of stocks down) Gainsharing When measured -aligns organization and -bonuses might be paid even costs decrease, employee goals when the organization does not employees -encourages teamwork and make a profit receive a bonus cooperative behaviour -employees might neglect based on a objectives that are not included predetermined in the formula formula Skill-based Employees are -encourages employees to -increases cost of training and pay paid according learn new skills labour costs (if employees have to the number -greater flexibility in task more skills, will demand more of job skills they assgnments money) acquire -provides employees with a broader picture of the work process Job scope – the breadth and depth of a job Breadth – the number of different activities performed in a job Depth – the degree of discretion or control a worker has over how tasks are performed High Depth, Low Breadth High Scope Quality Control Manager Equipment Professor Monitoring Low Scope High Breadth, Traditional low depth assembly line Assembly line job utility worker -high scope jobs should provide more intrinsic motivation than low scope jobs. People can fulfill higher order needs by the opportunity to perform high scope jobs. -you can increase the scope of a job by offering stretch assignments (challenging ones) or job rotation Job rotation – rotating employees to different tasks and jobs in an organization Core job characteristics: STAFT  Skill variety – the opportunity to do a variety of job activities using various skills and talents o High variety – owner/operator of a garage does electrical repair, rebuilds engines, body work, and customer interaction o Low variety – a body shop worker spray paints 8 hours a day  Autonomy – the freedom to schedule one’s own work activities and decide work procedures o High autonomy – a telephone installer who schedules his own work for the day, makes unsupervised visits, and decides on the most effective techniques to use o Low autonomy – a telephone operator who must handle calls according to a routine, highly specified procedure  Task significance – the impact that a job has on other people o High significance – nursing the sick in a hospital intensive care unit o Low significance – sweeping hospital floors  Task identity – The extent to which a job involves doing a complete piece of work, from beginning to end o High identity – a cabinet maker who designs a piece of furniture, selects the wood, builds the object, and finishes it to perfection o Low identity – a worker in a furniture factory who operates a lathe solely to make table legs  Feedback – Information about the effectiveness of one’s work performance o High feedback – an electronics factory worker who assembles a radio and then tests it to determine if it operates properly o Low feedback – an electronics factory worker who assembles a radio and then routes it to a quality control inspector Motivating potential score = S + T + T x A x F 3 Growth need strength – the extent to which people desire to achieve higher order need satisfaction by performing their jobs. This may be why jobs high in motivating potential do not always lead to favourable outcomes for every individual Job enrichment – the design of jobs to enhance intrinsic motivation, quality of working life, and job involvement. Typically involves increasing the motivation potential of jobs via the arrangement of their core characteristics. Job enrichment schemes:  Combining tasks – increases variety and may contribute to task identity  Establishing external client relationships – increase identity and significance of the job, as well as feedback  Establishing internal client relationships – see above  Reducing supervision or reliance on others – increases autonomy  Forming work teams – increases variety and identity  Making feedback more direct – increases feedback -job enrichment can create problems if there is a poor diagnosis, a lack of workers’ desire/skill, a demand for rewards, and union or supervisory resistance Job involvement – a cognitive state of psychological identification with one’s job and the importance of work to one’s total self image Job enlargement – increasing job breadth by giving employees more tasks at the same level to perform but leaving other core characteristics unchanged (workers given more boring, fragmented, routine tasks – not motivating) Work design characteristics – attributes of the task, job, and social and organizational environment  Task characteristics – how the work itself is accomplished and the range and nature of tasks associated with a particular job (involves autonomy, task variety, significance, identity, and feedback)  Knowledge characteristics – the kinds of knowledge, skill, and ability demands that are placed on an individual as a function of what is done on the job (includes job complexity, as well as the information processing, problem solving, skill variety, and specialization required by the job)  Social characteristics – the interpersonal and social aspects of work (social support, interdependence, interaction outside organization required by job, and feedback from others)  Contextual characteristics – the context within which work is performed including the physical and environmental contexts (ergonomics, physical demands, work conditions, equipment use) Management by Objectives (MBO) – an elaborate, systematic, ongoing program designed to facilitate goal establishment, goal accomplishment, and employee development. Manager will meet with workers to agree on objectives, there are periodic meetings, and an appraisal meeting is held to evaluate the success/failure with regards to meeting the objectives -alternative working schedules are also a motivator: Flex time – an alternative work schedule in which arrival and departure times are flexible Compressed workweek – employees work fewer than the normal 5 days a week but still put in a normal number of hours per week Job sharing – two part time employees divide the work of a full time job Work sharing – reducing the number of hours employees work to avoid layoffs when there is a reduction in normal business activity Telecommuting – a system by which employees are able to work at home but stay in touch with their offices through the use of communications technology Task performance – how well you do on the activities that are assigned to you Organizational citizenship behaviour (OCB) – activities that are not a part of your formal job description but nonetheless help the organization to succeed Counterproductive work behaviour – opposite of OCB, activities that harm the organization and are willful. For example, showing up late, spreading rumors about coworkers -when judging job performance, there are three types of managers: those for whom task performance dominates, those for whom counterproductive performance dominates, and those for whom task and counterproductive performance are weighed equally -notice that OCB does not influence the way a manager rates an employee’s level of job performance -the strongest job performers are individuals who score high on IQ and EI (emotional intelligence) tests, and conscientious individuals -people who score high on EI tests are strong performers because they are aware of their strengths and weaknesses, they deal with stress better, they’re good and managing your and other’s emotions (and it helps to be well-liked) -extraversion and agreeableness are also related to job performance, but less so than conscientiousness Personality Amount/Persistence/Direction General CognitiveAbility of Effort Motivation EmotionalIntelligence Performance Chance Chapter 4 / Lecture 5 Values – a broad tendency to prefer certain states of affairs over others i.e. different generations (X vs Y value different things, different cultures value different things) Hofstede’s Study – Four basic dimensions along which work related values differ across cultures:  Power Distance – the extent to which an unequal distribution of power is accepted by society members. In small power distance countries, inequality is minimized, superiors are accessible and power differences are downplayed; they include Austria, Denmark, and New Zealand  Uncertainty Avoidance – the extent to which people are uncomfortable with uncertain and ambiguous situations. Strong uncertainty avoidance cultures stress rules and regulations, hard work, conformity and security, and include Japan, Greece and Portugal. Weak uncertainty avoidance cultures are less concerned with rules and risk taking is valued, including Singapore, Sweden.  Masculinity/Femininity – more masculine cultures clearly differentiate gender roles, support the dominance of men, and stress economic performance. Feminine cultures accept fluid gender roles, stress sexual equality and quality of life. Japan is the most masculine, and Scandinavian countries are the most feminine  Individualism vs. Collectivism – individualistic societies stress independence, individual initiative, and privacy. Collective cultures favour interdependence and loyalty to family or clan. USA and Australia are individualistic, where Columbia and Pakistan are collective  Long term vs. Short term orientation – culture with a long term orientation stress persistence, perseverence, thrift, and close attention to status differences while cultures with a short term orientation stress personal steadiness and stability, face saving, and social niceties. China and Japan are more long term while US and Nigeria are more short term. -an appreciation of cross cultural differences in values is essential to understanding the needs and tastes of customers or clients around the world, as well as to translate management practices to other cultures Attitude – a fairly stable evaluative tendency to respond consistently to some specific object, situation, person, or category of people. Attitudes influence behaviour. Belief + Value  Attitude  Behaviour Job satisfaction – a collection of attitudes that workers have about their jobs What determines job satisfaction?  Discrepancy  Fairness  Disposition (born with it)  Mood and Emotion  Career Opportunities The key contributors, however, are:  Mentally challenging work  Adequate Compensation  Job Performance (especially when pay is tied to performance)  Satisfying Social Relationships  Personality Traits -when measuring job satisfaction, you must take into account multiple items because there are multiple facets to satisfaction. When measuring, dilute carelessness by including many questions on a survey What does job satisfaction predict? 1. Weak relation with task performance – so many things contribute to task performance (i.e. EI, IQ etc) so just not enough to make a strong correlation 2. Moderate relation with customer satisfaction and turnover intentions 3. Strong relation with organizational citizenship behaviour Discrepancy theory – a theory that job satisfaction stems from the discrepancy between the job outcomes wanted and the job outcomes that are perceived to be obtain Job outcome perceived to be obtained > job outcome desired = high satisfaction Distributive fairness – fairness that occurs when people receive the outcomes they think that they deserve from their jobs Equity theory – a theory that job satisfaction stems from a comparison of the inputs ones invests in a job and the outcomes one receives in comparison with the inputs and outcomes of another person or group My outcomes = Other’s outcomes My inputs Other’s inputs Procedural fairness – fairness that occurs when the process used to determine work outcomes is seen as reasonable. Rather than the actual distribution of resources or rewards, it is concerned with how these outcomes are allocated and decided. The following factors contribute to perceptions of procedural fairness: (the allocator)  Follows consistent procedures over time and across people  Uses accurate information and appears unbiased  Allows two way communication during the allocation process  Welcomes appeals of the procedure or allocation Interactional fairness – fairness that occurs when people feel they have received respectful and informative communication about an outcome Emotions – intense, often short lived feelings caused by a particular event Mood – less intense, longer lived and more diffuse feelings Emotional contagion – tendency for moods and emotions to spread between people or throughout a group Emotional regulation (emotional labour) – requirement for people to conform to certain display rules in their job behaviour in spite of their true mood or emotions. The frequent need to suppress negative emotions takes a toll on job satisfaction and increases stress. -stress negatively impacts your health: recall example from class with nuns who wrote autobiographies; those who used positive emotions lived on average 10 years longer than those with the least positive emotion words Consequences of High Job Satisfaction:  Low absence from work  Low turnover rates  High performance  High organizational citizenship behaviour  High customer satisfaction and profit (employee job satisfaction translates into customer satisfaction due to moods, less turnover, etc) Organizational commitment – an attitude that reflects the strength of the linkage between an employee and an organization Affective commitment – commitment based on identification and involvement with an organization. People with high affective commitment stay with an organization because they want to. Continuance commitment – commitment based on the costs that would be incurred in leaving an organization. People with high continuance commitment stay with an organization because they have to. Normative commitment – commitment based on ideology or a feeling of obligation to an organization. People with high normative commitment stay with an organization because they think that they should do so. -continuance commitment can negatively affect performance -changes in the workplace (i.e. change in workforce size, change in managerial style, etc) are having an impact on the nature of employee commitment and employee- employer relationships Chapter 13 (437-458) / Lecture 6 Stressors – environmental events or conditions that have the potential to induce stress Stress – a psychological reaction to the demands inherent in a stressor that has the potential to make a person feel tense or anxious. Stress is not intrinsically bad, and moderate levels of stress can even be a motivator. But when stress leads to high levels of anxiety and tension, it is not good. Stress reactions – the behavioural, psychological, and physiological consequences of stress Locus of control – a set of beliefs about whether one’s behaviour is controlled mainly by internal or external forces Internals are more likely to confront stressors directly because they assume that this response will make a difference Externals are anxious but do not feel that they are masters of their own fate – they are more prone to simple anxiety reduction strategies that only work in the short run Type A Behaviour Pattern – a personality pattern that includes aggressiveness, ambitiousness, competitiveness, hostility, impatience, and a sense of time urgency. These people seem to either encounter more stressful situations than type B people do, or perceive themselves as doing so Negative Affectivity – the propensity to view the world, including oneself and other people, in a negative light. Those who are high in negative affectivity re more susceptible to stress, and this is probably because of a) a predisposition to perceive stressors in the workplace b) hypersensitivity to existing stressors c) a tendency to gravitate to stressful jobs d) a tendency to provoke stress through their negativity e) the use of passive, indirect coping styles that avoid the real sources of stress Executive and Managerial Stressors: Role overload – the requirement for too many tasks to be performed in too short a time period Heavy Responsibility – the work can have extremely important consequences for the organization and its members, meaning very high pressure Operative Level Stressors: (operatives are individuals who occupy non professional and non managerial positions in organizations) Poor Physical Working Conditions – employees may face excessive heat, cold, noise, pollution, and the chance of accidents Poor Job Design – when job scope is either too low or too high it can be a stressor. Monotony and boredom can prove extremely frustrating to people who feel capable of handling more tasks Boundary Role Stressors: (boundary roles are positions in which organizational members are required to interact with members of other organizations or with the public) Role Conflict – an individual working with clients have to make both the client and the company happy, for example a sales rep has to sell while protecting another function from unreasonable demands that could result in a broken contract Burnout – a syndrome of emotional exhaustion, cynicism, and reduced self efficacy. Often results when an individual works with people who require special attention or are experiencing severe problems i.e. social workers, teachers, nurses etc. Burnout seems to be most common among people who entered their jobs with especially high ideals, their expectations of being able to change the world are frustrated when they experience a ‘reality shock’ Work engagement – a positive work related state of mind that is characterized by vigor, dedication, and absorption Job demands-resources model – a model that specifies how job demands cause burnout and job resources cause engagement  Demands are physical, psychological, social or organizational features of a job that require sustained physical or psychological effort that can in turn result is physiological or psychological costs (i.e. work overload, time pressure etc.  Resources are features of a job that are functional in that they help achieve work goals, reduce job demands, and stimulate personal growth, learning, and development (i.e. pay, team climate, task significance)  High job resources foster work engagement, while high job demands exhaust employees physically and mentally an lead to burnout. Resources can buffer the negative impacts of demands on well-being Some General Stressors:  Interpersonal Conflict Bullying – repeated negative behaviour directed toward one or more individuals of lower power or status that creates a hostile work environment  Work-family conflict  Job insecurity and change  Role ambiguity  Sexual harassment Execs and Managers -heavy, continuing workload -heavy responsibility Boundary Roles -role conflict Operative Roles -poor physical -emotional labour conditions -poor job design All Employees -job insecurityand change -role ambiguity -interpersonalconflict -work family conflict -sexualharassment -bullying Behavioural Reactions to Stress: Problem solving – problem solving is directed toward terminating the stressor or reducing its potency, not simply making the person feel better in the short run i.e. Delegation, time management, talking it out, asking for help, searching for alternative Seeking social support – people with stronger social networks exhibit better psychological and physical wellbeing, and when people encounter stressful events, those with good social networks are likely to cope more positively Performance changes – some stressors can damage performance (i.e. role ambiguity, interpersonal conflict), while others may increase or decrease performance, since they add challenge & have motivating potential (i.e. heavy workload and responsibility) Withdrawal – in organizations, withdrawal takes the form of absence and turnover Use of addictive substances – the least satisfactory behavioural responses to stress for both the individual and the organization. They fail to terminate stress episodes, and may even worsen or cause additional stress Psychological Reactions to Stress: Defense Mechanisms – psychological attempts to reduce the anxiety associated with stress. Common defense mechanisms include: Rationalization – attributing socially acceptable reasons or motives to one’s actions so that they will appear reasonable and sensible, at least to oneself Projection – attributing one’s own undesirable ideas and motives to others so that they seem less negative Displacement – directing feelings of anger at a ‘safe’ target rather than expressing them where they may be punished Reaction formation – expressing oneself in a manner that is directly opposite to the way one truly feels, rather than risking negative reactions to one’s true position Compensation – applying one’s skills to a particular area to make up for a failure in another area -the occasional use of defense mechanisms as a short term anxiety reducer probably benefits both the individual and the organization, but when their use becomes a chronic reaction to stress, the problem remains unresolved, and the stress may increase with the knowledge that the defense has been essentially ineffective Physiological Reactions to stress: -Work stress is associated with elevated levels of blood pressure, cholesterol, and pulse. Also, it is associated with the onset of some diseases due to its ill effects on the immune system. Managing Stress Physiology Facial Expression Action Event Appraisal Emotion Tendencies Cognitive Tendencies Subjective Feeling Focusing on the BLUE means antecedent focused emotion regulation strategies – long term strategies that focus on solutions. They can be applied at time of event or at time of appraisal of situation so there is a less negative emotional impact Focusing on the RED means response focused emotion regulation strategies – deals with symptoms of the situation and doesn’t solve it -people who use antecedent focused emotion regulation strategies rather than response focused often end up more cheerful and calm (according to study of teachers we looked at in lecture) Chapter 2 / Lecture 7 & 8 Personality – the relatively stable set of psychological characteristics that influences the way an individual interacts with his or her environment Dispositional approach – individuals possess stable traits or characteristics that influence their attitudes and behaviours Situational approach – factors in the work environment, such as rewards and punishments, influence people’s feelings, attitudes, and behaviour Interactionist approach – OB is a function of both dispositions and the situation Five Factor Model ACONE Extraversion – the extent to which a person is outgoing versus shy. Persons who score high on extraversion tend to be sociable, outgoing, energetic, joyful and assertive. Extraversion is especially important for jobs that require a lot of interpersonal interaction, such as sales and management Emotional stability / Neuroticism – the degree to which a person has appropriate emotional control. People with high emotional stability (low neuroticism) are self confident and have high self esteem while those with low emotional stability (high neuroticism) tend toward self doubt and depression. They tend to be anxious, hostile, impulsive, depressed, insecure, and more prone to stress. Agreeableness – the extent to which a person is friendly and approachable. Less approachable people tend to be more cold and argumentative, uncooperative, intolerant etc. Agreeableness is most likely to contribute to job performance in jobs that require interaction and involve helping, cooperating, and nurturing others, as well as teamwork Conscientiousness – the degree to which a person is responsible and achievement oriented. More conscientious people are dependable and positively motivated, also orderly, self disciplined, and diligent. Persons who are high in conscientiousness are likely to perform well on most jobs given their tendency towards hard work and achievement Openness to experience – the extent to which a person thinks flexibly and is receptive to new ideas. More open people tend toward creativity and innovation, while less open people favour the status quo. People who are high in openness to experience are likely to do well in jobs that involve learning and creativity -the big five are highly related to motivation, neuroticism and conscientiousness being the most related -for job satisfaction, neuroticism > conscientiousness > extraversion > agreeableness -openness to experience is not related to job satisfaction -the traits are independent of one another Strong situation – real social pressures, clear expectations behave a certain way. Personality traits often do not shine through I.e. very formal networking dinner Weak situation – no pressure, personality predicts behaviour Self monitoring – the extent to which people observe and regulate how they appear and behave in social settings and relationships -high self monitors tend to gravitate towards jobs that require a degree f role playing and the exercise of their self presentation skills. Self monitors tend to be more involved in their jobs, to perform at a higher level, and to be more likely to emerge as leaders; however, high self monitors are also likely to experience more role stress and show less commitment to their organization Self esteem – the degree to which a person has a positive self-evaluation -people with low self esteem are more susceptible to external influence, good at behavioural modeling, and respond poorly to negative feedback -when giving negative feedback to someone with low self esteem, make clear if there is an external factor that has negatively affected performance so that they don’t blame themselves (focus on the behaviour, not the person) -high self esteem is positively related to job performance Behavioural plasticity theory – people with low self esteem tend to be more susceptible to external and social influences than those who have high self esteem. This occurs because, being unsure of their own views and behaviour, they are more likely to look to others for information and confirmation, and seek social approval from others -note: with regards to locus of control (previously defined), uncertainty is a stressor, so people with high internal locus of control manage stress better. They also believe it is within their power to change their circumstances Positive affectivity – propensity to view the world, including oneself and other people, in a positive light Negative affectivity – propensity to view the world, including oneself and other people, in a negative light -those with high PA report higher job satisfaction and job performance, while those high on NA report lower job satisfaction and performance Proactive behaviour – taking initiative to improve current circumstances or creating new ones Proactive personality – a stable personal disposition that reflects a tendency to take personal initiative across a range of activities and situations and to effect positive change in one’s environment General self efficacy – a general trait that refers to an individual’s belief in his or her ability to perform successfully in a variety of challenging situations. It is a motivational trait rather than an affective trait. An individual’s GSE is believed to develop over the life span as repeated successes and failures are experiences across a variety of tasks and decisions. Core self evaluation – a broad personality concept that consists of more specific traits that reflect the evaluations people hold about themselves and their self worth. Includes self esteem, general self efficacy, locus of control, and neuroticism/emotional stability Learning – a relatively permanent change in behavioural potential that occurs due to practice or experience Practical skills – job specific skills, knowledge, and technical competence Intrapersonal skills – skills such as problem solving, critical thinking, learning about alternative work processes, and risk taking Interpersonal skills – interactive skills such as communicating, teamwork, and conflict resolution Cultural awareness – learning the social norms of organizations and understanding company goals, business operations, and company expectations and priorities Operant learning – learning by which the subject learns to operate on the environment to achieve certain consequences i.e. a salesperson learns effective sales techniques to achieve commissions and avoid criticism from the manager Reinforcement – the process by which stimuli strengthen behaviours Positive reinforcement – the application or addition of a stimulus that increases or maintains the probability of some behaviour i.e. an analyst tends to read a particular et of financial newspapers regularly; he developed this habit because a series of successful business decisions resulted from reading those papers Negative reinforcement – the removal of a negative stimulus that in turn increases or maintains the probability of some behaviour. i.e. PepsiCos smoking cessation program – if employees smoke and do not join the program, they must pay a $600 benefits surcharge. The benefits surcharge operates as a negative reinforcer to the extent that it increases the probability that employees will participate in the program. Also, if employers nag their employees unless they work hard -organizations often confuse rewards with reinforcers; they give rewards not contingent on behaviour even though they may have strong potential as a reinforcer -organizations sometimes also neglect diversity in preferences for reinforcers (i.e. give a workaholic time off work as a reinforcer) or neglect important sources of reinforcement (i.e. performance feedback, social recognition) -to obtain fast acquisition of some response, continuous and immediate reinforcement must be used (reinforcer applied every time behaviour of interest exists) -behaviour will be persistent when it is learned under the conditions of partial and delayed reinforcement (it will persist under reduced or terminated reinforcement) Performance feedback – providing quantitative or qualitative information on past performance for the purpose of changing or maintaining performance in specific ways. Performance feedback is most effective when it is a) conveyed in a positive manner b) delivered immediately after the performance is observed c) represented visually, such as in a graph and d) specific to the behaviour that is being targeted for feedback Social recognition – informal acknowledgement, attention, praise, approval, or genuine appreciation for work well done from one individual or group to another Extinction – the gradual dissipation of behaviour following the termination of reinforcement i.e. man who cracks jokes at meetings because coworkers laughed, VP tells coworkers not to laugh next time, man stops being a jokester Punishment – the application of an aversive stimulus following some behaviour designed to decrease the probability of that behaviour i.e. a boss criticizes her assistant after seeing her on the office phone for personal calls -punishment will only temporarily suppress the unwanted response unless you provide an acceptable alternative for the punished response -punishment also has the tendency to provoke a strong reaction on the part of the punished individual -notice the difference between punishment and negative reinforcement: in negative reinforcement a nasty stimulus is removed following some behaviour, increasing the probability of that behaviour; in punishment a nasty stimulus is applied after some behaviour, decreasing the probability of that behaviour Social Cognitive Theory – human behaviour can be best explained through a system of triadic reciprocal causation, in which personal factors and environmental factors work together and interact to influence people’s behaviour. In addition, people’s behaviour also influences personal factors and the environment. SCT consists of:  Observational learning – the process of observing and imitating the behaviour of others  Self efficacy – beliefs people have about their ability to successfully perform a specific task (unlike the personality trait GSE, it is a task specific cognitive appraisal of one’s ability to perform a specific task). Self efficiacy is influences by one’s experiences and success in performing the task, observation of others performing the task, verbal persuasion and social influence, and one’s emotional or physiological state  Self regulation – the use of learning principles to regulate one’s own behaviour. The basic process involves observing one’s own behaviour, comparing with a standard, and rewarding oneself if the behaviour meets the standard (self reinforcement). When there exists a discrepancy between one’s goals and performance, individuals are motivated to modify their behaviour in the pursuit of goal attainment (discrepancy reduction). When individual’s attain their goals, they are likely to set even higher and more challenging goals, known as discrepancy production. Organizational behaviour modification – the systematic use of learning principles to influence organizational behaviour Employee recognition problems – formal organizational problems that publicly recognize and reward employees for specific behaviours. To be effective, a formal employee recognition program must specify a) how a person will be recognized b) the type of behaviour being encouraged c) the manner of the public acknowledgment and d) a token or icon of the event for the recipient Training – planned organizational activities that are designed to facilitate knowledge and skill acquisition to change behaviour and improve performance Behaviour modeling training (BMT) – one of the most widely used and effective methods of training, involving five steps based on the observational learning component of social cognitive theory 1. Describe to trainees a set of well defined behaviours/skills to be learned 2. Provide model(s) displaying the effective use of those behaviours 3. Provide opportunities for trainees to practice using the behaviours 4. Provide feedback and social reinforcement to trainees following practice 5. Take steps to maximize the transfer of those behaviours to the job Career development – an ongoing process in which individuals progress through a series of stages that consist of a unique set of issues, themes, and tasks Can stable personality traits change? Yes! For example, openness to experience – as you get older, you settle down, may have a family, and may become less adventurous -conscientiousness dramatically increases as you age – you get more responsibilities -agreeableness tends to gradually rise as you age, and extraversion is pretty stable Does your personality limit you? For most criteria, more than 50% depends on skills and abilities that you can learn regardless of personality traits. In addition, with effort you may be able to change personality -personality captures how people behave across time –> typical behaviour -abilities may or may not be reflected in a person’s typical behaviour –> how well a person can perform a particular task ability x motivation  typical performance Cognitive intelligence – abilities that have to do with thinking; verbal, quantitative, reasoning ability. It is the single best predictor of job performance of all abilities. The timed Wonderlic personnel test measures cognitive intelligence. Crystallized intelligence – body of knowledge with which you walk around, stuff you’ve learned through past education Fluid intelligence – a person’s ability to detect relationships, independent of past experience or instruction with those relationships. There is a strong genetic component and usually is tested by pattern progression recognition. Myths about emotions:  Emotions impede rational thinking  It is impossible to make good decisions when we feel emotions Reality of emotions:  Emotions are useful/functional i.e. when a car is about to hit you, your emotion of fear will make you jump out of the way Emotional intelligence includes the following abilities:  Identifying emotions  Using emotions to guide thinking  Understanding why emotions happen  Regulating emotion in one self and others -EI is positively related to task performance Chapter 11 / Lecture 9 & 10 Decision Making – the process of developing a commitment to some course of action Problem – a perceived gap between an existing state and a desired state Well-structured problem – a problem for which the existing state is clear, the desired state is clear, and how to get from one state to the other is fairly obvious Program – a standardized way of solving a problem i.e. rules, routines, standard operating procedures, rule of thumb Ill structured problem – a problem for which the existing and desired states are unclear and the method of getting to the desired state is unknown Perfect rationality – a decision strategy that is completely informed, perfectly logical, and oriented toward economic gain. The ‘Economic Person’ making the decision can:  Gather info about problems and solutions without cost and is therefore completely informed  Be perfectly logical – if solution A is preferred over solution B, and B is preferred over C, then A is necessarily preferable to C  Use only one criterion for decision making: economic gain Bounded rationality – a decision strategy that relies on limited information and that reflects time constraints and political considerations -people use heuristic info processing, do not have complete information, are not perfectly logical, and use many criterion Decision Making Heuristics:  Availability heuristic – people make decisions based on what is easily accessible in their minds (vivid information, like info about plane crashes, and information that is common, like words ending in –ING)  Representativeness heuristic – when making a judgement about an individual or event, people look for characteristics the individual or event may have in common with previously formed thoughts. Judgments about people are often based on previously formed stereotypes, and judgements of events are often based on previously formed thoughts on these events that preclude attention to sample size. i.e. probability woman is a bank teller vs. probability woman is a feminist bank teller  Framing heuristic – people make different decisions on the same problem depending on the way the problem is frame o when people view a problem as a choice between losses, they tend to make risky decisions, rolling the dice in the face of a sure loss o when people view the alternatives as a choice between gains, they tend to make conservative decisions, protecting the sure win  Anchoring and adjustment heuristic – when people make decisions, they use anchors to bein their decision process and fail to sufficiently adjust The power of default – a number of decisions are made for us i.e. organ donation, opt in vs. opt out programs  recall TED talk Contrast effect – some information helps people to amek a decisions about what they want by raising awareness of what they do not want (rdd the opposite can be true) i.e. all expenses weekends in Paris vs. Rome, add 3 option: Rome with coffee (predictable irrationality) Cognitive Biases – tendencies to acquire and process information in an error prone way Bounded rationality can lead to difficulties in problem identification:  Perceptual defence – our perceptual system may act to defend the perceiver against unpleasant perceptions  Problem defined in terms of functional specialty – decision makers may view a problem as being in the domain of their own specialty even when some other perspective might be warranted  Problem define in terms of solution – jumping to conclusions effectively short cuts the rational decision making process  Problem diagnosed in terms of symptoms – a concentration on surface symptoms will provide few clues about an adequate solution Confirmation bias – the tendency to seek out information that conforms to one’s own definition or solution to a problem Information overload – the reception of more information than is necessary to make effective decisions. Can lead to errors, omissions, delays, and cutting corners. In addition, decision makers facing overload often attempt to use all the info at hand, then get confused and permit low quality information or irrelevant information to influence their decisions Maximization – the choice of the decision alternative with the greatest expected value Satisficing – establishing and adequate level of acceptability for a solution to a problem and then screening solutions until one that exceeds this level is found Sunk costs – permanent losses of resources incurred as the result of a decision. The justification of fault decisions is best seen in the irrational treatment of sunk costs: since they have been lost due to a past decision, they should not enter into future decisions Escalation of commitment – the tendency to invest additional resources in an apparently failing course of action, in which the escalation involves devoting more and more resources to actions implied by the decision. Why would people do this? They want to ‘prove’ their decision was right all along, and a social norm that favours consistent behaviour exists. Changing one’s mind and reversing previous decisions may be seen as a sign of weakness How to fix: Change the frame (“what do I stand to gain” – you’re now risk averse). Set proximal goals. Make sure there’s emphasis on the decision making process Hindsight – the tendency to review the decision making process to find what was done right or wrong, reflects cognitive bias. i.e. a money manager who consciously makes a very risky investment that turns out to be very successful might revise her memory to assume that the decision was a sure thing.. the next time, the now confident investor might not be as lucky. Another form of faulty hindsight is the tendency to take personal responsibility for successful decision outcomes and to deny responsibility for unsuccessful outcomes Mood & Emotions’ effect on decision making:  People in a positive mood tend to remember positive info, vice versa for negative moods  People in a positive mood will evaluate objects, people, and events more positively, vice versa  People in a good mood tend to overestimate the likelihood that good events will occur and underestimate the occurrence of bad events, vice versa  People in a good mood adopt simplified, shortcut making decision strategies, more likely violating the rational model. People in a negative mood are prone to approach decisions in a more deliberate, systematic way  Positive mood promotes more creative, intuitive decision making Stage Perfect Rationality Bounded Rationality Problem Identification Easy, accurate Perceptual defence; jump to perception of gaps that solutions; attention to symptoms constitute problems rather than problems; mood affects memory Information Search Free, fast, right amount Slow, costly, reliance on flawed of information obtained memory; obtain too little or too much Development of Can conceive of all Not all known Alternative Solutions Evaluation of Ultimate value of each Potential ignorance of or alternative solutions known; probability of miscalculation of values & each known; only probabilities; criteria include criterion is economic political factors; affected by mood gain Solution Choice Maximizes Satisfices Solution Considered in evaluation May be difficult owing to reliance Implementation of alternatives on others Solution Evaluation Objective, according to May involve justification, escalation previous steps to recover sunk costs, faulty hindsight Summary of cognitive Biases in decision making: Decision makers tend to…  Be overconfident about the decisions that they make  Seek out info that confirms their own problem definition and solutions (confirmation bias)  Remember and incorporate vivid, recent events into their decisions  Fail to incorporate known existing data about the likelihood of events into their decisions  Ignore sample sizes when evaluating samples of info  Overestimate the odds of complex chains of events occurring  Not adjust estimates enough from some initial estimate that serves as an anchor as they acquire more information (anchoring effect)  Have difficulty ignoring sunk costs when making subsequent decisions  Overestimate their ability to have predicted events after-the-fact, take responsibility for successful decision outcomes, and deny responsibility for unsuccessful outcomes (hindsight) Decision making paradox – most of the time, people make good decisions. Even so, it is impossible to make optimal decisions all of the time, and mistakes can be costly. So, it is important to know the flaws of the decision making system, and to correct for the flaws when the stakes are high. Chapter 11 – Group Decision Making Why use groups?  Decision quality – groups are more vigilant than individuals, generate more ideas, and evaluate ideas better  Decision acceptance and commitment – a decision made in groups will be more acceptable to those involve (people wish to be involved in decisions that will affect them). People will better understand a decision in which they participated and will be more committed to a decision in which they invested personal time and energy  Diffusion of responsibility – there exists the ability of group members to share the burden of the negative consequences of a poor decision Groups should perform better than individuals when:  The group members differ in relevant skills and abilities, as long as they do not differ so much that conflict occurs  Some division of labour can occur  Memory for facts is an important issue  Individual judgments can be combine by weighting them to reflect the expertise of the various members Disadvantages of Group Decision Making:  Time – the speed of arriving at a solution to a problem decreases as group size increases  Conflict – decision quality could take a back seat to political wrangling and infighting  Domination – advantages of group decision making won’t be realized if meetings are dominated by a single individual or a small coalition  Groupthink – groupthink is the capacity for group pressure to damage the mental efficiency, reality testing, and moral judgment of decision making groups. Groupthink arises from structural and procedural flaws, cohesiveness, and provocative situational context, leading to a concurrence seeking tendency and the groupthink. Groupthink occurs when group pressures lead to reduced mental efficiency, poor testing of reality, and lax moral judgment; unanimous acceptance of decisions is stressed over quality of decisions Symptoms of Groupthink: o Illusion of invulnerability – members are overconfident and willing to assume great risks, ignoring obvious danger signals o Rationalization – problems and counterarguments that members cannot ignore are ‘rationalized away’ (seemingly logical but improbable excuses are given) o Illusion of morality – the decisions the group adopts are not only perceived as sensible, they are also perceived as morally correct o Stereotypes of outsiders – the group constructs unfavourable stereotypes of those outside the group who are the targets of their decisions o Pressure for conformity – members pressure each other to fall in line and conform with the group’s views o Self-censorship – members convince themselves to avoid voicing opinions contrary to the group o Illusion of unanimity – members perceive that unanimous support exists for their chosen course of action o Mindguards – some group members may adopt the role of ‘protecting’ the group from information that goes against its decisions How to avoid groupthink:  Assign someone to the role of devil’s advocate  Bring in outsides (people who don’t work at the company, have no vested interested)  Avoid being too directive – don’t shortcut the decision making process  Generate comprehensive alternatives  Search for information to determine quality  Examine the pros and cons of the alternatives  Examine the costs, benefits, and risks of the preferred choice  Monitor the results and react in the event that known risks become a reality -the more you like someone, the more you feel comfortable criticizing them, which can decrease groupthink -often, people seek to agree with those who are more senior than them because they may control their salary or promotions, regardless of their position with the decision Risky shift – the tendency for groups to make riskier decisions than the average risk initially advocated by their individual members Conservative shift – the tendency for groups to make less risky decisions than the average risk initially advocated by their individual members -when group members are somewhat conservative before the interaction, they tend to exhibit a conservative shift when they discuss the problem -when group members are somewhat risky initially, they exhibit a risky shift after discussion -therefore group discussion seems to polarize or exaggerate the initial position of the group Why do risky and conservative shifts occur when groups make decisions? 1.Group discussion generates ideas and arguments that individual members have not yet considered. The info naturally favours the members’ initial tendency toward risk or conservatism. Since discussion provides ‘more’ and ‘better’ reasons for the initial tendency, the tendency ends up being exaggerated 2.Group members try to present themselves as basically similar to other members but ‘even better’. Thus, they try to one-up others in discussion by adopting a slightly more extreme version of the groups initial state Ways to improve decision making in organizations:  Train a discussion leader – ensure no autocratic behaviour ensues  Stimulate and manage conflict – full blown conflict isn’t conducive to good decision making, but neither is complete lack thereof i.e. Devil’s advocate – a person appointed to identify and challenge the weaknesses of a proposed plan or strategy in an objective, unemotional manner  Traditional and electronic brainstorming – if a large number of ideas is generated, the chance of obtaining a truly creative solution is increased Brainstorming – an attempt to increase the number of creative solution alternatives to problems by focusing on idea generation rather than evaluation Electronic brainstorming – the use of computer mediated technology to improve traditional brainstorming practices -face to face interaction can actually reduce individual brainstorming performance because of inhibition, domination, or physical limitations on multiple people brainstorming at once; over the size of 2 members, groups perform better in brainstorming in quality and quantity of ideas when using electronic brainstorming  Nominal group technique – carefully separating the generation of ideas from their evaluation. Ideas are generated nominally (without interaction) to prevent inhibition and conformity. Evaluation permits interaction and discussion, but occurs in a fairly structured manner to be sure that each idea gets adequate attention. The main disadvantage is that it takes a lot of time, which is addressed by the Delphi Technique Nominal group technique – a structured group decision making technique in which ideas are generated without group interaction and then systematically evaluated by the group  The Delphi Technique – A method of pooling a large number of expert judgments by using a series of increasingly refined questionnaires. Relies solely on a nominal group – no face to face interaction -in class, recall the carter racing exercise – the data shows the relationship between gasket failures and air temperatures, and you are to decide whether or not to race. Often groups choose to race, but this is actually very similar to choosing to launch the challenger (the spacecraft that experienced an O-ring failure accident). Shows the affect on group dynamic impacts on decision making – the decision was made on inconclusive data, and rushed due to time constraints and other pressures Chapter 13 – Conflict and Stress (424-437) Interpersonal conflict – the process that occurs when one person, group, or organizational subunit frustrates the goal attainment of another Causes of organizational conflict:  Group identification and intergroup bias – even without interaction or cohesion, people have a tendency to develop a more positive view of their own ‘in group’ and a less positive view of the ‘out group’ of which they are not a member  Interdependence – when individuals or subunits are mutually dependent on each other to accomplish their own goals, the potential for conflict exists. Interdependence implies that each party has some power over the other, making it relatively easy for one side or the other to abuse its power and create antagonism  Differences in power, status, and culture: o Power – if dependence is not mutual but one way, the potential for conflict increases o Status – status differences provide little impetus for conflict when people of lower status are dependent on those of higher status. But when people who have lower status are in control of the tasks of higher status, conflict may occur i.e. when servers have to give orders to higher status chefs, or junior staff have more IT knowledge than their bosses o Culture – when two or more very different cultures develop in an organization, the clash in beliefs and values can result in overt conflict i.e. when one organization hires professionals from several different companies with their own strong cultures  Ambiguity – ambiguous goals, jurisdictions, or performance criteria can lead to conflict. Under such ambiguity, the formal and informal rules that govern interaction break down. It might also be difficult to assign responsibility for good and bad outcomes when it is hard to see who was responsible for what  Scarce resources – limited budget, secretarial support, or lab space can contribute to conflict. I.e. two scientists who do not get along very well may be able to put up a peaceful front until a reduction in lab space provokes each to protect her or her domain Relationship conflict – interpersonal tensions among individuals that have to do with their relationship per se, not the task at hand i.e. ‘personality clashes’ Task conflict – disagreements about the nature of the work to be done i.e. differences of opinion about goals or technical matters Process conflict – disagreements about how work should be organized and accomplished i.e. disagreements about responsibility, authority, resource allocation, and who should do what -not all conflict is detrimental as it can help to provide a variety of perspectives, but it often can be detrimental to team member satisfaction and performance -when conflict begins, the following events often transpire:  ‘Winning’ the conflict becomes more important than developing a good solution to the problem at hand  The parties begin to conceal information from each other or to pass on distorted information  Each side becomes more cohesive. Deviants who speak of conciliation are punished, and strict conformity is expected  Contact with the opposite party is discouraged except under formalized, restricted, conditions  While the opposite party is negatively stereotyped, the image of one’s own position is boosted  On each side, more aggressive people who are skilled at engaging in conflict may emerge as leaders Ways to manage conflict include avoiding, accommodating, competing, compromise, and collaboration Avoiding – a conflict management style characterized by low assertiveness of one’s own interests and low cooperation with the other party. Can provide short term stress reduction, it does not really change the situation Accommodating – a conflict management style in which one cooperates with the other party while not asserting one’s own interests. If people see accommodation as a sign of weakness, it does not bode well for future interactions. However, it can be an effective reaction if you are wrong, the issue is more important to the other party, or you want to build good will Competing – a conflict management style that maximizes assertiveness and minimizes cooperation. This style holds promise when you have a lot of power, you are sure of your facts, the situation is truly win-lose, or you will not have to interact with the party in the future Compromise – a conflict management style that combines intermediate levels of assertiveness and cooperation. Does not always result in the most creative result, and is not useful for resolving conflicts that stem from power asymmetry. However, it is a sensible reaction to conflict stemming from scarce resources Collaborating – a conflict management style that maximizes both assertiveness and cooperation, in the hope of finding an integrative agreement that fully satisfies the interests of both parties. It probably works best when the conflict is not intense and when each party has information that is useful to the other Negotiation – a decision making process among interdependent parties who do not share identical preferences Distributive negotiation – win-lose negotiation in which a fixed amount of assets is divided between parties. Essentially a single issue negotiating (i.e. negotiating the price of a used car, each dollar you save is a dollar out of seller’s pocket, vice versa) -distributive negotiation tactics include threats and promises, firmness versus concessions, and verbal persuasion -threats will only work if you have a lot of power; if more subtle and civilized, people will be more receptive but still no one likes to be threatened -if you are too firm, the opposite party will be firm back, leaving you in a deadlock -persuasive arguments will be effective if you are an expert, are likeable, and/or are unbiased. The persuasive argment should have technical merits, state how the other party stands to benefit, and appeal to fairness Party’s target Degree of Satisfacti Party’s party’she Aspiration concerns range Party’s resistance point Other’s resistance Other’s target point Other’s Aspiration range Degree of Satisfaction of the other’s concerns Integrative negotiation – win-win negotiation that assumes that mutual problem solving can enlarge the assets to be divided between parties -integrative negotiation tactics include copious information exchange, framing differences as opportunities, cutting costs, increasing resources, and introducing superordinate goals -creating value -begin by sharing unimportant information (DO NOT share your reservation point). Cut costs for your opponent to say yes, and consider multiple issues simultaneously to make package deals i.e. when you’re buying a new car, you’re not just negotiating price but also warranty, services, model, options, colour etc. Superordinate goals – attractive outcomes that can be achieved only by collaboration Conventional arbitration – the arbitrator an choose any outcome, such as splitting the difference between the two parties Final offer arbitration – each party makes a final offer, and the arbitrator chooses between them. This one was devised to motivate the two parties to make sensible offers that have a chance of being upheld Conflict stimulation – a strategy of increasing conflict to motivate change. Should be used if:  There are signs that a ‘friendly rut’ exists – peaceful relationships take precedence over organizational goals  Parties that should be interacting closely have chosen to withdraw from each other to avoid overt conflict  Conflict is suppressed or downplayed by denying differences, ignoring controversy, and exaggerating points of agreement -Organizational conflict can promote necessary organizational change, since in order for organizations to survive, they must adapt to their environments In order to effectively negotiate (maximize total value and claim more than opponent), you must prepare. Preparation includes self-assessment, other party assessment, and situational assessment 1.Self assessment – What is my target? What is my BATNA (best alternative to a negotiated agreement)? i.e. if you have several offers, your BATNA to a negotiated agreement with McKinsey is a job with Boston Consulting Group – you may want to try to assertively negotiate a high wage. If your only other option to McKinsey is working at Tim Hortons, you’re in a much weaker bargaining position Social proof phenomenon – if it becomes public that you have many offers on the table, it is likely you will receive many more offers as other companies (in this case) follow suit What is my reservation point? Reservation point – the lowest value you would accept before walking away from a negotiation. There is a positive relationship between your BATNA and your reservation point. If you don’t know this point going into a negotiation, you will be pushed down and look weak. 2.Opponent Assessment – Who is my opponent? What is my opponent’s position, and what are my opponent’s interests? Your opponent’s position is what they say they want, while their interests are what they actually want; these may or may not be the same What is my opponent’s BATNA? 3.Situation Assessment – Is the negotiation a one-off or part of an ongoing relationship? Is an agreement required? If it’s a one-off, you can get away with being devious. The tone will change, however, with a long standing customer as goals may change (i.e. establish a relationship rather than ‘win’ negotiation) If you have multiple offers, an agreement is not required so you are in a better bargaining position -when the negotiation slows and loses traction, you may be at the reservation point Chapter 7 – Groups and Teamwork Group – two or more people interacting interdependently to achieve a common goal Formal work groups – groups that are established by organizations to facilitate the achievement of organizational goals i.e. production manager and 6 shift supervisors Task forces – temporary groups that meet to achieve particular goals or to solve particular problems, such as suggesting productivity improvements Informal groups – groups that emerge naturally in response to the common interests of organizational members. Can either help or hurt an organization Stages of Group Development 1.Forming – group members orient themselves, get to know others, pu
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