Organisational Behaviour - 3

8/6/2019 Organisational Behaviour - 3

http://slidepdf.com/reader/full/organisational-behaviour-3 1/115

Chapter 4 5 6



� P ersonality and values



� O ne¶s personality determines one¶s behavior

� P ersonality is an aggregate term for our entirepsychological development



� D efinition:

The sum total of ways in which anindividual reacts and interacts with others.



� P ersonality test tell us about distinguishing

features of an individual

� T his enables comparison between

individuals



� P ersonality T raits: Enduring characteristicsthat describe an individual s behavior.

What determines our personality?



� H ereditary-Environment (nature v/snurture)

� S ituation (manifestation)



� M yers-Briggs T ype Indicator ( M BT I)

A personality test that taps fourcharacteristics and classifies people into 1of 16 personality types.



P ersonality T ypes

Extroverted vs. Introverted (E or I) :outgoing v/s shy� S ensing vs. Intuitive ( S or N) practical-detail oriented v/s holistic µbig

picture¶� T hinking vs. Feeling ( T or F) using logic v/s emotions to solve

problems

� J udging vs. P erceiving ( P or J ) want structure/order v/s flexiblespontaneous

P ersonality T ypes

Extroverted vs. Introverted (E or I) :outgoing v/s shy� S ensing vs. Intuitive ( S or N) practical-detail oriented v/s holistic µbig

picture¶� T hinking vs. Feeling ( T or F) using logic v/s emotions to solve

problems

� J udging vs. P erceiving ( P or J ) want structure/order v/s flexiblespontaneous



O ther personality tests:

µBig 5¶: extroversion, agreeableness,conscientiousness, emotional stability,openness to experience

� L ocus of control: internal v/s external



©2005

Prentice

HallInc.

Type A¶s1. are always moving, walking, and eating rapidly;2. feel impatient with the rate at which most events take place;3. strive to think or do two or more things at once;4. cannot cope with leisure time;5. are obsessed with numbers, measuring their success in

terms of how many or how much of everything they acquire.

Type B¶s1. never suffer from a sense of time urgency with its

accompanying impatience;

2. feel no need to display or discuss either their achievementsor accomplishments;

3. play for fun and relaxation, rather than to exhibit their superiority at any cost;

4. can relax without guilt.



� R isk taking� H igh R isk-taking M anagers

± M ake quicker decisions ± Use less information to make decisions ± O perate in smaller and more entrepreneurial

organizations� L ow R isk-taking M anagers

± Are slower to make decisions ± R equire more information before making decisions ± Exist in larger organizations with stable environments



W hy is personality assessment important?� S creening-selection

(80% firm use it for all levels of recruitmentin UK, U S A, India)Career planning-succession planning

� T eam building� M anagement development



� V alues



� D ifference between values, ethics, morals, principles

� V alue= T ells us what is important

Ethics= tells us what is standard expectation� M orals= tell us what is right or wrong� P rinciples= govern our choice of above 3



� V alues: Basic convictions that a specificmode of conduct or end-state of existenceis personally or socially preferable to anopposite or converse mode of conduct orend-state of existence.



� V alue S ystem: A hierarchy based on aranking of an individual s values in termsof their intensity.



W hy is it important to understand µvalues¶ atworkplace ?

� T hey P rovide understanding of the attitudes, motivation,and behaviors of individuals.

� T hey influence our perception of the world around us.

� T hey R epresent interpretations of ³right´ and ³wrong.´

� T hey Imply that some behaviors or outcomes arepreferred over others.



H ow are µvalues¶ understood? Acc. to R okeach V alue S urvey

18 T erminal V alues: D esirable end-states of existence;the goals that a person would like to achieve during hisor her lifetime.

(this is what you value/want in life)

18 InstrumentalV

alues: Preferable modes of behavior ormeans of achieving one s terminal values.

(this is how you will try to get what you want)



©2005

Prentice

HallInc. All rights reserved. 4±20

Values inthe

RokeachSurvey

E X H I B I T 3±1

E X H I B I T 3±1

Source: M . R okeach, The Nature of HumanValues (New York: T he Free P ress, 1973).



©2005

Prentice


Values inthe

RokeachSurvey(cont¶d)

E X H I B I T 3±1 (cont¶d)E X H I B I T 3±1 (cont¶d)

Source: M . R okeach, The Nature of HumanValues (New York: T he Free P ress, 1973).



Is there a link between values and ethics?



©2005

Prentice


V alues, Loyalty, and Ethical

Behavior

Ethical Climate inEthical Climate inthe r anizationthe r anization

Ethical Climate inEthical Climate inthe r anizationthe r anization

E thical Values andE thical Values andBehaviors of LeadersBehaviors of Leaders



W hy is it important to understand the linkbetween values and ethics at workplace?

� Globalization culture-clash:

Corporate/business culture (e.g. westernculture) to be enforced by Indianmanagers



W hy are personality-values important atworkplace ?

� P erson-job fit (personality congruentoccupations)

� Person-organization fit (value congruentorganizations)



© 2005 P rentice H allInc. All rights reserved.

4±27

Achieving P erson- J ob Fit

P ersonality TypesR ealistic

InvestigativeS ocial

Conventional

Enterprising Artistic

P ersonality TypesR ealistic

InvestigativeS ocial

Conventional

Enterprising Artistic

P ersonality- J ob Fit T heory(H olland)

I dentifies six personalitytypes and proposes that the fit between personalitytype and occupationalenvironment determinessatisfaction and turnover.




4±28

H olland¶sTypology of Personality

andCongruent

Occupations

E X H I B I T 4±2

E X H I B I T 4±2



P erson-organization fit

H ow to study organizational culture and values?

� H ofstede¶s framework: H e studied 116,000 IB M employees spread across 40 countries found that

employees vary along 5 main dimensions of nationalculture



2. Individualism: The degree to which people prefer to act as individuals rather than a member of groups.

Collectivism: A tight social framework in which people

expect others in groups of which they are a part to lookafter them and protect them.

3. Achievement: The extent to which societal values arecharacterized by assertiveness, materialism and

competition.Nurturing: The extent to which societal values emphasizerelationships and concern for others.



4. Uncertainty Avoidance: The extent to which a societyfeels threatened by uncertain and ambiguous situationsand tries to avoid them.

5. Long-term O rientation: A national culture attribute that emphasizes the future, tradition, and persistence.

� S hort-term O rientation: A national culture attribute that emphasizes the here and now, and accept changereadily



S ummary:� P ersonality types influences job

performance and career success� V alues influence employee performanceand determine organizational compatibility



Chapter 5:P erception and individual decision making



W hat is perception?



� P erception: A process by which individualsorganize and interpret their sensoryimpressions in order to give meaning totheir environment.



W hy is it important?

P eople¶s behavior is based on their perception of P eople¶s behavior is based on their perception of what reality is, not on reality itself.what reality is, not on reality itself.




5±38

Factors T ha tInfluence

P erception

E X H I B I T 5±1

E X H I B I T 5±1



� M ost important use of understanding

µperception¶ is for deciphering µpeople-perceptions¶ we make



Understanding how non-living object is

going to behave in a certain condition isrelatively easy

But understanding why people behave incertain ways in certain conditions isdifficult



Attribution theory explains how we judgeother people¶s behavior



� D istinctiveness: shows different behaviors in different situations.

How distinct is his/her behavior?Consensus: response is the same as others to same situation.

Will everyone behave the same way as s/he has?

Consistency: responds in the same way over time.

Does s/he always behave in this way?

� D istinctiveness: shows different behaviors in different situations.

How distinct is his/her behavior?Consensus: response is the same as others to same situation.

Will everyone behave the same way as s/he has?

Consistency: responds in the same way over time.

Does s/he always behave in this way?




5±44

Attribution T heory E X H I B I T 5±2

E X H I B I T 5±2



e.g. judging an employees performanceKim is a µbad¶ performer because (=internal cause)1. S he performs on the same µlow¶ levels on related tasks

(low distinctiveness)2. O thers perform better (low consensus)3. And she has been performing poorly for a long time

(high consistency)



Acc to the theory, people make grosserrors of attribution when interpretingothers behavior.

� T hese are called µFundamental attributionerror¶



Fundamental Attribution Error: Thetendency to underestimate the influenceof external factors and overestimate theinfluence of internal factors when making

judgments about the behavior of others.



� S elf-S erving Bias: The tendency forindividuals to attribute their ownsuccesses to internal factors while puttingthe blame for failures on external factors.



W e also make errors when judging othersbecause we take mental short cuts



� S elective P erception: People selectively interpret what they see on the basis of their interests, background,experience, and attitudes.

(you see what you want to see)� H alo Effect: D rawing a general impression about an

individual on the basis of a single characteristic

Contrast Effects: Evaluation of a person s characteristicsthat are affected by comparisons with other peoplerecently encountered who rank higher or lower on thesame characteristics.



� P rojection: Attributing one s own characteristics to otherpeople.

� S tereotyping: Judging someone on the basis of one s

perception of the group to which that person belongs.



Is there a link between perception anddecision making?



� D ecision making is integral part of anorganization, and it requires searching,interpreting, evaluation information. T heseare processes involved in perception.

� P erception decision making



W hat is decision making?

Choice between two or more alternatives

W hen is a need to make a decision?

As a reaction to a problem As a discrepancy between µcurrent¶ andµdesired¶ state



E.g. of org. decisionsT op management:

W hat should be the organizational goal?

W hat product-services to offer?� H ow best to finance a specific operation?W here to locate the new manufacturing plant?

M id-lower management:

W hat should be the production schedule?� H ow to select new employees?� H ow to decide on µpay raise¶?



W hat do we know so far about decisionmaking?



1. R ational D ecision- M aking M odel:

D escribes how individuals should behave in

order to maximize some outcome.




5±59

S teps in the R ational D ecision-M aking M odel

1. D efine the problem.

2. Identify the decision criteria.

3. Allocate weights to thecriteria.

4. D evelop the alternatives.

5. Evaluate the alternatives.

6. S elect the best alternative. E X H I B I T 5±3

E X H I B I T 5±3



M odel Assumptions� P roblem clarity

Known options

Clear preferences

Constant preferences

No time or cost constraints� M aximum payoff

M odel Assumptions� P roblem clarity

Known options

Clear preferences

Constant preferences

No time or cost constraints� M aximum payoff



2. Bounded R ationality: I ndividuals makedecisions by constructing simplifiedmodels that extract the essential featuresfrom problems without capturing all theircomplexity.

3. I ntuitive: A fast, non conscious process of solving problems based on experience



Conditions Favoring Intuitive D ecision M aking ± A high level of uncertainty exists ± T here is little precedent to draw on

± V ariables are less scientifically predictable ± ³Facts´ are limited ± Facts don¶t clearly point the way ± Analytical data are of little use

± S everal plausible alternative solutions exist ± T ime is limited and pressing for the right decision




5±63

Common Biases and Errors in decision making

� O verconfidence Bias ± Believing too much in our own decision competencies.

Anchoring Bias ± Fixating on early, first received information.

Confirmation Bias ± Using only the facts that support our decision.

Availability Bias ± Using information that is most readily at hand.

� R epresentative Bias ± Assessing the likelihood of an occurrence by trying to match it

with a preexisting category.



Escalation of Commitment ± Increasing commitment to a previous decision in spite of

negative information.� R andomness Error

± T rying to create meaning out of random events by falling prey toa false sense of control or superstitions.

� H indsight Bias ± Falsely believing to have accurately predicted the outcome of an

event, after that outcome is actually known.




5±65

Individual D ifferences in D ecision M aking

P ersonality Aspects of conscientiousness and escalation of

commitment.S elf Esteem H igh self serving biasG ender

Women tend to analyze decisions more than men.




5±66

O rganizational Constraints on D ecision M akers

� P erformance Evaluation ± Evaluation criteria influence the choice of actions.

� R eward S ystems ± D ecision makers make action choices that are favored by the

organization.Formal R egulations ± O rganizational rules and policies limit the alternative choices of

decision makers.� S ystem-imposed T ime Constraints

± O rganizations require decisions by specific deadlines.� H istorical P recedents

± P ast decisions influence current decisions.



Ethics and decision making



Individuals use 3 criteria for making ethical decisions ± Utilitarianism

� S eeking the greatest good for the greatest number.

± R ights� R especting and protecting basic rights of individuals such as whistleblowers.

± J ustice

Imposing and enforcing rules fairly and impartially.T radeoff between criterions: productivity-efficiency

governed v/s social justice governed legalistic framework



Creativity and decision making




5±70

T he T hree Components of Creativity

CreativityThe ability to producenovel and useful ideas.

T hree-ComponentM odel of Creativity

Proposition that individualcreativity requires expertise,creative-thinking skills, andintrinsic task motivation.

E X H I B I T 5±4

E X H I B I T 5±4Source: T .M . Amabile, ³ M otivating Creativity in O rganizations,´ California Management Review , Fall 1997, p. 43.



W ays to improve decision making

1. Analyze the situation and adjust your decision making style to fitthe situation.

2. Be aware of biases and try to limit their impact.

3. Combine rational analysis with intuition to increase decision-making effectiveness.

4. D on¶t assume that your specific decision style is appropriate toevery situation.

5. Enhance personal creativity by looking for novel solutions or seeing

problems in new ways, and using analogies.



W ays to reduce biases and errors

Focus on goals. ± Clear goals make decision making easier and help to eliminate

options inconsistent with your interests.� L ook for information that disconfirms beliefs.

± O vertly considering ways we could be wrong challenges our tendencies to think we¶re smarter than we actually are.

� D on¶t try to create meaning out of random events. ± D on¶t attempt to create meaning out of coincidence.Increase your options.

± T he number and diversity of alternatives generated increases thechance of finding an outstanding one.



� T heories of motivation



W hat is motivation?



� M otivation: The processes that account foran individual s intensity, direction, andpersistence of effort toward attaining agoal.

Key Elements

1. Intensity: how hard a person tries

2. D irection: toward beneficial goal

3. P ersistence: how long a person tries

Key Elements

1. Intensity: how hard a person tries

2. D irection: toward beneficial goal

3. P ersistence: how long a person tries



W hat do theories tell us about motivation?What do we know so far?



A] Early theoriesB] Contemporary theories



1. M aslow¶s theory of motivation

Also called, µ H ierarchy of Needs¶ T heory

There is a hierarchy of five needs physiological, safety,social, esteem, and self-actualization; as each need issubstantially satisfied, the next need becomes dominant.



Acc. to the theory, a lower order need should besubstantially satisfied, and only then the next needbecomes dominant.

� H uman behavior is said to be driven towards thisordered need fulfillment

Criticism: T he strict order and two needs being operativeat the same time.



3. T heory X ± T heory Y ( D . M cG regor)

T wo distinct views of human behavior when observed froma managerial perspective:

� T heory X: T he manager assumes that employees dislikework, lack ambition, avoid responsibility, and must bedirected and coerced to perform.

� T heory Y: T he manager assumes that employees likework, seek responsibility, are capable of makingdecisions, and exercise self-direction and self-controlwhen committed to a goal.



J ob factors which are basic called µhygiene factors¶

Hygiene Factors:

Factors such as company policy andadministration, supervision, and salary that, when

adequate in a job, placate workers. When factors areadequate, people will not be dissatisfied.

J ob factors such as growth-promotion opportunities,recognition-responsibility, achievements were trueµmotivational¶ factors



4. D avid M cClelland¶s T heory of Needs

M ain idea: Behavior is driven by three mainneeds: achievement, power, and affiliation





6±87

nAch

nPow

nAff

Need for AchievementThe drive to excel, to achievein relation to a set of standards, to strive tosucceed.

Need for AffiliationThe desire for friendlyand close personalrelationships.

Need for P ower

The need to make othersbehave in a way that theywould not have behavedotherwise.



B] Contemporary theories1. Cognitive Evaluation T heory

Providing an extrinsic reward (e.g. money) for behaviorthat had been previously only intrinsically rewardingtends to decrease the overall level of motivation.

E .g. A volunteer working for an NGO for free, when hiredas a full time worker drives (more) money from thesame work but experiences less satisfaction now.



2. G oal- S etting T heory: The theory that specific anddifficult goals, with feedback, lead to higherperformance.

Factors influencing the goals±performance relationship:Goal commitment, adequate self-efficacy(capability),task characteristics

I mplementation of goal-setting M anagement ByO bjectives ( M BO )



It is a participative setting of objectives,tangible, and measurable goals for eachlevel in an organization

O rg. objectivesD ivisional objectivesD epartmental objectivesIndividual objectives





6±92

Concepts:Behavior is environmentally caused.

Behavior can be modified (reinforced) byproviding (controlling) consequences.

R einforced behavior tends to be repeated.

3. R einforcement T heory: T he assumption that behavior is afunction of its consequences.



4. S elf efficacy theory: belief or self-confidence that onecan perform the task

Used together with goal setting

M anager sets higher goal (goal setting) employee hasconfidence that goal can be achieved (self efficacy)motivated employee higher performance



5 . Equity T heory: I ndividuals compare their job inputs (e.g.education, competence, effort, experience) andoutcomes (salary levels, raises, recognition) with thoseof others and then respond to eliminate any inequities.

R eferent Comparisons:

S elf-inside (different position-same org.)

S elf-outside (different organization)O ther-inside (different person- same org.)O ther-outside (different person-different org.)

R eferent Comparisons:

S elf-inside (different position-same org.)

S elf-outside (different organization)O ther-inside (different person- same org.)O ther-outside (different person-different org.)



Choices for dealing with inequity:

1. Change inputs (slack off)

2. Change outcomes (increase output)3. D istort/change perceptions of self

4. D istort/change perceptions of others

5. Choose a different referent person6. Leave the field (quit the job)





6±97

P ropositions relating to inequitable pay:

1. O verrewarded hourly employees will producemore than equitably rewarded employees.

2. O verrewarded piece-work employees willproduce less, but will do higher quality piecework.

3. Underrewarded hourly employees will producelower quality work.

4. Underrewarded employees will produce larger quantities of lower-quality piece work thanequitably rewarded employees



Expanding the meaning of µequity¶ to µfairness¶(using it beyond a comparison of rewards)



� D istributive J ustice: Perceived fairness of the amount and allocation of rewards among individuals.

� P rocedural J ustice: The perceived fairness of theprocess to determine the distribution of rewards.

� O rganizational justice: overall perception of what is µfair¶at a workplace



6. Expectancy T heory ( V ictor V room):

The strength of a tendency to act in a certain way depends

on the strength of an expectation that the act will befollowed by a given outcome and on the attractivenessof that outcome to the individual.



Effort± P erformance R elationship: T he probability thatexerting a given amount of effort will lead toperformance.

� P erformance± R eward R elationship: T he belief thatperforming at a particular level will lead to the attainmentof a desired outcome.

� R ewards± P ersonal G oals R elationship: T he degree towhich organizational rewards satisfy an individual¶s goals

or needs and the attractiveness of potential rewards for the individual.

I f I work hard, will the out put im prove will im provement be noticed and rewarded does that reward mean anything to me?



Chapter 7: M otivation application



� T heories of motivation are used in workplace practices (e.g. employeeinvolvement, skill based pay)



� T heories of motivation led to changes in the way workwas structured or the way jobs were designed



1. J ob Characteristics M odel

I dentifies five job characteristics and their relationship topersonal and work outcomes.

Characteristics:

1. S kill variety

2. Task identity

3. Task significance4. Autonomy

5. Feedback

Characteristics:

1. S kill variety

2. Task identity

3. Task significance4. Autonomy

5. Feedback



Characteristics:

1. S kill variety: Extent to which a job requires variety of skills

2.T

ask identity: Extent to which a job requirescompletion of whole-identifiable piece of work

3. T ask significance: Extent to which a job has impact onthe lives/work of others

4. Autonomy: Extent to which a job has autonomy,freedom

5. Feedback: Extent to which carrying out a task givesclear and direct information about his/her effectiveness

Characteristics:

1. S kill variety: Extent to which a job requires variety of skills

2.T

ask identity: Extent to which a job requirescompletion of whole-identifiable piece of work

3. T ask significance: Extent to which a job has impact onthe lives/work of others

4. Autonomy: Extent to which a job has autonomy,freedom

5. Feedback: Extent to which carrying out a task givesclear and direct information about his/her effectiveness



� J ob Characteristics M odel

± J obs with skill variety, task identity, task significance,autonomy, and for which feedback of results is given,directly affect three psychological states of employees:

Knowledge of results� M eaningfulness of work� P ersonal feelings of responsibility for results

± Increases in these psychological states result inincreased motivation, performance, and jobsatisfaction.





6±110

W hen jobs are designed to give high MPS S core, it is predictedthat employee will be motivated, satisfied, and productive.



2. J ob rotation: W hen work gets over-rountinized, µcross-training¶ could be the solution.

D one at a same level, and rotated on a job requiring similar skills

3. J ob enlargement (horizontal expansion)R edesigning a job to include more number and variety of

tasks/activities

4. J ob enrichment (vertical expansion) greater control of planning, executing, and evaluating own¶s work



5. Alternative work arrangementsa) Flexitimeb) T elecommuting (work from home 2 out of 7 days a

week)c) J ob sharing: splitting a traditional 40 hrs-a-week job

among 2 people



6. Employee involvement

a) P articipative management (subordinates participatingwith immediate supervisors)

b) R epresentative participation: workers participate in org.decision making through small group of representatives

c) Quality circle: a work group that functions towards qualityimprovement



7. Using rewards to motivate

a) W hat to pay? P ay structureb) H ow to pay? V ariable pay programs(piece-rate plans, merit based pay, bonuses, profit sharing

(org. profit is shared), gain sharing (productivity-linkedgains of a group) , E SOPS = variable pay programs)

c) R eward other than pay/in other forms? Employeerecognition program



� S ummary:

T heories of motivation tell us what is human behavior

motivated towards, how can managers use thisknowledge to motivate employees, and how canorganizations design their jobs and policies to motivateemployees

Organisational Behaviour - 3

Documents

Transcript of Organisational Behaviour - 3