Organizational Behavior Course Model

OB Outcomes: Attitudes and Behaviors

Effort Job Satisfaction Absenteeism Turnover Stress Workplace Violence Organizational Citizenship Behavior and Commitment Employee Theft Safety and Accidents Sexual Harassment Grievances

Influenced by Managers Using

Application of Individual Differences
Perceptions Attributions Attitude change Values Personality

Group Dynamics Reward Systems Job Design Leadership

STRESS
Definition: Stress occurs when an individual cannot adequately respond to job or org. stimuli without damage (e.g., fatigue, worry, heart disease).

Established Research: Performance Stress (giving a speech, studying for a test) Conclusion: Nearly all work-induced stress is undesirable, not a bell-shaped curve

REASONS FOR MANAGING STRESS

1. Corporate self-interest #1 Fringe benefit? Popular prescription drugs? How did stress get linked to health care costs? Control Data
2. Liability; workers compensation

3. Key people most affected

4. Moral/ethical/humanistic reasons

Corporate Self-Interest: Reducing Health Care Costs

Control Data Corp. 1987 case 2007: Overweight 11.65 claims/100 FT Avg. weight 5.80 claims/100 FT Wellmark: Has offered financial awards for some lifestyle activities Selection practices. Do not hire those who consume alcohol or smoke (e.g., Pella, Lucullans, Wellmark) Choice of carrot vs. stick

LIFESTYLE POLICIES COMPANY POLICY

Gannett, General Mills, Pepsi, Sauer-Danfoss, Iowa Telecom Macys, Gannett Monthly surcharge for smokers

Hy-Vee
GuideOne

$10 Health Insurance reduction for nonsmokers

Discounts for not smoking or drinking; extra coverage when volunteering & church attendance $25/month Health Insurance surcharge for use of tobacco products or excessive weight Get check-up or lose health insurance First to not hire smokers (where legal to do so)

Alabama, South Carolina

AmeriGas Turner Broadcasting Union Pacific

Sidebar on Employees Who Smoke

Smoking on decline in U.S: 1 in 5 adults, 23% of Iowans, but growing world wide Center for Disease Control says smoking costs the nation $167 billion Federal studies show smokers cost an average business $3400 more per year because of increased medical expenses and absenteeism Over a lifetime, employees who smoke incur $16,000 more in medical bills

Sidebar on Employees Who Smoke

Growing evidence that financial incentives can induce people to quit smoking

GE: 878 employees received info on smoking cessation. Divided into non-compensated and compensated groups.
Compensated group got $100 for completing cessation program, $250 if they stopped w/in 6 months of being in the study and $400 if they remained smoke free 6 months later

Sidebar on Employees Who Smoke

Results % Smoke-Free Compensated Not Compensated End of First Year: 14.7% 5% At 18 months: 9.4% 3.6%

The ship has sailed with respect to smoking bans at work and in the community. Can obesity management be far behind?

Sidebar: Obese Employees

One in 3 adults is obese (BMI > 30) Surgeon General says obesity costs the nation > $100 billion Obesity accounts for 5-7% of health care costs. For a company of 1000 employees, an extra $395,000

Programs to combat obesity on the rise (e.g., Google & Caterpillar put healthy food in vending machines, cafeterias charge less for healthy food) Alabama and S.C. will charge employees w/BMI > 35 $25/month for insurance that is otherwise free

Reducing Liability and Workers Compensation Costs

Extension of safe working environment (Health & Safety Work Act of 1974) Stress accounts for as much as 14 % of occupational disease claims As work becomes increasingly mental and service-oriented, as opposed to manual, what will happen?

Key People Most Affected

Loss of highly valued senior people Relations to stock prices and public confidence (TI & Disney; Apple) Impact on negotiations Hypothetical cost figures (next slide)

Stress Costs: Heart Disease Estimate

(1) Number of employees 4,000 (2) Employees aged 45 to 64 (.25 of line 1) 1,000 (3) Estimated deaths due to heart disease per year (.006 x line 2) 6 (4) Estimated premature retirements due to heart problems per year (.003 x line 2) 3 (5) Personnel losses: Sum of lines 3 and 4 9 (6) Annual replacement costs for experienced_____ employees ($24,887 x line 5) $223,983
(Original source: Ivancevich & Matteson, Stress and Work, 1980, updated for 2008)

Job Stress somewhat predictable.

Occupational Stress Rankings

High Stress Low Stress

1. U.S. President 2. Firefighter 3. Senior Executive 4. Taxi driver 5. Surgeon 10. Air Traffic Controller 20. Stockbroker

250. Music instrument repairer 249. Florist 246. Actuary 206. Computer Programmer 122. Mechanical Engineer 119. Economist 103. Market Researcher

Criteria: Overtime, quotas, deadlines, competitiveness, physical demands, hazards, initiative required, stamina, win-lose situations, and working in the public eye
Source: Wall Street Journal, 1996; based on 250 jobs; updated by Jobs Rated Almanac, 6 th ed. 2002

TYPES OF STRESS
1. Origins of stress
2. Non-work stress

3. Work stress
a. b. c. d. Air traffic controllers NASA workers OSHA layoff studies Accountants

A Managerial Model of Stress

Antecedents (Stressors/stress creators) Stress Intermediary Outcomes Health Consequences

Physical Environment Individual Factors Work overload Role conflict Role ambiguity Responsibility for others Underutilization of skills Resource inadequacy Group Factors Cohesion Conflict Satisfaction Org. Factors Climate Technology Control systems Job Design

Perceived and Objective Stress Measures

Physiological Cholesterol Triglycerides Blood pressure Blood glucose Catecholamines Free radicals Behavioral Job satisfaction Career satisfaction Life satisfaction Performance Absenteeism Turnover Accidents Grievances Individual Differences (demographics & behavior) Heredity Age, Sex Education Occupation, Hours worked Health status Alcohol and tobacco use Exercise and diet Family support

Individual Differences (cognitive/affective) Type A/B Locus of control Tolerance for ambiguity Need for achievement Self-esteem Corporate Practices On-site child care EAPs Wellness programs

Coronary heart disease Rheumatic arthritis Ulcers Allergies Headaches Anxiety Depression Apathy Nervous exhaustion Alcoholism

Non-Organizational Family relations Economic status Work/family conflict

(moderator factors)

Antecedents of Stress (Stressors) where Managers Can Intervene (Column #1)

Physical Environment Individual factors Work overload Stress Quantitative Qualitative (KSAs) Role conflict Stress Role ambiguity Stress Responsibility for others Stress

Underutilization of skills Stress

Resource inadequacy Stress

Individual Differences and Corporate Interventions

Cognitive/Affective Differences Type A/B Locus of control Tolerance for ambiguity Need for achievement Self-esteem Corporate Interventions On-site child care Employee assistance programs (EAPs) Wellness programs

PERSONALITY TRAITS
Type A High achievement orientation Aggressive Restless; impatient Constant sense of time urgency
Type B No time urgency or resulting impatience Feels no need to display/discuss achievements Plays for fun and relaxation Can relax without guilt

CORRELATES OF TYPE A/B

1. As report more work overload
2. As work more hours

3. As have higher serum cholesterol ratings in college students

4. The A trait best predictor of CHD among those less than 49 years 5. Most damaging components of A are being distrustful and hostile

TYPE A and B BEHAVIORS

A
Fast workers

B
Patient

Emphasizes quantity
Works long hours

Tactful
Reflective

Rarely creative
Sometimes makes poor decisions because they work too fast

Creative
Make careful decisions

APPROACHES TO STRESS REDUCTION

1. Dissipation/Health Promotion a. Exercise b. Bio-feedback; massage c. Overload/role conflict reduction via concierge and go to meeting d. Newsletters 2. Selection & Placement 3. Training (conflict mgmt, time mgmt, lunch & learns, ADR, omsbudpersons) 4. Job Redesign & Work Scheduling (lessen role ambiguity, role conflict, reduce underutilization of skills)

Perceptions of Managerial Jobs Have Changed

% of Managers who agree that: 1. Burnout is a serious problem 2. Managers are working too many hours 3. More and more, managers are physically exhausted by the end of the workday Eighties 40% 39% More recent % %

38%

4. Managers often take too much work home with them

5. Managers have high job security

47% 26%

% %