Chapter 1 What is OB? o understanding, explaining, and improving ...
Chapter 1 What is OB?
o o o o o
understanding, explaining, and improving the attitudes and behaviours of individuals and groups in organizations. Supports – understanding human behaviour Enables – managers to maximize organization/individual performance Provides – tools to explain behaviour and how to manage it Manage others better & themselves better – People are competitive edge
How does HR relate to OB? Takes the theories and principles studied in OB and explores the applications of these principles in organizations What is Strategic Management? Product and choices the industry characteristics that affect an organization’s profitability What is the role of management theory? Ideas that set forth general rules on how to manage a business or organization Addresses how managers/supervisors relate to their organizations in the knowledge of its Goals, the implementation on how to achieve these goals, and how to motivate employees to perform to the highest standard Traditional Model: Think Factory Workers... Fred Taylor – Max Weber placed heavy emphasis on specialization, coordination, and efficiency thru observation, measurement, experimentation Bureaucracy: entire organization & division of labour with technical specialization, strict chain of command – reporting to higher level, formal rules to ensure consistency, impartiality, & decision making at the top of the organization. Human Relation Movement: recognize the psychological attributes of individual workers & social forces within work groups Contemporary Management: recognizes the dependencies between the classical and human relations approaches. Integrative Model of OB: What are the two primary outcomes of interest of OB researchers?
Job Performance – Function of motivation & ability Organizational Commitment What are the 5 individual mechanisms that affect the two primary outcomes? Job Satisfaction: employee feelings Stress: response to taxing job demands Motivation: energetic/driving forces of employees Trust/Justice/Ethics: feelings regarding their business’ conduct Learning/Decision Making: job knowledge – performance Relation between the Individual Mechanisms and Outcomes occur in an Individual, Group & Org: Personality/Cultural Values/Ability: how we behave at work, what interests us Team Characteristics/Processes Power/Influence Leadership Styles/Behaviors Organizational Structure Organizational Culture International OB: CrossCultural Differences: national cultures affect many relationships International Corporations: consistent policies/practices across locations or tailored to meet the needs of the culture Expatriation: employee who lives outside native country, what factors influence job performance and organizational commitment levels Managing Diversity: special challenges involved in leading and working in areas with many cultural backgrounds Why does OB Matter?
Effective OB can help make a product get better, incrementally, over the long term. ResourceBased View: argues rare and inimitable resources help firms maintain competitive advantage. What makes resources valuable? Rare: resources and people (more valuable when rare) Inimitable (more valuable when hard to copy) History: pool of experience/wisdom/knowledge Numerous Small Decisions Socially complex resources: culture/teamwork/trust Rule of 1/8th: at best, 1/8th or 12% of organizations will actually do what is required to build profits by putting people first. How do we know what we know: Experience: believe it because it’s consistent with their own experience/observation Intuition: believe it because it seems obvious/selfevident Authority: believe it because a powerful figure has said so Science: believe it because scientific studies have replicated the result Scientific Studies: Theory: verbal/symbolic assertions that specify how and why variables are related & their conditions Story – Who, What, Where, When, Why? Hypothesis: predictions that specify relationships between variables Data Verification Chapter 1 Summary:
What is OB? Study of understanding/explaining the attitudes/behaviors of individuals/groups in organizations. Why do we act the way we do? 2 Primary Outcomes? – JP & OC 5 Individual Mechanisms that influence Job Performance and Organizational Commitment? – JS, ST, MO, TR, DM 6 Relations – PTPLOO Effective management of OB can ______ Because ________ are a valuable resource. Good people are __________ and are hard to _______________ . Theories about OB are valuable because they help to O________ and D_______ how concepts might relate to one another, they help to inspire H____________ that can be tested with D_______. Scientific studies C______ & A_____ data to test the V_________ of the theoretical relationships, which in turn, can be the basis for theoretical refinements and sound management practice
Chapter 9 – Personality What is personality? Structures/Propensities within someone that explain characteristic patterns of thought/emotion/behave. Unique collection of specific traits The Big Five Trait Adjectives CANOT Conscientiousness: Dependable – Organized – Reliable – Ambition – Hard Working – Persevering P: accomplishment striving – desire to accomplish taskrelated goals to express personality Agreeableness: kind – cooperative – sympathetic – helpful – courteous – warm P: communion striving – obtain acceptance in relationships – getting along – not ahead Neuroticism: nervous – moody – emotional – insecure – unstable – jealous Openness: Curious – Imaginative – Creative – Complex – Refined – Sophisticated P: likely to migrate to artistic/scientific fields
Extraversion: talkative – sociable – passionate – assertive – bold – dominant P: Status Striving: obtain power/influence within a social structure What are Cultural Values? Hofstadter’s Dimensions Individualism vs. Collectivism: loosely knit social framework (IND) vs. tight social framework (COLL) 60% who live in a collective culture value collectivism – employees identify with relevant ingroups (family) and accept and prioritize ingroup norms/goals Power Distance: prefers/accepts equal power distribution (LOW PD) vs. Unequal distribution (HPD) Uncertainty Avoidance: tolerates ambiguous situations (LOW UA) vs. feels threatened (HIGH UA) Masc./Femininity: values stereotypically male traits (MASC) vs. stereotypically female traits (FEM) Short/LongTerm Orientation: values that are past/present orientated (STO) vs. future (LTO) What is Ability? Cognitive Ability: use of knowledge to make decisions & solve problems Verbal (O/W Comprehension) – Quantitative (Number/Math Reasoning) – Reasoning (Problem Sensitivity/Deductive Reasoning/Inductive R/Originality) – Spatial (Orientation/Visualization) – Perceptual (Speed & Flexibility/Perceptual Speed) General Mental Ability: g factor – general level of CA that determines the more narrow CA’s Emotional Ability: capability to understand and use emotion effectively in social situations Selfawareness: self emotions Other awareness: other peoples emotions Emotional regulation: recover quickly from emotional experiences Use of emotions: harness emotions and employ them to improve successfulness in goals Physical Ability: S – S – F – P – S Driver of Maximum Performance (brief, special circumstances that demand best effort) Strength: Static – Explosive – Dynamic
Stamina Flexibility/Coordination: Extent – Dynamic Psychomotor: Control – Manipulative – Response – Reaction Sensory: Near/Far/Night Vision – Visual Colour – Depth – Hearing – Auditory – Speech How Important are these personal qualities? Personality Conscientiousness: Moderate positive effect on performance & commitment strongest effect on job/task performance – higher level of motivation – more selfconfident – likely to set goals and commit to them Key driver of typical performance – performance in the routine conditions that surround daily job tasks More likely to behave in citizenship behaviour – punctuality means more likely to go “extra mile” Less likely to engage in counterproductive behaviour b/c higher job satisfaction & they’re dependable More committed to organization – less likely to quit the organization – better managing stress Situational Strength: “strong situations” have clear behavioral expectations, incentives, or instructions that make differences between individuals less important. “weak situations” lack those cues. Personality variables tend to be more significant drivers of behaviour in weak situations than in strong situations. Trait Activations: situations provide cues that trigger the expression of a given trait. Personality variables tend to be more significant drivers of behaviours in situations that provide relevant cues than in situations in which those cues are lacking. Ability: Cognitive Ability: most relevant form of ability across all jobs – linked to job performance Strong predictor of job performance – task performance – highest correlation with task performance Chapter 9 – Summary: Personality refers to the _____ & _______ inside a person that explains his/her characteristic patterns of T_______, E________, & B_________. It also refers to a person’s social R_________ .
C_________ Values are shared beliefs about desirable end states or modes of conduct in a given culture that influence the expression of traits. A________ refers to the relatively stable capabilities of people to perform a particular range of different but related activities. P________ & V______ capture what people are like (unlike ability – what people can do) The BIG FIVE includes C__________ (D_______, O_________, R_________), A________ (W_______, K_______, C________), N________ (N_______, M_______, E_______), O_________ (C________, I_________, C________) & E_________ (T______, S______, P_________) Hofstadter’s dimensions of cultural values includes – I___________/C____________, P______ D_______, U_________ A_________, M_______/F________, & S_______ vs. L__________ O________. Cognitive Abilities include v_____, q_______, r______, s______, and p______ ability. G Factor underlies all... Emotional Intelligence includes S____A_______, O_____A________, E_________ R_______, and U____ O__ E________. Physical Abilities includes S______, S______, F_______/C_________, P________ & S________ abilities. Conscientiousness has a moderate positive relationship with job performance and a moderate positive relationship with organizational commitment. It has a stronger effect on these outcomes than the rest of the BIG FIVE. General cognitive ability has a strong positive relationship with job performance, due primarily to its effects on task performance. General cognitive ability is not related to organizational commitment. Chapter 2 – Job Performance Learning Outcomes: What is the definition of job performance? What are the three dimensions of job performance? What is task performance? How do organizations identity the behaviours that underlie task performance? What is citizenship behaviour, and what are some specific examples of it? What is counterproductive behaviour, and what are some specific examples of it? How can organizations use job performance information to manage employee performance? What is Job Performance? Employee behaviours that contribute +/ to the accomplishment of organizational goals Task Performance (Positive): behaviours directly involved in the transformation of ORG resources into the G/S the ORG produces Routine Task Performance: habitual responses to predict task demands – ex. Flight Attend
Adaptive Task Performance: thoughtful responses to unique task demands Citizenship Behaviour (Positive) Counterproductive Behaviour (Negative) Role of Job Analysis Process determines requirements of specific job List all activities involved – Observations/Surveys/Interviews Each activity is rated by “subject matter experts” according to things like importance/frequency Highly rated activities in terms of importance/frequency are used to define task performance What is Citizen Behaviour? Voluntary employee activities that contributing to organizational goals by improving the context in which work takes place Relevant in virtually every job & there are clear benefits of these behaviours in terms of effectiveness of work units and organizations Even more vital during organizational crisis – beneficial suggestions/deep employee involvement/positive ‘public face’ are critical Interpersonal: Discretionary acts that go beyond normal job expectations to assist, support, and develop coworkers & colleagues Helping – assisting coworkers who have heavy workloads, aiding personal matters, showing new employees the ropes Courtesy – sharing important information with coworkers Sportsmanship – maintaining a positive attitude with coworkers though good/bad times Organizational: behaviours that benefit the larger organization by supporting/defending the company – working to improve its operations and being especially loyal to it Voice – offer constructive suggestions for change often in reaction to negative work event Civic Virtue – deeperthannormal participation in company operations – voluntary meetings/readings/company news Boosterism – positively representing the organization when in public What are Counterproductive Behaviours?
Discretionary employee behaviours that intentionally hinder organizational goal accomplishment. Evidence that people who engage in one form of counterproductive behaviour also engage in others Pattern of Behaviour vs. isolated incidents Relevant in any job – always things to steal/resources to waste/people to be uncivil toward Organizational: Minor: Production Deviance reduce ORG efficiency of work output (Wasting Resources/Substance Abuse) Major: Property Deviance harm ORG assets/possessions (Sabotage/Theft) Interpersonal: Minor: Political Deviance: disadvantage other individuals (Gossiping/Incivility) Major: Personal Aggression: hostile verbal/physical actions (Harassment/Abuse) What does it mean to be a good performer? Good at the job that falls within job description Engages in citizenship behaviours directed at both coworkers and the larger organization Refrains from engaging in the counterproductive behaviours that can so badly damage the climate of an organization Performance Management: Management by objectives (MBO): bases employee’s evaluations on whether the employee achieves specific performance goals Managing the performance of employees who work in contexts in which objective measure of performance can be quantified Behaviorally Anchored Rating Scales (BARS): assess performance by directly assessing job performance behaviours 15 scales 360 degree feedback: uses ratings provided by supervisors, coworkers, subordinates, customers and the employee themselves Chapter 2 – Summary:
Job Performance is the set of E________ B________ that contribute to the organizational G_________ accomplishment. Job Performance has three dimensions: T_______ P__________, C____________ B__________, and C_________ B__________. Task performance includes behaviours that are directly involved in the transformation of R___________ into the G/S that the ORG P___________. Organizations gather information about relevant task behaviours using J______ A_______. Citizenship behaviours are V__________ employee activities that may/may not be rewarded but that contribute to the organization by improving the overall quality of the setting in which work takes place. Counterproductive behaviours are employee behaviours that intentionally hinder organizational goal accomplishment. The ____, _____, & ____ _______ _____ practices are three ways that organizations can use job performance information to manage employee performance.
Chapter 4 – Job Satisfaction Learning Outcomes: What is job satisfaction? What are values, and how do they affect job satisfaction? People often evaluate their job satisfaction according to specific facets? What are those facets? Which job characteristics can create a sense of satisfaction with the work itself? What are mood and emotions, and what specific forms do they take? How does job satisfaction affect job performance and organizational commitment? What is job satisfaction? Pleasurable emotional state resulting from the appraisal of one’s job or job experiences. How someone feels and how someone thinks about their job. Directly affects job performance and organizational commitment. Employees are more satisfied when their job provides value. Value!
Things that people consciously or subconsciously want to seek or attain. Pay – High & Secure Salary Promotions: Frequent & Based on ability Supervision: good supervisory relations & praise for good work Coworkers: Enjoyable & Responsive coworkers Work Itself: freedom/independence, intellectual stimulation, creative expression, achievement Altruism: helping others & moral causes Status: Prestige, Power over others, Fame Environment: comfortable & safe Valuepercept theory: job satisfaction depends on whether the employee perceives that their job provides value People evaluate job satisfaction according to specific facets of the job Dissatisfaction = Vwant – Vhave x VImportance Correlations between Satisfaction Facets and Overall Job Satisfactions Moderate Correlation: Pay & Promotion Strong Correlation: Supervision, Coworkers, & Work Itself Job Characteristics Theory/Model: Several “core” job characteristics that have a certain psychological impact on workers. Variety: # of different activities involving # of skills/talents Identity: degree of completing an identifiable piece of work from start to finish w/ visible outcome Significance: substantial impact on the lives of other people, particularly people in the world Autonomy: job provides freedom, independence, and discretion to the individual
Feedback: clear information about how well he/she is performing. The psychological states induced by the nature of the job leads to feelings of satisfaction Meaningfulness of work: tasks are viewed as something the “matters” in the employee’s system of philosophies/beliefs Responsibility for outcomes: key drivers of the quality of the unit’s work Knowledge of results: how well/poorly they are doing. Several factors called moderators influence the extent to which these relationships hold true. Knowledge and Skill: aptitude and competence needed to succeed on their job Growth need strength: desire to develop themselves When employees are very talented & feel a strong need for growth, the core job characteristics (VISAF) become even more powerful & increase work satisfaction. When employees lack knowledge and skill or lack a desire for growth, more of a core job characteristic (VISAF) should not increase their satisfaction very much. Job Enrichment: Organizations that identify the importance of (VISAF) employ the job characteristics theory to help improve satisfaction among their employees. The first step in the process is assessing the current level of the characteristics to arrive at a “satisfaction potential score” The organization along with the job design consultants attempt to redesign aspects of the job to increase the core job characteristic levels. Job Enrichment is when job duties & responsibilities are expanded to provide increased levels of core job characteristics (VISAF). Along with a boost in job satisfaction, enrichment can heighten work accuracy and customer satisfaction. Although training and labour costs tend to rise as a result of such changes. Moods & Emotions: Moods: states of feelings that are often mild in intensity, last for an extended period of time, and are not explicitly directed at or caused by anything. Pleasantness: degree of a good vs. bad mood Engagement: how active or sluggish a mood is Emotions: are states of feelings that are directly at (caused by) someone or some circumstance.
Positive: joy, pride, relief, hope, love and compassion. Negative: anger, anxiety, fear, guilt, shame, sadness, envy, and disgust. Emotional Labour: Demand to carefully manage emotions. Just because we FEEL these moods/emotions doesn’t mean we are supposed to show them. Customer Service, Emergency Medical Workers, Air Traffic Controllers Emotional labour places great strain on employees and that their bottled up emotions may end up bubbling over, resulting in angry outbursts, emotional exhaustion, and burnout. Emotional Contagion: emotions are transferrable. Why are some employees more satisfied than others? Satisfaction within the workplace is affected by the five core job characteristics (VISAF), but also the daily fluctuations in how people feel (moods & emotions). Understanding fluctuations can help managers separate longterm problems (boring tasks/incompetent coworkers) from more shortlived issues (bad meeting/annoying interaction. Why is job satisfaction important? Strong Correlation: Organizational Commitment: Affective commitment satisfied employees are more likely to want to stay with the organization. Normative Commitment – satisfied employees are more likely to feel an obligation to remain with their firm and “repay” the organization for whatever it is that makes them so satisfied Moderate correlation: Task Performance: Job satisfaction does influence job performance. Satisfied employees do a better job of fulfilling job description duties & positive feelings improve creativity, problem solving, decision making, enhance memory and improve general activity and energy levels. Positive feelings keep employees focused on task accomplishment. Citizenship Behaviour: more frequent “extramile”, positive feelings increase desire to interact Negative Correlation: Counterproductive Behaviour: satisfied employees engage in fewer intentionally destructive actions that could harm their workplace Tracking Satisfaction: job satisfaction is a key driver of job performance and organizational commitment & it’s important for managers to understand how satisfied employees are.
Several methods are rankandfile employees, including focus groups/interviews and attitude surveys (most accurate/effective) JDI – Job Descriptive Index: facet measure of job satisfaction that assesses satisfaction with pay, promotion opportunities, supervision, coworkers, and the work itself. +:questions are written in a simple/straightforward fashion *Stress anonymity –Data from survey can be compared to neutral levels, to compare nationally, and within organizations –Data should be fed back to employees so they feel involved in the process. –Organization should be prepared to react to the survey results with specific goals/action steps Low satisfaction? Redesign job tasks.... Too costly? Train supervisors in strategies for increasing the five core job characteristics on a more informal basis. Chapter 4 – Summary: Job satisfaction is a pleasurable E____________ state resulting from the A________ of one’s job or job E_________. It represents how you F______ about your job and what you T_______ about your job. Values are things that people C__________ or S__ C_________ want to seek or attain. According to the V_________________, job satisfaction depends on whether you P________ that your job supplies the things that you value. People often appraise their job satisfaction according to more specific F________ of their job. These satisfaction facets include P___________, P_____________, S_____________, C____________, and satisfaction with the W__________________. Job characteristics theory suggests that five C______________________ V_____________, I____________, S____________, A____________, F______________ combine to result in particularly high levels of satisfaction with the work itself. Moods are states of F_______ that are often M_____, last for an extended period of time and are not explicitly directed at anything. Intense P____________________ include being enthusiastic, excited and elated. Intense N__________ Moods include being hostile, nervous, and annoyed. ___________ are states of feeling that are often I__________, are relatively S________, and are D______ or C_______ by someone/something Positive emotions include joy, pride, relief, hope, love, and compassion. Negative emotions include anger, anxiety, fear, guilt, shame, sadness, envy and disgust. Job satisfaction has a M_____________ P_____________ relationship with job performance and a S___________ P__________ relationship with organizational commitment. Chapter 6 – Motivation! Learning Objectives:
What is motivation? What is expectancy theory? What are the three beliefs that help determine how work effort is directed? What role do needs play? What is goal setting theory? What two qualities make goals strong predictors of task performance? How and when do those effects occur? What does it mean for rewards to be ‘equitable’? How are perceptions of equity determined? How do employees respond when they feel a sense of inequity? What is psychological empowerment? What four benefits help create a sense of empowerment among employees? How does motivation affect job performance and organizational commitment? What steps can organizations take to increase employee motivation? What is motivation? Motivation is a set of energetic forces that originates internally/externally an employee, initiates workrelated effort, and determines it direction/intensity/persistence. What is Expectancy theory? Expectancy Theory is the cognitive process that employees go through to make choices among different voluntary responses. Employee behaviour is directed toward pleasure and away from pain, or, toward certain outcomes and away from others. How do employees make the choices that take them in the “right direction”? Three specific beliefs that are based on our past learning and experience: Expectancy: (E > P) exerting a high level of effort will result in successful performance of some task Subjective probability from 01 that spec. effort will result in spec. performance. Selfefficacy: belief a person has the capabilities needed to execute behaviours for success Past Accomplishments: success/failures in similar tasks in the past Vicarious Experiences: observations/discussions with others Verbal Persuasion: persuasion to “get the job dob” Efficacy is dictated by emotional cues... Think “Period Speeches”
Instrumentality: (P > O) represents the belief that successful performance will result in some outcomes. Subjective Probabilities that successful performance will bring a set of outcomes. “If I perform well, will I receive outcomes?” Ex. WestJet employees (perform well = profits) Valence: anticipated value of the outcomes associated with performance. +: I would prefer having outcome X to not having it... eg. Salary increases, bonuses etc : I would prefer not having outcome X to having it... eg. Disciplinary actions, demotions, terminated 0: I’m bored, are we still talking about outcome X? What makes outcomes more positively valenced? Needs: Outcomes are more attractive when they help satisfy our needs. Particularly attractive outcomes likely satisfy a number of different needs. Attractiveness of outcomes varies across cultures. Existence: Physiological/Safety – need for anything required for human existence Relatedness: Love/Belongingness – create/maintain lasting, positive relationships Control: Autonomy/Responsibility – predict and control Esteem: SelfRegard/Growth – hold high evaluation of oneself, feel effective/respective Meaning: SelfActualization – the need to perform tasks that appeal to ideals/purpose Extrinsic vs. Intrinsic Motivation: Extrinsic: desire to put forth work effort due to some contingency that depends on task performance Ex. People acknowledging successful performance Intrinsic: desire to put forth work effort due to the sense that task performance serves its own reward Ex. Selfgenerated outcomes/needs Extrinsic Outcomes
Intrinsic Outcomes
Pay ($$ Is Relevant to multiple needs – Ex * E)
Employment
Bonuses
Interestingness
Promotions
Accomplishment
Benefits/Perks
Knowledge Gain
Spot Awards
Skill Development
Praise
Personal Expression
Job Security
(Lack of Boredom)
Support
(Lack of Anxiety)
Free Time
(Lack of Frustration)
(Lack Of Disciplinary Actions) (Lack of Demotions) (Lack of Terminations)
Motivational force = [ E > P ] x [ (P > O) x V ] Motivational Force = 0 if any of the three beliefs are 0 What is the Goal Setting Theory? Goal Setting Theory views individual goals as the primary drivers of motivation Assigning employees specific/difficult goals (provides measuring stick) will result in higher levels of performance than assigning no goals, easy goals, or doyourbest goals. Easy goals don’t push you to work your hardest/longest so task effort is minimal. Moderate to difficult require more intensity and persistency of effort. Impossible goals max people abilities, selfefficacy begins to diminish. Goals trigger the creation of task strategies, learning plans/problemsolving approaches used to achieve successful performance. Task Performance Moderators: Feedback: updates on employee progress toward goal attainment. Ex. Beat a score on HALO 3 and not know what score to beat Task Complexity: how complicated is the information & actions involved & its change Effects of Specific/Difficult goals are twice as strong on simple tasks Goal Commitment: degree to which a person accepts a goal and is determined to reach it High Goal Commitment = significant benefits when assigned specific/difficult goals Fostering Goal Commitment Rewards: tie goal achievement to the receipt of $ or other rewards Publicity: publicize the goal to create some social pressure to attain it Support: provide supportive supervision to aid employees through struggles Participation: set a specific proficiency level & due date for the goal – ownership Resources: provide the resources needed to attain the goal and remove constraints Joint participation from managers and employees shows managers the “how” of achievement, not just the “what” What is the Equity Theory? Equity Theory says motivation doesn’t depend solely on your own beliefs and circumstances by also on what happens to other people Employees create a “mental ledger” of the outcomes/rewards and the inputs/contributions they get/put from job duties. Employees compare the outcome/input ratio to some comparison other – some person who provides an intuitive frame of reference for judging equity Underreward Inequity: outcome/inputs is lower than comparisons ratio Constructive/Proactive & talk to boss, explain why you want better outcomes Strongest predictor of counterproductive behaviours – theft Overreward Inequity: outcome/inputs is higher than comparisons ratio Negative emotions – guilt/anxiety Increase inputs – intensity/persistence or cognitive distortion
What is Psychological Empowerment? Psychological Empowerment reflects an energy rooted in the belief that work tasks contribute to some larger purpose. Meaningfulness: value of a work goal or purpose – relative to a person’s own ideals and passions. +: easier to concentrate on & get excited about Selfdetermination: reflects a sense of choice in the initiation and continuation of work tasks (Intrinsic motivation) – Delegate work tasks vs. micromanage Competence: captures a person’s beliefs in his/her capability to perform work tasks successfully (Selfefficacy) Impact: sense that a person’s actions “make a difference” – progress is being made toward fulfilling some important purpose How important is motivation? Strongest performance effect is selfefficacy/competence... Selfconfidence outperforms peers Difficult goals are the second most powerful motivating force The motivational force created by high levels of valence, instrumentality, and expectancy is the next most powerful motivational variable for task performance. Perceptions of equity have a somewhat weaker effect on task performance Strong Correlation with Job Performance Moderate Correlation with Organizational Behaviour Designing Compensation Systems: Do the elements provide difficult and specific goals for channeling work effort? Lump Sum bonuses and gainsharing have been credited with improvements in employee productivity Consider the correspondence between individual performance levels and individual monetary outcomes. Merit Pay represents the most common element of organizational compensation plans. Element
Description
Individual Focused PieceRate
Specified rate is paid for each unit produced/sold/service provided
Merit Pay
Increase to base salary is made in accordance to performance ratings
LumpSum Bonuses
Bonuses for meeting individual goals but no change to base. “At risk” pay that must be reearned each year. Low base salary w/ higher bonuses
Recognition Awards
Tangible awards (gift cards, trips etc) or intangible (praise) given on an impromptu basis
UnitFocused Gainsharing
Bonus for meeting unit goals for criteria controllable by employees (labour costs/material use/quality). No base salary change. “At Risk”. Lower Base w/ higher bonuses.
OrgFocused Profit Sharing
Bonus when publicly reported earnings exceed a minimum level. Magnitude of the bonus is contingent on the magnitude of profits. No Base change. Lower base w/ higher bonus.
Chapter 6 – Summary: Motivation is defined as a set of E______ F______ that originates both I______/E_______ in an employee, initiates workrelated E______, and determines its D_______
o o o o o
understanding, explaining, and improving the attitudes and behaviours of individuals and groups in organizations. Supports – understanding human behaviour Enables – managers to maximize organization/individual performance Provides – tools to explain behaviour and how to manage it Manage others better & themselves better – People are competitive edge
How does HR relate to OB? Takes the theories and principles studied in OB and explores the applications of these principles in organizations What is Strategic Management? Product and choices the industry characteristics that affect an organization’s profitability What is the role of management theory? Ideas that set forth general rules on how to manage a business or organization Addresses how managers/supervisors relate to their organizations in the knowledge of its Goals, the implementation on how to achieve these goals, and how to motivate employees to perform to the highest standard Traditional Model: Think Factory Workers... Fred Taylor – Max Weber placed heavy emphasis on specialization, coordination, and efficiency thru observation, measurement, experimentation Bureaucracy: entire organization & division of labour with technical specialization, strict chain of command – reporting to higher level, formal rules to ensure consistency, impartiality, & decision making at the top of the organization. Human Relation Movement: recognize the psychological attributes of individual workers & social forces within work groups Contemporary Management: recognizes the dependencies between the classical and human relations approaches. Integrative Model of OB: What are the two primary outcomes of interest of OB researchers?
Job Performance – Function of motivation & ability Organizational Commitment What are the 5 individual mechanisms that affect the two primary outcomes? Job Satisfaction: employee feelings Stress: response to taxing job demands Motivation: energetic/driving forces of employees Trust/Justice/Ethics: feelings regarding their business’ conduct Learning/Decision Making: job knowledge – performance Relation between the Individual Mechanisms and Outcomes occur in an Individual, Group & Org: Personality/Cultural Values/Ability: how we behave at work, what interests us Team Characteristics/Processes Power/Influence Leadership Styles/Behaviors Organizational Structure Organizational Culture International OB: CrossCultural Differences: national cultures affect many relationships International Corporations: consistent policies/practices across locations or tailored to meet the needs of the culture Expatriation: employee who lives outside native country, what factors influence job performance and organizational commitment levels Managing Diversity: special challenges involved in leading and working in areas with many cultural backgrounds Why does OB Matter?
Effective OB can help make a product get better, incrementally, over the long term. ResourceBased View: argues rare and inimitable resources help firms maintain competitive advantage. What makes resources valuable? Rare: resources and people (more valuable when rare) Inimitable (more valuable when hard to copy) History: pool of experience/wisdom/knowledge Numerous Small Decisions Socially complex resources: culture/teamwork/trust Rule of 1/8th: at best, 1/8th or 12% of organizations will actually do what is required to build profits by putting people first. How do we know what we know: Experience: believe it because it’s consistent with their own experience/observation Intuition: believe it because it seems obvious/selfevident Authority: believe it because a powerful figure has said so Science: believe it because scientific studies have replicated the result Scientific Studies: Theory: verbal/symbolic assertions that specify how and why variables are related & their conditions Story – Who, What, Where, When, Why? Hypothesis: predictions that specify relationships between variables Data Verification Chapter 1 Summary:
What is OB? Study of understanding/explaining the attitudes/behaviors of individuals/groups in organizations. Why do we act the way we do? 2 Primary Outcomes? – JP & OC 5 Individual Mechanisms that influence Job Performance and Organizational Commitment? – JS, ST, MO, TR, DM 6 Relations – PTPLOO Effective management of OB can ______ Because ________ are a valuable resource. Good people are __________ and are hard to _______________ . Theories about OB are valuable because they help to O________ and D_______ how concepts might relate to one another, they help to inspire H____________ that can be tested with D_______. Scientific studies C______ & A_____ data to test the V_________ of the theoretical relationships, which in turn, can be the basis for theoretical refinements and sound management practice
Chapter 9 – Personality What is personality? Structures/Propensities within someone that explain characteristic patterns of thought/emotion/behave. Unique collection of specific traits The Big Five Trait Adjectives CANOT Conscientiousness: Dependable – Organized – Reliable – Ambition – Hard Working – Persevering P: accomplishment striving – desire to accomplish taskrelated goals to express personality Agreeableness: kind – cooperative – sympathetic – helpful – courteous – warm P: communion striving – obtain acceptance in relationships – getting along – not ahead Neuroticism: nervous – moody – emotional – insecure – unstable – jealous Openness: Curious – Imaginative – Creative – Complex – Refined – Sophisticated P: likely to migrate to artistic/scientific fields
Extraversion: talkative – sociable – passionate – assertive – bold – dominant P: Status Striving: obtain power/influence within a social structure What are Cultural Values? Hofstadter’s Dimensions Individualism vs. Collectivism: loosely knit social framework (IND) vs. tight social framework (COLL) 60% who live in a collective culture value collectivism – employees identify with relevant ingroups (family) and accept and prioritize ingroup norms/goals Power Distance: prefers/accepts equal power distribution (LOW PD) vs. Unequal distribution (HPD) Uncertainty Avoidance: tolerates ambiguous situations (LOW UA) vs. feels threatened (HIGH UA) Masc./Femininity: values stereotypically male traits (MASC) vs. stereotypically female traits (FEM) Short/LongTerm Orientation: values that are past/present orientated (STO) vs. future (LTO) What is Ability? Cognitive Ability: use of knowledge to make decisions & solve problems Verbal (O/W Comprehension) – Quantitative (Number/Math Reasoning) – Reasoning (Problem Sensitivity/Deductive Reasoning/Inductive R/Originality) – Spatial (Orientation/Visualization) – Perceptual (Speed & Flexibility/Perceptual Speed) General Mental Ability: g factor – general level of CA that determines the more narrow CA’s Emotional Ability: capability to understand and use emotion effectively in social situations Selfawareness: self emotions Other awareness: other peoples emotions Emotional regulation: recover quickly from emotional experiences Use of emotions: harness emotions and employ them to improve successfulness in goals Physical Ability: S – S – F – P – S Driver of Maximum Performance (brief, special circumstances that demand best effort) Strength: Static – Explosive – Dynamic
Stamina Flexibility/Coordination: Extent – Dynamic Psychomotor: Control – Manipulative – Response – Reaction Sensory: Near/Far/Night Vision – Visual Colour – Depth – Hearing – Auditory – Speech How Important are these personal qualities? Personality Conscientiousness: Moderate positive effect on performance & commitment strongest effect on job/task performance – higher level of motivation – more selfconfident – likely to set goals and commit to them Key driver of typical performance – performance in the routine conditions that surround daily job tasks More likely to behave in citizenship behaviour – punctuality means more likely to go “extra mile” Less likely to engage in counterproductive behaviour b/c higher job satisfaction & they’re dependable More committed to organization – less likely to quit the organization – better managing stress Situational Strength: “strong situations” have clear behavioral expectations, incentives, or instructions that make differences between individuals less important. “weak situations” lack those cues. Personality variables tend to be more significant drivers of behaviour in weak situations than in strong situations. Trait Activations: situations provide cues that trigger the expression of a given trait. Personality variables tend to be more significant drivers of behaviours in situations that provide relevant cues than in situations in which those cues are lacking. Ability: Cognitive Ability: most relevant form of ability across all jobs – linked to job performance Strong predictor of job performance – task performance – highest correlation with task performance Chapter 9 – Summary: Personality refers to the _____ & _______ inside a person that explains his/her characteristic patterns of T_______, E________, & B_________. It also refers to a person’s social R_________ .
C_________ Values are shared beliefs about desirable end states or modes of conduct in a given culture that influence the expression of traits. A________ refers to the relatively stable capabilities of people to perform a particular range of different but related activities. P________ & V______ capture what people are like (unlike ability – what people can do) The BIG FIVE includes C__________ (D_______, O_________, R_________), A________ (W_______, K_______, C________), N________ (N_______, M_______, E_______), O_________ (C________, I_________, C________) & E_________ (T______, S______, P_________) Hofstadter’s dimensions of cultural values includes – I___________/C____________, P______ D_______, U_________ A_________, M_______/F________, & S_______ vs. L__________ O________. Cognitive Abilities include v_____, q_______, r______, s______, and p______ ability. G Factor underlies all... Emotional Intelligence includes S____A_______, O_____A________, E_________ R_______, and U____ O__ E________. Physical Abilities includes S______, S______, F_______/C_________, P________ & S________ abilities. Conscientiousness has a moderate positive relationship with job performance and a moderate positive relationship with organizational commitment. It has a stronger effect on these outcomes than the rest of the BIG FIVE. General cognitive ability has a strong positive relationship with job performance, due primarily to its effects on task performance. General cognitive ability is not related to organizational commitment. Chapter 2 – Job Performance Learning Outcomes: What is the definition of job performance? What are the three dimensions of job performance? What is task performance? How do organizations identity the behaviours that underlie task performance? What is citizenship behaviour, and what are some specific examples of it? What is counterproductive behaviour, and what are some specific examples of it? How can organizations use job performance information to manage employee performance? What is Job Performance? Employee behaviours that contribute +/ to the accomplishment of organizational goals Task Performance (Positive): behaviours directly involved in the transformation of ORG resources into the G/S the ORG produces Routine Task Performance: habitual responses to predict task demands – ex. Flight Attend
Adaptive Task Performance: thoughtful responses to unique task demands Citizenship Behaviour (Positive) Counterproductive Behaviour (Negative) Role of Job Analysis Process determines requirements of specific job List all activities involved – Observations/Surveys/Interviews Each activity is rated by “subject matter experts” according to things like importance/frequency Highly rated activities in terms of importance/frequency are used to define task performance What is Citizen Behaviour? Voluntary employee activities that contributing to organizational goals by improving the context in which work takes place Relevant in virtually every job & there are clear benefits of these behaviours in terms of effectiveness of work units and organizations Even more vital during organizational crisis – beneficial suggestions/deep employee involvement/positive ‘public face’ are critical Interpersonal: Discretionary acts that go beyond normal job expectations to assist, support, and develop coworkers & colleagues Helping – assisting coworkers who have heavy workloads, aiding personal matters, showing new employees the ropes Courtesy – sharing important information with coworkers Sportsmanship – maintaining a positive attitude with coworkers though good/bad times Organizational: behaviours that benefit the larger organization by supporting/defending the company – working to improve its operations and being especially loyal to it Voice – offer constructive suggestions for change often in reaction to negative work event Civic Virtue – deeperthannormal participation in company operations – voluntary meetings/readings/company news Boosterism – positively representing the organization when in public What are Counterproductive Behaviours?
Discretionary employee behaviours that intentionally hinder organizational goal accomplishment. Evidence that people who engage in one form of counterproductive behaviour also engage in others Pattern of Behaviour vs. isolated incidents Relevant in any job – always things to steal/resources to waste/people to be uncivil toward Organizational: Minor: Production Deviance reduce ORG efficiency of work output (Wasting Resources/Substance Abuse) Major: Property Deviance harm ORG assets/possessions (Sabotage/Theft) Interpersonal: Minor: Political Deviance: disadvantage other individuals (Gossiping/Incivility) Major: Personal Aggression: hostile verbal/physical actions (Harassment/Abuse) What does it mean to be a good performer? Good at the job that falls within job description Engages in citizenship behaviours directed at both coworkers and the larger organization Refrains from engaging in the counterproductive behaviours that can so badly damage the climate of an organization Performance Management: Management by objectives (MBO): bases employee’s evaluations on whether the employee achieves specific performance goals Managing the performance of employees who work in contexts in which objective measure of performance can be quantified Behaviorally Anchored Rating Scales (BARS): assess performance by directly assessing job performance behaviours 15 scales 360 degree feedback: uses ratings provided by supervisors, coworkers, subordinates, customers and the employee themselves Chapter 2 – Summary:
Job Performance is the set of E________ B________ that contribute to the organizational G_________ accomplishment. Job Performance has three dimensions: T_______ P__________, C____________ B__________, and C_________ B__________. Task performance includes behaviours that are directly involved in the transformation of R___________ into the G/S that the ORG P___________. Organizations gather information about relevant task behaviours using J______ A_______. Citizenship behaviours are V__________ employee activities that may/may not be rewarded but that contribute to the organization by improving the overall quality of the setting in which work takes place. Counterproductive behaviours are employee behaviours that intentionally hinder organizational goal accomplishment. The ____, _____, & ____ _______ _____ practices are three ways that organizations can use job performance information to manage employee performance.
Chapter 4 – Job Satisfaction Learning Outcomes: What is job satisfaction? What are values, and how do they affect job satisfaction? People often evaluate their job satisfaction according to specific facets? What are those facets? Which job characteristics can create a sense of satisfaction with the work itself? What are mood and emotions, and what specific forms do they take? How does job satisfaction affect job performance and organizational commitment? What is job satisfaction? Pleasurable emotional state resulting from the appraisal of one’s job or job experiences. How someone feels and how someone thinks about their job. Directly affects job performance and organizational commitment. Employees are more satisfied when their job provides value. Value!
Things that people consciously or subconsciously want to seek or attain. Pay – High & Secure Salary Promotions: Frequent & Based on ability Supervision: good supervisory relations & praise for good work Coworkers: Enjoyable & Responsive coworkers Work Itself: freedom/independence, intellectual stimulation, creative expression, achievement Altruism: helping others & moral causes Status: Prestige, Power over others, Fame Environment: comfortable & safe Valuepercept theory: job satisfaction depends on whether the employee perceives that their job provides value People evaluate job satisfaction according to specific facets of the job Dissatisfaction = Vwant – Vhave x VImportance Correlations between Satisfaction Facets and Overall Job Satisfactions Moderate Correlation: Pay & Promotion Strong Correlation: Supervision, Coworkers, & Work Itself Job Characteristics Theory/Model: Several “core” job characteristics that have a certain psychological impact on workers. Variety: # of different activities involving # of skills/talents Identity: degree of completing an identifiable piece of work from start to finish w/ visible outcome Significance: substantial impact on the lives of other people, particularly people in the world Autonomy: job provides freedom, independence, and discretion to the individual
Feedback: clear information about how well he/she is performing. The psychological states induced by the nature of the job leads to feelings of satisfaction Meaningfulness of work: tasks are viewed as something the “matters” in the employee’s system of philosophies/beliefs Responsibility for outcomes: key drivers of the quality of the unit’s work Knowledge of results: how well/poorly they are doing. Several factors called moderators influence the extent to which these relationships hold true. Knowledge and Skill: aptitude and competence needed to succeed on their job Growth need strength: desire to develop themselves When employees are very talented & feel a strong need for growth, the core job characteristics (VISAF) become even more powerful & increase work satisfaction. When employees lack knowledge and skill or lack a desire for growth, more of a core job characteristic (VISAF) should not increase their satisfaction very much. Job Enrichment: Organizations that identify the importance of (VISAF) employ the job characteristics theory to help improve satisfaction among their employees. The first step in the process is assessing the current level of the characteristics to arrive at a “satisfaction potential score” The organization along with the job design consultants attempt to redesign aspects of the job to increase the core job characteristic levels. Job Enrichment is when job duties & responsibilities are expanded to provide increased levels of core job characteristics (VISAF). Along with a boost in job satisfaction, enrichment can heighten work accuracy and customer satisfaction. Although training and labour costs tend to rise as a result of such changes. Moods & Emotions: Moods: states of feelings that are often mild in intensity, last for an extended period of time, and are not explicitly directed at or caused by anything. Pleasantness: degree of a good vs. bad mood Engagement: how active or sluggish a mood is Emotions: are states of feelings that are directly at (caused by) someone or some circumstance.
Positive: joy, pride, relief, hope, love and compassion. Negative: anger, anxiety, fear, guilt, shame, sadness, envy, and disgust. Emotional Labour: Demand to carefully manage emotions. Just because we FEEL these moods/emotions doesn’t mean we are supposed to show them. Customer Service, Emergency Medical Workers, Air Traffic Controllers Emotional labour places great strain on employees and that their bottled up emotions may end up bubbling over, resulting in angry outbursts, emotional exhaustion, and burnout. Emotional Contagion: emotions are transferrable. Why are some employees more satisfied than others? Satisfaction within the workplace is affected by the five core job characteristics (VISAF), but also the daily fluctuations in how people feel (moods & emotions). Understanding fluctuations can help managers separate longterm problems (boring tasks/incompetent coworkers) from more shortlived issues (bad meeting/annoying interaction. Why is job satisfaction important? Strong Correlation: Organizational Commitment: Affective commitment satisfied employees are more likely to want to stay with the organization. Normative Commitment – satisfied employees are more likely to feel an obligation to remain with their firm and “repay” the organization for whatever it is that makes them so satisfied Moderate correlation: Task Performance: Job satisfaction does influence job performance. Satisfied employees do a better job of fulfilling job description duties & positive feelings improve creativity, problem solving, decision making, enhance memory and improve general activity and energy levels. Positive feelings keep employees focused on task accomplishment. Citizenship Behaviour: more frequent “extramile”, positive feelings increase desire to interact Negative Correlation: Counterproductive Behaviour: satisfied employees engage in fewer intentionally destructive actions that could harm their workplace Tracking Satisfaction: job satisfaction is a key driver of job performance and organizational commitment & it’s important for managers to understand how satisfied employees are.
Several methods are rankandfile employees, including focus groups/interviews and attitude surveys (most accurate/effective) JDI – Job Descriptive Index: facet measure of job satisfaction that assesses satisfaction with pay, promotion opportunities, supervision, coworkers, and the work itself. +:questions are written in a simple/straightforward fashion *Stress anonymity –Data from survey can be compared to neutral levels, to compare nationally, and within organizations –Data should be fed back to employees so they feel involved in the process. –Organization should be prepared to react to the survey results with specific goals/action steps Low satisfaction? Redesign job tasks.... Too costly? Train supervisors in strategies for increasing the five core job characteristics on a more informal basis. Chapter 4 – Summary: Job satisfaction is a pleasurable E____________ state resulting from the A________ of one’s job or job E_________. It represents how you F______ about your job and what you T_______ about your job. Values are things that people C__________ or S__ C_________ want to seek or attain. According to the V_________________, job satisfaction depends on whether you P________ that your job supplies the things that you value. People often appraise their job satisfaction according to more specific F________ of their job. These satisfaction facets include P___________, P_____________, S_____________, C____________, and satisfaction with the W__________________. Job characteristics theory suggests that five C______________________ V_____________, I____________, S____________, A____________, F______________ combine to result in particularly high levels of satisfaction with the work itself. Moods are states of F_______ that are often M_____, last for an extended period of time and are not explicitly directed at anything. Intense P____________________ include being enthusiastic, excited and elated. Intense N__________ Moods include being hostile, nervous, and annoyed. ___________ are states of feeling that are often I__________, are relatively S________, and are D______ or C_______ by someone/something Positive emotions include joy, pride, relief, hope, love, and compassion. Negative emotions include anger, anxiety, fear, guilt, shame, sadness, envy and disgust. Job satisfaction has a M_____________ P_____________ relationship with job performance and a S___________ P__________ relationship with organizational commitment. Chapter 6 – Motivation! Learning Objectives:
What is motivation? What is expectancy theory? What are the three beliefs that help determine how work effort is directed? What role do needs play? What is goal setting theory? What two qualities make goals strong predictors of task performance? How and when do those effects occur? What does it mean for rewards to be ‘equitable’? How are perceptions of equity determined? How do employees respond when they feel a sense of inequity? What is psychological empowerment? What four benefits help create a sense of empowerment among employees? How does motivation affect job performance and organizational commitment? What steps can organizations take to increase employee motivation? What is motivation? Motivation is a set of energetic forces that originates internally/externally an employee, initiates workrelated effort, and determines it direction/intensity/persistence. What is Expectancy theory? Expectancy Theory is the cognitive process that employees go through to make choices among different voluntary responses. Employee behaviour is directed toward pleasure and away from pain, or, toward certain outcomes and away from others. How do employees make the choices that take them in the “right direction”? Three specific beliefs that are based on our past learning and experience: Expectancy: (E > P) exerting a high level of effort will result in successful performance of some task Subjective probability from 01 that spec. effort will result in spec. performance. Selfefficacy: belief a person has the capabilities needed to execute behaviours for success Past Accomplishments: success/failures in similar tasks in the past Vicarious Experiences: observations/discussions with others Verbal Persuasion: persuasion to “get the job dob” Efficacy is dictated by emotional cues... Think “Period Speeches”
Instrumentality: (P > O) represents the belief that successful performance will result in some outcomes. Subjective Probabilities that successful performance will bring a set of outcomes. “If I perform well, will I receive outcomes?” Ex. WestJet employees (perform well = profits) Valence: anticipated value of the outcomes associated with performance. +: I would prefer having outcome X to not having it... eg. Salary increases, bonuses etc : I would prefer not having outcome X to having it... eg. Disciplinary actions, demotions, terminated 0: I’m bored, are we still talking about outcome X? What makes outcomes more positively valenced? Needs: Outcomes are more attractive when they help satisfy our needs. Particularly attractive outcomes likely satisfy a number of different needs. Attractiveness of outcomes varies across cultures. Existence: Physiological/Safety – need for anything required for human existence Relatedness: Love/Belongingness – create/maintain lasting, positive relationships Control: Autonomy/Responsibility – predict and control Esteem: SelfRegard/Growth – hold high evaluation of oneself, feel effective/respective Meaning: SelfActualization – the need to perform tasks that appeal to ideals/purpose Extrinsic vs. Intrinsic Motivation: Extrinsic: desire to put forth work effort due to some contingency that depends on task performance Ex. People acknowledging successful performance Intrinsic: desire to put forth work effort due to the sense that task performance serves its own reward Ex. Selfgenerated outcomes/needs Extrinsic Outcomes
Intrinsic Outcomes
Pay ($$ Is Relevant to multiple needs – Ex * E)
Employment
Bonuses
Interestingness
Promotions
Accomplishment
Benefits/Perks
Knowledge Gain
Spot Awards
Skill Development
Praise
Personal Expression
Job Security
(Lack of Boredom)
Support
(Lack of Anxiety)
Free Time
(Lack of Frustration)
(Lack Of Disciplinary Actions) (Lack of Demotions) (Lack of Terminations)
Motivational force = [ E > P ] x [ (P > O) x V ] Motivational Force = 0 if any of the three beliefs are 0 What is the Goal Setting Theory? Goal Setting Theory views individual goals as the primary drivers of motivation Assigning employees specific/difficult goals (provides measuring stick) will result in higher levels of performance than assigning no goals, easy goals, or doyourbest goals. Easy goals don’t push you to work your hardest/longest so task effort is minimal. Moderate to difficult require more intensity and persistency of effort. Impossible goals max people abilities, selfefficacy begins to diminish. Goals trigger the creation of task strategies, learning plans/problemsolving approaches used to achieve successful performance. Task Performance Moderators: Feedback: updates on employee progress toward goal attainment. Ex. Beat a score on HALO 3 and not know what score to beat Task Complexity: how complicated is the information & actions involved & its change Effects of Specific/Difficult goals are twice as strong on simple tasks Goal Commitment: degree to which a person accepts a goal and is determined to reach it High Goal Commitment = significant benefits when assigned specific/difficult goals Fostering Goal Commitment Rewards: tie goal achievement to the receipt of $ or other rewards Publicity: publicize the goal to create some social pressure to attain it Support: provide supportive supervision to aid employees through struggles Participation: set a specific proficiency level & due date for the goal – ownership Resources: provide the resources needed to attain the goal and remove constraints Joint participation from managers and employees shows managers the “how” of achievement, not just the “what” What is the Equity Theory? Equity Theory says motivation doesn’t depend solely on your own beliefs and circumstances by also on what happens to other people Employees create a “mental ledger” of the outcomes/rewards and the inputs/contributions they get/put from job duties. Employees compare the outcome/input ratio to some comparison other – some person who provides an intuitive frame of reference for judging equity Underreward Inequity: outcome/inputs is lower than comparisons ratio Constructive/Proactive & talk to boss, explain why you want better outcomes Strongest predictor of counterproductive behaviours – theft Overreward Inequity: outcome/inputs is higher than comparisons ratio Negative emotions – guilt/anxiety Increase inputs – intensity/persistence or cognitive distortion
What is Psychological Empowerment? Psychological Empowerment reflects an energy rooted in the belief that work tasks contribute to some larger purpose. Meaningfulness: value of a work goal or purpose – relative to a person’s own ideals and passions. +: easier to concentrate on & get excited about Selfdetermination: reflects a sense of choice in the initiation and continuation of work tasks (Intrinsic motivation) – Delegate work tasks vs. micromanage Competence: captures a person’s beliefs in his/her capability to perform work tasks successfully (Selfefficacy) Impact: sense that a person’s actions “make a difference” – progress is being made toward fulfilling some important purpose How important is motivation? Strongest performance effect is selfefficacy/competence... Selfconfidence outperforms peers Difficult goals are the second most powerful motivating force The motivational force created by high levels of valence, instrumentality, and expectancy is the next most powerful motivational variable for task performance. Perceptions of equity have a somewhat weaker effect on task performance Strong Correlation with Job Performance Moderate Correlation with Organizational Behaviour Designing Compensation Systems: Do the elements provide difficult and specific goals for channeling work effort? Lump Sum bonuses and gainsharing have been credited with improvements in employee productivity Consider the correspondence between individual performance levels and individual monetary outcomes. Merit Pay represents the most common element of organizational compensation plans. Element
Description
Individual Focused PieceRate
Specified rate is paid for each unit produced/sold/service provided
Merit Pay
Increase to base salary is made in accordance to performance ratings
LumpSum Bonuses
Bonuses for meeting individual goals but no change to base. “At risk” pay that must be reearned each year. Low base salary w/ higher bonuses
Recognition Awards
Tangible awards (gift cards, trips etc) or intangible (praise) given on an impromptu basis
UnitFocused Gainsharing
Bonus for meeting unit goals for criteria controllable by employees (labour costs/material use/quality). No base salary change. “At Risk”. Lower Base w/ higher bonuses.
OrgFocused Profit Sharing
Bonus when publicly reported earnings exceed a minimum level. Magnitude of the bonus is contingent on the magnitude of profits. No Base change. Lower base w/ higher bonus.
Chapter 6 – Summary: Motivation is defined as a set of E______ F______ that originates both I______/E_______ in an employee, initiates workrelated E______, and determines its D_______
