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HUMANBE REVIEWER CHAPTER 1 The Dynamic of People and Organization Organizations are complex systems.

ems. Human behavior in organizations is sometimes unpredictable. Human behavior in an organization can be partially understood by studying and applying the frameworks of behavioral science, management, and other disciplines. There are no perfect solutions to organizational problems.

Organizational Behavior A systematic study and careful application of knowledge about how people as individuals and as groups act within organizations A scientific discipline in which a large number of studies and conceptual developments are constantly adding to its knowledge base An applied science, in that information about effective practices in one organization is being extended to many others A human tool for human benefit Strives to identify ways in which people can act more effectively Provides a useful set of tools at many levels of analysis Aids in understanding of complexities involved in interpersonal relations, when two people interact Valuable for examining the dynamics of relationships within small groups, both formal and informal groups Organizations whole systems that have interorganizational relationships Goals of Organizational Behavior 1. Describe how people behave under a variety of conditions 2. Understand why people behave as they do 3. Predict future employee behavior 4. Control and develop some human activity at work Forces that Affect The Nature of Organizations People o Make up the internal social system of the organization o The living, thinking, feeling beings who work in the organization o Organizations should exist to serve people, rather than people existing to serve organizations o Diversity employees bring a wide array of educational backgrounds, talents, and perspectives to their jobs (challenges for management) Structure o Defines the formal relationship and use of people in organizations o A necessity for people to be effectively coordinated Technology o Provides the resources with which people work and affects the tasks they perform o Allows people to do more and better work, but it also restricts people in various ways Environment

o Can be internal or external, and all organizations operate within them o Changes create demands on organizations Positive Characteristics of the Organization Interdisciplinary o Integrates the behavioral sciences (the systematic body of knowledge pertaining to why and how people behave as they do) with other social sciences that can contribute to the subject o Applies any ideas that will improve the relationships between people and organizations Three Keys to Success o Theories Offer explanations of how and why people think, feel, and act as they do Identify important variables and link them to form tentative propositions that can be tested through research Address significant behavioral issues, contribute to our understanding, and provide guidelines for managerial thought of action Applied to structure thinking o Research The process of gathering and interpreting relevant evidence that will either support a behavioral theory or help change it An ongoing process through which valuable behavioral knowledge is continually uncovered Used to provide relevant guides to their own situations Research Hypotheses testable statements connecting the variables in a theory, and guide the process of data collection Data generated through various research methods Results can affect both the theory being examined and future managerial practices o Practice The conscious application or conceptual models and research results in order to improve individual and organizational performance at work Similar to the application of evidence-based management (asks managers to set aside some of the things the think they know conventional wisdom and become totally committed to a rigorous collection of facts and combine these with relevant research Increasing Acceptance of Theory and Research o Willingness of managers to explore new ideas

What Managers Are Reading Management Theory o Casual connections between variables o Key Reasons Why It Is Essential: They help make predictions They help interpret and understand present situations and explain why they occurred Kurt Lewin

o Theres nothing so practical as a good theory Fundamental Concepts The Nature of People o Individual Indifferences People have much in common, but each person in the world is also individually unique Came from psychology Management can motivate employees by treating them differently Impact of Nature a person is born unique Influence of Nurture individual experiences that nourishes people Law of Individual Differences each person is different from all others o Perception Filters the view of the persons objective environment The unique way in which each person sees, organizes and interprets things People look at the world and see things differently Selective Perception people tend to pay attention to those features of their work environment that are consistent with or reinforce their own expectations o A Whole Person When management applies the principles of organizational behavior, it is trying to develop a better employee, but it also wants to develop a better person in terms of growth and fulfillment If the whole person can be improved, then the benefits will extend beyond the firm into the larger society which each employee lives o Motivated Behavior People are motivated not by what we think they ought to have but what they, themselves want Two Basic Ways to Control People Show them how certain actions will increase their need fulfillment Threaten decreased need fulfillment if they follow an undesirable course of action

o Desire for Involvement Provide opportunities for meaningful involvement for people who are hungry for they chance to share their knowledge and learn from experience Employee Empowerment a practice that will result in mutual benefit for both parties o Value of the Person People deserve to be treated differently from other factors of production (land, capital, technology) because they are of a higher order in the universe The Nature of Organizations o Social Systems

Two Types of Social Systems Formal (Official) Social System Informal Social System Implies that the organizational environment is one of dynamic change rather than a static set of relations as pictured on an organization chart Everything is related to everything else Provides framework for analyzing organizational behavior issues Helps make organizational behavior problems understandable and manageable o Mutual Interest Mutuality of Interest organizations need people, and people need organizations Superordinate Goal one that can be attained only though the integrated efforts of individuals and employers Managers employees to help them reach organizational objectives People organizations to help them reach individual objectives o Ethics The use of moral principles and values to affect the behavior of individuals and organizations with regard to choices between what is right and what is wrong Four Elements of Moral Intelligence (Doug Lennick and Fred Kiel) Moral Intelligence o The ability to differentiate right from wrong as defined by universal principles o A combination of behavior and smarts o Builds on universal virtues to help leaders achieve personal and business goals Based on the assumption that people are born to be moral o Integrity (acting consistently with ones values) o Responsibility (willingness to accept accountability for the consequences of our actions and admit mistakes and failures) o Compassion (caring about others) o Forgiveness (recognizing that others will make mistakes, and accepting them) Can become competencies if managers proceed through a three-step process o Encompassing self-awareness, self-disclosure and the discovery of strengths and weaknesses in others Organizational Behavior Seeks to integrate the four elements of people, structure, technology, and environment Rests on an interdisciplinary foundation of fundamental concepts about the nature of people and organizations Four Basic Approaches of This Book Human Resources (Supportive) Approach o Developmental o Concerned with the growth and development of people toward higher levels of competency, creativity, and fulfillment, because people are the central resource in any organization and any society

o Can be understood by comparing it with the traditional management approach of the early 1900s Traditional Approach Managers decided what should be done and then closely controlled employees to ensure task performance Management was directive and controlling o Work Satisfaction direct result when employees make fuller use of their abilities o Better people achieve better results Give a person a fish, and you feed that person for a day; Teach a person to fish, and you feed that person for life o Supportive Approach the managers primary role changes from control of employees to active support of their growth and performance o EMPLOYEE GROWTH AND DEVELOPMENT ARE ENCOURAGED AND SUPPORTED Contingency Approach o Concept of Universality there is a universal way to organize, to delegate and to divide work (came from the traditional managements) DIFFERENT MANAGERIAL BEHAVIORS ARE REQUIRED BY DIFFERENT ENVIORNMENTS FOR EFFECTIVENESS o Key Question when to use a specific approach Managers need to know under what conditions they should choose one behavioral approach over another o Encourages analysis of each situation prior to action while at the same time discouraging habitual practice based on universal assumptions about people o More interdisciplinary, more system-oriented, and more research-oriented than the traditional approach Results-Oriented Approach o A dominant goal for many is to be productive Productivity a ratio that compares units of output with units of input, often against a predetermined standard o OUTCOMES OF ORGANIZATIONAL BEHAVIOR PROGRAMS ARE ASSESSED IN TERMS OF THEIR EFFICIENCY Ability Motivation Potential Human Performance Organizational Reults

1. Knowledge x Skill 2. Attitude x Situation 3. Ability x Motivation 4. Potential Human Performance x Resources x Opportunity

Systems Approach o ALL PARTS OF AN ORGANIZATION INTERACT IN A COMPLEX RELATIONSHIP o Fundamental Elements: Many variables operate within a complex social system The parts of a system are interdependent and casually related (one part affects many other parts and is affected by many others in a complex way)

o o o

Many subsystems are contained within larger systems Systems generally require inputs, engage in some dynamic process, and produce outputs The input-process-output mechanism is cyclical and self-sustaining (it is ongoing, repetitive, and uses feedback to adjust itself to changes in the environment so as to achieve some equilibrium) Systems may produce both positive and negative results Systems often produce both intended and unintended consequences The consequences of systems should be examined on both a shortterm and long-term basis Often, multiple ways can be used to achieve a desired objective (equifinality) Systems can be understood, changed, and managed if members focus on problem causes instead of symptoms Compels the managers to take a holistic and synthesizing view of the subject Analytic and integrative view of people in organizations Cost-Benefit Analysis needed to determine whether potential actions will have a net positive or net negative effect (looking beyond the immediate implications) Proposed OB Actions > Potential Costs + Potential Benefits > Compare > Decide Applies especially to the social system and the idea of organizational culture

Microsoft Corporation People and Organization Capability function o Guide its leadership development program o 11 leadership competencies that distinguish highly effective leaders of today and tomorrow Deep insight capacity to see systems, patterns, and connections beyond the obvious information contained in data (reflection of the systems approach and integrative view) Limitations of Organizational Behavior Behavioral Bias o A narrow viewpoint that emphasizes satisfying employee experiences while overlooking the broader system of the organization in relationship to all its publics (lacks system understanding and is superficially infatuated with OB) o A sound organizational behavior recognizes a social system in which many types of human needs are served in many ways The Law of Diminishing Returns o Overemphasis on a valid organizational behavior practice may produce negative results o At some point, increases of a desirable practice produce declining returns, eventually zero returns, and then negative returns as more increases are added o For any situation there is an optimum amount of a desirable practice o More of a good thing is not necessarily good o A Systems Concept applies because of the complex system relationships of many variable in a situation

o Organizational effectiveness is achieved not by maximizing one human variable but by combining all system variables together in a balanced way Unethical Manipulation of People o The knowledge and techniques of organizational behavior can be used to manipulate people unethically as well as to help them develop their potential o The philosophy or organizational behavior is supportive and oriented toward human resources o Principles of Ethical Leadership Social Responsibility responsibility to others arises whenever people have power in an organization Open Communication the organization will operate as a two-way open system, with open receipts of inputs from people and open disclosure of its operations to them Cost-benefit analysis In addition to economic costs and benefits, human and social costs and benefits of an activity will be analyzed in determining whether to proceed with the activity

Walmart, McDonalds, Cargill, and HP Greenpeace International Continuing Challenges Seeking Quick Fixes o Immediate expectations are not realistic o Witch Doctors blind advocacy of a single approach as a way to solve an entire organizations problems Varying Environments o Whether ideas that have been developed and tested during periods of organizational growth and economic plenty will endure with equal success under new conditions Definitional Confusion o lack of consensus regarding its unit of analysis (individual, group, or total organization), its greatest need (as a source of empirical data and integrating theory, or as a basis for applied information), its major focus (micro or macro issues), and its major contributions to date CHAPTER 2 MODELS OF ORGANIZATIONAL BEHAVIOR An Organizational Behavior System Greater chance of being successful if they have been consciously created and regularly examined and updated to meet new and emerging conditions To identify and then help manipulate the major human and organizational variables that affect the results organizations are trying to achieve Three Basic Criteria to Measure Outcomes (End Results) o Performance o Employee Satisfaction o Personal Growth and Development the acquisition of lifelong knowledge and skills leading to continued employability and carrier advancement Elements of the System Philosophy

o Integrated set of assumptions and beliefs about the way things are, the purpose for these activities, and the way they should be o Sometimes explicit, and sometimes implicit o Five Major Organizational Behavior Philosophies Autocratic Custodial Supportive Collegial System o Sources Fact Premises represent our descriptive view of how the world behaves (behavioral science research + personal experiences; direct and indirect) *Value Premises represent our view of the desirability of certain goals and activities (variable beliefs we hold and are therefore under our control; can choose, modify, discard, or replace them) Vision represents a challenging portrait of what the organization and its members can be (a possible, and desirable future) Mission identifies the business it is in, the market niches it tries to serve, the types of customers it is likely to have, and the reasons for its existence (descriptive and less future-oriented; still broad; should be converted to goals to become operational and useful) Goals relatively concrete formulations of achievements the organization is aiming for within set periods of time, such as one to five years

Models of Organizational Behavior Constitute the belief system that dominates managements thoughts and affect s managements actions in each organization Highly important that managers recognize the nature, significance, and effectiveness of their own models, as well as the models of others around them Douglas McGregor o 1957 presented a convincing argument that most management actions flow directly from whatever theory of human behavior the managers hold o Management philosophy (assumptions about human behavior) controls practice o Prefers Theory Y because Theory X is outdated o Contributions Stimulated subsequent generations of managers to think consciously about their belief systems and management models Early advocate of the practical value of reading and using research findings to better understand human behavior Introduced and publicized one of the early theories of motivation the hierarchy of needs model by A.H. Maslow A spokesman for a trend that had been developing over a long period of time the need to bring human values into balance with other values at work Paradigms o Framework of possible explanations about how things work o Theory X (traditional) The typical person dislikes work and will avoid it if possible

The typical person lacks responsibility, has little ambition, and seeks security above all Most people must be coerced, controlled, and threatened with punishment to get them to work MANAGEMENT IS FORCED TO COERCE AND CONTROL EMPLOYEES TO OBTAIN SATISFACTORY PERFORMANCE o Theory Y Work is as natural as play or rest People are not inherently lazy. They have become that way as a result of experience People will exercise self-direction and self-control in the service of objectives to which they are committed People have potential. Under proper conditions they learn to accept and seek responsibility. They have imagination, ingenuity, and creativity that can be applied to work MANAGEMENT IS TO PROVIDE AN ENVIRONMENT IN WHICH THE POTENTIAL OF PEOPLE CAN BE RELEASED AT WORK o According to Joel Barker: Influence managerial perceptions of the world around them Define ones boundaries and provide prescriptions for how to behave Encourage resistance to change, since they often worked in the past May either consciously or unconsciously affect ones behavior Alternative ways of viewing the world and solving problems Mark Hurd Hewlett-Packard Steve Jobs Apple Computer Howard Schultz Starbucks Brad Anderson Best Buy John Mackey Whole Foods Model Five Models (Paragrims) Autocratic Custodial Supportive Collegial System THE MODEL USED SHOULD NOT BE STATIC AND UNCHANGING BUT REEXAMINED AND ADAPTED ACROSS TIME The Autocratic Model Industrial Revolution Basis of Model: Depends on power Managerial Orientation: Authority o Delegated by right of command over the people to whom it applies Employee Orientation: Obedience Employee Psychological Result: Dependence on boss Employee Needs Met: Subsistence Performance Result: Minimum

Its principal weaknesses are its high human costs and its tendency to encourage highlevel managers to engage in micromanagement (the immersion of a manager into controlling the details of daily operations) Best when there is no well-known alternatives Useful under some extreme conditions

The Custodial Model Paternalism welfare programs to satisfy needs of employees Basis of Model: Economic Resources Managerial Orientation: Money (to pay wages and benefits) Employee Orientation: Security and Benefits (motivating force) Employee Psychological Result: Dependence on Organization Employee Needs Met: Security Performance Result: Passive Cooperation Most employees are not producing anywhere near their capacities, nor are they motivated to grow to the greater capacities of which they are capable The happy employee is not necessarily the most productive employee IBM, 3M Co., The Calvert Group The Supportive Model Basis of Model: Leadership Managerial Orientation: Support Employee Orientation: Job Performance (Depends on leadership) Employee Psychological Result: Participation (and Task Involvement) Employee Needs Met: Status and Recognition Performance Result: Awakened Drives Principle of Supportive Relationships as stated by Rensis Likert Similar to the Human Resources Approach Hawthorne Plant of Western Electric Elton Mayo and F.J. Roethlisberger o An organization is a social system and the worker is indeed the most important element in it o An understanding on group dynamics, coupled with the application of supportive supervision, is important More effective in affluent nations because it responds to employee drives toward a wide array of emerging needs Less immediate application in the developing countries, where employees current needs and social conditions are often quite different The Collegial Model Collegial relates to a body of people working together cooperatively Embodies a team concept More useful with creative work, an intellectual environment, and considerable job freedom Basis of Model: Partnership (employees feel needed and useful) Managerial Orientation: Teamwork Employee Orientation: Responsible Behavior Employee Psychological Result: Self-discipline Employee Needs Met: Self-actualization

Performance Result: Moderate Enthusiasm

The System Model Basis of Model: Trust, Community, Meaning Managerial Orientation: Caring, Compassion (facilitating employee accomplishments through a variety of actions) Employee Orientation: Psychological Ownership Employee Psychological Result: Self-Motivation Employee Needs Met: Wide Range Performance Result: Passion and Commitment to Organizational Goals Result of a strong search for higher meaning at work Positive Organizational Behavior focus on identifying, developing, and managing psychological strengths within employees Five Dimensions of Social Intelligence (strategic awareness for managers) o Empathy appreciation for, and connectedness with, others o Presence projecting self-worth in ones bearing o Situational Radar ability to read social situations and respond appropriately o Clarity using language effectively to explain and persuade o Authenticity being real and transparent, while projecting honesty An Ethical Issue o Spirituality desire for employees to know their deepest selves better, to grow personally, to make a meaningful contribution to society, and to demonstrate integrity in every action taken (self-awareness + encourages people to know themselves while honoring and respecting the diverse moral and religious beliefs of others) Facilitator Roles for Managers in the System Model for OB o Support employee commitment to short- and long-term goals o Coach individuals and groups in appropriate skills and behaviors o Model and foster self-esteem o Show genuine concern and empathy for people o Offer timely and acceptable feedback o Influence people to learn continuously and share that learning with others o Help individuals identify and confront issues in ethical ways o Stimulate insights through interviews, questions, and suggestions o Encourage people to feel comfortable with change and uncertainty o Build cohesive productive work teams Physical Ownership a feeling of possessiveness, responsibility, identity, and sense of belongingness (employee) Starbucks Coffee Co. Conclusions About the Models Evolving Usage o Failed to be included in the Autocratic and the Custodial Model o The primary challenge for management is to identify the model it is actually using and then assess its current effectiveness o A Managers Two Key Tasks To acquire new set of values as models evolve To learn and apply the behavioral skills consistent with those values Relation of Model to Human Needs

o Each model is built upon the accomplishments of the other Increasing Use of Some Models Contingent Use of All Models o All five models will continue to be used, but the more advanced models will have growing use as progress is made and employee expectations rise Managerial Flexibility o Managers not only need to identify their current behavioral model but also must keep it flexible and current

CHAPTER 3 MANAGING COMMUNICATIONS Communication Fundamentals Communication o Transfer of information and understanding from one person to another o A way of reaching others by transmitting ideas, facts, thoughts, feelings, and values o Goal: To have the receiver understand the message as it was intended, to act upon the information o Always involves at least two people a sender and a receiver COMMUNICATION IS WHAT THE RECEIVER UNDERSTANDS, NOT WHAT THE SENDER SAYS The Importance of Communication Every act of communication influences the organization in some ways Helps accomplish all the basic management functions planning, organizing, leading, and controlling so that organizations can achieve their goals and meet their challenges Open and candid communication is generally better than restricted communication is generally better than restricted communication The Two-Way Communication Process The method by which a sender reaches a receiver with a message and the receiver gives feedbacks Eight Steps: o Develop an Idea the key step o Encode convert the idea into suitable words, charts, or other symbols for transmission Framing uses rich, colorful, carefully selected language to shape the perceptions of the recipients o Transmit when the message is finally developed and a method is chosen o Receive initiative transfers to the receiver, who tunes in to receive the message o Decode the sender wants the receiver to understand the message exactly as it was sent Understanding can only occur in the receivers mind Getting Through when understanding takes place perfectly o Accept once the receiver has obtained and decoded a message Acceptance a matter of choice and degree o Use a critical step which is greatly in control of the receiver

o Provide Feedback when the receiver acknowledges the message and responds to the sender Persuasion Tools Are Needed Robert Cialdini Managers are marketers Six Fundamental Principles of Persuasion: o Liking uncover similarities to build bonds with others, and offer genuine praise to them o Reciprocity give what you want to receive o Social Proof use peer power whenever it is available o Consistency solicit commitments that are active, public, and voluntary o Authority dont assume that your expertise is self-evident; expose it o Scarcity accent the unique and exclusive benefits of your product/service Potential Problems Polarization taking even more extreme positions when they expose their different viewpoints Defensive Reasoning abandoning logic and rationality to seek to remain in control (designed to avoid risk and the appearance of incompetence, but it typically results in a drive toward control and an emphasis on winning) Cognitive Dissonance the internal conflict and anxiety that occurs when people receive information incompatible with their value systems, prior decisions, or other information they may have Face Saving an attempt to preserve or even enhance our valued self-concept (face) when it is attacked Communication Barriers Noise barriers to communication o Physical Surroundings o Within an individuals emotions Personal Barriers o Communication interferences that arise from human emotions, values, and poor listening habits o Psychological Distance a feeling of being emotionally separated o COMMUNICATION IS GUIDED BY OUR EXPECTATIONS Physical Barriers o Communication interferences that occur in the environment in which the communication takes place o Proxemics study of the different practices and feelings about interpersonal space within and across cultures Semantic Barriers o Arise from the limitations in the symbols with which we communicate o Symbols usually have a variety of meanings, and we have to choose one meaning from many o Semantics science of meaning o Jargon specialized language of a group Acronyms first letters of each word in a phrase) Slang words unique to an age or ethnic or racial group Distinctive terms that are created by a professional or interest group

o When people from different cultures attempt to communicate with each other o Interference interpreting a symbol on the basis of our assumptions instead of facts Communication Symbols Words o Multiple meanings of the same word o Context the environment surrounding the use of a word o Effective communicators are idea-centered rather than word-centered o WORDS DO NOT PROVIDE MEANING, PEOPLE DO o Social Cues positive or negative bits of information that influence how people react to a communication o Readability the process of making writing and speech more understandable Guidelines for Readable Writing Use simple and familiar words Use powerful words that resonate with your audience Use personal pronouns if style permits Use illustrations, examples, and charts Use short sentences and paragraphs Use active verbs Use only necessary fords Use clear structure Help the reader see what is important Pictures o Used to clarify word communication Action (Nonverbal Communication) o Failure to act is an important way of communicating o Actions speak louder than words Credibility Gap when there is difference between what someone says and does Three Factors of Communication Credibility trustworthiness, expertise, and dynamism Body Language people communicate meaning to others with their bodies in interpersonal interaction (facial expressions)

The Impact of Barriers on the Communication Process

Communication Steps 1. Develop 2. Encode 3. Transmit 4. Receive 5. Decode 6. Accept 7. Use 8. Feedback Personal Barriers Emotions x x x x x x x x x x x x x x x x x x x Listening Psychological Distance Physical Barriers Geographical Noise Distance Semantic Barriers Semantics Symbols

Downward Communication The flow of information from higher to lower levels of authority

Four Prerequisites o Managers need to develop a positive communication attitude o Managers must continually work to get informed o Managers need to consciously plan for communication, and they must do this at the beginning of a course of action o Managers must develop trust Problems o Communication Overload Employees receive more communication inputs that they can process or more than they need Timing and quality over quantity o Acceptance of a Communication Conditions that Encourage Acceptance of a Communication Acknowledge legitimacy of the sender to send a message Perceived competence of the sender relative to the issue Trust in the sender as a leader and as a person Perceived credibility of the message received Acceptance of the tasks and goals that the communication is trying to accomplish Power of the sender to enforce sanctions (either directly or indirectly) on the receiver Communication Needs o Job Instruction managers secure better results if they state their instructions in terms of the objective requirements of the job as well as the opportunities and potential problem areas Performance Feedback leads to both improved performance and improved attitudes Feedback-Seeking Behavior employees search for information about their prior performance and possible areas of improvement News information should be given to the employees at a timely manner Social Support the perception that they are cared for, esteemed and valued

Upward Communication From lower management to higher ones Difficulties o Delay the unnecessarily slow movement of information up to higher levels o Filtering partial screening out of information Organizational Silence the conscious or unconscious withholding of information about potential problems or issues on the part of employees (caused by a. fear of negative repercussions for speaking up, or b. an assumption that ones voice would not be heard anyway) Bypassing a few employees to avoid delay or filtering o Employees Legitimate Need for a Response the employee is the sender therefore feedbacks are to be given o Distortion the willful modification of a message intended to achieve ones personal objectives

Upward Communication Practices Questioning o Open Questions introduce a broad topic and give others an opportunity to respond in may ways o Closed Questions focus on a narrower topic and invite the receiver to provide a specific response Listening o Active Listening requires the use of the ears and the mind o Levels Helps the receiver understand both the factual idea and the emotional message the sender intended o Guidelines Stop talking Put the talker at ease Show a talker that you want to listen Remove distractions Empathize with a talker Be patient Keep your cool Avoid being confrontational Ask relevant questions Stop talking Employee Meetings o Sensing Sessions employee meeting system used by Haworth Company Open-Door Policy a statement that encourages employees to come to their supervisor or to higher management with any matter that concerns them Participation in Social Groups informal casual recreational events Other Forms of Communication Lateral Communication o Cross-communication o Communication across chains of command o Boundary Spanners employees who play a major role in lateral communication o Network a group of people who develop and maintain contact to exchange information informally, usually about a shared interest Networking the action done by the employee when s/he is in a network Social Networking and Electronic Communication o Allow people to link together into some form of a virtual social community o Wikis Web pages that enable their users to add or modify content Wikipedia A collaboratively created and constantly updated collection of 3 million articles in the English language o Electronic Mail a computer-based communication system that allows you to send a message to someone or to a hundred people almost instantaneously Netiquette email courtesy o Blogs online diaries or journals created and updated frequently by individuals to express their personal thoughts, musings, and commentaries on

topics of interest to them, although they can be produced by organizations, CEOs, and professional groups Twittering involves expressing oneself in a brief (maximum of 140 characters) message (a Tweet) in a real time to a self-selected network of interested persons (micro-blogging) o Telecommuting accomplishing all or part of their work at home, or at a satellite location, through computer links to their offices o Virtual offices physical office space and individual desks are being replaced with an amazing array of portable communication tools The Net Generation 80 million Millennial persons born between 1980 and 2000 Profound impact on may organizations (interest and skills in using a variety of social Media Characteristics o Desire work/life balance o Disdain face time o Have a strong sense of entitlement o Exhibit an unquenchable thirst for praise o Want to participate in decision making o Reluctant to accept workplace rules and restrictions o Socially conscious and environmentally aware o Wish to be connected with many others o Want to be recognized for results achieved their way Ready adaptability to any new technology Informal Communication Grapevine an informal communication system (can be oral or written) o Electronic Grapevine o Reasons why Electronic Grapevine cannot replace Face-To-Face Grapevine: Not every employee has access to a network of personal computers at work Many workers enjoy the more personal social interaction gained through the traditional grapevine o Features Cluster Chain the pattern usually followed by the grape vine (each link in the chain tends to inform a cluster of other people instead of only one person) Liaison Individuals active communicators on the grapevine for any specific unit of information GIVEN THE PROPER SITUATION AND MOTIVATION, ANYONE WOULD TEND TO BECOME ACTIVE ON THE GRAPEVINE o INFLUENTIAL, BOTH FAVORABLY AND UNFAVORABLY o Rumors Sometimes used as a synonym to grapevine Grapevine information that is communicated without secure standards of evidence being present (the unverified and untrue part) Interest + Ambiguity in a situation

Elaborating adding new details, often making the story worse There are different types of humor The best way to control rumor is to prevent it by removing its causes

CHAPTER 4: SOCIAL SYSTEMS AND ORGANIZATIONAL CULTURE Understanding A Social System Social System o A complex set of human relationships interacting in many ways o Includes all the people in an organization and their relationships to one another and to the outside world o Main Points: ALL PARTS OF THE SYSTEM ARE MUTUALLY INTERDEPENDENT ANY SOCIAL SYSTEM ENGAGES IN EXCHANGES WITH ITS ENVIRONMENT o Open Systems interact with their surroundings Social Equilibrium Interdependent parts are in dynamic working balance Adjustments are done in order to cope up with the new surrounding Functional and Dysfunctional Effects Functional Effect changes that result to favorable outcomes Dysfunctional Effect changes that result to unfavorable outcomes Psychological Economic Contracts Psychological Contract defines the conditions of each employees psychological involvement both contributions and expectations with the social system o Exchange Theory suggests that whenever a continuing relationship exists between two parties, each person regularly examines the rewards and costs of that interaction Economic Contract where time, talent, and energy are exchanged for wages, hours, and reasonable working condition Guidelines: o Help employees clarify their expectations and perceptions o Initiate explicit discussions of mutual obligations o Exercise caution when conveying promises o Provide candid explanations for broken promises o Alert employees to the realistic prospects of reneging Social Culture Environment of human-created beliefs, customs, knowledge and practices National Culture when social cultures are consistent within a nation MANAGERS NEED TO UNDERSTAND, APPRECIATE, AND RESPOND TO THE BACKGROUNDS AND BELIEFS OF ALL MEMBERS OF THEIR WORK UNIT Gives people stability and security Cultural Diversity rich variety of differences among people at work, raises the issue of fair treatment for workers who are not in position of authority

o Formation of Groups: job-related differences and similarities and non-jobrelated conditions o Problems May Arise From: Discrimination (action) Prejudice (attitude) o VALUING DIVERSITY o Inclusion an active desire to use diverse talents and strengths o Cultural Competency skill to include others Social Culture Values o Work Ethic viewing work as a very important and as a desirable goal in life Conclusions From Researches: The proportion of employees with a strong work ethic varies sharply among sample groups The general level of the work ethic has declined gradually over many decades o Leisure Ethic high priority placed on personal gratification o Desire for Community and Connectedness emphasis on close personal relationship o Entitlement belief that people should receive societal benefits without having to work o Social Responsibility the recognition that organizations have significant influence on the nations social system and that this influence must be properly considered and balanced in all organization actions The pattern of actions expected of a person in activities involving others Role Perceptions how managers and workers think they are supposed to act in their own roles and how others should act in their roles o Role Flexibility being highly adaptive Mentors a role model who guides another employee (a protg) by sharing valuable advice on roles to play and behaviors to avoid Role Conflict when others have different perceptions or expectations of a persons role o Boundary Roles employees with many job contracts outside the organization Role Ambiguity when roles are inadequately defined or are substantially unknown because people are not sure how they should act in situations of this type The social rank of a person in a group Status Systems (Status Hierarchies) rank relative to others in a group Status Anxiety being seriously upset over their status Status Deprivation (Losing Face) loss of status Status Relationships high status gives people an opportunity to play a more important role in an organization Status Symbols visible external things that attach to a person or workplace and serve as evidence of social rank



Sources of Status education and job level (abilities, job skills, type of work, pay, seniority, age, stock options) Significance of Status can be source of employee problems and conflicts

Organizational Culture Employee Behavior a function of the interaction between personal characteristics and the environment (social culture is a part of the environment) around a person (Kurt Lewin) Set of assumptions, beliefs, values and norms shared by an organizations members Characteristics of Culture o Distinctive o Stable o Implicit o Symbolic Representations o No type is the best o Integrated o Accepted o A reflection of top management o Subculture (the environment within a single division, branch, plant, or department) o Varying Strength Features of Winning Cultures o Winners companies that consistently outperformed their peers Clear and focused strategy Flawless operational excellence Simple organizational structure Organizational culture that requires that all employees perform to the maximum of their abilities Highlighted by: High expectations Rewards for achievements Clear company values and ethical behavior Empowered employees Loyalty to the team A high-performance environment that is challenging, satisfying, and fun to work in Measuring Organizational Culture o Espoused Culture the beliefs and values that the organization states publicly o Employees perceptions of the organizations culture o Becoming a member of the organization and experiencing the organization directly Prudential Insurance Company of America pencil-and-paper instrument to identify part of its culture Communicating and Changing Culture o People are more willing to adapt and learn when they want to please others, gain approval, and learn about their new work environment o Organizational Socialization continuous process of transmitting key elements of an organizations culture to its employees

o Two Methods of Communicating Organizational Culture: Signature Experiences clearly defined and dramatic devices that convey a key element of the firms culture and vividly reinforce the value of the organization Storytelling a way to forge a culture and build organizational identity o Individualization when employees successfully exert influence on the social system around them at work by challenging the culture or deviating from it

o Rebellion and Conformity extremes (dysfunctional in the long-run) o Isolation seldom productive o Creative Individualist infuse new life and ideas for the organizations benefit o Culture can change but it requires long-term effort Communicate top management support Train employees Formulate value statements Reward behaviors Use stories and myths Publicly recognize heroes and heroines Use slogans Appoint a manager of culture Fun Workplaces A unique and increasingly popular organizational culture in which supervisors encourage, initiate, and support a variety of playful and humorous activities Key Features o Easily recognized o Means different things to various people o Relatively easy to create at work o Broad range of personal and organizational payoffs Society for Human Resource Management as employee enthusiasm and creativity rise, attracting and retaining new employees is easier, the companys values and norms become clearer, and customer satisfaction improves as a reflection of how they are treated by energized employees CHAPTER 5 Motivation Four Major Indicators of Employee Motivation (Hyatt Hotels)

1. Engagement degree of enthusiasm, initiative, and effort 2. Commitment degree to which employees bond with the organization and exhibit acts of organizational citizenship 3. Satisfaction reflection of the fulfillment of the psychological contract and met expectations at work 4. Turnover loss of valued employees Work Motivation result of a set of internal and external forces that cause an employee to choose an appropriate course of action and engage in certain behaviors Three Elements of Work Motivation Direction and focus of the behavior (positive factors and dysfunctional factors) Level of the effort (full commitment vs just doing enough to get by) Persistence of the behavior (repeatedly making an effort vs giving up) Common Managerial Behaviors that Detract From Motivation Tolerating poor performance by others Leveling undue criticism at employees Failing to provide clear expectations Making false promises of incentives available Unfair distribution of rewards (favoritism) Motivational Drives Strong desires of something David C. McClelland o Elements of the culture affect motivational drives o Three Dominant Drives: Achievement Motivation Drive to pursue and attain challenging goals Accomplishment is seen as something important When managers are achievement motivated, average employees find it hard to satisfy their managers high demands Affiliation Motivation Drive to relate to people on a social basis to work with compatible people and experience a sense of community Makes it difficult to be effective managers Power Motivation Drive to influence people, take control, and change situations Can be used constructively or destructively Institutional Power need to influence others behavior for the good of the whole organization Personal Power tends to lose the trust and respect of employees and colleagues and be an unsuccessful organizational leader Types of Needs Primary Needs basic physical needs (social practice) Secondary Needs social psychological needs

o Seven Key Conclusions: Strongly conditioned by experience Vary in type and intensity Change across time within any individual Cannot usually be isolated Hidden from conscious recognition Vague feelings Influence behavior Three Major Rewards (David Sirota) Fair Treatment Sense of achievement Camaraderie Content Theories of Motivation (content of items and relate to the persons inner self and how that persons internal state of needs determines behavior; internal needs lead to behavior) 1. Maslows Hierarchy of Needs A.H. Maslow Five levels Focus on internal needs Assumes that lower-order and maintenance needs are already satisfied Lower-Order Needs o Psychological Needs basic survival o Safety and Security Needs Higher-Order Needs o Belongingness and Social Needs o Esteem and Social Needs feeling of competence from the ability to complete the tasks and the assurance of others, providing status o Self-Actualization and Fulfillment Needs ongoing process of becoming all that one is capable of becoming Limitations: o Difficult to study o Not fully verified o Evidence that unless the two lower-order needs are basically satisfied, employees will not be greatly concerned with higher-order needs 2. Herzbergs Two-Factor Model Frederick Herzberg Only brings employees only to a neutral state Identifies and differentiates the conditions that could be provided for need satisfaction Assumes that lower-order and maintenance needs are already satisfied Hygiene Factors (Maintenance Factors) o Must not be ignored o Necessary for building a foundation on which to subsequently create a reasonable level of motivation in employees Motivational Factors (Motivators or Satisfiers) o Primarily to build this motivation o Absence rarely is strongly dissatisfying o Job Context motivators that are mostly job-centered

o Job Context maintenance factors (related to the environment surrounding the job) o Intrinsic Motivators internal rewards that a person feels when performing a job, so there is a direct and often immediate connection between work and rewards o Extrinsic Motivators external rewards that occur apart from the nature of work, providing no direct satisfaction at the time the work is performed Unless these hygiene factors are reasonable well addressed, their bsense will serve as significant distractions to workers Limitations: o Not universally applicable o Outlines only general tendencies o Method-Bound There may be an appearance of two independent factors when in reality there is only one factor 3. Alderfers E-R-G Model Clayton Aldefer Focus on internal needs Failure to satisfy relatedness or growth needs will cause renewed interest in existence needs Three Levels o Existence Needs physiological and security factors o Relatedness Needs social factors o Growth Needs desire for both self-esteem and self-actualization Differences from Maslows Hierarchy of Needs o Does not assume a distinct progression from level to level o A person frustrated at either of the two higher levels may return to concentrate on a lower level and then progress again Process Theories of Motivation (provide perspectives on the dynamics by which employees can be motivated) 1. Organizational Behavior Modification (OB Mod) (Behavior Modification) Motivational models that rely more heavily on intended results, careful measurement, and systematic application of inceptives Application in organizations of the principles of behavior modification, which evolved from B.F. Skinner Law of Effect a person tends to repeat behavior that is accompanied by favorable consequences and tends not to repeat behavior that is accompanied by unfavorable consequences Two Conditions to be Successful: o Identify some powerful consequences o Control and administer them in such a way that the employee will see the connection between the behavior to be affected and the consequences o Comes from the learning theory (we learn best under pleasant surroundings) External consequences tend to determine behavior Social Learning (vicarious learning) employees do not always have to learn directly from their own experiences (learn by observing the actions of others, understanding the consequences

that others are experiencing, and using the new information to modify their own behavior) Greater degree of control, and responsibility, in the hands of managers Alternative Consequences o Positive Reinforcement Favorable consequence that encourages repetition of a behavior Always should be contingent on the employees correct behavior Personalized, timely, specific, high-impact, and as spontaneous as possible Shaping systematic and progressive application of positive reinforcement (giving reinforcement for behavior in the desired direction) o Negative Reinforcement Behavior is accompanied by removal of an unfavorable consequence o Punishment Administration of an unfavorable consequence that discourages a certain behavior Used with caution Does not directly encourage any kind of desirable behavior unless the person receiving it is clearly aware of the alternative path to follow o Extinction Withholding of significant positive consequences that were previously provided for a desirable behavior

Schedules of Reinforcement o Baseline frequency of the behavior before the reinforcement (standard against which improvements can be compared) o Reinforcement Schedule frequency with which the selected consequence accompanies a desired behavior o Kinds: Continuous Reinforcement Reinforcement accompanies each correct behavior by an employee

Desirable to encourage quick learning Partial Reinforcement Only some of the correct behaviors are reinforced (either after a certain time or after a number of correct responses) Learning is slower but knowledge is retained longer Allows managers to be more conscious motivators but may lead them to manipulating people 2. Goal Setting Goals targets and objectives for future performance (model of motivation) Goal Setting motivational process because it creates a discrepancy between current and expected performance Self-Efficacy internal belief regarding ones job-related capabilities and competencies Elements: o Goal Acceptance goals are not only understood but are also actively accepted Explain the purpose behind goals and its necessity Allow employees to participate in the goal-setting process Public statement of performance o Specificity goals need to be as specific, clear, and measurable as possible o Challenge difficult goals stimulate employees to work harder and achieve more (must still be achievable) o Performance Monitoring and Feedback Performance Monitoring observing behavior, inspecting output, or studying performance indicators (awareness of the role employees play) Performance Feedback timely provision of data or judgment regarding task-related results (information about how well they are performing) 3. The Expectancy Model (Theory) Victor H. Vroom (Porter and Lawler) Three Factors of Motivation: (Vroom) o Valence (how much one wants a reward) Strength of a persons preference for receiving a reward Specific information about an individual employees preferences among a set of rewards May be negative or positive (from -1 to +1) o Expectancy (ones estimate of the probability that effort will result in successful performance) The probability of a connection between effort and performance (from 0 to 1) Self-efficacy affects expectancy o Instrumentality (ones estimate that performance will result in receiving the reward) Probability that the organization values and employees performance and will administer rewards on a contingent basis (from 0 to 1)

Motivation strength of the drive toward an action The Impact of Uncertainty o Connection between effort and ultimate reward is often uncertain o Primary Outcomes result directly from an action o Secondary Outcomes follow the primary ones o Many outcomes are controlled by others and the employee cannot be sure how others will act o Addressing Uncertainty: Strengthen both the actual value of the rewards offered and the formal connections between effort and performance and between performance and rewards (organizational behavior modification) Recognize and accept the legitimacy of an employees perception of the rewards Advantages o Takes into account the mental process through which motivation occurs Reflects the Theory Y assumption o Encourages managers to design a motivational climate that will stimulate appropriate employee behavior Which of the rewards available do you value the most? Do you believe your effort will result in successful performance? How likely is it that you will receive your desired rewards if you perform well? Limitations o Factors needs to be further substantiated Intrinsic and extrinsic rewards Multiple outcomes from the same effort o Reliable measures of the three factors Learn why these measures are applicable o Needs to be more complete while still remaining practical Providing motivated employees with the opportunity to perform 4. The Equity Model J. Stacy Adam Employees tend to judge fairness by comparing outcomes (rewards) they receive with relevant inputs (contributions) and also by comparing this ration (not always the absolute level of rewards) with the other ratios of other people

Inputs include all the rich and diverse elements that employees believe they bring, or contribute, to the job Outcomes the rewards they perceive they get from their jobs and employeers Three Combinations That Can Occur From Social Comparisons o Equity motivated to contribute at about the same level o Overreward feel imbalance in their relationship with their employer and seek to restore that balance o Underreward vice versa (overreward) Possible Overreward Possible Underrewar

Type of Inequity Reactions

Internal, physical Internal, psychological External, physical External, psychologica

Reactions Work harder Discount the reward Encourage the referent person to obtain more Change the referent person

Lower productivity Inflate value of the reward Bargain for more; possibly quit Change the referent person

Equity Sensitivity individuals have different preferences for equity Elements of Procedural Justice (equity perspective to the process by which rewards are administered) o Interpersonal Treatment encompasses both managerial respect for employee inputs and managerial behavior that exhibits clear levels of respect, esteem, consideration and courtesy o Clarity of Expectations making the reward process more transparent so that employees can discover and understand how their inputs are assessed and how the reward system is administered

Cognitive Models Likely to continue dominating organizational practice for some time Consistent with our supportive and comprehensive view of people as thinking individuals who make somewhat conscious decisions about their behavior Behavior Modification Stable situations with minimum complexity