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COMM 292 - Final Exam Review

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University of British Columbia
COMM 292
Angela Kelleher

COMM 292: Organizational Behaviour - Final Exam Review Final Exam Review: Chapters 1-14 Chapter 1 Defining Organizational Behaviour  Organizational behaviour: field of study that looks at the impact that individual groups, and structure have on behaviour within an organization o Behaviour: what people do in an organization and how they perform  OB most often is applied to business but can go beyond the traditional work place What Do We Mean by Organization?  Organization: a coordinated social unit that functions to continuously achieve a common goals o Manufacturing firms, schools, hospitals, churches, military, retail stores, the police etc.  Business that supply 10 people or less make up 75% of the Canadian marketplace o Small to midsized business make up 45% of Canada's GDP (up 25% in 20 years)  There are different types/sizes of organizations, but most theories are applicable to all OB is for Everyone:  Employees are now being asked to play a more proactive role in the workplace o The roles of managers and employees are beginning to become blurred o Managers rely more on employees to make decisions rather than follow orders  OB is also for entrepreneurs and self-employed as they interact with others in the marketplace  OB is relevant anywhere people come together to share/work on goals or to solve problems The Importance of Interpersonal Skills:  Until the 1980's business schools only focused on the technical aspects of business o Business schools have shifted to teach human behaviour and organizational effectiveness  Quality of the employee's job and support in the work place are more important than money  Technical skills are sufficient but not enough to strive and succeed in the workplace o In an increasingly competitive workplace employees need intrapersonal skills Today's Challenges in the Canadian Workplace  Organizations are made up of individual groups and the entire organizational structure o Each level has a unique role that must be fulfilled at the workplace o Each level is constructed/dependent on the previous level o Each level has challenges that may affect how the levels above/below operate  Basic OB model: 1. individual level, 2. group level, 3. organization system level Challenges at the Individual Level:  Managers and employees need to learn how to deal with others (different from themselves) COMM 292: Organizational Behaviour - Final Exam Review o Dimensions such as personality, perception, values, and attitudes  Individuals have different levels of job satisfaction/motivation o This affects the how managers manage employees  The greatest issues is how to behave ethically when facing competition Individual Differences:  People enter organizations with a unique behaviour, perception, values, and attitude o It is difficult for an organization to change these characteristics of an employee Job Satisfaction:  Employees are demanding satisfaction out of their jobs o Higher satisfied employees leads to higher productivity (basic assumption)  Researchers believe employees want challenges and intrinsic rewards from their work  Job satisfaction is negatively related to absenteeism and turnover o This costs organizations considerable amounts of money annually Motivation:  Only 24% of Canadian employees were recognized to a great extent for work well done Empowerment:  In many organizations employees have become associates and teammates o Employees are becoming more a part of the business and managers and facilitating this process o Employees' roles within many organizations have grown  Self-managed teams instead of employees and managers have become a new trend o Teamwork and employee responsibility are essential  Empowerment: giving employees responsibility for what they do o Managers are beginning to learn how to give up power o Employees are learning to take responsibility for their work and make appropriate decisions Behaving Ethically:  Organizations with cutbacks, expectations of increasing worker productivity suffer consequences o Employees cut corners, break rules, engage in questionable practices etc.  Ethics: the study of moral values and principles that guide behaviour and inform us whether actions are right or wrong o Ethical principles help/guide us to do the right thing  Individuals that have ethical values, and organizations that encourage them will do the right think Challenging at the Group Level:  People's behaviour differs when they are in a group to when they are alone o Behaviour of a group is more than the sum total of individuals acting on their own  Organizations with more teamwork develop employees with greater intrapersonal skills COMM 292: Organizational Behaviour - Final Exam Review o Learning to work with people from different backgrounds also have become important Working with Others:  A foundation for high-quality work force includes communications, problem solving, critical thinking, learning continuously, and the ability to work with others o A positive attitude/behaviour and taking responsibility for actions are also key o Team building and priority management are essential for small to mid-sized businesses Workforce Diversity:  Adapting to different people is a broad based challenge facing organizations  Workforce diversity: the mix of people in organizations (gender, race, age, education etc.) o More organizations are moving towards workforce diversity  Different generations working side by side bring together different values and experiences  Workforce diversity has spread in different countries through different ways o The increase in women in the workforce has changed the workforce diversity o The European Union has opened up borders and allowed for more diverse organizations  Employees don't set aside cultural values and lifestyle preferences when at work o It is challenging for organizations to accommodate these diverse needs and lifestyles  Different employees have different preferences and organizations must find the happy medium  Managers need to shift their philosophy to treat each employee uniquely o They must respond to differences to ensure employee retention and productivity o Includes diversity training and revising benefit programs (family friendly etc.)  Diversity can increase creativity and innovation in organizations o Improves decision making by providing different perspectives on problems o Diversity that is not well managed can lead to higher turnover and conflicts Challenges at the Organizational Level:  The design of an organization has an impact on how effective an organization is o Change may be in order if an organization's design in not effective  Canadian businesses now face greater competition from the global economy o The structure of the workplace is becoming more and more challenging The Use of Temporary (Contingent) Employees:  Part time or temporary employees are a growing part of the overall workforce o Full-time/permanent jobs have been downsized by millions over the years  Some contingent employees prefer part-time/temporary to do other things (school, children etc.)  Contingent employees don't identify with the organization or display commitment o Temporary workers lack benefits and are also paid less  Organizations are challenged with motivating temporary employees to feel more connected Improving Quality and Productivity: COMM 292: Organizational Behaviour - Final Exam Review  Increased competition forces managers to reduce costs and increase the quality and productivity  Organizations are productive if goals are achieved and costs are minimized  Productivity: a concern for both effectiveness and efficiency o Effectiveness: the achievement of goals o Efficiency: the ratio of effective work output to input required to produce the work Developing Effective Employees:  Organizational citizenship behaviour (OCB): behaviour that is not part of an employee's job requirements, but that promotes the effective functioning of an organization o Employees that are striving and providing performance beyond expectations o Making constructive comments, being flexible, volunteering extra time etc.  Organizations want and need employees who will work beyond their job description o Organizations that obtain these types of employees outperform other organizations Putting People First:  Managers should spend more time recognizing the value of their employees o Putting people first generates a committed workforce and a better bottom line  When organizations strive to develop employees, they are more successful  The people first strategy leads to lower turnover, greater sales, market value and profits o Workers are more responsible when they are given more responsibilities o Workers are smarter when encouraged to build skills and competence Helping Employees with Work-Life Balance:  Employees complain it is difficult to differentiate between work and personal time o Work places allow workers to create and structure their own work roles o Global organizations have offices world-wide and work never sleeps o Communication technology has take work home, in the car or on holidays o Organizations are asking employees to put in more hours  More employees want flexible jobs in order to better manage their personal lives o Organizations without time for personal life have difficulty hiring employees Creating a Positive Work Environment:  Organizations are starting to create a competitive advantage by encouraging a positive work environment  Positive organizational scholarship: how organizations develop human strengths, create vitality and resilience, and unlock potential o Researchers believe we should study what is good rather than bad about an organization o Asking employees to determine when they are at their personal best in order to exploit strengths o Challenges organizations to exploit strengths rather than dwell on limitations Global Competition:  Canadian business have growing competition domestic and internationally COMM 292: Organizational Behaviour - Final Exam Review o To compete they must lower cost, increase productivity or merge with other businesses  Businesses must often outsource jobs internationally in order to stay competitive o Employees and managers are thus in a constant stat of flux o Employees must increase knowledge and skills in order to meet job requirements  Employees, managers and organizations must become flexible to changing conditions o Must learn how to shift demand, technology and stay on top of the economy Managing and Working in a Multicultural World:  Trade agreements and unions have reduces tariffs and barrier to trade o The internet has allowed organizations to become more internationally connected  Increases opportunities and consumer base  Managers and employees must become capable of working with people from different cultures o Managing interpersonal dynamics are not just important for Canadian organizations  When workers travel to other countries practices may be different and workers must adapt o Business in Asia is done respectfully and at a slower pace compared to the Western world  Organizations in foreign nations must adapt cultures and traditions OB: Making Sense of Behaviour in Organizations The Building Blocks of OB:  OB emerged as a distinct field in the 1940's in the U.S.A. o Built upon contributions from a number of behavioural disciplines o Psychology, social psychology, sociology and anthropology o Psychology has contributed on a micro level, while the others on a macro level Psychology:  The science to measure/explain and change the behaviour of humans and other animals o Psychologists study and attempt to understand individual behaviour o Theorists, organizational psychologist and other have contributed to OB  Industrial/organization psychologists study how fatigue, working conditions etc. are linked to performance o Expanded to learning, perception, personality, job satisfaction and others Social Psychology:  Generally blends concepts from psychology and sociology (considered a branch of psychology) o Focus on people's influences on one another  A main study is change, and how to implement it, and reduce barriers to its acceptance  Measure understanding and changing attitudes, communication pattern and building trust o Made important contributions studying group behaviour, power and conflict Sociology: COMM 292: Organizational Behaviour - Final Exam Review  Study the system in which individuals fill their roles o People in relation to their social environment or culture  Greatest contribution to OB was their study of group behaviour in organizations o Particularly formal and complex organizations o Group dynamics, design or work teams, organizational culture, power, conflict etc. Anthropology:  The study of societies to learn about human being and their activities o They work on cultures and environments (fundamental values, attitudes etc.)  Contributed to the understanding of organizational culture/environment and cultural differences The Rigour of OB:  OB provides a systematic approach to the study of behaviour in organizations o We believe/assume that behaviour in organizations is not random  Individuals believe rightly, or wrongly in his or her best interest Can Finance Learn Anything from OB?  Marketing has the closer overlap with OB o Predicting consumer behaviour is not much different from predicting employee behaviour o Both require an understanding of the dynamics and underlying causes of human behaviour  Behavioural finance, accounting and economics have all grown in importance recently o Researches from these professions have found it useful to draw from OB concepts  Investors tend to rely more on private info rather than more accurate public info o Researchers study how feedback affects auditors' behaviour and future work OB Looks at Consistencies:  All people are different but there are consistencies underlying behaviour of most people o These consistencies allow us to make predictions  There are rules (written or unwritten) in almost all settings o Common habits and general actions that are alike across genders, cultures etc.  The systematic study of behaviour is a means to make reasonably accurate predictions OB Looks Beyond Common Sense:  We as humans watch others and often predict what they will do under certain conditions o Often these predictions will be inaccurate but can be enhanced with a more systematic approach  This means believing behaviour is not random and can be accurately predicted  There are certain fundamental consistencies that can reflect individual differences  Systematic study: looking at relationships, attempting to attribute cause and effects, and draw conclusions based on scientific evidence o Data gathered under controlled conditions are measures and interpreted in a rigorous manner COMM 292: Organizational Behaviour - Final Exam Review  Evidence-based management (EBM): basking managerial decisions on the best scientific evidence o Management decisions must be made with an evidence backing not on the fly  Intuition: a gut feeling not necessarily supported by research o Making decisions just on intuition is the same as making a decision with half the info o Most managers overestimate the accuracy of what they know o Research must always be done, even if one decides to go with intuition instead OB Has Few Absolutes:  There are few, if any, simple and universal principles that explain OB o Other subjects such as science have laws that definitively explain things  As humans are all unique it is difficult to make simple, accurate, sweeping generalizations OB Takes a Contingency Approach:  Even though people are different we can still make predictions about human behaviour  Contingency approach: an approach taken by OB that considers behaviour within a certain context o OB does not always have to consider the context (depends on the situation) The Fundamentals of OB:  OB considers the multiple levels in an organization: individual, group and organizational  OB is built from the wisdom and research of multiple disciplines o Including psychology, sociology, social psychology, and anthropology  OB takes a systematic approach to the study of organizational phenomena (research based)  OB takes a contingency approach to the consideration of organizational phenomena o Recommendations depend on the situation Chapter 2 Perception Defined  Perception: process by which individuals organize/interpret their impressions in different environments o Perception can be much different from the objective reality  People's behaviour is based on perception of reality, not on reality itself o The world that is perceived is the world that is behaviourally important Factors Influencing Perception  A number of factors affect perception and the factors can reside in the perceiver or target o Also in the context of the situation in which the perception is made The Perceiver:  Perceiver: an individual that looks at a target and attempts to interpret what he/she sees o The interpretation is heavily influenced by the perceiver's personal characteristics o Characteristics include attitude, personality, motives, interests, experiences etc.  All shape the way we perceive an event COMM 292: Organizational Behaviour - Final Exam Review The Target:  A target's characteristics also affect what is perceived by the target o Novelty, motions, sounds, size and other characteristics of a target shape how they are seen o The relationship of a target to its background also influences perception The Situation:  The context (time, location, light etc.) we see objects or events is also important o The situation may change and therefore the perception  Neither the perceiver nor the target have changed Perceptual Errors  Techniques have been developed to better manage perceiving and interpreting other's actions o Allow us to make accurate perceptions rapidly and provide valid data for making predictions o There are errors that distort the perception process Attribution Theory:  Attribution theory: how we judge people differently depending on the meaning given to behaviour o Basically we observe what seems like atypical behaviour by an individual and make sense of it o Cause is internal: whether the individual is responsible for the behaviour  Behaviour is believed to be o Cause is external: whether something outside the individual caused the behaviour  Behaviour is believed to result from outside causes Distinctiveness:  Distinctiveness: whether an individual acts similarly across a variety of situations o External attribution: behaviour is unusual o Internally caused: behaviour is not unusual Consensus:  Consensus: how an individual's behaviour compares with others in the same situation o If an individual responds like everyone else, their behaviour shows consensus  If consensus is high, the wrong doing or odd would be attributed externally Consistency:  Consistency: a behavioural rule that considers whether the individual has been acting in the same way over time How Attributions Get Distorted:  There are usually errors or biases that distort attributions COMM 292: Organizational Behaviour - Final Exam Review  Fundamental attribution error: when we judge the behaviour of others, we tend to overestimate the influence of external factors and overestimate the influence of internal, or personal factors  Self-serving bias: attribute one's own success to internal factors and failure to external o Individuals tend to overestimate their own good behaviour and underestimate others Selective Perception:  Any characteristic that makes a person/object stand out will increases that it will be perceived o More likely to notice objects that you own or that look familiar  Selective perception: selective interpretation of what is seen based on backgrounds etc. o Allows us to speed-read others, but has risks of inaccurate conclusions Halo Effect:  Halo effect: when we draw general impressions of people based on one characteristic o Based on intelligence, likeability, appearance and others  A single trait influences the overall impression of the person being judged Contrast Effect:  Contrast effect: reaction of one person is influenced by other people recently encountered o Most often we do not evaluate a person in isolation o Job candidates can be distorted by a result of their place in the schedule Projection:  Projection: attributing one's own characteristics to other people o Judging others based on the fact that they are similar to us o Tend to judge people as being similar to themselves  When people observes others similar to themselves, their perception is naturally corrected o People not like themselves, perceptions are not as accurate Stereotyping:  Judging someone on the basis of our perception of the group to which they belong o Generalizations allow us to simplify decisions o Heuristics: judgment shortcuts in decision making  Stereotypes may only provide a little bit of truth when applied to an individual o Can lead to negative reactions, such as prejudice Prejudice:  Prejudice: an unfounded dislike of a person/group based on their belonging to a group o Dislike based on religion, state, ethnicity etc. o Can lead to negative consequences in the workplace, such as discrimination Why Do Perception and Judgment Matter?  People in organizations are always judging each other (interviews, workplace etc.) o Interviews make perceptual judgments during the interview o Negative info that arises in interviews is heavily weighted than if it arises later COMM 292: Organizational Behaviour - Final Exam Review  An employee's future is closely tied to appraisal (promotions, pay raises, stability etc.)  Evaluator's perception of good/bad has a large impact on organizational decision making o Often employees that are promoted are similar to managers that make the decision  Performance appraisals also takes place between employees and team members Self-Fulfilling Prophecy:  People will attempt to validate their perceptions, even when perceptions are faulty o Important when we consider performance expectations on the job  Self-fulfilling prophecy: concept that proposes a person will behave in ways consistent with how he or she is perceived by others Personality What is Personality?  Dynamic concept describing the growth and development of a person's psychological system o Looks at some aggregate whole that is greater than the sum of the parts  Personality: the stable patterns of behaviour and consistent internal states that determine how an individual reacts and interacts with others Measuring Personality:  Researchers have found personality tests are useful in hiring decisions o Scores on personality help managers forecast the best candidates o Also used to better understand and more effectively manage people  Commonly measured through self-report surveys in which people rate themselves o The respondents might lie or practise impression management o Difficult to determine the accuracy of these reports (several variations) o Research suggests that observer ratings are better predictions of success on the job Personality Determinants:  Personality is a result of both nature (hereditary) and nurture (environment) o Situation also in incorporated into the development of personality  An adults personality is made up of hereditary and environmental factors with additions from situations Heredity:  Heredity: factors that were determined at conception (birth) o Physical stature, facial attractiveness, gender, temperament etc.  Your parent' biological, physiological and inherent psychological makeup  Traits such as shyness, fear and distress are likely caused by genetic characteristics o May be built into the same genetic code that affects height, hair colour etc.  Genetics can explain up to 50% of the personality differences, 30% of occupational/leisure interests o Personalities do change over time (conscientiousness tends to increase with age) Personality Traits: COMM 292: Organizational Behaviour - Final Exam Review  Personality traits: enduring characteristics that describe an individual's behaviour o More consistent the characteristic the more frequently it occurs in diverse situations  Myers-Briggs Type Indicator and Big Five Personality Model are used to identify/clarify traits Myers-Briggs Type Indicator:  Myers-Briggs Type Indicator (MBTI): personality test that taps four characteristics and classifies people into 1 of 16 personality types  E/I measures where we direct our energy when dealing with people and things o Extraverted: outgoing, sociable and assertive o Introverted: quite and shy  S/N dimensions looks at how we process information o Sensing: practical and prefer routine and order o Intuitive: rely on unconscious process and look at the big picture o Thinking: reason and logic to handle problems o Feeling: rely on their personal values and emotions o Judging: want control and prefer their world to be ordered and structured o Perceiving: flexible and spontaneous  INTJs are visionaries that have original minds and great drive for their own ideas and purposes  ESTJs are organizers that are realistic, logical, analytical, decisive and are business naturals  ENTPs are conceptualisers that are innovative, individualistic, versatile, entrepreneurial  Forces people into one category or the other, may not be very accurate, more of a guidance Big Five Personality Model:  Five basic personality dimensions underlie all others and encompass human variation  Extraversion: person's comfort level with relationships (sociable, talkative, and assertive)  Agreeable: person's propensity to defer to others (good-natured, cooperative and trusting)  Conscientiousness: measure of reliability (responsible, dependable, persistent and goal oriented)  Emotional stability: person's ability to withstand stress (calm, self-confident, and secure)  Openness to experience: person's range of interests and fascination (imagination, intellectual) Research Findings: The Big Five  Employees with some or all of the big five have higher job performance in most occupations o People with higher conscientiousness have greater job knowledge o Emotionally stable people have less stress, job and life satisfaction o Extroverts are happier, have more friends, more social, stronger leaders o Openness to experience people are more creative, better and more effective leaders o Agreeableness are happier, first choice for others, better liked, more compliant  Concerned more with pleasing others, bad negotiators o Conscientious people live longer, less risky, organized, adaptable Major Personality Attributes Influencing OB: COMM 292: Organizational Behaviour - Final Exam Review  Specific personality traits have been found to be power predictors of behaviour in organizations o Machiavellianism, narcissism, self-monitoring, propensity, Type A/B and proactive Core Self- Evaluation:  Core self-evaluation: degree to which an individual like/dislikes themselves, the person sees themselves as capable/effective, and the person feels in control or powerless in their environment o Positive: effective, capable and in control of their environments o Negative: dislike themselves, question their capabilities and view themselves as powerless  Must be confident in our abilities, if we don't believe we can do it, we wont accomplish anything Machiavellianism:  The degree to which an individual is pragmatic, maintains emotional distance, believes in the process o High: manipulate more, win more, persuaded less, and persuade others more  Better when acting face to face, and likes minimum rules/regulations (improvising)  Better at jobs with negotiations or commission sales jobs Narcissism:  Tendency to be arrogant, excessive sense of self-importance/admiration and entitlement o Combination of extraversion and agreeable (disagreeable extraverts) o Tend to over rate their power than in actuality, talk down to others below them o Less effective on the job when it come to helping other people Self-Monitoring:  Personality trait measuring the ability to adjust behaviour to external situational factors o Able to change behaviour based on different situations o High: capable of presenting contradictions between public and private behaviours  More attention paid to others, and more capable of conforming  Tend to be more mobile and receive more promotions than low self-monitors o Low: cannot disguise themselves in the same way (true personality all the time) Risk-Taking:  Tendency to assume/avoid risk can have an impact on managers decision making times o High risk takers made more rapid decisions and use less info than lower risk-takers o Large organizations tend to be more risk adverse than growth oriented entrepreneurs Type A and B Personalities:  Type A: aggress involvement in a struggle to achieve more and more in less time o More rapidly moving, impatient, multitasks, lack of leisure time and obsesses with numbers COMM 292: Organizational Behaviour - Final Exam Review o Impatient, hurriedness , competitiveness and hostility (more stress, quantity over quality) o Working long hours, but making poor decisions as they make them too fast o Easier to predict, less creative (more focused on productivity)  Type B: an easy going, relaxed and patient o No urgency, no need to discuss accomplishments, play for fun/relaxation, relax with no guilt  Type A's tend to be better at sales jobs, but Type B's are more likely to be executives o Type A's trade for quality, and Type B's are more tactful in their approaches o Type A's have higher stress and other health issues (higher early death rate) Proactive Personality:  Person who identifies opportunities, shows initiative, takes action and perseveres until change occurs o Creative positive change in their environment, regardless of constraints or obstacles o More likely to be leaders and change agents within the organization o More likely to leave organizations to start their own business o Seek out info, develop strong contacts, engage in career planning and demonstrate persistence Emotions  Strong emotions, particularly anger, interfere with an employee's ability to effectively work o Either constructive or a simulative to performance-enhancing behaviours o Employees bring an emotional component with themselves to work What are Emotions?  Intense feelings that are directed at someone or something o Reactions to an object (anger, fear, sadness, happiness, disgust, surprise) o Can turn into moods when you stop focusing on the contextual object  Moods: feeling that are less intense than emotions and that lack a contextual stimulus o Are not directed at an object, not your normal self Choosing Emotions: Emotional Labour  Emotional labour: when an employee expresses organizationally desired emotions during interactions  Emotional dissonance: inconsistencies between the emotions people feel and they show o Can take a toll on employees (bottles up feelings)  Felt emotions: an individual's actual emotions  Displayed emotions: emotions that are organizationally required and considered appropriate  Surface acting: hiding one's inner feelings to display what is expected  Deep acting: trying to modify one's true inner feelings to match what is expected Why Should We Care About Emotions in the Workplace?  People who know their emotions and are good at reading other are more effective in their jobs COMM 292: Organizational Behaviour - Final Exam Review  The entire workplace can be affected by positive/negative emotions Emotional Intelligence (EI):  Person's ability to be self-aware, detect emotions in others, and manage emotional cues and info o People who know their own emotions, and others are more likely to be effective o Particularly important for leaders (communication, political skill, vision etc.) The Case for EI:  Good to possess street smarts and social intelligence (handle social situations better)  People who can detect other's emotions have better control over their own emotions  EI predicts criteria that matter (correlation between high EI and strong performance)  Predicting emotions helps with peer ratings and picking/grooming employees  People with damage to the prefrontal cortex have much lower EI scored (biologically based)  EI is neurologically based that is unrelated to standard measures of intelligence The Case Against EI:  It is unclear what EI is, whether it is a form of intelligence or not  Difficult to definitively define EI as many researchers define it in different ways  As EI measures intelligence the tests must have right or wrong answers, not a variety  Measures of EI are diverse and researchers have not subjected them to rigorous studies  EI is so closely related to intelligence and personality, EI has nothing unique to offer  Not enough research on whether EI adds insight on personality and intelligence in job performance Negative Workplace Emotions:  Voluntary actions that violate norms and threaten the organization and members o Leaving early, laziness, stealing/sabotage, gossiping/blame, harassment etc.  Negative emotions can lead to malicious deviant behaviour in the workplace o Can negatively affect one's own accomplishments and other employees o Members of groups/organizations tend to adopt emotions of others Affective Events Theory (AET):  Theory that employees react emotionally to things that happen to them at work and that this emotional reaction influences their job performance and satisfaction o Emotions are a response to an event in the work environment o Hassles: not carrying share of work, conflicts in direction, excessive time pressures o Uplifts: meeting goals, getting support from a colleague, receiving recognition  Emotions influence a number of job performance variables (OCB, and organizational commitment)  An emotional episode is actually a series of emotional experiences precipitated by a single event  Job satisfaction is influenced by current emotions at any given time along with the history of emotions  Moods and emotions fluctuate over time, and their effect on performance also fluctuates COMM 292: Organizational Behaviour - Final Exam Review  Emotion driven behaviours are typically short in duration and of high variability  Emotions tend to be incompatible with behaviours, they can influence negatively on job performance Emotions in the Workplace in a Global Context:  Degree to which people experience emotions across cultures  People's interpretations of emotions vary across cultures Does the Degree to Which People Experience Emotions Vary Across Cultures?  In China people experience fewer positive/negative emotions than people in other cultures  People in most cultures tend to experience certain positive and negative emotions o The frequency of their experience and their intensity varies to some degree Do People's Interpretations of Emotions Vary Across Cultures?  In generally people all over the world interpret negative/positive emotions the same o Some cultures value certain emotions more than others  Pride is seen as a positive emotion in Western cultures, but are undesirable in China and Japan Do the Norms of the Expression of Emotions Differ Across Cultures?  Yes they do, and in collective countries, people are more likely to believe that the emotional display of another have something to do with their own relationship with the person  Easier for people to recognize emotions of those of their own culture  Some cultures lack words from emotions that we are accustomed too  Managers need to know the emotional norms in each culture they do business in o If they don't they might send unintended signals or misread the reaction of others Chapter 3 Values  Basic convictions that a specific model or conduct or end-state of existence is personally or socially preferable to an opposite or converse mode of conduct or end-state of existence o A judgmental element that separates an individual's ideas of what is right, good, or desirable o Most values are formed by parents, friends, teachers, media etc. Rokeach's Value Survey:  The survey classifies the values that people hold in two sets (each containing 18 value items) o Terminal values (desirable end-state): goals individuals would like to achieve during their lifetime o Instrumental values: preferable ways of behaving  People in the same occupation/category tend to have similar values o Differences in groups makes it difficult to communicate and negotiate COMM 292: Organizational Behaviour - Final Exam Review Hodgson's General Moral Principles:  Ethics: study of moral values/principles that guide our behaviour (what is right or wrong)  Seven general principles should be followed to be principled, appropriate and defensible o Respect people, people are intrinsically valued and have the right to self- determination, tell the truth, promises/contracts should be honours, people should be treated justly, actions should accomplish good, and the greatest good for the greatest number Accessing Cultural Values: Hofstede's Framework for Assessing Cultures:  Power distance: degree to which people in a country accept the unequal distribution of power o High: large inequalities of power and wealth, and are tolerated (class or caste system)  Individualism: degree to which people act as individuals rather than part of a group o Collectivism: tight social framework, people look after and protect each other  Masculinity: degree to which culture favours traditional masculine roles (power, control etc.) o Femininity: cultures see little difference between male and female roles (equals)  Uncertainty avoidance: degree to which people prefer structure to unstructured situations o High: increased anxiety, ambiguity, fewer laws and controls to reduce uncertainty  Long-term orientation: a national culture that focuses on the future, thrift and persistence  Short-term orientation: a national culture with emphasis on the past and present The Globe Framework for Assessing Cultures:  Global Leadership and Organizational Behaviour Effectiveness (GLOBE) o Cross-cultural investigation of leadership and national culture  Assertiveness: extent to which a society encourages people to be tough  Future orientation: extent to which society encourages and rewards planning, investing etc.  Gender differentiation: extent to which society maximizes gender role differences  Uncertainty avoidance: society's reliance on social norms and procedures for future predictions  In-group collectivism: extend to which society takes pride in membership in small groups  Performance orientation: extent to which society encourages group members for improvement  Humane orientation: extend to which society encourages individuals for being fair, generous etc.  The GLOBE study confirmed the findings of Hofstede's study Values in the Canadian Workplace  When individual values align with organizational values, it is positive o Lead to positive work attitudes, lower turnover, greater productivity Generational Differences:  Elders, Baby Boomers, Generation X represent 12 distinct value tribes COMM 292: Organizational Behaviour - Final Exam Review o Broad generalizations, there are individual differences o Most of the generation has the same values and mindset The Elders:  Play by the rules, and there core values are in order (authority, discipline etc.) o 80% represent traditional values Baby Boomers:  Influenced by civil rights movement, women's movement, Vietnam war, Beatles o Rebellious, anxious communitarians, connected enthusiast and disengaged Darwinists o Rejection of authority, concern for environment, equality Generation X:  Shaped globalization, two-career parents, MTV, AIDS and computers o Value flexibility, life options and job satisfaction, skeptical, particularly of authority o Thrill seeking, aimless dependants, social hedonists, Aquarians and post-materialists The Ne(x)t Generation:  prosperous times, high expectations and seek meaning in work, life goals (wealth oriented)  Technologically advanced, socially conscious, and entrepreneurial The Generations Meet in the Workplace:  By using generational differences we can predict social values and behaviour  Managers must be flexible to manage different generations in the same workplace Cultural Differences:  Even though we have a multicultural society there are tensions among people of different races o Canadian's define themselves as not American (different values)  Generally country's/society's values change based on major events or changes/shifts (9/11, Obama) Francophone and Anglophone Values:  Francophones are more collective, group-oriented, need for greater achievement, intrinsic values o Committed to organizations, reducing ambiguity and uncertainty at work o Introverted, sensing, thinking and judging  Anglophones are more individualistic, I-centred, take more risks o Intuitive, feeling and perceiving Aboriginal Values:  Increasing entrepreneurship by aboriginals and other business partnerships o Believe in traditional culture, value and languages, self-sustaining economies o More likely to reflect goals that advance the community Asian Values: COMM 292: Organizational Behaviour - Final Exam Review  Chinese and South Asian are the largest visible minorities in Canada o Tend to exhibit greater power distance and greater collectivism  Gaunxi: connection between two independent individuals to enable a bilateral flow of personal or social transactions  Western firms must understand Gaunxi in order to conduct business with Asian firms Attitudes  Evaluative statements (positive/negative) about people, objects or events (responses to situations)  Employees may be negatively affected by the attitudes of their co-workers or clients Job Satisfaction:  An individual’s general attitude toward his or her job  Most people in Canada/USA would not recommend their work and are not satisfied What Causes Job Satisfaction:  Most people prefer challenging and stimulating work over predictability and routine  After a comfortable living ($40,000) money satisfaction changes (less important)  Core self-evaluation: people who believe in their inner worth and basic competence Job Satisfaction and Productivity:  The correlation between job satisfaction and job performance is moderately strong  Job satisfaction and productivity both effect each other positively o Higher productivity will bring in a larger salary and better working conditions Job Satisfaction and Organizational Citizenship Behaviour:  OCB can help an organization function more efficiently and effectively o Job satisfaction is a major determinant of an employee's OCB o If the workplace is not fair, job satisfaction and OCB are likely to be effected Job Satisfaction and Customer Satisfaction:  Employee satisfactions is related to positive customer outcomes (customer service etc.) o Familiar and happy employees increases customer appreciation o Employees that encounter customer dissatisfaction will not satisfied How Employees Can Express Dissatisfaction:  Employees can complain, steal property, be slow or not perform their duties (deviant behaviour)  Exit: dissatisfaction expressed actively attempting to leave the organization  Voice: dissatisfaction expressed by actively and constructively attempting to improve conditions  Loyalty: dissatisfaction expressed by passively waiting for conditions to improve  Neglect: dissatisfaction expressed by passively allowing conditions to worsen  Exit/neglect represent lowered productivity, absentees, and turnover Managers Often Don't Get It: COMM 292: Organizational Behaviour - Final Exam Review  Some managers are unconcerned or overestimate job satisfaction  Mismatch between what managers think, and about how employees feel Organizational Commitment:  An employee identifies with an organization and its goals, yet stays with their own organization  Affective commitment: emotional attachment/identification/involvement with an organization  Normative commitment: the obligation an individual feels to staying with the organization  Continuance commitment: calculation to stay with an organization base on cost of leaving  Commitment and performance is better for newer employees than experienced  Employees with high organizational commitment are likely to engage in OCB Employee Engagement:  An individual's involvement/satisfaction/enthusiasm for the work he/she does o Higher engaged employees leads to higher productivity, profits and customer satisfaction Managing Diversity in the Workplace  Companies that design and publicize diversity are producing value statements o Companies hope to change/influence the behaviour of employees, but it is difficult Responses to Diversity Initiatives:  Generation X embraces egalitarian and pluralistic values o As they move through the workplace, diversity tensions will lessen (fewer initiatives needed)  Employees may exhibit negative reactions to diversity even if the organization supports it Cultural Intelligence (CQ):  Ability to understand someone's unfamiliar and ambiguous gestures in the same way as would people from that person's culture o Determine if a person's behaviour is representative of a group or just that person Research Findings: Cultural Intelligence  People who have CQ look for clues to help identify a culture's shared understanding o Looking for consistencies across a variety of people from the same group  Provincial: work best with people of similar backgrounds, difficulties working with others  Analyst: analyze a foreign culture's rules/expectations to determine how they interact  Natural: use intuition to understand those from other cultural backgrounds  Ambassador: communicate convincingly that they fit in, even if they don't know much  Mimic: control actions/behaviours to match others  Chameleon: have high levels of CQ components, mistaken as from another culture COMM 292: Organizational Behaviour - Final Exam Review Chapter 4 What is Motivation?  Motivation: the intensity, direction and persistence of effort a person shows in reaching a goal  Intensity: how hard a person tries o High intensity is unlikely to be beneficial unless it is channeled correctly  Effort requires persistence (measure of how long a person can maintain his/her effort)  Theory X: suggests that employees dislike work, will attempt to avoid it, and must be coerced, controlled, or threatened with punishment to achieve goals o Suggests that people are extrinsically motivated  Theory Y: suggests that employees like work, are creative, seek responsibility, and will exercise self-direction and self-control if they are committed to the objectives o Suggests that people are intrinsically motivated  Motivation is the result of the interaction of the individual and the situation o The level of motivation differs both among individuals and within individual at different times  Intrinsic motivators: a person's internal desire to do something, due to such things as interest, challenge, and personal satisfaction  Extrinsic motivators: motivation that comes from outside the person and includes such things as pay, bonuses and other tangible rewards  Punishment by Rewards: suggests that if the right environment is provided, people will be motivated Needs Theories of Motivation  Needs theories: describes the types of needs that must be met to motivate individuals  Process theories: help us understand the actual ways in which we and other can be motivated  Needs theories have been criticized for not holding up to scientific review o The theories represent a foundation from which contemporary theories have grown o Managers still use these theories and terminology in explaining employee motivation Maslow's Hierarchy of Needs Theory:  A hierarchy of five needs - psychological, safety, social, esteem and self-actualization - in which as soon as each need is substantially satisfied, the next need becomes dominant o Physiological: includes hunger, thirst, shelter, sex and other bodily needs o Safety: includes security and protection from physical and emotional harm o Social: includes affection, belongingness, acceptance and friendship o Esteem: self-respect, autonomy, achievement, status, recognition and attention o Self-actualization: growth, achieving one's potential, and self-fulfillment  No need is ever fully met, but substantially satisfies allows for advancement o To satisfy someone, you must determine what level of the hierarchy the are currently present  Higher order needs are satisfied internally, while lower order externally ERG Theory: COMM 292: Organizational Behaviour - Final Exam Review  Version of Maslow's hierarchy that includes three core needs: existence, relatedness and growth  Believed that an individual could be focused on all three levels at once Motivation-Hygiene Theory:  Relates intrinsic factors to job satisfaction and associates extrinsic factors with dissatisfaction  Achievements, recognition, responsibility, advancement and growth are related to job satisfaction o People that felt good about work, attributed these characteristics to themselves  Extrinsic factors like policies, administration, supervision etc. are related to dissatisfaction o People that are dissatisfied, they attribute the extrinsic factors  Herzberg proposed satisfaction/no satisfaction and dissatisfaction/no dissatisfaction  Factors of job satisfaction (motivators) are different factors of dissatisfaction (hygiene factors) o Hygiene factors: policy, salary, admin, supervision, interpersonal relations etc.  When these factors are satisfied, people will not be dissatisfied  Motivation is emphasized through achievement, recognition, responsibility and growth  The procedures used in the theory are limited, as it attends to blaming/attributing certain characteristics  The reliability of the theory is questionable as there may have been tainted results  No theory was actually created, and no measure of satisfaction was used  The theory ignores previous research such as situational variables McClelland's Theory of Needs:  Achievement, power and affiliation are three important needs that help explain motivation  Achievement: drive to excel, to achieve in relation to a set of standards, to strive to succeed o People striving to do things better, seeking more responsibility, challenging tasks o High probability tasks, that are not too easy, or too hard, but that can be accomplished o More focused on individual performance rather than the firm or organization  Power: need to make others behave in a way that they would not have behaved otherwise o Desire to impact others and have control over situations and others o Tend to be more competitive and focused on status/prestige rather than effective performance  Affiliation: desire for friendly and close interpersonal relationships o Strive for friendly relationships rather than competitive/high understanding relationships  The best managers tend to have a high need for power and low need for affiliation Summarizing Needs Theories:  Individuals have needs that, when unsatisfied, will result in motivation  There are different needs that must be met before other needs can be considered Process Theories of Motivation: Expectancy Theory: COMM 292: Organizational Behaviour - Final Exam Review  Individuals act depending upon their evaluation of whether their effort will lead to good performance, whether good performance will be followed by a given outcome, and whether that outcome is attractive Effort-Performance Relationship:  Expectancy: the belief that effort is related to performance  Individual perception of how probably it is that a given effort will lead to good performance  Employee expectancy is influenced by self-esteem, previous success, help from supervisors, information and proper materials/equipment Performance-Rewards Relationship:  Instrumentality: the belief that performance is related to rewards o Negative instrumentality indicated that high performance reduces the chances of a desired outcome o 0 instrumentality indicates no relationship between performance and receiving the desired outcome  Individual perception of whether performing at a given level will lead to a desired outcome o Whether the performance will be acknowledge by those who allocate rewards Rewards-Personal Goals Relationship:  Valence: the value or importance an individual places on rewards o Ranges from -1(very undesirable reward) to +1(very desirable reward)  Degree to which organizational rewards satisfy goals/needs and attractiveness of potential rewards  Managers often do not have the resources to reward, or reward the wrong things for accomplishments Expectancy Theory in the Workplace:  Research of the theory, even in cross-cultural settings have supported the expectancy theory Goal-Setting Theory:  Intentions of working toward a goal are a major source of work motivation o Goals tell employees what needs to be done and with how much effort  Some firms leave goal setting up to managers, although goals may then not be set  Management by objective (MBO): managers and employees jointly set performance goals that are tangible, verifiable and measurable o Progress on goals is often reviewed and rewards are allocated on the basis of the progress How Does Goal Setting Motivate?  Goals indicate where individuals should direct their efforts when prioritizing  Goals suggest how much effort an individual should put into a given task  Goals create persistence so effort will be spent on a task over time  Goals will help people develop plans for achieving specific goals COMM 292: Organizational Behaviour - Final Exam Review  All effective goals must include the acronym SMART o Specific: individuals know exactly what is to be achieved o M easurable: the goals proposed can be tracked and reviewed o Attainable: goals, even if difficult, are reasonable and achievable o Results-Oriented: goals should support the vision of the organization o Time-Bound: goals are to be achieved within a stated time Research Findings: The Effect of Goal Setting  Specific goals increase performance, under certain conditions o Specific goals can be linked to poorer performance in complex tasks (not focused on alternatives)  Difficult goals, when accepted, result in higher performance than do easy goals o This does not work when employees believe the goals are unattainable  Feedback leads to higher performance o Let’s people know how they are doing, and if necessary how to adjust effort, direction etc.  Goals are equally effective whether anticipatively set, assigned, or self-set o Employees are more likely to accept goals if they are anticipatively set  Goal commitment and financial incentive affect whether goals are achieved o Financial incentives can lower commitment to difficult goals (leads to problems)  The implication of goal setting is that achievement will result in intrinsic satisfaction Self-Efficacy Theory:  Refers to an individual's belief that he/she is capable of performing a task o Higher self-efficacy means the more confidence in the ability to succeed in a task  Respond to negative feedback with increased effort and motivation  Setting difficult goals for people communicates confidence in that person o Creates confidence in yourself and you set higher personal goals which creates better performance  Self-efficacy is increased through enactive mastery, vicarious modelling, verbal persuasion and arousal o Enactive mastery: gaining relevant experience with the task or job (increased confidence) o Vicarious modelling: becoming more confident because you see someone else doing the task o Verbal persuasion: becoming more confident because someone convinces you that you have the skills necessary to be successful o Arousal: leads to an energized state, which drives a person to complete a task  Training programs work because it increases self-efficacy  Pygmalion effect: form of self-fulfilling prophecy in which believing something is true can make it true o Self-efficacy is increased to a higher individual that the person is of high ability  Galatea effect: when high performance expectations are communicated directly to an employee  Intelligence and personality, conscientiousness and emotional stability, can increase self- efficacy COMM 292: Organizational Behaviour - Final Exam Review  Self-efficacy may only be present in smart, confident people (may be superfluous/unnecessary) Responses to the Reward System  Equity theory suggests that individuals evaluate and interpret rewards  Employees are sensitive to fairness issues that extend beyond the reward system and effect motivation Equity Theory:  Individuals compare their job inputs and outcomes with those of others, and then respond as to eliminate any inequities o If the situation is fair, then the relationship is in a state of equity To Whom Do We Compare Ourselves?  There are four referent comparisons that an employee can use: o Self-inside: employee's experiences in a different position inside their current organization o Self-outside: employee's experiences in a situation/position outside their current organization o Other-inside: another individual/group of individuals inside the employee's organization o Other-outside: another individual/group of individuals outside the employee's organization  Four moderating variables that effect comparisons: o Gender: women and men compare each other (pay, expectancy, equality) o Length of tenure: short tenure will mean little info about their current organization  Rely more on persona experiences, rather than in-organization comparisons o Level in the organization: higher ranked employees tend to have more info about their organization What Happens When We Feel Treated Inequitably:  When employees perceive an inequality, they can be predicted to make one of six choices: o Change their inputs (ex. Exerting less effort) o Change their outcome (ex. Work harder to show that he/she deserves something) o Adjust perceptions of self (ex. Maybe I am not comparable to others similar to me) o Choose a different referent (ex. Consider other individuals with similarities) o Leave the field (ex. Change job, or organization) Research Findings: Inequitable Pay  When paid by time worked, over rewarded employees will produce more than will equitable paid employees  When paid by time worked, under rewarded employees will produce less or poorer quality output  When paid by number of units produces, over rewarded employees will produce fewer, but higher-quality, units than will equitable paid employees COMM 292: Organizational Behaviour - Final Exam Review  When paid by number of units produces, under rewarded employees will produce a large number of low quality units in comparison with equitably paid employees  Those who are over rewarded do not seem to change their behaviour  Some people simply do not worry about how their rewards compare with those of others  For most employees, motivation depends on relative rewards Fair Process and Treatment:  Distributive justice: perceived fairness of the amount of allocation of rewards among individuals  Organizational justice: an overall perception of what is fair in the workplace, composed of distributive, procedural, and interactional justice  Procedural justice: perceived fairness of the process used to determine the distribution of rewards o Includes having a voice in a decision and feeling the outcome is adequate  Interactional justice: quality of interpersonal treatment received from a manager  When employees are treated in an unjust manner, they respond by retaliating  Perceptions of injustice are more closely related to one's supervisor  Distributive justice is strongly related to satisfaction with outcome and organizational commitment  Procedural justice relates to job satisfaction, employee trust, withdrawal from the organization, job performance and organizational citizenship behaviour  Employees are sensitive to unfairness in procedures when bad news is communicated  When addressing perceived injustices, managers need to focus their actions on the source of the problem Cognitive Evaluation Theory:  Introduction of extrinsic rewards for an effort that was previously intrinsic will decrease productivity o Tend to decrease the overall level of a person's motivation  People in a way punished by rewards, and do inferior work when they are enticed by money, grades etc. Extrinsic vs. Intrinsic Rewards  Theory suggest that has extrinsic rewards are given intrinsic rewards are reduced  When an individual’s experiences a loss of control over their behaviour when it is being rewarded by external sources  Show have pay non-contingent on performance in order to avoid decreasing intrinsic motivation o Instead pay fairly and allow individual's intrinsic motivation to guide performance Research of Findings: Cognitive Evaluation Theory  Extrinsic rewards that are verbal can have different effects on an individuals' intrinsic motivators o Verbal rewards increase intrinsic motivation, while tangible decrease it  Self-concordance: degree to which a person's reasons for pursuing a goal is consistent with the person's interests and core values COMM 292: Organizational Behaviour - Final Exam Review  People who pursue goals for intrinsic reasons are more satisfied with their jobs o Feel like they fit into their organization better, and may perform better Increasing Intrinsic Motivation:  Four key rewards that increase an individual's intrinsic motivation: o Sense of choice: opportunity to select what one will do and perform the way one thinks best o Sense of competence: feeling of accomplishment for doing a good job o Sense of meaningfulness: opportunity to pursue worthwhile tasks o Sense of progress: feeling of accomplishment that one is making progress on a task  Four sets of behaviours managers can use to build intrinsic rewards for their employees: o Leading for choice: empowering employees and delegating tasks o Leading with competence: support and coaching employees o Leading for meaningfulness: inspiring employees and modelling desired behaviours o Leading for progress: monitoring and rewarding employees Motivating Employees Through Reinforcement:  People learn how to behave to get something they want or to avoid something they don't want  Operant conditioning: behaviour is influenced by reinforcement or lack of reinforcement brought about by the consequences of the behaviour  People are likely to engage in desired behaviours if they are positively reinforced for doing so o Rewards are most effective when directly followed by the desired behaviour  If a behaviour fails to be positively reinforced, the probability that the behaviour will be repeated declines Methods of Shaping Behaviour:  Positive reinforcement: following a response with something pleasant  Negative reinforcement: following a response by the termination or withdrawal of something pleasant  Punishment: causing an unpleasant condition in an attempt to eliminate an undesirable behaviour  Extinction: eliminating any reinforcement that is maintaining a behaviour Schedules of Reinforcement:  Continuous reinforcement: desired behaviour is reinforced each and every time it is demonstrated  Intermittent reinforcement: desired behaviour is reinforced often enough to make the behaviour worth repeating, bot not every time it is demonstrated  Fixed interval: the reward is given at fixed time intervals  Variable-interval: reward is given at variable time intervals  Fixed-ratio: reward is given at fixed amounts of output  Variable-ratio schedule: reward is given at variable amounts of output Motivation for Whom? COMM 292: Organizational Behaviour - Final Exam Review  These theories may just be a way for managers to get what they want from employees o Does not necessarily mean an increase in employee productivity Putting It All Together:  Recognize individual differences: employees have different needs and should not be treated alike o Managers should understand what is important to each employee and align goals/rewards  Use goals and feedback: employees should have challenging, specific goals and feedback  Allow employees to participate in decisions that affect them o Employees can set goals, solve productivity, quality problems, job satisfactions etc.  When giving rewards, be sure that they reward desired performance o Rewards should be linked to the type of performance expected  Check the system for equity: employees should be able to perceive rewards as equating with the input they bring to the job Chapter 5 From Theory to Practice: The Role of Money  There are personality traits and demographic factors that correlate with and individuals attitude toward money  People who value money highly score higher on competitiveness, materialism and control o Score higher on self-esteem, need for achievement and Type A personality measures  Organizations need to understand individuals' needs when rewarding Creating Effective Reward Systems What to Pay: Establishing a Pay Structure  The worth of the job in the organization and relative to the market determines job pay structure  Paying more may attract better qualified and more motivated employees  Firms that pay below market level may have high turnover or not be able to afford higher salaries How to Pay: Rewarding Individuals through Variable-Pay Programs  Variable-pay programs: a portion of an employee's pay is based on some individual and/or organizational measure of performance  Costs for organizations decline as productivity declines as pay is variable Individual-Based Incentives:  Piece-rate pay: employees are paid a fixed sum for each unit of production completed o Many firms modify this plan and add a base salary to the variable pay plan  Merit-based pay: based on performance appraisal ratings o Individuals perceive a strong relationship between performance and rewards COMM 292: Organizational Behaviour - Final Exam Review o Separation between the most productive and blow average producers (lower pay increases)  Bonuses: rewards employees for recent performance rather than historical performance o Focus on the recent past, and rewards employees for high productivity or better work ethic o Rewarding individuals based on bonuses can cause problems (financial crisis 2008)  Skill-based pay: sets pay based on how many skills employees have/how many jobs they can do o Employees may top out and not be able to have any more pay increases o Employees may be paid for skills they may not need immediately or ever o Pay is not based on the level of performance which may vary Group-Based Incentives:  Gainsharing: improvements in group productivity determine the total amount of money to be shared o Focuses on productivity gains rather than profits o Rewards specific behaviours that are less influenced by external factors Organizational-Based Incentives:  Profit-sharing: employer shares profits with employees based on a predetermined formula o Employees may ignore customer service and employee development o Companies in cyclical industries would see varied results, thus varied profit-sharing o Best in organizations with more teamwork, and managerial philosophy encouraging participation  Stock options and employee stock ownership plans (ESOP): company-established benefit plan in which employees acquire stock as part of their benefits o Employees will think more about their actions if they have ownership in the organization  Teamwork: incentive pay to individuals can lead to problems in group productivity and cohesiveness o Organizations focused of teamwork must focus incentives on the team not individuals  Unions: employees are usually paid based on seniority and job categories, with little movement o Against variable pay as it may lead to competition and increased work stress  Public Sector Employees: difficult to link productivity as most of these jobs are service based o The goal setting theory is better applied to these types of employees Research Findings: ESOPs  Have the potential to increase job satisfaction and work motivation  Takes ownership and participative style to achieve improvements in the firm's performance Research Findings: Variable-Pay Programs  Variable-pay programs increase motivation and productivity o Does not mean this is true for all organizations or employees COMM 292: Organizational Behaviour - Final Exam Review  Teamwork, unions, public sectors, and ethics are problems to the pay-for-performance program Flexible Benefits: Developing a Benefits Package  Different employees have different needs and ideas about their benefits  Flexible benefits: employees put together a benefits package individually tailored to their own needs  Modular plans: predesigned packages of benefits that fit a specific group of employees  Core-plus plans: consist of a core benefits package with other added options available  Flexible spending accounts: given money to purchase of package of benefits Intrinsic Rewards: Employee Recognition Programs  Recognition given to employees may not be enough in some jobs, organizations Linked Employee Recognition Programs and Reinforcement Theory:  Recognition is the best motivator in the workplace according to employees  Team celebrations can enhance group cohesiveness and motivation Employee Recognition in Practice:  Recognition programs are attractive to organizations as they are cost effective  Recognition may reduce turnover, particularly in good employees Caveat Emptor: Apply Motivation Theories Wisely Motivation Theories are Culture-Bound:  Being a member of a successful team with shared goals and values, rather than financial rewards, drives Japanese sales representatives to succeed  Countries with high uncertainty prefer pay based objective, because it is guaranteed  Countries with high value on individualism place emphasis on individual responsibility to perform  Countries with high humane orientation offer social benefits and programs to employees and families Evaluating Motivation Theories Cross-Culturally:  Other cultures focus on motivating a group of employees rather than individuals  Different cultures/countries place different benefits and needs above others  Employees expect that outputs will be greater than their inputs  It is important to determine the internal norms of a country when developing an incentive plan Provide Performance Feedback:  Employees need to be given performance feedback to determine if rewards are equitable  Managers are often uncomfortable discussing weakness with employees  Many employees become defensive when their weaknesses are pointed out  Organizations must train managers to provide and give employee feedback COMM 292: Organizational Behaviour - Final Exam Review Beware the Signals that are Sent by Rewards:  Individuals are unable to break out of old ways of thinking about reward and recognition practices  Organizations often don't look at the big picture of their performance system o Units often end up competing against each other, instead of working together  Both management and shareholders often focus on short-term results o They don't reward employees for longer-range planning  This all happens when organizations hope for one thing but then reward for something else Can We Just Eliminate Rewards:  Employee commitment benefits organizations as they work harder, and have more devotion, rather than waiting to be rewarded for each action or success Creating a Motivating Work Environment:  Must determine if employees have the adequate tools, equipment, materials, and supplies o Working conditions, helpful co-workers, supportive work rules and procedures, sufficient information and adequate time are also very important  Abolish incentive pay: paying employees generously allows them to focus on the goals of the organization rather than pay  Re-evaluate Evaluation: change the evaluation system structure to reflect a two-way conversation between the employees and management/ownership  Create the conditions for authentic motivation: help employees rather than survey them, provide lots of feedback so they now how to improve and be the best they can be  Encourage collaboration: people are more likely to perform better in well-functioning groups o Allows team members to provide feedback for each other  Enhance content: people are generally more motivated when their jobs require them to learn new skills, partake in a variety of tasks, and enable them to demonstrate competence o Can make a job role more important or enhance the level, or toughness of work  Provide choice: more likely to like their jobs if employees are given the ability to free make decisions and carry out tasks o Can lead to a different workplace and create incentives better than extrinsic motivators o This process does not take immediate affect, but rather effects will be seen in the long-term Job Redesign:  Job design: how tasks are assigned to form a job o The way the elements in a job are organized can increase/decrease effort Job Rotation:  The periodic shifting of an employee from one task to another  When an activity is no longer challenging, an employee is rotated to another job at the same level o The job will have similar skill requirements as the last one  Used to ensure new employees learn different tasks and the skills that are associated COMM 292: Organizational Behaviour - Final Exam Review o Helps if there are absentees, more employees are able to cover a variety of jobs o Decreases the frequency of repetitive stress injuries  Reduces boredom and increases motivation by diversifying employee activities o Helps organizations develop better employees with more flexibility Job Enlargement:  The horizontal expansion of jobs o Increasing the number and variety of tasks that an individual performs  Results in jobs with greater diversity  Employees learn to complete the tasks in different units and levels of the organization o Reduces the need for meetings, reduces the cost of office equipment and allows for job continuity during holidays or sick days Job Enrichment and the Job Characteristics Model:  Job characteristics model (JCM): identifies five core job dimensions and their relationship to personal and work outcomes o Focuses on the content of jobs rather than the context of jobs o Cab be used to motivate employees by increasing job satisfaction  Job enrichment: the vertical expansion of jobs o Increases the degree to which workers control the planning, execution, and evaluation in their work o Enriched jobs organizes tasks so that employee does a complete activity o Expands freedom and independence, increases responsibility, and provides feedback Core Job Dimensions:  Skill variety: degree to which the job requires a variety of different activities so the employee can use a number of different skills and talents  Task identity: degree to which the job require completion of a whole and identifiable piece of work  Task significance: degree to which the job has a substantial impact on the lives/work of other people  Autonomy: degree to which the job provides substantial freedom, independence, and desecration to the individual in scheduling the work and determining the procedures to be used in carrying it out  Feedback: degree to which carrying out the work activities required by the job results in the individual obtaining direct and clear information about the effectiveness of his/her performance Critical Psychological States:  Experienced meaningfulness: if an employee's task is meaningful, the employee will view the job as important, valuable and worthwhile  Experienced responsibility for outcome: employees feel a sense of personal responsibility for results when their jobs given them greater autonomy  Knowledge of the actual results: feedback helps employees know whether they are performing effectively COMM 292: Organizational Behaviour - Final Exam Review  The more employees experience meaningfulness, responsibility, and knowledge, the greater motivation, performance and satisfaction o Less likely employees will be absent, and reduces turnover Motivating Potential Score:  JCM can be viewed as increasing employee motivation by creating better jobs  Motivating potential score (MPS): a predictive index suggesting the motivation potential in a job o Jobs with high motivation potential must be high on one or more of skill variety, task identity or task significance  Predicts high motivation leads to higher satisfaction Research Findings: JCM  It is argued that there are better ways of deriving motivation that the JCM o Could also add employee perception of their workload compared to others o Moderate the link between the core job dimensions and personal/work outcomes  It is inconclusive whether job enrichment actually affects job productivity Job Redesign in the Canadian Context: The Role of Unions  Job redesign often results in job loss, and labour unions have tried to prevent this  In the 1990's some unions decided to partake in negotiations for job redesign for union members  Management must gain employees' acceptance whether they are in a union or not Creating More Flexible Workplaces  Flexible workplaces allow for employees to ease the stress of juggling family needs alongside work Compressed Workweek:  A four-day week, with employees working 10 hours a day; or nine days of work over two weeks o Gives employees more leisure and shopping time o Allows for travel to and from work outside rush hours  Can increase enthusiasm, morale, and commitment to the organization o Also can make it easier to recruit employees to the organization Flextime:  Employees work during a common core period each day, but can form their total workday from a flexible set of hours outside the core o Gives employees discretion about when they go and leave work o Extra hours can be accumulated and made up to be the equivalent of a free day  Improves productivity and satisfaction while reducing absenteeism and turnover Job Sharing:  The practice of having two or more people split a 40-hour-a-week job COMM 292: Organizational Behaviour - Final Exam Review  Allows organizations to acquire skilled workers who might not be available on a full-time basis Telecommuting:  Employees do their work at home on a computer that is linked to their offices o Could be at least two days a week on a computer linked to their office o Can increase productivity and decrease stress while providing better service to clients  Employees may miss out on in-workplace activities such as meetings and events o Telecommuting can decrease the commitment to the organization as there is increased distance Chapter 6 Teams vs. Groups: What's the Difference?  Group: two or more people with a common relationship (do not necessarily engage in collective work)  Team: small number of people that work closely together toward a common objective (accountable) o Share leadership, individually accountable, purpose or mission, problem solving and effective Why Have Teams Become So Popular?  Teams have greater flexibility compared to traditional departments/structures  Teams have the potential to be more productive, but must have the key characteristics o More motivation, quickly assembly, deploy, refocus and disband Types of Teams Problem-Solving Teams:  5-12 employees from the same department who meet a once a few hours a week o Discuss ways of improving quality, efficiency and the work environment o Also be planning teams, task forces or committees organized to get tasks done  Employees share ideas or suggestions, but do not get to implement suggested actions Self-Managed Teams:  10-12 employees who take on many responsibilities of their former managers o Includes planning/scheduling of work, assigning tasks, taking action etc.  Fully self-managed have their own members/leader and evaluate each other  Self-managed teams often perform better than teams with formally appointed leaders  Effectiveness of the team depends on the makeup, tasks being done and reward structure Cross-Functional Teams:  Group of employees from about the same level of different areas that work to accomplish tasks COMM 292: Organizational Behaviour - Final Exam Review o Task force: a temporary cross-functional team o Committee: group composed of members from different departments o Allows employees to exchange info, develop new ideas, solve problems and coordinate Skunkworks:  Cross-functional teams that develop to create new products or work on complex problems o Gives teams the ability to work on projects without being watched by the organization Virtual Teams:  Uses computers to tie together physically dispersed members in order to achieve a goal o Most teams today are virtual by sharing links, documents, video conferencing etc.  Virtual teams do not have physical interaction and are less satisfied o Difficult to build trust, when team members have not met in person o Virtual teams build trust through the tone or attitude of the conversations From Individual to Team Member Roles:  A set of expected behaviours of a person in a given position in a social unit Role Conflict:  Role expectations: how others believe a person should act in a given situation  Role conflict: one role requirement may make it more difficult to comply with another role o Creates internal tension, frustration Role Ambiguity:  When a person is unclear about the expectations of his or her role o Leads to confusion, stress, bad feelings  Role overload/underload: too much or too little is expected of someone Norms:  Acceptable standards of behaviour within a group that are shared by the group's members o Act as a means of influencing the behaviour of the group  Common social norms: performance, appearance, social arrangement, and allocation of resources The How and Why of Norms:  Norms develop gradually as group members become acquainted and determine functionality o Explicit statements: instructions from the group's powerful member establishes norms o Critical events: things that have happened in the past that have change the group's dynamic o Primacy: first behaviour pattern that emerges in a group often sets team expectations COMM 292: Organizational Behaviour - Final Exam Review o Carry-over behaviour: expectations brought with members from other group situations 
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