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Chapter 4-6

OB - Chapter 4-6 Notes.docx

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Department
Commerce
Course Code
COMMERCE 1BA3
Professor
Emad Mohammad

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CHAPTER FOUR: VALUES, ATTITUDES AND WORK BEHAVIOUR What Are Values?  Values: a broad tendency to prefer certain states of affairs over others  Signal how we should and should not behave  Values are general so do not predict behavior in specific situations  Values are reinforced by parents, teachers, representatives of religions General Differences in Values  Four generations in the workplace: Traditionalists, Baby Boomers, Generation X, Millennials (Generation Y) – table on p. 113  Have different values and preferences for leadership style  Many stereotypes surrounding the generations  Gen X and Y value status and rapid career growth more than Baby Boomers  All generations share the same values but express them differently (ex. respect means being deferred to for older employees but means being listened to for Gen X and Y)  A good fit between a person’s values and those of organization leads to positive work attitudes and less change of quitting Cultural Differences in Values  Many business negotiations fail because of the lack of understanding of cross-cultural differences  Cannot appreciate differences in work-related values in different countries  Work Centrality: o Work itself valued differently o The extent to which people perceive work as a central life interest o Japan was top, Belgians and Americans were average, British was low o Would work more hours Hofstede’s Study  Geert Hofstede questioned employees in different countries about work- related values  Discovered four basic dimensions in which work-related values differed across cultures: 1. Power Distance o Extent to which an unequal distribution of power is accepted by society members o Small: inequality is minimized; superiors are accessible; power differences downplayed (ex. Denmark, Austria, New Zealand) o Large: inequality is natural; superiors are inaccessible; power differences are highlighted (ex Mexico, Venezuela, Philippines) 2. Uncertainty Avoidance o Extent to which people are uncomfortable with uncertain/ambiguous situations o Strong: stress rules, hard work, conformity, security (ex. Japan, Greece, Portugal) o Weak: less concerned with rules, conformity, security, risk taking is valued (ex. US, Canada) 3. Masculinity/Femininity o Masculine: clearly differentiate gender roles, support dominance of men, stress economic performance (Ex. Japan, Austria, Mexico) o Feminine: fluid gender roles, stress sexual equality, stress quality of life (ex. Scandinavian countries, Canada in middle) 4. Individualism/Collectivism o Individualistic: stress independence, individual initiative, and privacy (ex. US, Australia, Great Britain, Canada) o Collective: favour interdependence, loyalty to family (ex. Venezuela, Columbia, Pakistan) 5. Long-term/Short-Term Orientation (added 5 dimension) o Long-term: stress persistence, perseverance, thrift, and status differences (ex China, Hong Kong, Taiwan, Japan, South Korea) o Short-term: stress personal steadiness, stability, face-saving, social niceties (ex. US, Canada, Great Britain, Zimbabwe, Nigeria) Implications of Cultural Variation  Exporting OB Theories: o OB theories from North America may not translate in other societies o Basic questions remain the same; answers change o Ex. might have trouble using solutions for a country with low power distance on a country with high power distance  Importing OB Theories: o Not all OB theories are designed in North America o Ex. Japanese management techniques (quality circles, total quality management, just-in-time production) o Cannot really import outside theories since values are different o Has mostly resulted in failures  Appreciating Global Customers: o Have to appreciate values of other countries if want to market to them o Some countries may find certain things offensive that others do not o Have different tastes in food, entertainment, lifestyle, etc.  Developing Global Employees o Companies need to select, train, develop employees to have appreciation of different cultural values What Are Attitudes?  Attitude: Fairly stable evaluative tendency to respond consistently to some specific object, situation, person o Tendencies to respond to target of the attitude o Can influence behavior (not always consistent with behavior)  BELIEF + VALUE => Attitude  Behaviour  Ex. My job is interfering with family life + I dislike anything that hurts my family = I dislike my job  I’ll search for another job  Organizations attempt to change employee attitudes (use persuasion)  Persuasion used to modify/emphasize values is emotionally oriented  Persuasion used to modify beliefs is rationally oriented What Is Job Satisfaction?  Job satisfaction: a collection of attitudes that workers have about their jobs  Facet satisfaction: tendency for an employee to be more/less satisfied with different aspects of job  Overall satisfaction: overall indicator of person’s attitude toward job that cuts across different aspects  Two employees may have same overall satisfaction for different reasons  Job Description Index (JDI): questionnaire designed around 5 facets of satisfaction (respond yes, no or ?)  Minnesota Satisfaction Questionnaire (MSQ): people indicate how happy they are with various aspects of job (scale of very satisfied to very dissatisfied) What Determines Job Satisfaction? Discrepancy  Different beliefs and values cause differences in job satisfaction with the same job  Might perceive jobs as the same but want different things from them  Discrepancy theory: job satisfaction stems from the discrepancy between job outcomes wanted and outcomes that are perceived to be obtained  Satisfaction with pay is high when person is paid what they think they deserve Fairness  Issues of fairness affect: o What people want from jobs o How they react to discrepancies Distributive Fairness  Distributive fairness: occurs when people receive outcomes they think they deserve  Equity theory: job satisfaction stems from a comparing the inputs one invests in a job to the outcomes they receive in comparison with inputs/outcomes of others  (My outcomes)/(My inputs) = (Other’s outcomes)/Other’s inputs)  Inputs: anything people give up, offer, trade to organization in exchange for outcomes (ex. education, training, hard work)  Outcomes: factors organization distributes to employees in exchange for inputs (ex. pay, promotions)  Inequity is a dissatisfying state (ex. if friend gets higher grade on exam but studied for less time than you) Procedural Fairness  Procedural fairness: occurs when process used to determine work outcomes is seen as reasonable  Does not involve actual distribution of resources/rewards  Concerned with how outcomes are decided/allocated  Factors that contribute to perceptions of procedural fairness: o Allocator is consistent over time and across people o Allocator uses accurate info and is unbiased o Allocator allows two-way communication during allocation process o Allocator welcomes discussion of procedure/allocation  Procedural fairness will provoke dissatisfaction when distributive fairness is low  Will not complain if you get more than you think you deserve Interactional Fairness  Interactional fairness: occurs when people feel they have received respectful/informative communication about an outcome  Fair procedures/outcomes can be perceived as unfair when they are inadequately explained  People who feel interactional unfairness are dissatisfied with the boss  Interactional and procedural fairness can offset negative effects of distributive fairness Disposition  Some people are predisposed to be more/less satisfied because of personality  Changes in fairness will not matter  Evidence: 1. Identical twins raised separately have similar levels of job satisfaction 2. Job satisfaction is stable over time (even when employer changes) 3. Disposition measured in adolescence is correlated with job satisfaction as an adult Mood and Emotion  Affects: o Emotions: intense, short-lived feelings caused by a particular event o Moods: less intense, longer-lived and more diffuse feelings  Jobs consist of series of events that can provoke emotions/influence moods  Emotional contagion: tendency for moods and emotions to spread between people/groups  Teams with positive affects are more successful  Emotional regulation: requirements for people to conform to certain “display rules” in job in spite of true emotions/mood  Employees are expected to suppress negative emotions  Should be joyful and cheery and remain calm in conflicts  Suppressing negative emotions increases stress and decreases job satisfaction  Job with higher cognitive demand are more well paid (ex. lawyers, nurses) Some Key Contributors to Job Satisfaction  Mentally Challenging Work: o Work that tests skills and abilities o Allows employees to set own working place o Provide worker with clear feedback on performance o (Some employees like repetitive, unchallenging work)  Adequate Compensation: o Pay and satisfaction are positively related o Some people are willing to accept less pay for less responsibility/hours o Some people want more pay for overtime  Career Opportunities: o Opportunity for promotion contributes to job satisfaction o Some people want the raise, some want the title o Companies also offer lateral moves that provide a challenge  People: o Friendly, considerate, good-natured superiors and co-workers contribute to job satisfaction o Satisfied in the presence of people who help us do our work well Consequences of Job Satisfaction Absence from Work  Job satisfaction can result in less absenteeism  Content people will want to attend work  Reasons why attendance patterns may not represent satisfaction: o Some absence is unavoidable (person who loves job may be sick) o Opportunities away from job are preferable even if satisfied with job (ex. vacation) o Attendance control policies may control attendance more than satisfaction (ex. not getting paid for missed days) o Lack of company guidelines (if many people are absent a lot others may thing this is normal and be absent as well) Turnover  Can be expensive to replace someone who quits  Price of hiring, training, and developing to proficiency a new employee  Usually top performers leave not bad workers  Less satisfied workers are more likely to leave  Satisfied workers sometimes leave because of “shocks” (divorce, birth of child, another job offer)  Dissatisfied workers sometimes stay because: o Dissatisfaction may be offset by strong commitment to organization o Attached to community and do not want to have to move o Weak job market leaves few alternatives Performance  Job satisfaction is associated with enhanced performance  Many other factors influence motivation and performance as well  “A happy worker is a productive worker”  Interesting, challenging jobs most likely to stimulate high performance  People with more complex jobs have more control over level of performance Organizational Citizenship Behaviour  Organizational citizenship behavior (OCB): voluntary informal behavior that contributes to organizational effectiveness  Job satisfaction contributes to OCB  Examples: o Helping others o Being a good sport (not everyone can have the best office) o Courtesy and cooperation (warning photocopy unit about big job)  Employees who are treated fairly exhibit OCB  OCB contributes to productivity, efficiency and reduced turnover Customer Satisfaction and Profit  Employee satisfaction increases customer satisfaction and organizational profit  Employee satisfaction > reduced absenteeism, turnover > good teamwork and OCBS > deliver good service to customers What Is Organizational Commitment?  Organizational commitment: attitude that reflects strength of linkage between employee and organization  Three types: 1. Affective commitment: o Based on identification and involvement with organization o People stay with an organization because they want to 2. Continuance commitment: o Based on costs that would be incurred in leaving organization o People stay with an organization because they have to 3. Normative commitment: o Based on ideology/feeling of obligation to organization o People stay with an organization because they think they should Key Contributors to Organizational Commitment  Affective commitment: o Interesting, satisfying work o Role clarity and having one’s expectations met  Continuance commitment: o Building up pension funds o Obtaining rapid promotions o Being well integrated into community where firm is o Increases with time  Normative commitment: o Tuition reimbursements o Special training that enhances skills o Socialization practices that emphasize loyalty Consequences of Organizational Commitment  All forms of commitment reduce turnover  Organizations have to watch what type of commitment they boost o Affective commitment is positively related to performance o Continuance commitment is negatively related to performance  High levels of commitment can: o Cause conflicts between family life and work life o Result in unethical and illegal behavior o Cause a lack of innovation and resistance to change Changes in the Workplace and Employee Commitment 1. Changes in the nature of employees’ commitment to the organization o Levels of affective, continuance, normative commitment can increase or decrease o Hard to maintain affective commitment after a change that is detrimental to employees’ well-being 2. Changes in the focus of employees’ commitment o Changes in workplace may alter focus of commitment within and outside the organization 3. The multiplicity of employer-employee relationships within organizations o Employees with less job security will be less committed o Employers can split employees into groups (one that needs to have high commitment and ones that do not) CHAPTER FIVE: THEORIES OF WORK MOTIVATION Why Study Motivation?  No single all-purpose motivation theory  Good set of theories should: o Recognize human diversity o Realize that same conditions will not motivate everyone o Explain why some people are self-motivated while others require external motivation o Recognize social aspect of human beings What Is Motivation? Basic Characteristics of Motivation  Motivation: the extent to which persistent effort is directed toward a goal  Effort: o Strength of the person’s work-related behavior o Different efforts are required for different kinds of jobs  Persistence: o Persistence that individuals exhibit in applying effort to their work tasks o Cannot work really hard and then slack off  Direction: o Based on the quality of work produced o Is the persistent effort in a direction that benefits the organization?  Goals: o Motivated behavior has some goal or objective toward which it is directed o Ex. high productivity, good attendance, creative decisions Extrinsic and Intrinsic Motivation  Intrinsic motivation: o Stems from direct relationship between the worker and the task o Self-applied o Feeling of achievement, accomplishment, challenge  Extrinsic motivation: o Stems from the work environment external to the task o Applied by others o Pay, fringe benefits, company policies, supervision  Self-determination theory (SDT): theory of motivation that considers whether 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 reward Motivation and Performance  Performance: the extent to which an organizational member contributes to achieving the objectives of the organization  Motivation is not the only contributor to performance  Level of intelligence also contributes to performance  Two forms of intelligence are important for performance General Cognitive Ability  Cognitive ability: intelligence/mental ability  General cognitive ability: a person’s basic information processing capabilities and cognitive resources  Includes verbal, numerical, special and reasoning abilities  Abilities required to perform mental tasks  Predicts learning/training success and job performance Emotional Intelligence  Emotional intelligence (EI): the ability to understand and manage one’s own and other’s feelings and emotions  Involves: o Ability to perceive and express emotion o Assimilate emotion in thought o Understand and reason about emotion o Manage emotions in oneself and others  Four skills of EI: 1. Perceiving emotions accurately in oneself and others: o Can identify emotions in people’s faces and in non-verbal behavior 2. Using emotions to facilitate thinking: o Use emotions in functional ways o Use for making decisions and creativity, integrative thinking, etc. o Can shift emotions/generate new emotions to see things from different perspectives 3. Understanding emotions, emotional language and signals conveyed by emotions: o Can determine consequences of emotions and how emotions change over time o Understand how different situations generate different emotions o Know not to ask someone who is in a bad mood for a favour 4. Managing emotions to attain specific goals: o Highest level because requires one to master previous steps o Can regulate, adjust and change own emotions and others to suit the situation o Stay calm when feeling upset o Able to excite others or lower another person’s anger  EI predicts job performance and academic performance  EI is more important if have low cognitive ability than if have high The Motivation-Performance Relationship  Person can have bad performance even if they are highly motivated  May not understand the task  Person can have good performance even if they are moderately motivated  Perform well if have high EI and cognitive ability Need Theories of Work Motivation  Need theories: o Motivation theories o Specify the kinds of needs people have and conditions in which they will be motivated to satisfy these needs in a way that contributes to performance  NEEDS  BEHAVIOUR  INCENTIVES AND GOALS Maslow’s Hierarchy of Needs  Maslow’s hierarchy of needs: five-level hierarchical need theory of motivation that specifies that the lowest-level unsatisfied need has the greatest motivational potential  A satisfied need is no longer an effective motivator 1. Physiological needs o Need: food, water, oxygen, shelter o Organizational conditions: minimum pay, working conditions that promote existence 2. Safety needs o Security, stability, freedom from anxiety, ordered environment o Safe working conditions, fair rules and regulations, job security, pension plans, above minimum pay 3. Belongingness needs o Social interaction, affection, love, companionship, friendship o Opportunity to interact with others on the job, friendly and supportive supervision, teamwork, developing new social relationships 4. Esteem needs o Feelings of adequacy, competence, independence, strength, confidence o Opportunity to master tasks, feelings of achievement and responsibility, awards, promotions, professional recognition 5. Self-actualization needs o Desire to develop one’s true potential as an individual to the fullest extent, express skills, talents, emotion that are personally fulfilling o Absorbing jobs with the potential for creativity and growth as well as relaxation of structure to permit self-development and personal progression Alderfer’s EGR Theory  ERG theory: three-level hierarchal need theory of motivation that allows for movement up and down the hierarchy  As lower needs are satisfied, higher needs become a motivator  Can be motivated by more than one level of need at the same time  The more lower-level needs are gratified, the more higher-level need satisfaction is desired  The less higher-level needs are gratified, the more lower-level need satisfaction is desired 1. Existence needs: o Needs that are satisfied by some material substance or condition o Food, pay, shelter, safe working conditions 2. Relatedness needs o Needs that are satisfied by open communication and exchange of thoughts and feelings with others o Open, accurate, honest interaction 3. Growth needs o Needs that are fulfilled by strong personal involvement in the work setting o Involve full utilization of one’s skills and abilities and development of new skills and abilities McClelland’s Theory of Needs  McClelland’s theory of needs: a nonhierarchical need theory of motivation that outlines the conditions under which certain needs result in particular patterns of motivation  Most effective managers have low n Aff and high n Pow  Need for Achievement (n Ach): o Strong desire to perform challenging tasks well o Prefer situations in which personal responsibility can be taken for outcomes o Tend to set moderately difficult goals that provide for calculated risks o Desire for performance feedback o Like sales jobs or entrepreneurial positions  Need for Affiliation (n Aff): o Strong desire to extablih and maintain friendly, compatible relationships o Want others to like them o Learn social networking quickly o Communicate frequently with others o Like social work or customer relations jobs  Need for Power (n Pow): o Strong desire to have influence over other o Want to make an impression one people o Show strong concern for personal prestige o Like journalism and management jobs Managerial Implications of Need Theories  Appreciate Diversity: o Managers must evaluate needs of individual employees o Must offer incentives/goals that correspond to needs o Needs of young employees differ from older ones o Should survey employees to find out what their needs are  Appreciate Intrinsic Motivation: o Alert managers to the existence of higher-order needs o Important because: organizational survival depends on creative and innovative behavior and frustration of higher-order needs prompts demand for lower-order needs o Want employees to be motivated by more higher order needs not just pay and fringe benefits Pro
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