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CHAPTER 1: WHAT IS ORGANIZATIONAL BEHAVIOR?

The Importance of Interpersonal Skills Managers need a whole cadre of skills to create a productive workplace, including technical and quantitative skills. However, leadership and communication skills are critical to organizational success. When managers have solid interpersonal skills, there are positive work outcomes for the organization. These outcomes include lower turnover of strong employees, improved recruitment pools for filling employment positions, and a better bottom line. What Managers Do? The job of managers is not to just accomplish the task, but to accomplish the task through other people. In order to facilitate that process, managers must make decisions, allocate resources, and direct activities toward the desired outcomes. Managers do this in the context of an organization, a consciously coordinated social unit composed of two or more people that functions on a relatively continuous basis to achieve a common goal or set of goals Management Functions There are four main functions that fall under the purview of managers. The first is the planning function. This function includes defining an organizations goals, developing a strategy for achieving those goals, and coordinating a comprehensive set of plans to implement the strategy. The next function is organizing. This function sets forth what tasks are to be done, who is to do them, how the tasks are to be grouped, who reports to whom, and where decisions are made. The third function is leading. This function looks at the managers job to direct and coordinate the people within their area of influence. The final function is controlling. The controlling process ensures that things are going as they should by monitoring performance. The manager should compare the results of that monitoring with the goals that have been set. The manager must take this information and determine if the goals need to be adjusted or if adjustments need to be made to the way the organization is attempting to meet the goals. Mintzbergs Managerial Roles Henry Mintzberg did a study of five executives to determine what was included in their jobs. Based on his observations, Mintzberg found that managers perform ten different sets of
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behaviors in their work. These behaviors fall under three main roles interpersonal, informational, and decisional. Mintzbergs Managerial Roles: Interpersonal Interpersonal roles include a subset of roles including figurehead, leader, and liaison roles. A manager serves as a figurehead when they are performing duties that are routine or social in nature. All managers also serve in a leadership role, including hiring, training, motivating, and disciplining employees. The final role that falls under the interpersonal grouping is the liaison; this is when the manager must maintain a network who will work with them on gaining information and relationships. Mintzbergs Managerial Roles: Informational The second grouping is informational roles. Within this category, we find the role of monitor, when a manager has to gather and organize a wide variety of information. The manager then must decide what information is important and what information is necessary for their team members; this translates into the role of the disseminator. Finally, when the manager is responsible for giving information to outsiders, they fall into the role of the spokesperson. Mintzbergs Managerial Roles: Decisional The final managerial role grouping is decisional, requiring managers to make decisions. In this role grouping, a manager must serve as an identifier of opportunities, filling the entrepreneur role. They are also responsible for taking corrective action when necessary and being the role of disturbance handler. Managers also need to make decisions about how to allocate resources to support organizational goals. Finally, they must represent their unit or organization to bargain and obtain advantages for their own area in their role as negotiator. Essential Management Skills There are three main areas of essential managers skills that help us gain a better understanding of what managers do. The first group is technical skills where the manager is called upon to apply specialized knowledge or expertise. The second group is human skills in which the manager must exhibit a strong competency in working with others and motivating them toward organizational goals. The final group is conceptual skills where the manager needs the mental ability to analyze and diagnose complex problems and situations. Luthans Study of Managerial Activities
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A group of researchers, led by Fred Luthans, researched the link between managerial activity and managerial success. They looked at four types of managerial activity. These activities included traditional management, which is made up of decision making, planning, and controlling; Communication consisting of the exchange of information; Human Resource Management that incorporates motivation, discipline, and training; and Networking which utilizes socializing and politicking. Successful vs. Effective Allocation by Time With successful (defined as speed of promotion) managers, it was determined that networking was the most important activity. Effective managers (defined as quality and quantity of performance and satisfaction of their employees) relied more on communication as the largest contributor to their effectiveness. Organizational Behavior The look at managerial activity brings forth the importance of people skills in effective management. The field of organizational behavior is the study of people skills in tha t it looks at the impact that individuals, groups, and structures have on behavior within organizations. Intuition and Systematic Study Our intuition is extremely useful in the decision-making process, it does not give us the complete picture. By engaging in a systematic study of behavior, we can enhance our effectiveness. When we talk about engaging in a systematic study, we are talking about looking at relationships. By doing so we can better determine cause and effect and then by applying scientific evidence to our conclusions, we are better able to predict behavior. It is not an either/or relationship, rather intuition and systematic study can work effectively together to predict behavior. Contributing Disciplines Organizational Behavior (OB) is interdisciplinary in nature as it is an applied behavioral science. The theory in OB relies on contributions from multiple behavioral disciplines. These disciplines include Psychology, Social Psychology, Sociology and Anthropology. Psychology - Psychology focuses on the individual level by seeking to measure, explain, and sometimes change behaviors in individuals. This area of study offers insights in such areas as learning, training, decision making, and employee selection Social Psychology -Social Psychology moves beyond individual analysis to look at group behavior and how individuals can influence on another. It blends together sociology and psychology and looks primarily at change, communication, and group interactions

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Sociology - Sociology looks at the relationship between individuals and their environment. Sociologists main contribution to OB is through offering a better understanding of group behavior. It looks more at how a group operates within an organizational system. One key area that sociologists contribute to in OB is culture, a key factor in OB studies. Anthropology - An Anthropologist studies societies to learn about the human beings and their activities. They help us understand the differences between different groups in terms of their values, attitudes, and behaviors.

Few Absolutes in OB There are few absolutes in organizational behavior. When making decisions, you must always take into account situational factors that can change the relationship between two variables. For example, as seen in this chart, one message from a boss in an American culture can mean a completely different thing in another culture. It is always important to take context into account. Developing an OB Model In Organizational Behavior (OB), we utilize the representation of the world as broken down into three levels. The first level of analysis we will look at is the individual level. At this level we look at individual behavior. Next, recognizing that individuals make up groups, we analyze how group behavior occurs. Finally, organizations are made up of groups of individuals so we analyze the organization at a systems level. Types of Study Variables The dependent variable (outcomes) is the key factor that you want to explain or predict. The independent variable (input) is the factor that affects change in the dependent variable. By seeing how X impacts Y we will be able to better predict behavior. Interesting OB Dependent Variables Some key variables that we are concerned about when studying organizations are work outcome variables. These include productivity, absenteeism, turnover, and deviant workplace behavior More Interesting OB Dependent Variables OCB is the discretionary behavior of the employee that is not a formal job requirement, but still helps to enhance work outcomes. This could include team building activities, noticing flaws in the work process, or covering for a sick colleague.-The feeling of being part of the organization and commitment to organizational good and success it about going beyond the ordinary job description.

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Job satisfaction is the general attitude toward the job.

The Independent Variables When utilizing the OB model, it is important to understand that the independent variable can be at any of the three levels, individual, group, or organization. Individual - Biographical characteristics, personality and emotions, values and attitudes, ability, perception, motivation, individual learning, and individual decision making Group - Communication, group decision making, leadership and trust, group structure, conflict, power and politics, and work teams Organization System - Organizational culture, human resource policies and practices, and organizational structure and design Summary and Managerial Implications Managers need to develop their interpersonal skills to be effective. OB focuses on how to improve factors that make organizations more effective. The best predictions of behavior are made from a combination of systematic study and intuition. Situational variables moderate cause-and-effect relationships, which is why OB theories are contingent. There are many OB challenges and opportunities for managers today. The textbook is based on the contingent OB model

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CHAPTER 2: DIVERSITY IN ORGANIZATIONS Diversity Everybody brings differences to an organization where they work. These differences can create energy and excitement in the workplace, but they can also cause conflict. So it is important that we have an understanding of how diversity works in organizations. When we look at the workplace we can recognize two levels of diversity. Surface-level diversity represents the characteristics that are easily observed such as race, gender, age etc. Deep-level diversity represents the aspects that are more difficult to see at first glance such as values, personality, and work preferences. Organizations need to engage in Diversity Management to eliminate unfair discrimination. By understanding what diversity is and helping employees with training and development opportunities, the negative impact of discrimination can be minimized. Descrimination can be good with out sterotyping ( Unfair discrimination) Forms of discrimination

Ability Ability is defined as an individuals capacity to perform the various tasks associated with the job. When ability is dissected, two key factors are found. The first factor set apart is intellectual ability. This is the ability to perform mental activities. There are a number of measures of intellectual ability available for use by organizations. Two representative measures are the GMA (General Mental Ability) measure and the Wonderlic Personnel Test. The GMA takes a look at overall intelligence and is generally recognized by researchers. The Wonderlic is generally used as a quick measure of intelligence in the hiring process. Often, it takes less than ten minutes to complete. Depending on the requirements of the job, intelligence tests can be used to predict success on certain job tasks. However, there has been no correlation found between intelligence and job satisfaction. Physical Ability is the second factor of ability and represents the capacity to do tasks that demand stamina, dexterity, strength, and other characteristics related to performance of physical tasks.

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Physical Ability is the second factor of ability and represents the capacity to do tasks that demand stamina, dexterity, strength, and other characteristics related to performance of physical tasks.

Dimensions of Intellectual Ability Intellectual ability is made up of many dimensions. They include number aptitude, verbal comprehension, perceptual speed, inductive reasoning, deductive reasoning, spatial visualization, andmemory Number aptitude is the ability to do speedy and accurate arithmetic and will be effective in jobs requiring mathematical ability, such as an accountant. Verbal comprehension is the ability to understand what is read or heard and the relationship of words to each other. This ability will be helpful in jobs where the manager needs to understand policies in order to carry out their job tasks. Perceptual speed is the ability to identify visual similarities and differences quickly and accurately. This particular ability is helpful when an employee needs to take in a lot of information and make decisions about the patterns, such as a detective or inspector. Inductive reasoning is present when an individual can identify a logical sequence in a problem in order to help find a solution. An employee who needs to make decisions about the future based on historical information will need the ability of inductive reasoning. Deductive reasoning is the ability to use logic and assess the implications of the argument. When making choices between two different possible solutions to a problem, a manager would need to call upon their deductive reasoning skills. Spatial Visualization is when someone can imagine how an object would look if its position in space was changed. An employee who needs to make decisions about office setup or interior design would need to have a high level of spatial visualization ability. Memory is the ability to retain and recall past experiences. Individuals who need to act quickly in a situation, such as a paramedic or nurse, would need a significant degree of memory ability. Nine Basic Physical Abilities Physical abilities are needed when performance requires physical activity to complete a task. There are three main categories of physical ability strength, flexibility and other. Strength factors include dynamic strength, trunk strength, static strength, and explosive strength. Role of Disabilities When an organization discusses abilities, it can cause difficulty when developing policies that recognize diversity in terms of disabilities. While it is important for the organization to strive for diversity in the hiring process, it is important to be careful to avoid discriminatory practices during hiring by making generalizations about people with disabilities. Implementing Diversity Management Strategies Knowing that people are different is not enough for organizations to operate effectively with differences. Managers must work to develop strategies to develop ways to utilize differences to achieve work outcomes. Managers start by attracting, selecting, developing,
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and retaining employees who can operate and excel in a workplace with diverse individuals, viewpoints, and ideas. Gaining a diverse workforce through the selection process and developing that workforce through organizational training and development programs will help to provide for an environment that fosters creativity and effectiveness by tapping into the potential of all employees. More and more organizations are requiring employees to work in groups. Diversity can aid in group effectiveness and it can diminish it. Organizations must provide the tools to leverage the differences to obtain superior performance. Effective workforce programs that encourage diversity contain three components. First, they teach managers about the laws they need to follow and equal employment opportunity requirements. Second, they help managers and employees to see that a diverse workforce is better able to serve diverse markets. Third, they take into account personal differences and approach the differences as strengths that can be utilized to enhance performance.

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CHAPTER 3: ATTITUDES AND JOB SATISFACTION Attitudes Attitudes are evaluative statements or judgments concerning objects, people, or events. Attitudes are made up of three components. The cognitive component is made up of the belief in the way things are. The affective component is the more critical part of the attitude as it is calls upon the emotions or feelings. The behavioral component describes the intention to behave in a certain way toward someone or something. These three components work together to aid in our understanding of the complexity of an attitude Does Behavior Always Follow from Attitudes? Sometimes we observe people who will change what they say so it doesnt contradict their behavior. When attitudes and behaviors dont line up, individuals will experience cognitive dissonance. This incongruity is uncomfortable and individuals will seek to reduce the dissonance to find consistency. People are willing to live with some discomfort but the degree to which this is true depends upon the importance of the elements, how much influences the individual has in the situation, and the rewards available. What are the Major Job Attitudes? The field of Organizational Behavior focuses on how attitudes will influence the workplace. There are several major job attitudes we will look at throughout the book. The first is job satisfaction, which is the positive feeling about the job resulting from an evaluation of its characteristics. The second is job involvement. Job involvement looks at the degree of psychological identification with the job. An additional job attitude is psychological empowerment, the belief in the degree of influence over the job, competence in the job, and job meaningfulness. Another Major Job Attitude A very important job attitude is organizational commitment or identifying with a particular organization and its goals. There are three dimensions to this job attitude affective, continuance commitment, and normative. Organizational commitment has been found to have some relationship to performance and in particular for new employees. Over the years, this may be losing importance as people are tending to be more loyal to their profession than to a given employer. Perceived Organizational Support is the degree to which employees believe the organization values their contribution and cares about their well-being. Perception of fairness is a key factor in determining employees willingness to work hard for the organization.

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Employee Engagement goes beyond just job satisfaction and includes involvement and enthusiasm for the job. The more engaged the worker is, the more passionate they will be about their work. Are These Job Attitudes Really Distinct? There is a high degree of overlap between the different job attitudes. If a worker has higher job satisfaction, they tend to be more engaged and show a stronger commitment to the organization. Researchers are looking into trying to find ways to measure the different attitudes to get at their distinctiveness. Job Satisfaction Job satisfaction is defined as a positive feeling about a job resulting from an evaluation of its characteristics. This is an important job attitude because it incorporates so many of the other measures. There are multiple ways to measure job satisfaction, but the most accurate way is to ask the question if people are satisfied in their jobs and provide them with a scale to report their degree of satisfaction. People are generally satisfied in their jobs in the United States, but over the last several years, job satisfaction has been decreasing. When work is divided up into facets, results vary. Typically, workers are more satisfied with the work itself and coworkers, while remaining less satisfied with promotion and pay. Causes of Job Satisfaction Pay has limited impact on the level of satisfied workers. Personality tends to be a bigger influence in job satisfaction levels. People who have a negative outlook on life tend to be less satisfied with their jobs. In addition, workers who have a strong sense of self-evaluation are more satisfied. Employee Responses to Dissatisfaction When employees are dissatisfied with their jobs, they have four basic responses they can utilize. These options are divided into active and passive choices. The active options are exit and voice. If employees select to exit, they choose to leave or move in a direction of leaving the organization. In voice, the employees will work toward active and constructive attempts to improve conditions. The passive options are neglect and loyalty. Employees may choose to neglect their work and just allow conditions to worsen or they may choose to remain loyal to the organization and just wait for change. Outcomes of Job Satisfaction When employees are satisfied with their work, there are many positive outcomes in the workplace. However, the inverse is true as well, if employees are dissatisfied in their work, these same job outcomes will be negatively impacted. Job Performance Satisfied workers are more productive AND more productive workers are more satisfied! The causality may run both ways. Organizational Citizenship Behaviors Satisfaction influences OCB through perceptions of fairness. Customer Satisfaction
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Satisfied frontline employees increase customer satisfaction and loyalty. Absenteeism Satisfied employees are moderately less likely to miss work.

Managers often dont get it Despite the overwhelming evidence of the impact of job satisfaction on the bottom line, most managers are either unconcerned about or overestimate worker satisfaction If a worker is satisfied in their job, they will remain in the job for a longer period of time than dissatisfied workers. However, as we have seen recently, workers are willing to stay in jobs where they are not satisfied because the job market is tight due to tough economic conditions. Dissatisfied workers are more likely to cause problems in the workplace by stealing, absenteeism, limiting productivity, and other negative work outcomes.

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CHAPTER 4: EMOTIONS AND MOODS Why Were Emotions Ignored in OB? Historically the study of organizational behavior has not given much attention to emotions. Emotions were typically seen as irrational so managers tended to work to make the workplace emotion-free. Often managers viewed emotions as disruptive to the workplace and therefore a hindrance to productivity. However, when thinking about emotions, typically managers were focusing on negative emotions. Even though there are some negative emotions that could hinder productivity, there is no doubt that workers bring their emotions to the workplace. Therefore, any study in organizational behavior would not be complete without considering the roles of emotions in the workplace. What are emotions and moods? Affect is a generic term that covers a broad range of feelings people experience. This includes both emotions and moods. Emotions are intense feelings that are directed at someone or something. Moods are the feelings that tend to be less intense than emotions and that lack a contextual stimulus. The Basic Emotions Not all psychologists agree; however, there do seem to be six basic emotions that emerge in studies: anger, fear, sadness, happiness, disgust, surprise. All other emotions fall under these six. Some psychologists even place these basic six on a spectrum of emotion. Basic Moods: Positive and Negative Affect Our basic moods carry positive and negative affects, they cannot be neutral. Emotions are grouped into general mood states. These states impact how employees perceive reality and thereby the moods can impact the work of employees. What Is the Function of Emotion? There are some who think that emotions are linked to irrationality and that expressing emotions in public may be damaging to your career or status. However, research has shown that emotions are necessary for rational thinking. They help us make better decisions and help us understand the world around us. If we are going to make decisions, we need to incorporate both thinking and feeling. Affective Events Theory (AET) Affective Events Theory demonstrates that employees react emotionally to things that happen to them at work and this can influence their job performance and job satisfaction. The intensity of these responses will be based on emotion and mood. Implications of AET AET has a number of implications. These implications are as follows: 1. When an employee has an emotional episode, it is actually the result of a series of emotional experiences that are triggered by a single event. 2. Your job satisfaction is impacted by current and past emotions. 3. As your emotions fluctuate over time, it will create variations in job performance.
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4. Behaviors that are driven by emotions are typically brief and variable. 5. Both positive and negative emotions can distract workers and reduce job performance. In summary, emotions do provide very valuable information and predict factors about behavior. In addition, it is important not to ignore minor events as they will accumulate over time. Emotional Intelligence (EI) Emotional Intelligence (EI) is a growing area of study and is becoming increasingly important in the understanding of individual behavior. EI is pulling in ones understanding of emotions and their impact on behavior. An individual who is emotionally intelligent will have a strong sense of self-awareness, recognizing your own emotions when experienced. They are also able to detect emotions in others. By understanding their own emotions and those of others, they can manage emotional cues and information to make decisions. EI plays a very important role in job performance; however, the jury is still out on the role EI plays in effectiveness in organizations. OB Applications of Emotions and Moods There are numerous applications of emotions and moods. These include selection of employees, decision making, creativity, motivation, and leadership.

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CHAPTER 5: PERSONALITY AND VALUES What is Personality? Personality is often defined by characteristics such as outgoing or charming. However, psychologists define personality as the growth and development of a persons whole psychological system. Is the sum totalll ooof ways in which an individual reacts to and interacts with others. Measuring personality We study personality in Organizational Behavior because it impacts a number of important work outcomes. We can attempt to measure personality through a variety of methods. Often these methods are utilized in the hiring process to assist in hiring the right person for the job and the organization. The most common method is self-reporting surveys where individuals answer questions that determine what type of personality they have. Another, more accurate, method is when others observe the individual and provide an independent assessment of their personality. Personality Traits Even though personalities do change overtime, there are enduring characteristics that describe an individuals behavior. If we see a trait consistently surface in different situations, this trait is important in describing the individual. Some methods used to describe personality are the Myers-Briggs Type Indicator, the MBTI. The Big Five Model is another framework used to describe personality. The Myers-Briggs Type Indicator The MBTI is the most widely used personality instrument worldwide. The first is extroverts who tend to be sociable and assertive verses introverts who tend to be quiet and shy. The second dichotomy is sensing and intuitive. Sensors are practical and orderly where intuits utilize unconscious processes. The third dichotomy is thinking and feeling. Thinking focuses on using reason and logic where feeling utilizes values and emotions. The final dichotomy is judging and perceiving. Judgers want order and structure whereas perceivers are more flexible and spontaneous. The Types and Their Uses The tool categorizes the individual into one of the four dichotomies, such as INTJ. There are 16 possible combinations and each helps the individual to better understand themselves. The tool is helpful, but should not be used for selection as the results on validity are mixed. The Big Five Model of Personality Dimensions The Big Five model of personality sets forth that there are five basic dimensions that underlie all others and encompass most of the significant variations in human personalities. The Big Five factors are: Extroversion, Agreeableness, Conscientiousness, Emotional Stability and Openness to Experience. There is a lot of research that supports the Big Five model and it has been shown to predict behavior at work. How Do the Big Five Traits Predict Behavior

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There are certain traits that have been shown by extensive research to be strongly related to higher job performance. Conscientiousness has been shown as an effective predictor of better performance based on more extensive job knowledge and the willingness to exert greater effort. In addition, the other five traits have implications for work. Emotional stability is related to job satisfaction and agreeable people are better in social-related jobs such as sales and customer service. There are additional personality traits relevant to organizational behavior. Core selfevaluation is the degree to which people like/dislike themselves. Positive self-evaluation leads to higher job performance. Machiavellianism describes a person who tends to be emotionally distant and believes that the ends justify the means. They tend to have a competitive drive and a need to win. They can be very persuasive in situations where there is direct interaction with minimal rules and people are distracted by emotions. Narcissism is a trait that often hinders job effectiveness. It describes a person who requires excessive admiration and has a strong sense of entitlement. More Relevant Personality Traits Self-monitoring is another personality trait that is linked to job performance. It is the ability to adjust behavior to meet situational factors. High monitors are more likely to become leaders in the workplace. Risk taking assesses the willingness to take chances. This is important in certain job situations, but not in all. Proactive personalities are those that identify opportunities, take initiative, and persevere to completion in all they do. This is a positive in work environments.

Even More Relevant Personality Traits Type A personalities are defined as those who need to achieve more and more. They are always moving, striving to multitask and dont do well with leisure time. This is something that has been valued in North America, but it is not always a positive as quality of work can be low. Type B personalities operate at a slower pace, find time for leisure and are the opposite of all type A characteristics. Proactive personalities are those that identify opportunities, take initiative, and persevere to completion in all they do. This is a positive in work environments. Values Values represent basic convictions that make judgments about what is the best mode of conduct or end-state of existence. There are two attributes of values. There is a content component that looks at the level of importance of the mode of conduct or end-state and the intensity component that looks at how important that content is. A persons value system ranks values by their intensity. This tends to be relatively constant over time. Importance of Values Values are very important because they provide an understanding of attitudes, motivation, and behaviors. Values play a role in how we perceive the world around us and how we
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interpret right and wrong. Values imply that some behaviors are preferred over others based on how/what we value.

Classifying Values Rokeach Value Survey The Rokeach Value Survey was created by Milton Rokeach. It consists of two sets of values, terminal values and instrumental values. Terminal values describe the desired values/goals a person would like to keep/achieve through their lifetime. Instrumental values are the preferred modes of behavior or means of achieving ones terminal values. Values vary between groups and can cause trouble when group members hold different values and negotiation is needed. Generational Values-Exhibit 5-5 The workplace is made up of a number different generations of workers, more so than ever before seen in history. These workers bring with them different sets of values and corresponding work behaviors. For example, veterans tend to be conservative and conform to standards whereas nexters tend to be self-reliant but still team oriented. Linking Personality and Values to the Workplace Personality and value studies are important to the field of organizational behavior because they have been linked to workplace outcomes. The person-job fit theory developed by John Holland has been critical to thinking about how people fit with a specific job. Holland classified people into six personality types utilizing a vocational preference inventory. Through the study of personality it has become clear that there are intrinsic differences in personality between people. Given that there are a number of different jobs it is logical that people in jobs congruent with their personalities would be more satisfied in their work. Relationships Among Personality Types When the personality is matched with the type of occupation, then there are stronger positive work outcomes. Still Linking Personality to the Workplace This idea can be further linked to the workplace by looking at person-organization fit. The employees personality needs to fit with the organizational culture. When employees find organizations that match their values, they are more likely to be selected and correspondingly be more satisfied with their work. The big five personality types are often helpful in matching the individuals with organizational culture. Global Implications There are global implications to personality and values in the workplace. Frameworks such as the big five and MBTI are transferable across cultures; in fact, the MBTI has been used worldwide. However, the applicability is higher in some cultures than others. Values, on the other hand, differ to a great degree across cultures.

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Geert Hofstede developed a framework for assessing culture. He breaks up his framework of understanding into five value dimensions: power distance, individualism vs. collectivism, masculinity vs. femininity, uncertainty avoidance, and long-term vs. short-term orientation. Power Distance : Power distance is the extent to which a society accepts that power in institutions and organizations is distributed unequally. Low distance is when there is relatively equal power between those with status/wealth and those without. Higher distance is when there is a lot of unequal power distribution between groups. Individualism: The second component in Hofstedes framework is individualism vs. collectivism. Individualism is the degree to which people prefer to act on their own rather than in a group. Collectivism is the idea that people operate within a social framework where they help others out and they expect help when they need it. Masculinity: Hofstede offers a third component in his model that distinguishes between masculinity and femininity. Masculinity is the extent to which the culture prefers achievement, power, and control vs. characteristics that are more feminine in nature. Uncertainty Avoidance: The fourth component is uncertainty avoidance. This is the extent to which a society is willing to live with uncertainty and ambiguity. High uncertainty avoidance cultures will try to avoid ambiguous situations as much as possible. Lower uncertainty avoidance cultures do not mind ambiguity. Time Orientation : The final component is time orientation. Long-term orientation societies will emphasize the future and what it takes to get to the future they desire, thrift and persistence. Short-term orientation societies will emphasize the here and now. An Assessment : This framework shows that there are differences in values between cultures and this encouraged research in the area of cultural differences. However, the original data was limited in scope and many judgment calls were made in the conclusions. Even though there are some variances between common perception of cultures and the research, this framework remains extremely popular and is used widely.

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CHAPTER 6: PERCEPTION AND INDIVIDUAL DECISION MAKING What is Perception? Perception is the way people organize the massive amounts of information they receive into patterns that give it meaning. People will use their perceptions of reality, not reality itself, to decide how to behave. Factors that Influence Perception There are many factors that influence peoples perceptions. The factors are either in the perceiver such as attitudes and experience; in the situation such as social setting and time; or in the target such as sounds, size, or background. Attribution Theory: Judging Others The e attribution theory helps us to understand our perceptions about others. The attribution theory says that when we observe behavior we try to determine if it is internally or externally driven. If it is internally driven it is under the persons control whereas external causes are not under the individuals control. We can use three factors to help us decide if behavior is internally or externally controlled: Distinctiveness shows different behaviors in different situations. Consensus looks at the response and compares it to others in the same situation to see if it is consistent with the behaviors of others. Consistency looks to see if the response is the same over time. Elements of Attribution Theory This chart looks at the elements of the attribution theory and helps us to make the connection between external or internal driven factors. For example if consensus is high then it is most likely externally driven whereas if consensus is low it tends to be more internally driven. Errors and Biases in Attributions There are errors and biases in the attributions we make. First, we often tend to underestimate the influence of external factors and overestimate the influence of internal factors. This is called the fundamental attribution error. The next common error is the selfserving bias. This bias exists when individuals attribute their own successes to internal factors and blame external factors when they dont experience success. Decision-Making Models in Organizations Decision making is done by individuals but occurs in organizations. There are some models that can help us think through decision making in organizations. The first is the Rational Decision-Making model. This model assumes a perfect world in order to make decisions. It assumes that there is complete information, that every option has been identified and that there is a maximum payoff. The second, Bounded Reality, represents more of the real world where it seeks solutions that are the best, given the information that is available. The third model is based on intuition. This is the non-conscious process that occurs as a result of experiences that result in quick decisions.

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Common Biases and Errors in Decision Making There are many biases and errors that occur in the decision-making process. The overconfidence bias is when you believe too much in your own ability to make good decisions. Individuals will make decisions outside of their area of expertise instead of getting other, more knowledgeable, colleagues involved. The anchoring bias is when you make your decisions based on the information you received first and not on the new information received, causing you to jump to a decision before you have the right information. the confirmation bias where during the decision-making process, one only uses facts that support your decision. Ignoring facts that go against your decision can limit the success of the solution. the availability bias emphasizes information that is more readily at hand, information that is recent and vivid. Again, not having all the information you need creates a decision-making process that is incomplete. More Common Decision-Making Errors Some additional decision-making errors include escalation of commitment. This error occurs when there is an increasing commitment to a decision in spite of evidence that it is the wrong decision. Another error is when the decision maker creates meaning out of random events. The winners curse is when the value of something is overestimated and the winner pays too much. The hindsight bias occurs after an outcome is already known and then believing it could have been accurately predicted beforehand. Ethics in Decision Making Ethics should play a role in decision making. There are three ethical criteria that influence decisions. The first is utilitarianism, where the decisions are based on the outcome of the solution. The outcome is analyzed based on seeking the greatest good for the greatest number of people and is the dominant method for businesspeople. The second criterion is rights, where decisions are based on fundamental liberties and privileges in an attempt to protect the basic rights of individuals. The final criterion is justice, where the decision imposes rules in a fair and impartial manner and equitably distributes benefits and costs. Ethical Decision-Making Criteria Assessed All the criteria have with them pros and cons to that method of decision making. Utilitarianism promotes efficiency and productivity but can ignore individual rights, whereas the rights method protects the rights of individuals but can create an overly legalistic work environment. The final criterion, justice, protects the interests of the weaker members but it can encourage a sense of entitlement. Improving Creativity in Decision Making Better decisions are those that incorporate novel and useful ideas, better known as creativity. An organization will tend to make better decisions when creative people are involved in the process. So it is important to identify people who have that creative potential. Some of the methods and theories identified in earlier chapters can help in this process. For example, those who score high in openness to experience tend to be more creative.
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The Three Component Model of Creativity The three component model of creativity proposes that individual creativity results from a mixture of three components expertise, creative-thinking skills and intrinsic task motivation. Expertise is the foundation and is based on the knowledge and experience of the individual. Creative-thinking skills are the personality characteristics associated with creativity, such as the ability to use analogies and the talent to see things differently. Intrinsic task motivation is the desire to do the job because of the characteristics associated with the job.

Common Short Cuts in judging Others Selective perception Hallo effect Stereotyping Contrast effect

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Common Short Cuts - Impacts on employment review, performance expectations, performance evauation
Reducing Biases and Errors Focus on Goals. Without goals, you cant be rational, you dont know what information you need, you dont know which information is relevant and which is irrelevant, youll find it difficult to choose between alternatives, and youre far more likely to experience regret over the choices you make. Clear goals make decision making easier and help you eliminate options that are inconsistent with your interests. Look for Information That Disconfirms Your Beliefs. One of the most effective means for counteracting overconfidence and the confirmation and hindsight biases is to actively look for information that contradicts your beliefs and assumptions. When we overtly consider various ways we could be wrong, we challenge our tendencies to think were smarter than we actually are. Dont Try to Create Meaning out of Random Events. The educated mind has been trained to look for cause-and-effect relationships. When something happens, we ask why. And when we cant find reasons, we often invent them. You have to accept that there are events in life that are outside your control. Ask yourself if patterns can be meaningfully explained or whether they are merely coincidence. Dont attempt to create meaning out of coincidence. Increase Your Options. No matter how many options youve identified, your final choice can be no better than the best of the option set youve selected. This argues for increasing your decision alternatives and for using creativity in developing a wide range of diverse choices. The more alternatives you can generate, and the more diverse those alternatives, the greater your chance of finding an outstanding one.

CHAPTER 7: MOTIVATION CONCEPTS Defining Motivation It is easy to see that some individuals are more motivated than others. However, the reasons for that motivation are more difficult to determine. When defining motivation it is important to look at the interaction between the individual and the situation. There are three key elements that help us define motivation. The first is intensity or how hard the person tries to accomplish the task. The second element is direction and that is the effort that is channeled toward organizational goals. The final element is persistency or how long a person can maintain the effort. Maslows Hierarchy of Needs How does Maslow applied to OB? His theory states that with every individual there is a hierarchy of five needs. As each need is met or satisfied, the next need becomes dominant. His theory posits that individuals are stuck in their existing need level until it is satisfied and then they can move on to the next level. For example, until their safety needs are met, they will not be able to move on to the social level. Substantially Satisfied need no longer motivates McGregors Theory X and Theory The Theory X view is basically negative and believes that workers have little ambition, dislike work, and avoid responsibility. The Theory Y view is in contrast to X and believes that workers tend to be self-directed, enjoy work, and accept responsibility. Managers will modify their behavior toward employees based on what view they hold about them. Implementation: Management by Objectives
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An implementation of the goal-setting theory is Management by Objectives, better known as MBO. MBO is a systematic way to utilize goal-setting theory, in which goals are set jointly by managers and employees. The goals must be tangible, verifiable, and measurable in order to be effective. The manager helps to break down the organizational goals into smaller more specific goals for the employee. In order for MBO to be effective, the goals must be specific, the employees must participate in the goal setting, there must be a defined time period, and feedback must be incorporated into the process.

Reinforcement Theory
Goal-setting is a cognitive approach, proposing that an individuals purposes direct his action. Reinforcement theory, in contrast, takes a behavioristic view, arguing that reinforcement conditions behavior. The two theories are clearly at odds philosophically. Reinforcement theorists see behavior as environmentally caused. You need not be concerned, they would argue, with internal cognitive events; what controls behavior is reinforcersany consequences that, when immediately following responses, increase the probability that the behavior will be repeated. Reinforcement theory ignores the inner state of the individual and concentrates solely on what happens when he or she takes some action. Because it does not concern itself with what initiates behavior, it is not, strictly speaking, a theory of motivation. But it does provide a powerful means of analyzing what controls behavior, and this is why we typically consider it in discussions of motivation.

Banduras Self-Efficacy Theory or social learning Another theory of motivation is the self-efficacy theory developed by Albert Bandura. This theory is based on an individuals belief that he or she is capable of performing a task. This theory is a complement to the goal-setting theory as it incorporates goals into the process. Higher efficacy is related to greater confidence, greater persistence in the face of difficulties, and responding to negative feedback with working harder, not shutting down. Increasing Self-Efficacy Self-efficacy can be increased in several ways. The first is increasing your mastery of a task/skill. Another way is to model your actions after someone else who performs the task effectively and applying their actions to your own. The final methods to increase selfefficacy is to receive verbal persuasion through others as well as getting excited about completing the task. Adams Equity Theory Adams equity theory utilizes perception theory that we looked at in previous chapters. The idea is that employees compare their ratios of outcomes to inputs of others they see as relevant. When they see the ratios as equal, there is a perceived state of equity and no tension arises. However, when they perceive the ratios to be unequal, they may experience anger or guilt, depending on the result of the equity analysis, and then tension can arise. This tension can motivate people to act in a way to bring the situation into a more equitable state.
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Justice and Equity Theory The justice and equity theory is based on perceived equity in the workplace. For organizational justice to be perceived, there must be distributive justice, procedural justice, and interactional justice. Distributive justice is the fairness in which the outcomes are distributed or experienced. The procedural justice focuses not on the outcomes but on the process itself. Interactional justice focuses on how you are treated during the process.

Contemporary Theories of Motivation


self-determination theory , which proposes that people prefer to feel they have control over their actions, so anything that makes a previously enjoyed task feel more like an obligation than a freely chosen activity will undermine motivation. extrinsic rewards will reduce intrinsic interest in a task. When people are paid for work, it feels less like something they want to do and more like something they have to do. Self-determination theory also proposes that in addition to being driven by a need for autonomy, people seek ways to achieve competence and positive connections to others.

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CHAPTER 8: MOTIVATION: FROM CONCEPTS TO APPLICATIONS The Job Characteristics Model The job characteristics model looks at describing any job in terms of five core job dimensions. These job dimensions include skill variety, which is the degree to which the job incorporates a number of different skills and talents. Task identity is another dimension that looks at the degree to which the job requires the completion of whole and identifiable piece of work. Task significance is included and looks at how the job impacts the lives of others. Autonomy, the fourth dimension, identifies how much freedom and independence the worker has over their job. And finally, feedback is how much the job generates direct and clear information about the workers performance. What is missing goal attainment, ,authority and functional structure How Can Jobs be Redesigned? There are some helpful ways to redesign a job to increase the motivation of the employees. Job rotation an organization will shift the employee to different tasks with similar skill requirements but all in the same organizational level. In job enrichment a manager will expand an employees job by increasing the level of control the worker has in planning t heir job, executing it or evaluating the work. Strengths of Job Rotation The first is that it helps to reduce boredom with workers as they are constantly expanding their skills. One obvious benefit is that it increases the skills of the workers and, finally, since the worker has a stronger skill set, it helps the manager in scheduling as they have more options to fill the vacancy when someone is sick or on vacation. Job Enrichment Possible Actions -This action can help the worker to have a better understanding of their job and how it helps the organization complete its goals as well as help the worker enjoy their work more because they are using more of their skill set. Employee Involvement Employee involvement is defined as a participative process that uses employees input to increase their commitment to the overall success of the organization. Some examples of programs that help with employee involvement are participative management and representative participation. Participative management is when managers include employees in the decision-making process. Representative participation tries to redistribute power by putting labor on a more equal footing with the interest of managers and stockholders. They do this by letting the workers be represented by small groups of employees who participate in decisions. Using Rewards to Motivate Employees
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As we saw in previous chapters, money is not the primary driver for job satisfaction. However, it does motivate individuals and companies often underestimate its impact in keeping top talent. It is critical to figure out what to pay and to establish a pay structure that makes sense for your industry and organization. Then it is imperative that an organization utilizes this pay system and applies it to the pay of individual employees. 1. Establishing a Pay Structure Setting pay levels can be complex and requires a balance of internal and external pay equity. Internal equity looks at the worth of the job to the organization and compares it with what others are making within the organization. External equity looks at external competitiveness of an organizations pay relative to pay elsewhere. 2. How to Pay There are many forms of Variable-Pay programs. They include piece-rate pay, merit-based pay, bonuses, skill-based pay, profit-sharing plans, gainsharing, and employee stock ownership plans. Types of Variable-Pay Programs Some types of variable-pay programs include piece-rate, merit- based, and bonuses. Piecerate pay plans pay a fixed amount of money for each unit of production. Merit-based pay plans are similar where they pay based on performance. However, it is not necessarily tied to production because in some jobs, output is not as easy to measure. Bonuses is another method that is becoming increasingly popular. Bonuses are a lump sum at the end of a set period of time. The amount of the bonus is typically dependent upon the performance of the individual or the organization or some combination of both.

More Types of Variable-Pay Programs Additional methods of variable-pay programs include skill-based pay, profit-sharing plans, gainsharing, and employee stock ownership plans, otherwise known as ESOPs. Skill-based pay will add compensation to workers as they gain more skills and the ability to do additional jobs. It rewards the employees for continuous improvement. Profit-sharing plans are organizational-wide programs where some of the profits of the company are shared with all workers. Gainsharing is a group incentive where a department or unit will earn additional income if they improve group productivity from the previous period. ESOPs are a method used to motivate the employees toward the organizational goals. As part of their benefit package, they are able to earn or purchase company stock, often at below-

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market rates. This encourages them to work toward the overall profitability of the organization as they have ownership in it and will gain as the company gains. Flexible benefits Flexible benefits allow employees choices between different benefits. This allows them to customize their options and create a plan that best meets their needs and situation. This increases their motivation because they realize the organization has their best interest in mind. Employee Recognition Programs A method of motivation that has been highly successful is employee recognition programs. This idea recognizes the importance of coupling extrinsic and intrinsic methods to help motivate employees. Recognition is an intrinsic motivation technique that can range from giving an employee the proverbial pat on the back to a more public recognition ceremony. Recognition programs are highly effective and cost very little to administer. There are critics of such programs, however, who say that they can be politically motivated and if the perception is that they are applied unfairly, they can cause more harm than good.

Summary and Implications for Managers


Although its always dangerous to synthesize a large number of complex ideas, the following suggestions summarize what we know about motivating employees in organizations. Recognize individual differences. Managers should be sensitive to individual differences. Spend the time necessary to understand whats important to each employee. This allows you to individualize goals, level of involvement, and rewards to align with individual needs. Design jobs to align with individual needs and maximize their motivation potential. Use goals and feedback. Employees should have firm, specific goals, and they should get feedback on how well they are faring in pursuit of those goals. Allow employees to participate in decisions that affect them. Employees can contribute to setting work goals, choosing their own benefits packages, and solving productivity and quality problems. Participation can increase employee productivity, commitment to work goals, motivation, and job satisfaction. Link rewards to performance. Rewards should be contingent on performance, and employees must perceive the link between the two. Regardless of how strong the relationship is, if individuals perceive it to be weak, the results will be low performance, a decrease in job satisfaction, and an increase in turnover and absenteeism. Check the system for equity. Employees should perceive that experience, skills, abilities, effort, and other obvious inputs explain differences in performance and hence in pay, job assignments, and other obvious rewards.

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CHAPTER 9: FOUNDATIONS OF GROUP BEHAVIOR Defining and Classifying Groups Groups are defined as two or more individuals who come together to achieve a set goal. There are two main types of groups. The first is a formal group where the organization establishes the group with defined work tasks and outcomes. The second group is an informal group that is not part of the organizational structure. They are often established in reaction to a need for social interaction and form naturally. Informal groups can have a significant influence on behavior and performance. Subclassifications of Groups Within the category of formal groups there are two main types. The command group is one that reports directly to a given manager such as a department or unit. A task group is formed to accomplish a particular objective but is not limited by the structure or departments of the organization. Informal groups also have subgroups. They are typically formed around a common interest such as an interest group or around common characteristics such as a friendship group. Why People Join Groups Social Identity Theory There are many reasons that people will join groups. However, the social identity theory suggests that people have emotional reactions to the failures or successes of a group because their self-esteem gets tied into the performance of the group. Social identity is developed when the characteristics of similarity, distinctiveness, status, and uncertainty reduction are present. Members of groups often join groups of people who are similar to them, however, they want there to be a distinctiveness to the group. Since people define themselves by groups they are connected to, they will tend to want to be a part of highstatus groups. People also join groups to reduce uncertainty as a way to maintain a sense of who they are and how they fit into this world. Five Stages of Group Development Model The five-stage group development model characterizes groups as moving through five distinct stages in the group process. The forming stage is filled with uncertainty as group members figure out their roles and the group norms. The storming stage occurs as the roles are continued to be developed and conflict arises between group members. As members develop closer relationships and a sense of cohesiveness they move into the norming stage. When the group is functioning well together and achieving their goals they are in the performing stage. If it is a temporary group they will wrap up activities and adjourn in the final stage. Critique of the Five-Stage Model
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The assumption that the group becomes more effective through each of the stages is somewhat suspect. The process is not always that linear and several stages may occur at the same time. Also, groups may regress into early stages at some point in the process. Also, the model ignores the organizational context. We have seen in our study of earlier theories that context can have a large impact on behavior. An Alternative Model for Temporary Groups with Deadlines The Punctuated-Equilibrium Model offers an alternative model of group formation for groups with deadlines. Groups that are temporary in nature tend to go through their own unique sequence of actions. These include setting the group direction, the first phase of inertia, a half-way point of transition, major changes, a second phase of inertia and accelerated activity. Dead line is important sometimes groups know what they do but they will keep doing for more and more time unless deadline is given to them.
Group Properties There are several properties of groups that help shape group behavior and explain and predict individual behavior. They are roles, norms, status, size, and cohesiveness. Roles are the expected behavior individuals will take on in a group such as the leader or the task master. Each individual has their own point of view of how they are supposed to act in the context of the group; this is called role perception. Role expectations looks at how others believe a person should act in a given situation. Role conflict occurs when the expected behaviors dont match up with the behaviors being exhibited. Zimbardos Prison Experiment p.284 The guards took their role seriously and treated the prisoners with disdain and disrespect. In response, the prisoners, even though they were only assigned the role, were subservient to the guards. They could have fought back or rebelled but they fell into the role and took the negative behavior of the guards as if they were truly prisoners Group Property 2: Norms setting rules for committee Norms are standards of behavior that are acceptable by group members. There are different types of norms such as performance norms that look at an acceptable work level or quality or appearance norms about what to wear. Social arrangement norms look at acceptable relationships and allocation of resources norms look at how things are distributed. Conformity The adjustment of ones behavior to align with the norms of the group. Reference groups important groups to which individuals belong or hope to belong and with whose norms individuals are likely to conform Do individuals conform to the pressures of all the groups to which they belong? Obviously not, because people belong to many groups, and their norms vary and sometimes are contradictory. So what do people do? They conform to the important groups to which they belong or hope to belong. These important groups are reference groups , in which a person is aware of other members, defines himself or herself as a member or would like to be a member, and feels group

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members are significant to him or her. The implication, then, is that all groups do not impose equal conformity pressures on their members. Deviant workplace behavior (also called antisocial behavior or workplace incivility) is voluntary behavior that violates significant organizational norms and, in doing so, threatens the well-being of the organization or its members. Typology of Deviant Workplace Behavior - Production Leaving early, Intentionally working slowly, Wasting resources, Property - Sabotage, Lying about hours worked, Stealing from the organization, Political - Showing favoritism, Gossiping and spreading, rumors, Blaming coworkers, Personal - aggression Sexual harassment, Verbal abuse, Stealing from co-workers Group Property 3: Status Status Status a socially defined position or rank given to groups or group members by others. Even the smallest group will develop roles, rights, and rituals to differentiate its members. Status is a significant motivator and has major behavioral consequences when individuals perceive a disparity between what they believe their status is and what others perceive it to be. What Determines Status? According to status characteristics theory, status tends to derive from one of three sources: The power a person wields over others. Because they likely control the groups resources, people who control the outcomes tend to be perceived as high status. A persons ability to contribute to a groups goals. People whose contributions are critical to the groups success tend to have high status. An individuals personal characteristics. Someone whose personal characteristics are positively valued by the group (good looks, intelligence, money, or a friendly personality) typically has higher status than someone with fewer valued attributes. Group Property 4 Size One of the most important findings about the size of a group concerns social loafing, the tendency for individuals to expend less effort when working collectively than alone. It directly challenges the assumption that the productivity of the group as a whole should at least equal the sum of the productivity of the individuals in it. Group Property 5: Cohesiveness The final property of groups is group cohesiveness or the degree to which group members want to stay together and are motivated to work together as a group. Managers foster cohesiveness through keeping groups small, encourage all members understanding of group goals, increase the time the group spends together, and heighten their perceived status. In addition, by stimulating competition with other groups, members will find ways to work together. Managers can also reward the group as a whole and not just individuals within the group. Finally they can physically isolate the group by sending them on a retreat or giving them their own work space. Group Decision Making vs. Individual Choice Group decision making comes with its strengths and weaknesses when compared to individual decision making. Groups do tend to generate more complete information and knowledge as well as offer a greater diversity of views and increased creativity. Since more people are involved in the decision, there tends to be an increased acceptance of decisions and generally group decisions are more accurate. However, group decisions also are more time consuming and can conform to pressures in the group, thus limiting their effectiveness. In the process, discussions can be dominated by a few members. The members of the group may not always take responsibility for the actions of the group as it is hard to assign responsibility to a single person.

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CHAPTER 10: UNDERSTANDING WORK TEAMS Why Have Teams Become So Popular? Over the last decade we have seen the use of teams grow exponentially in organizations. There are a number of reasons why this is true. Teams can enhance the use of employee talents and tend to be more flexible and responsive to change. Teams can help to keep employees engaged in their work and increase their participation in decision making, thus increasing their motivation. However, teams are not always effective and so it is important to take a look at how to deploy teams effectively. Differences between Groups and Teams Groups and teams are not the same thing. A group is primarily there to share information and make decisions, no real joint effort is required. A team works in a more coordinated effort to achieve a goal. Comparing Work Groups and Work Teams Work groups and work teams differ in their goals, level of synergy, accountability, and skills. Their function is different. Work groups share information where work teams work together for a collective performance. The synergy in groups is neutral where work teams have a positive synergy. Accountability can be individual in both but it is more often mutual in teams. The skills in a group will be varied where the skills on a team need to be complementary. Types of Teams There are a number of different types of teams. Problem-solving teams are a very popular method used in many organizations. Typically this type of team meets for a few hours each week to solve a particular problem. Self-managed work teams are comprised of a group of people who do not have a manager and the group takes on the responsibilities of the supervisor.

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Cross-functional teams gather workers from many different work areas to come together to accomplish a task that needs to utilize multiple perspectives Virtual teams are increasing in their use. This type of team uses computer technology to bring people together to achieve a common goal. Typically these types of teams get right to work with little socializing, but need to overcome time and space constraints to accomplish the task. In order to be effective, virtual teams need to find ways to establish trust among the members, have close monitoring, and results need to be publicized. A Team-Effectiveness Model The model displayed here depicts team effectiveness. In order for teams to be effective a combination of conduct, compositions, work design, and process must be brought together to assist effectiveness in the team. The model has two caveats this model is only a general guide and it assumes that teamwork is preferable to individual work. Key Components of Effective Teams The four key components of effective teams are context, composition, work design, and process variables. Next we will look at each one of these components individually. 1. Context - Understanding the context is important for teams to be effective. The team needs the right resources to do the job well. They also need effective leadership and structure to facilitate a process that will help the team succeed. It is important that teams fit together so they can successfully utilize the individual skills present in the group. Trust is also an important aspect of teams and essential for group cohesiveness as we have seen previously. Finally, the reward system needs to be equitable and based on team contributions. 2. Teams Composition - A manager must pay close attention to how they put a team together to assure group cohesiveness and effectiveness. Each member should be selected based on the type of skills and abilities needed to accomplish the task at hand. However, abilities are not the only characteristic that managers need to pay attention to; personality is also important so that the team can bond and form trust. In addition, the manager must be sure he assigns the right people to fill the roles needed, but still maintain adequate diversity so that idea generation still occurs. The manager must also pay attention to the size of the team and that the members want to be on the team and enjoy teamwork member preference

Why do disagreeable teams do their best when their leader is angry? If you recall our discussion of agreeableness in Chapter 5 , disagreeable individuals are more direct, more argumentative, and less conflict-averse than their more agreeable counterparts.

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Disagreeable teams may react better to an angry leader because the leader is speaking a language the team can understand, or the disagreeable team members may be less sensitive to inconsiderate behavior (of which the display of anger is a prime example). 3. Work Design - Work design is a way to help increase the effectiveness of teams. The work of teams should have certain characteristics to help the team accomplish their assigned task. The team should have autonomy over their work so that they can work independently and control how the work is done. In addition, the team should be required to utilize a variety of skills and talents to complete the task. The task should be definable and easy to identify so that the group knows when they have accomplished it. Finally, the task should be significant and impactful to the organization. 4. Process - Groups processes can have a big impact on their effectiveness. In the process groups must have a strong commitment to a common purpose that provides direction but yet incorporates reflexivity where it can adjust plan if needed. The goals of the team must be set up so they are specific, measurable, realistic yet challenging in order to keep the team members engaged. The team must believe they can succeed and have a mental map of how to get the work done to assist in the process of accomplishing their task. Finally, the group must navigate through conflict and social loafing to encourage a healthy and effective group. Turning Individuals into Team Players Not all employees are team players. In the U.S. we tend to have more of an individualistic culture and it is not always possible to turn everyone into a team player. When formulating teams it is important to carefully select the right employees who are more attuned to teamwork. It is also possible to train people on how to be good team members. Finally, if managers carefully craft a reward system to encourage cooperative efforts rather than competitive ones they can encourage teamwork. However, it is still important to recognize individual contributions and avoid social loafing. Beware! Teams Arent Always the Answer We have looked at a number of ways to make teams effective and to encourage good teamwork. However, teams are not always the answer. There are three questions to ask to assess if teams fit the situation. 1. Is the work complex and is there a need for different perspectives? 2. Does the work create a common purpose or set of goals for the group that is larger than the aggregate of the goals for individuals? 3. Are members of the group involved in interdependent tasks? If these three questions all can be answered with a yes, then a team might be the solution! Global Implications

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Teams are a concept that have a wide range of global applicability. In fact, teams are used more extensively in other countries. However, in cultures with a low tolerance for ambiguity and uncertainty, self-managed teams are not always effective. Diversity can cause inefficiencies in teams, but if teams can work through the initial difficulties those conflicts will disappear over time.

Summary and Managerial Implications There are a number of common characteristics of effective teams, such as a need for trust, smaller in size, a chance to contribute, significant tasks, and a team who believes in itself. Managers do need to modify the environment to help the team succeed and pay careful attention to the make-up of the team members to ensure success. CHAPTER 11: COMMUNICATION Functions of Communication In organizations good communication is critical to achieve organizational goals. Communication must include both the transference and understanding of meaning. Meaning is a two-way process. There are four main functions of communication. It can be used to control member behavior or foster motivation for the task at hand. It can also be a release for emotional expression of members. Finally, it can provide the information needed to make decisions. The Communication Process This graph outlines the communication process between the sender and the receiver. The sender takes the message to be sent and encodes it either through verbal or written methods. They pass the message through the determined channel and then it is handed off to the receiver who receives the message and decodes it. The process is hindered by noise or communication barriers such as the perceived message. Feedback is the check on how successful we were in passing the correct message to the receiver. Key Parts of Communication Process As communication takes place, there are many parts to the process. It begins with the sender initiating the message and encoding it by translating the thought to the message. The message itself is what is communicated. The channel is the medium through which it travels writing, speaking, etc. The receiver, the person getting the message, then decodes the message in order to make sense out of it. Anything that interferes with the message is called noise. Feedback is information given back to the sender from the receiver on their initial message. Communication Channels - Formal Vs Informal There are a few different channels of communication in the workplace. The first type is formal channels. These channels transmit messages that are related to the professional
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activities of the members, such as email, memos, and planned speeches. The second type is informal channels, used to transmit personal or social messages. This channel is more spontaneous in nature and a result of individual choices, such as who you eat lunch with. In an organization communication flows in three different directions. It can flow downward from the top management to people in lower levels of the organization. It can flow up from workers on the ground floor to the CEO or it can flow between or within departments in a lateral movement.
Most research suggests managerial communications must be repeated several times and through a variety of different media to be truly effective. 8

Interpersonal Communication As we looked at earlier, communication can move through different channels and take on different forms. There is oral communication or the spoken word. This form of communication is quick and there is immediate feedback the disadvantage is that the message can be distorted based on the sender and the receiver. Written communication is another channel and one that is tangible and easy to go back to verify. The problems are that it takes a lot of time to do and there is no immediate feedback. Nonverbal communication is another channel often used in organizations. This can be a nod, a look, or the crossing of arms. It supports other channels of communication and helps to express emotions and feelings. However, it is often ridden with misperception and can greatly influence the receivers interpretation of the message. Nonverbal Communication There are many different types of nonverbal communication that send a lot of messages. Body movement is a common method, such as tapping your fingers can show that you are impatient or nervous. The way you emphasize words can change the way the receiver perceives the message. Your facial expressions can show emotion and express how you feel about an assignment or task. Also, the distance placed between the sender and receiver can express whether you are interested in the project of if you feel more powerful than the other person. This will vary by cultural norms. Three Common Formal Small-Group Networks In an organizational context communication is commonly broken down into three formal small-group networks. There is the chain, which is a very formal and rigid chain of command. Employees know who the next person in the chain is and that is where they give and get their information. The wheel is a network where there is a central figure who controls all the communication. This must be a team with a very strong leader who can communicate effectively.
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The all-channel network is much more fluid where all group members communicate actively with each other and there is no formal channel or single person. This works best in a situation such as a self-managed team. The grapevine is a common network that has been shown to be an effective mode of communication. Typically the grapevine is not controlled by management nor do they feed it information. However, employees see it as a very believable and reliable form of communication. The grapevine has no formal purpose, but is mainly there to serve the selfinterests of those who use it, developing from a need for these individuals to get more information about an important, but ambiguous situation. The grapevine can be a way to receive information about the situation and reduce anxiety as well as fill a social need to connect. Reducing Rumors In any organization rumors will be present. Managers cant completely eliminate rumors, but there are some steps to reduce rumors in an organizational context. 1. Announce timetables for making important decisions. 2. Explain decisions that may appear inconsistent or secretive. 3. Emphasize the downside, as well as the upside, of current decisions and future plans. 4. Openly discuss worst-case possibilities to reduce anxiety. This will help to limit the number of rumors and help remove anxiety by taking out the ambiguity of a situation. Electronic Communications: E-mail It has been show that over 70% of all communication in an organization is done electronically. This is highly advantageous and efficient for organizations because of the quick turn around, written record, and low cost of distribution. However, there are many disadvantages. The biggest problem with email is that the message is often misinterpreted. You can not read body language or see emotional cues when you read an email, so it is hard to decode the message that is sent. In addition, the volume of email has increased so significantly that it is overloading readers and causing frustration or anxiety. Email can also be misused because it tends to make the sender feel more removed from the situation and it may remove their inhibitions and cause them to write things they normally would not have said. We are in a current state where people want real-time communication when sending short messages. This is a growing area of interest in an organization due to the explosion of portable communication devices. Two commonly used methods are instant messaging and text messaging.

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MySpace and Facebook are types of networking software that link people around the globe and they are growing in number and scope. These can be helpful ways to stay in touch, but there are a few cautions. It is important to remember that these are public spaces and anyone can see what you post. These sites are being utilized by future employers to find out more about their applicants, so it is very important to be careful what you put on your site. Also, due to the increasing number of ways to communicate, people are becoming overstimulated with all the information and contact. Blogs and videoconferencing are two electronic methods of communications that are being used more in the field of business. Blogs are Web sites about a person, entity, or movement that are updated regularly. They are very popular but have caused some trouble for employees recently. If an employee posts something on their blog that is potentially damaging to the organization, they may be dismissed for that. Videoconferencing connects people in different locations through live audio and video. It is an inexpensive way to hold a meeting in different cities and not miss the important aspects of nonverbal communication. Choice of Communication Channel An individual must carefully choose the channel of communication based on the message they want to send or the media richness. A rich channel will be able to handle multiple cues at the same time, facilitate rapid feedback, and be very personal. Different generations will see communication channels differently in this regard. Managers must take this into account when communicating. The media richness model sets forth the continuum between low channel richness and high channel richness. Memos and letters will fall on the low richness side where face-to-face communications will be on the high richness end. Barriers to Effective Communication Filtering - Barrier where the sender sorts the information shared so that it will be seen as more favorable by the receiver. Selective perception is something utilized by both the sender and the receiver. People selectively interpret what they see based on their own experiences and attitudes and that will distort the message sent and the message received. As we have seen in this chapter there are many methods of communication and they are all being used. Each receiver is in a state of information overload where the information they are receiving exceeds their capacity to process it all. This leads to barriers of receiving the complete message.

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Also, how the receiver feels at the time the message is received will influence their interpretation of the message. Some additional barriers to effective communication include language, anxiety, and gender differences. When communicating, words will mean different things to different people and can influence the message significantly. Often this causes confusion when the sender thinks they sent a certain message, but the receiver thought they meant differently. Many people are nervous about oral or written modes of communication and will not be able to clearly communicate because of their anxiety. Gender can also create a barrier because men will emphasize different things than women. For example, in general men tend to emphasize status while women talk more about connections. Politically Correct PC Communication We exist in a PC or politically correct culture where lawsuits and media attention have forced organizations to become very concerned with avoiding any potentially offensive language. This is happening to such an extent that meaning and simplicity can be lost. However, that is not to say that certain words arent in appropriate to use and when used can incorrectly stereotype, intimidate, or insult others. Organizations need to find a balance in this area. Global Implications Communication, as we have seen, can be difficult to do effectively. Cross-cultural factors can increase that difficulty. So it is important for managers to understand the culture in which they are working. They should be careful of the words they use to make sure they are translatable and dont hold double meanings. They need to understand how their tone, body language or perceptions will differ based on culture. The context is so important to understanding what is being communicated. In low-context cultures they tend to rely more on words, where high-context cultures will rely more on the whole situation. A Cultural Guide Being aware that differences exist can go a long way toward helping you avoid an awkward situation in another cultural context. Be sure to work on emphasizing description of events and tasks rather than interpretation or evaluation. Practice empathy when you are communicating with others and watch your own interpretations to make sure you are not drawing conclusions prematurely.
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Summary and Managerial Implications In summary, good communication will always reduce uncertainty and beats out ambiguity every time. Communication has a better chance of succeeding if the right channel is used, the receiver is a good listener, and feedback is utilized. It is important to remember that even though electronic communication is quicker and easier to use, it can also raise the potential for misunderstanding. Finally, keep in mind that in different cultural contexts things have different meanings and there are a lot of barriers to overcome for effective communication do your homework and do not rush to conclusions. CHAPTER 12: LEADERSHIP What Is Leadership? Often researchers and practitioners do not distinguish between leadership and management. However, there are some key differences and understanding these differences can be helpful for organization improvement. Leadership is the ability to influence a group toward the achievement of goals. A leader does not have to be someone who holds a formal position or title. They can emerge from a group and provide vision and motivation to those around them. Management deals with the complexity of the organization and works with planning, organizing, leading and controlling to bring about order and consistency in the organization. Even though the two roles have different areas of focus, both are necessary for organizational success. Trait Theories of Leadership The trait theory of leadership looks at personality, social, physical, or intellectual traits that differentiate leaders from nonleaders. Initially this theory was based on studies that looked at over 80 different traits, which allowed almost anything to be defined as leadership. A breakthrough occurred when researchers began to organize the traits into categories and this became known as the Big Five Personality Framework where five groups of traits were found to be consistently present among leaders. Some essential leadership traits include extroversion, conscientiousness, openness, and emotional intelligence (EI), although the link between EI and leadership has not been fully explored. With the many years of research dedicated to the trait theory of leadership, it is widely accepted that traits do predict leadership. However, it is more likely that they predict the emergence of a leader than the effectiveness of a leader.
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Behavioral Theories of Leadership In response to some disappointments with the trait theory, researchers began to look at defining leadership by how people behaved. This shifted the thinking on leadership from the belief that you could select leaders based on inborn traits to training leaders to behave in certain ways. Important Behavioral Studies Two key studies in the area of behavioral leadership advanced our understanding of the theory. The first was done at Ohio State University. They looked at important dimensions of leadership behavior and began with over 1000 dimensions. In the end the Ohio State studies were able to narrow it down to two dimensions initiating structure and consideration. Initiating structure is when the leader is able to define and structure their role and that of their employees to work toward the goals of the organization. Consideration is the ability of the leader to gain the trust and respect of their followers and to help them feel appreciated for what they do. Both behaviors have proven to be very important in an effective leader. The University of Michigan Studies identified two key dimensions of leadership behavior as well. They are similar in nature to the Ohio State findings. However, the University of Michigan studies classified these behaviors as employee-oriented which looks at the interpersonal relationships between the leader and their followers; and production-oriented which focuses on the technical aspect of the job. Again, both are important for successful leadership. Contingency Theories We can learn a lot from trait and behavior theories, but they do not tell the whole story. It is important to understand the environment that the leader is in to fully understand leadership effectiveness. The Contingency Theory takes the context in which the leader is operating into consideration and tries to isolate the conditions that allow for effective leadership. There are three key theories that enhance our understanding of leadership by explaining situational variables. They are Fiedlers Model, Hersey and Blanchards Situational Leadership Theory, and the Path-Goal Theory of Leadership. Fiedler Model In this theory Fiedler is trying to match the leader to the context. He proposes that leadership style is fixed. So that if the situation needs a charismatic leader and your current leader does not exhibit that style, you need to change leaders. This leadership style can be determined by taking the LPC questionnaire (least preferred coworker).

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After the leadership style is determined, you can match the leader to the situation. There are three dimensions to find a successful match. The first situational factor is the leadermember relationship; this ties back to our behavioral studies by looking at the degree of trust and respect the employees have for the leader. The second factor is the amount of structure that is embedded in job assignments. The last factor is the amount of influence the leader has over decisions that represent power such as hiring, firing, and rewards. In Fiedlers model you need to find a leader to fit the situation or change the situation to fit the leader in order to achieve effective leadership for the organization.

Fiedlers Cognitive Resource Theory Recently Fiedler has refined his theory. In the Cognitive Resource Theory, Fiedler looks at stress as the enemy of rationality and posits that a lot of stress damages the leaders abilit y to act logically and analytically, thereby diminishing their ability to make rational decisions. The leader can use their intelligence and experience to help them deal with the stress and lessen its influence on their chosen actions. Intelligence will be the key factor in low-stress situations where leaders will draw more upon their past experiences in high-stress situations. This theory is gaining a lot of attention and research is supporting these ideas. Situational Leadership Theory may not take responsibility Although Fiedlers model with the LPC framework is the most researched contingency theory, it is important to look at a few other models. The Situational Leadership Theory offers a model that takes a look at the other side of the equation, the followers. The focus of this theory is on the readiness of the follower to follow. Each follower can decide for themselves whether they will accept or reject the leader. If the leader is to be effective, the followers much choose to accomplish the task the leader has given them. The situational leadership theory looks at readiness and defines it as the extent to which people have the ability and willingness to accomplish a specific task. A leader should choose one of four behaviors depending on follower readiness. If followers are unable and unwilling to do a task, the leader needs to give clear and specific directions; if they are unable and willing, the leader needs to display high-task orientation to compensate for followers lack of ability and high relationship orientation to get them to buy into the leaders desires. If followers are able and unwilling, the leader needs to use a supportive and participative style; if they are both able and willing, the leader doesnt need to do much. Houses Path-Goal Theory

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The Path-Goal Theory builds upon previously discussed models to define the role of the leader. In this theory it is the job of the leader to provide the followers with the information, support, and other necessary resources to equip them to achieve their goals. The very name of the theory path-goal implies that if a leader is going to be effective, they must clarify the followers path to the goals of the organization and in fact make the journey easier by removing roadblocks. The Path-Goal Theory allows for many different types of leaders to be successful. However, the four main types of leaders discussed in this theory are: Directive, Supportive, Participative, and Achievement-Oriented. The Directive approach focuses on the work tasks that need to be accomplished, the Supportive approach is more about relationships and the well-being of the worker. In a Participative approach the leader works with the employees to include them in the decisionmaking process and in the Achievement-Oriented approach the leader sets challenging goals and encourages the workers to accomplish those goals. Charismatic Leadership conducting things that exceeds their responsibility Charisa comes from the Greek word meaning gift. When talking about a charismatic leader one will refer to someone with certain gifts or abilities. A charismatic leader will often gain followers through personality rather than through power or authority. This chart takes a look at key characteristics that are associated with a charismatic leader. These are often traits that a leader is born with, thus continuing the debate whether leaders are born or developed. The leader must have vision, expressed as an idealized goal. The leader must be willing to take on high personal risk and engage in self-sacrifice to achieve the vision. In doing so the leader needs to remain sensitive to the feelings and needs of their followers. Throughout the process the leader must be engaging in behaviors that are perceived as counter to norms. Evidence shows a four-step process can help the charismatic leader utilize their characteristics to influence their followers. First the leader articulates a long-term strategy for achieving a goal. This strategy should fit the vision and uniqueness of the organization. Next the leader needs to formalize that vision by creating a vision statement. Charismatic leaders will often use this statement to reinforce the goal and purpose of the organization. This vision is communicated in a way that expresses the leaders excitement and commitment to the goal. Next the leader will use his words and actions to communicate a new set of values for the followers to imitate. Then the charismatic leader will try to find behaviors that demonstrate
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their commitment to the vision. They will choose behaviors that will help followers catch the emotions the leader is conveying and help achieve buy-in of the followers. Finally, the charismatic leader engages in emotion-inducing and often unconventional behavior to demonstrate courage and conviction about the vision to help the followers catch the vision. Transformational Leaders Transformational leaders help followers to look at the bigger picture and commit to the good of the organization, even if it means setting their own goals aside. Transactional leaders , who guide their followers toward established goals by clarifying role and task requirements These two approaches are not contradictory in nature in fact they can complement each other. Transformational leadership often is built upon transactional leadership. Good leadership will incorporate both transactional and transformational components.But the reverse isnt true. So if you are a good transactional leader but do not have transformational qualities, youll likely only be a mediocre leader. The best leaders are transactional and transformational. How Transformational Leadership Works Transformational leaders are more effective because they are more creative, but also because they encourage those who follow them to be creative, too. 65 Companies with transformational leaders have greater decentralization of responsibility, managers have more propensity to take risks, and compensation plans are geared toward long-term resultsall of which facilitate corporate entrepreneurship. 66 One study of information technology workers in China found empowering leadership behavior led to feelings of positive personal control among workers, which increased their creativity at work. 67 Companies with transformational leaders also show greater agreement among top managers about the organizations goals, which yields superior organizational performance .
Transformational leadership isnt equally effective in all situations. It has a greater impact on the bottom line in smaller, privately held firms than in more complex organizations. The personal nature of transformational leadership may be most effective when leaders can directly interact with the workforce and make decisions than when they report to an external board of directors or deal with a complex bureaucratic structure. In summary, transformational leadership is more strongly correlated than transactional leadership with lower turnover rates, higher productivity, lower employee stress and burnout, and higher employee satisfaction.

Leadership Model This exhibit shows the full range of the leadership model. The first four behaviors represent transactional approaches and begins with the Laissez-Faire approach, which is the most passive. As a leader progresses on the scale they move toward more active behaviors. Laissez-Faire
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Management by Exception Contingent Reward The final four behaviors on the model represent transformational actions. This model shows that as leaders utilize more transformational behaviors they become more effective. Individualized Consideration Intellectual Stimulation Inspirational Motivation Idealized Influence Servant leadership
Servant leaders go beyond their own self-interest and focus on opportunities to help followers grow and develop. They dont use power to achieve ends; they emphasize persuasion. Characteristic behaviors include listening, empathizing, persuading, accepting stewardship, and actively developing followers potential. Because servant leadership focuses on serving the needs of others, research has focused on its outcomes for the well-being of followers.

Authentic leadership There are two components that need to be addressed when discussing authenticity in leadership. First we must look at authentic leaders. These are leaders who engage in reflection and understand who they are, what they believe and bring those two aspects together in their actions. The second component is the intersection of ethics and leadership. Over the past several years, we have been involved in what many have called an ethical crisis in the business community. When we look at leadership, we need to look at more than the results of the leader we must also look at the steps the leader took to achieve those results. Trust and Leadership Trust is defined as a state that exists when you agree to make yourself vulnerable to another because you have a positive expectation for how things are going to turn out. Over the years this has been found to be a foundational characteristic of leadership. When trust is present, followers are willing to do as the leader asks and engage in behaviors that are for the benefit of the organization. In short, followers will do a lot more for a leader they trust than for one that does not hold their trust. How is Trust Developed? Trust is developed over time. The interactions between the leaders and the followers are part of the development of trust it goes both ways. Research has shown that the three main characteristics of a leader that instill trust are Integrity- honest and truthfulness Ability - individual technical and interpersonal knowledge and skills
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Benevolence - means the trusted person has your interests at heart, even if yours arent necessarily in line with theirs. Caring and supportive behavior is part of the emotional bond between leaders and followers.

These three characteristics are important in developing trust between leaders and followers. If followers perceive these characteristics as strong in their leaders, it will encourage positive behaviors such as risk taking, information sharing, group interactions, and productivity. Mentoring Leading for the Future Mentoring is defined as someone with more experience supporting someone with less experience. It is a way for the leadership of this generation to invest in individuals and develop future leaders. Mentoring has positive effects on both the career and the psychological functions of the individual being mentored. Finding and Creating Effective Leaders Leaders dont just happen to show up at the organi zation. They must be found and developed. When looking for leaders, it is important to understand what leadership characteristics and style will best match with your organization and find ways to identify leaders with those attributes. Once you have a leader or recognize leadership potential, it is essential to train and develop your leaders to effectively develop followers within your context. Global Implications Most of the theories we have explored are based on research gathered in English-speaking countries. When you look at research in other areas, you will find different variables that will impact both leaders and followers. It is very important when engaging in cross-cultural business opportunities that the difference in culture is considered. This is true when doing business in other countries, but it is also important to remember that many organizations are cross-cultural because of the make-up of their employees. The GLOBE study looked at 18,000 leaders in over 800 organizations in 62 countries. They found that the characteristics that determined transformational leadership were consistent across cultures. This is significant because it disputes the contingency view that leadership is dependent upon culture.

Summary and Managerial Implications

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Leadership is a complex function in an organization but essential for success. Individuals, groups, and organizations all need leaders, and there are many factors that define a successful leader. Each organization must assess what they need in their leader in order to be effective. Leadership is central to understanding group behavior as the leader provides the direction. Extroversion, conscientiousness, and openness all show consistent relationships to leadership. Behavioral approaches have narrowed leadership down into two usable dimensions. Need to take into account the situational variables, especially the impact of followers. Research on charismatic and transformational leadership has made major contributions to our understanding of leadership. Leaders must be seen as authentic and trustworthy. Investment must be made in the future through mentoring and training leaders.

CHAPTER 14: CONFLICT AND NEGOTIATION Conflict defined Conflict primarily deals with perception. If nobody thinks there is conflict, then no conflict exists. Conflict can be experienced in an organization through many different avenues. It can be that the goals of the individuals are incompatible or there is a difference in opinion over the interpretation of facts. Many conflicts also arise through disagreements about how people should behave. Transitions in Conflict Thought The traditional view of conflict believes that conflict is bad and it should be avoided as much as possible. This view was more prevalent in the 1930s and 40s than it is today. This view held that conflict was the result of poor communication, lack of openness, or failure to respond to employee needs. All these things are negative and can be fixed so management thought that conflict could be fixed and should be fixed.
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The views of conflict have shifted over the years and have developed into more acceptance of conflict as a natural and inevitable outcome of group dynamics. This idea was prevalent in the late 40s 70s and was called the Human Relations view of conflict. The current view on conflict is that it is not only a positive force in a group but it is actually necessary for a group to perform effectively. This is called the interactionist view of conflict and is widely accepted today. Forms of Interactionist Conflict The interactionist view of conflict does recognize that even though functional conflict can support the group goals and improve their performance there is also dysfunctional conflict that hinders group performance. This type of conflict should be avoided, controlled, or minimized as much as possible. Types of Interactionist Conflict There are many types of interactionist conflict including task, relationship, and process. Task conflict arises when there is conflict over the content and/or goals of the work. If this type of conflict exists at low to moderate levels, then this is a functional conflict that can help individuals seek clarification or new ideas on how to accomplish their goals. Relationship conflict is based on problems between individuals and is almost always dysfunctional. Process conflict occurs when there is disagreement on how the work gets done. Low levels of process conflict represent functional conflict.

Resolution-Focused View of Conflict


Researchers, including those who had strongly advocated the interactionist view, have begun to recognize some problems with encouraging conflict. 11 As we will see, there are some very specific cases in which conflict can be beneficial. However, workplace conflicts are not productive, they take time away from job tasks or interacting with customers, and hurt feelings and anger often linger after conflicts appear to be over. People can seldom wall off their feelings into neat categories of task or relationship disagreements, so task conflicts sometimes escalate into relationship conflicts. A growing body of research, which we review later, suggests we can minimize the negative effects of conflict by focusing on preparing people for conflicts, developing resolution strategies, and facilitating open discussion. Researchers interested in cross-cultural conflicts have also encouraged individuals to recognize impediments to agreement like hidden emotional attachments to a particular course of action and social identities that place people on different sides of an issue based on national or cultural variables. Resolving cross-cultural conflicts begins by addressing these emotional and identity-based concerns and building bonds between parties through common interests. 16 In sum, the traditional view was shortsighted in assuming all conflict should be eliminated. The interactionist view that conflict can stimulate active discussion without spilling over into negative, disruptive emotions is incomplete. The managed conflict perspective does recognize that conflict is probably inevitable in most organizations, and it focuses more on productive conflict resolution.

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The Conflict Process Stage I: Potential Opposition or Incompatibility

Stage one of the conflict process is potential opposition or incompatibility. In this stage there are three main conditions that can cause conflict to arise. They are communication, structure, and personal variables. Communication may cause conflict when words mean different things to different people and misunderstandings result. Communication can be functional to a point, but when too much communication is given, it can cause frustrations and sometimes there are barriers in place to effectively hear what is being communicated. Structure can cause conflict when people are confused about their roles or the amount of authority they have. If goals are not well-defined or different for different group members, that can cause conflicts. Also leadership styles may cause conflict if it is not a style group members respond well to. Reward systems and dependency issues may also be sources of conflict. Personal variables will cause conflicts when there are different value systems represented and personality types are at odds. These factors can bring about conflict and set the stage for conflict to occur. Stage two then talks about what comes next. Stage II: Cognition and Personalization

Stage two looks at the recognition or cognition of the conflict and the personalization or the emotional part of the conflict. As stated earlier, in order for conflict to be present, there must be an awareness of its existence, defined as perceived conflict. Once people are aware of the conflict, emotions are expressed that can impact the outcome of the conflict this is defined as felt conflict. Emotions can include anxiety, tension, frustration, or hostility Stage III: Intentions

Stage three starts to look at the intentions of the individuals involved. These intentions include the determination to act in a certain way, but it is important to realize behavior does not always accurately reflect intention. Sometimes people act out of emotion and not rational thinking. There are competing dimensions of conflict-handling intentions. One can be motivated by cooperativeness or attempting to satisfy the other partys concerns or assertiveness, attempting to satisfy ones own concerns. As the exhibit in this slide shows, th ere are also variations of those two competing claims. Stage IV: Behavior
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Stage four moves us beyond intentions to the chosen behavior in the conflict. Conflict management is using behavior such as resolution and stimulation techniques to manage how much conflict is present. The conflict-intensity continuum in this slide shows the escalation of conflict from zero conflict to annihilatory conflict. Conflict Resolution Techniques There are a number of techniques available to help work through conflict. Some ideas include problem solving, increasing communication, and restructuring the organization. Each technique chosen needs to reflect the situation and the people involved in order to be an effective conflict resolution technique Stage V: Outcomes

Stage five looks at the outcomes of conflict resolution. Functional outcomes include increasing group performance, encouraging interest and curiosity, and creating an environment for self-evaluation and change. Dysfunctional outcomes include discontent workers, reduced group cohesiveness, and infighting. In order to create functional conflict, it is important to reward dissent and punish conflict avoiders. Negotiation Having a good understanding of conflict and conflict resolution, it is now important to look at negotiation. Negotiation or bargaining is the process where the people involved work on creating a deal that is mutually beneficial. There are two main approaches distributive and integrative. Distributive bargaining seeks to divide up a fixed amount of resources and often creates a win/lose situation. Its identifying feature is that it operates under zero-sum conditionsthat is, any gain I make is at your expense and vice versa. So the essence of distributive bargaining is negotiating over who gets what share of a fixed pie. Distributive bargaining,
however, leaves one party a loser. It tends to build animosities and deepen divisions when people have to work together on an ongoing basis.

Probably the most widely cited example of distributive bargaining is labormanagement negotiations over wages. Typically, labors representatives come to the bargaining table determined to get as much money as possible from management. Because every cent labor negotiates increases managements costs, each party bargains aggressively and treats the other as an opponent who must be defeated.
Employment salary negotiation Revealing dead line labormanagement negotiations

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Integrative bargaining seeks one or more settlements that can create a win-win situation for all parties involved.
In terms of intraorganizational behavior, all things being equal, integrative bargaining is preferable to distributive bargaining because the former builds long-term relationships. Integrative bargaining bonds negotiators and allowsthem to leave the bargaining table feeling they have achieved a victory.

There are ways to achieve more integrative outcomes. Individuals who bargain in teams reach more integrative agreements than those who bargain individually because more ideas are generated when more people are at the bargaining table. So, try bargaining in teams. Another way to achieve higher joint-gain settlements is to put more issues on the table. The more negotiable issues introduced into a negotiation, the more opportunity for logrolling, where issues are traded off because people have different preferences

The Negotiation Process The grid in this slide outlines the steps of the negotiation process: Preparation and planning, definition of ground rules, clarification and justification, bargaining and problem solving, and closure and implementation. You should determine your and the other partys BATNA before proceeding with negotiations. BATNA represents the Best Alternative To a Negotiated Agreement or the lowest acceptable value you will take for a negotiated agreement. Then anything above your BATNA is a good negotiated outcome. Individual Differences in Negotiation Effectiveness Many individual differences are interwoven in the negotiation process and impact the effectiveness of the outcomes. Personality traits will impact outcomes as extroverts tend to be weaker at negotiation because they will want people to like them. Intelligence is not an indicator of effective negotiation skills. Mood and emotion can impact negotiations as anger is often an effective tool in distributive bargaining, whereas positive moods are helpful in integrative bargaining situations. Gender can also impact negotiation effectiveness. Men and women tend to approach negotiations in the same way but may view the outcomes differently. Women may appear more tender in the process where men come across as tough. On the average, men are more likely to be negotiators than women. Third-Party Negotiations Organizations today are often utilizing third party negotiators to work through conflicts. They may use a mediator who is a neutral third party helping to facilitate a negotiated solution by using reason, persuasion, and suggestions for alternatives. They may use an
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arbitrator who helps to negotiate solutions but has the authority to dictate an agreement. A conciliator may also be brought in who is a trusted third party who provides informal communication between the parties. Or a consultant may be utilized as a skilled conflict manager who will attempt to facilitate creative problem solving through communication and analysis Global Implications There are numerous global implications in the area of conflict as different cultures will view conflict through unique lenses. For example, U.S. managers are more likely to use competing tactics whereas Japanese managers will tend toward compromise and avoidance. The different viewpoints of conflict will play out in the arena of negotiations and the styles utilized. American negotiators will often make the first offer where Japanese negotiators will wait. North Americans use facts to persuade, Arabs use emotions, and Russians will speak more in ideals. Brazilians tend to say no when negotiating much more than American or Japanese negotiators will do so. Summary and Managerial Implications Conflict is a natural part of the organizational context and it can be constructive or destructive. Excess conflict can be reduced through competition, collaboration, avoidance, accommodation, or compromise. In the end, it is best to seek a negotiation strategy that is a win-win for all parties.

CHAPTER 15 FOUNDATIONS OF ORGANIZATION STRUCTURE What Is Organizational Structure? Organizational structure depicts how job tasks are formally divided, grouped, and coordinated. The key elements of organizational structure include work specialization, departmentalization, chain of command, span of control, centralization and decentralization, and formalization. Why we need organizational Structure? To ensure that every body works in a manner the company wants to achieve its goals 1. work specialization.
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A key part of organizational structure is understanding the degree to which tasks are divided into separate jobs or work specialization. The division of labor is helpful in creating the most efficient way to utilize employee skills, increase their skills, and maximize their input. When division of labor is utilized an organization can more effectively use specialized training and specialized equipment to accomplish their desired productivity and quality goals. Work specialization can cause greater economies, but in some cases it can cause diminishing returns due to repetition which can lead to boredom. Job enlargement can be effective in creating greater efficiencies than specialization does. 2. Departmentalization Departmentalization defines how jobs are grouped together. There are a number of options to choose from when grouping jobs you could organize around function, product, location, process, or customer. When jobs are grouped, departments are formed. 3. Chain of Command The chain of command represents the line of authority present in decision making. Embedded in the chain of command is the inherent right of a manager to give orders and expect the orders to be followed. Unity of command is the idea that a subordinate should have only one superior to report to so that directions and the chain of command are clear. 4. Span of Control The fourth element of structure is span of control. This concept looks at how many workers a manager can effectively direct toward organizational goals. Wider span allows for more efficiency because you need fewer managers. However, it can also limit the amount of time and direction a manager can give to their employees. A narrow span can allow for more direction but can add layers of management, increase the complexity of the vertical communication, and encourage overly tight supervision, limiting employee autonomy. 5. Centralization and Decentralization The fifth aspect of structure deals with centralization and decentralization. Centralization is the degree to which decision making is concentrated at a single point in the organization, typically at the top. Decentralization represents an organization that spreads decision making throughout the organization. 6. Formalization Formalization is the degree to which jobs within the organization are standardized. When there is high formalization, workers have very little control over how they do their work and they will be required to follow a number of rules and procedures. Lower formalization will tend to allow for different job behaviors to get the job done, giving workers more control over their work.
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Common Organization Designs Simple Structure - There are a number of organizational structures available to companies. The first and most basic structure is the simple structure. This structure has a low degree of departmentalization, wide spans of control, and centralized decision making with little formalization in job design. Bureaucracy - Another type of organizational design is bureaucracy. In a bureaucratic organization, there will be a great deal of structure. The tasks will be completed through specialization and they tend to be formalized through rules and regulations. Departments will be highly defined and authority is centralized. Decision making will follow a strict chain of command and there will be narrow spans of control. The bureaucratic organization will be one that is highly defined and very controlled. Bureaucracies have both strengths and weaknesses. They tend to offer economies of scale that are beneficial to the organization. This structure will minimize duplication of personnel and equipment through organization of jobs and departments. Communication will be strong and decision making is centralized. However, this type of structure is not without its weaknesses. In a bureaucratic environment, conflict often arises around organizational goals and unit goals, people can become obsessive about rules and regulations, and employees dont always know how to deal with problems because employees are not empowered to make decisions.

Matrix structure: The matrix structure is another common organizational design. This structure creates dual lines of authority and combines functional and product departments in a way to effectively meet organizational goals. The key elements of the matrix structure is that it gains the interactions between the functional and product departments by coordinating complex and interdependent activities to help reach the goals set forth in an efficient manner opening up avenues for new ideas to achieve the companys mission. The matrix structure also breaks down the unity-of-command concept as the lines of authority are blurred.

Virtual Organization Virtual organizations are developing as acceptable organizational structures. This structure offers a small core organization that outsources many of its major functions to competent suppliers. Virtual organizations are highly centralized with virtually no departmentalization to provide maximum flexibility, focusing on what the organization does best. This type of organization reduces control over some of the key parts of the business.

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Boundaryless organizations Boundaryless organizations are set up to reduce the structure and tight control over work. They organize in a way to try to empower teams. They organize more in what is called Tform concepts in order to eliminate vertical and horizontal boundaries. They try to break down external barriers to customers and suppliers through their structure and style of communication. Two Extreme Models of Organizational Design The two extreme structures organizations can choose from. The mechanistic model is set up to facilitate high specialization, a clear chain of command, and a large degree of formalization. The organic model, in contrast, is set up to facilitate teams, the free flow of information, decentralized, empowerment, and very little formalization. It is not that one structure is better than the other, rather each organization needs to see what will work best with their workforce and product.
Lean organization downsizing Advantage -Flater, fas decision, less cost, minimize status and rank Disadvantage broader span of control, you mau not have specialized expertise in different areas

Four Reasons Structures Differ The strategy structure Relationship Structures differ for a number of reasons. The first is that structure is set up to facilitate the strategy of the organization. If your organization is focusing on innovation as a key value, then they may be best served by an organic structure. Whereas, if they are looking at minimizing costs as their strategy, they will find that a mechanistic structure will work better. Strategy should always dictate structure instead of structure dictating strategy. Structures will also differ by organization size the larger they get, they tend to become more mechanistic. They will differ by how much technology is used the more routine the activities, the more mechanistic the structure should be. Structures will also differ based on the environment in which they exist. The more dynamic the environment, the more organic the structure will need to be to facilitate quick decisions and fast turnaround.

Three-Dimensional Environment Model The environment is shaped by three factors capacity, volatility, and complexity.

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Capacity looks at the degree to which an environment can support growth. Volatility looks at the degree of instability in the environment, and complexity measures the degree of heterogeneity and concentration among environmental elements. All these factors should be looked at together to determine what structure will work best. Organizational Designs and Employee Behavior Organizational designs are not a good predictor of employee behavior. Research has shown that work specialization can lead to increased productivity but lower job satisfaction. Specialization has not been popular as employees are seeking more intrinsically rewarding jobs. Span of control has mixed results depending on individual differences in employees and organizational factors. Participative decision making has been found to be positively related to job satisfaction. Various factors will influence workers in their job satisfaction and their willingness to stay with an organization. Global Implications Most countries follow the U.S. model for organizational structure. However, this may be changing as the U.S. model can be too individualistic. Structural effectiveness will vary in countries based on their cultural preferences. The boundaryless organization will most likely grow as the economy continues to globalize. This structure tends to break down barriers and increase effectiveness across international boundaries. Summary and Managerial Implications Structure does have an impact on both the attitudes and behaviors of the people within the organization so it is important that managers effectively select and utilize structure within their organizations

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CHAPTER 16: ORGANIZATIONAL CULTURE Organizational culture Organizational culture is an important concept in studying how organizations behave. Culture has significant impact on how individuals interpret the impact of their behavior and make decisions about their actions. Culture is defined as a common perception held by the members of the organization or a sense of shared meaning. Cultures have 7 primary characteristics that define the organization. They are: innovation and risk taking, attention to detail, outcome orientation, people orientation, team orientation, aggressiveness, and stability. Do Organizations Have Uniform Cultures? There are several different groupings that most cultures fit into. These groups describe the organization in an effort to help increase the understanding of how an organization works. There are different aspects of culture that need to be defined to help lay a foundation for understanding what culture is. Dominant culture is the core values that are shared by the majority of employees in the organization. Subcultures are when there are a variety of different cultures within the organization. These subcultures typically are divided by department and/or geographical separation. Core values are the primary values that most people in the organization accept. A strong culture is one in which the core values are intensely held and shared by most. These definitions are key components of a culture and will help you further understand organizational culture.

What Do Cultures Do? Cultures take on distinct functions. Some of the things that cultures do are defining the boundary between one organization and others. They also convey a sense of identity for the members of the organization. Strong vs Weak Culture If the cultures are strong, they can facilitate a continuous commitment to something larger than self-interest over an extended period of time. Cultures also help people know what to expect in the organization and can thereby enhance the stability of the social system. Through doing this, it can also serve as a sense-making and control mechanism for fitting employees into the organization.
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Culture as a Liability Culture can also be a hindrance to an organization. A company can become institutionalized when people value the organization more than what they provide. When cultures are strong, they can become a barrier to change as their values may not align with the values needed to embrace or facilitate the change. Cultures that may pressure employees to conform can be a barrier to hiring, developing, and promoting a diverse workforce. Finally, if a merger or acquisition occurs, one of the most difficult things to do is to merge the two cultures, causing many mergers to fail.

How Culture Begins Cultures start from the very beginning of the organization with the founders. Founders will tend to hire and keep employees who view things in a similar fashion. They will also try to get employees to think about things the way they do and socialize them to their point of view and ways of doing things. This is done so that the founders behavior will become the behavior to model after in order to succeed in the organization and to fit in.

Stages in the Socialization Process The socialization process involves a few steps. The employee will learn about the organization through literature, interviews, and other people in the prearrival stage. Once the employee starts interacting with other employees, they enter the encounter stage where they see what the organization is really like. In this stage often their expectations are measured against the reality and sometimes they do not align. The third stage is called metamorphosis, when the new employee adjusts to the organization and their work. Socialization Program Options Formal versus Informal Individual versus Collective Fixed versus Variable Serial versus Random Investiture versus Divestiture There are a number of possible socialization programs. Each organization needs to select one that best fits their culture. When the socialization process matches an organizations culture, they have positive outcomes including higher productivity, greater commitment, and lower turnover. Summary: How Organizational Cultures Form
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Organizational cultures begin with the founder of the organization, continue through the hiring of people who see things similarly, and are enforced through top management and socialization. How Employees Learn Culture Employees learn the organizational culture through a number of avenues. They can gain an understanding of culture by hearing stories that present the past and provide explanations for current practices. Rituals, or repetitive sequences of activities, can reinforce the key values of the organization and provide insight into the culture. Material symbols such as dress codes, formal or informal, office size or style, and perks for key employees can denote who is important in an organization. Language is another way to learn about organizational culture as employees will express themselves in certain ways to indicate membership in the organization. Creating an Ethical Organizational Culture As cultures are created, it is important to incorporate ethics into the cultural norms from the very beginning. Certain characteristics will help develop high ethical standards, such as a high tolerance for risk, so people are not afraid to make mistakes; low to moderate in aggressiveness so that unethical behaviors are avoided and a focusing on the means as well as the outcomes so that ethics is embedded in both. Creating a Positive Organizational Culture A positive organizational culture is one that builds on employee strengths so that employees can develop and grow. It also rewards more than it punishes so employees are not afraid to try new things and feel good about what they are contributing. Finally, it emphasizes individual vitality and growth so that employees are operating at full potential. Spirituality and Organizational Culture Spirituality also impacts organizational culture. Spirituality in the workplace is the recognition that people have an inner life that will help them be better workers and by doing meaningful work they will have a fuller life. It is not about organized religious practices. Why Spirituality Now? Spirituality is especially important now as people need a counterbalance to the pressures and stress of the busyness of life. Often spirituality allows the employee to fulfill all aspects of their lives body, mind, and spirit. Although the workplace is the dominant influence in peoples lives, they are not willing to accept purposeless work. They want to be able to incorporate their values into their work. More and more people realize that material possessions do not fulfill their needs. Therefore, a holistic approach to life body, mind, and
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spirit is essential and organizations will help their employees have fuller lives if they recognize this approach. Characteristics of a Spiritual Organization A spiritual organization will have a number of characteristics that help their employees reach their full potential and help them deal with work/life conflicts. These include: Benevolence. Spiritual organizations value showing kindness toward others and promoting the happiness of employees and other organizationa lstakeholders. Strong sense of purpose. Spiritual organizations build their culture around a meaningful purpose. Although profits may be important, theyre not the primary value of the organization. Trust and respect. Spiritual organizations are characterized by mutual trust, honesty, and openness. Employees are treated with esteem and value, consistent with the dignity of each individual. Open-mindedness. Spiritual organizations value flexible thinking and creativity among employees. Criticisms of Spirituality There are a number of criticisms of incorporating spirituality in the workplace. The critics are calling for the research that supports the assertion that organizations are more successful when they allow for or promote spirituality. Also, people are asking if the organizations hold the right to impose values on their employees. Although spirituality is not about God or religious values and is more about helping employees find meaning and value in their work, the two may be confused or intertwined at times. Finally, critics wonder if spirituality and profits are compatible. Initial research shows that spirituality allows for greater productivity and dramatically lower turnover, indicating that spirituality helps to increase profits. Global Implications Organizational culture still exists within a local culture and that cant be ignored. It is important that managers increase their ability to become more culturally sensitive through active listening, adjusting communication to the culture in which they are operating, and avoiding controversial topics in their discussions. Culture as an Intervening Variable It is important to keep in mind that employees will form a perception of the organization based on things they observe. These opinions will affect their performance and job satisfaction so it is important to pay attention to organizational culture and its impact on employee outcomes. Summary and Managerial Implications

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Cultures begin with the founders of the organization and are very difficult to change once they become embedded. In order to maximize employee outcomes, it is important to hire people who fit in the organization and help them become socialized into the corporate culture. Managers can reinforce culture through their actions.

CHAPTER 17: HUMAN RESOURCE POLICIES AND PRACTICES What are the functions of human resource in the organization?
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. Mange recruitment Ensures legal requirements Produce policies and prodedures Mange employees disipilinary action Provide training Background check Provide counciling Deal with government and other institutions Mangage safety and emergency situations for employees Mange and handle contract agreements Deal with change and process how diferent department interact Designs and update organizational structure Conduct exit interview Downsizing Coordination of management of employees

As we saw in the previous chapter on culture, the decision about whom to hire is a very important one. The chart in this slide helps to outline a process by which to hire someone. There are three levels outlined initial selection, substantive selection, and contingent selection during each selection step, the applicant pool gets smaller and smaller and the criteria of moving to the next level gets more and more difficult. Lets look at these steps in more detail. Initial selection uses devices to determine if the basic qualifications for the job are met. Some tools you can use include application forms and background checks. Stage 2: Substantive selection devices are the key components of the selection process. Some devices used in this step are written tests to test for intelligence, personality, integrity, or interests. The intelligence tests have been found to be the best predictor across all jobs.
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Another method used in this step is performance simulation tests that provide a written or simulated test that measures performance on the job-related tasks. The most commonly used substantive selection device is the interview. It often carries a lot of weight in the hiring process, but it is biased toward those who interview well. Some different types of interviews may lend different results. The unstructured interview is the most common and least predictive. It is the method of choosing random questions. The structured interview is more predictive of job success. This method selects a set of questions that are used on every applicant. Behavioral-based interviews are rising in use and are good predictors of future behavior. In this type of interview applicants are asked about how they handled a problem or situation in the past to bring out their behaviors utilized to see if they match the organizations values and preferred behaviors. Stage 3: Contingent Selection -The third stage is the contingent selection where a few final checks are done before hiring, such as drug testing. This has been a controversial step in the process for some as it is perceived to be invasive. However, the Supreme Court has ruled that it is not an invasion of rights. It can be expensive but very accurate and can help avoid a lot of problems down the road. Training and Development Programs Once an employee is hired, it is important that they receive ongoing training and development while employed. Some different types of training programs include the following: Basic literacy skills training is a program that might be necessary because of U.S. high school graduates do not have the basic skills necessary for work. Technical skills training focuses on training for technical skills needed on the job. Interpersonal skills training will help to enhance listening, communication, and teamwork. Problem-solving skills training may help to sharpen the logic and reasoning capabilities of the workforce, which will assist in developing solid decision-making techniques.

What About Ethics Training? Ethics training is another area that a lot of organizations look at. However, it is more controversial regarding the impact and need for it. Opponents say that personal values and value systems are fixed at an early age so training will not help. Proponents say that values can be learned and changed over time. By training employees, they can better recognize ethical dilemmas and it can also reaffirm how the organization expects employees to behave. Training Methods

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There are a number of different training methods including formal, informal, on-the-job and e-training. Managers must determine the organizational culture and the subject matter of the training to decide what best fits the situation. For example, a training session on interpersonal communication would NOT be well suited to e-training. Individualized Training and Learning Styles Employees will employ different learning styles, so it is essential the training methods are varied. Employees may learn best by reading so that a book would be most helpful; they may learn best by watching so letting them observe experts will work best; they may learn best by listening so a lecture is a well-suited option; or they may learn best by participating so they may need the opportunity to try out the new skills in a safe environment. Employees may utilize more than one learning style so training methods should take this into account. Evaluating Training Effectiveness Once training is complete, it is important to see if it was successful. Many factors influence its effectiveness such as training method utilized, individual motivation of the trainee, the personality of the trainee and how that fits with the trainer and the training situation, and the training climate or the ability to apply the learning to the job. These factors will influence the effectiveness of the training. Performance evaluation Performance evaluation is another aspect of human resource activities that are employed by managers. The performance evaluation will help in making decisions about promotions, transfers, and terminations. If conducted properly, they should also help to identify areas where additional training is needed while it gives feedback to employees on their performance. Finally, it is the basis for reward allocation in the form of merit pay increases, bonuses, and other rewards. What Do We Evaluate When evaluation takes place there are several things being measured. The first is individual task outcomes that takes a look at production, sales, turnover, or quality. Behaviors are also measured in relation to outcomes. This is taking the place of production measurement. Companies are focusing in on task performance, how much the employee fits into the culture as a citizen, and if they are not counterproductive. Finally, traits are often measured even though this is not the best measurement because they are not directly linked to productivity. The traits often measured are attitudes, confidence, and working well with others. Who Should Do the Evaluating?
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Organizations need to determine who is going to do the evaluating. Typically it is done by the immediate supervisor, however, an effective measure of evaluation is utilizing feedback from many different stakeholders. This is called a 360-degree feedback system because it obtains feedback from peers, supervisor, customers, and subordinates to get the full picture of the employees performance. Methods of evaluation There are a number of methods of evaluation that are available for use. Written essay and critical incidents are two popular methods. Written essay methods use a narrative format to describe the employees strengths, weaknesses, and suggestions for impro vement. The critical incident method evaluates the behaviors that are key for job success. More Mthods The graphic rating scale method utilizes an incremental scale that the evaluator uses to rate the employee in comparison to other employees The Behaviorally Anchored Rating Scale (BARS) uses some components of the critical incident and graphic rating scale but uses examples of actual behaviors for the job measured instead of descriptions or traits. Forced comparisons rank one employee against another. It can be done on a group order ranking where the employees are placed into particular classifications or through an individual ranking that ranks employees from best to worst.

Suggestions for Improving Evaluations There are some ways to improve evaluations and increase their effectiveness. By using multiple evaluators, rater biases can be reduced. Two types of biases are halo and leniency errors. Halo bias is when an employee has one or two really strong aspects and the rater sees everything as positive as a result. Leniency error occurs when one rater is a lot more lenient than other raters. By training evaluators and taking evaluator competence into account when making decisions, you can also improve evaluation effectiveness. Finally, by providing employees with due process such as letting them know when evaluations are coming, providing a process for when they feel they have been treated improperly, and allowing for a final decision that is based on evidence, you can improve the entire evaluation process. Providing Performance Feedback Managers are often reluctant to give feedback because they are uncomfortable addressing weaknesses and employees can become defensive when they do. Also, employees tend to have an inflated assessment of their own performance. By training managers on how to give feedback and using the performance review as a forward-looking process instead of looking at the past, it can minimize the negative reactions.
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Managing Diversity: Work-Life Conflicts Work/life conflicts have been on the rise since the 1980s and organizations have had to increase their understanding and corresponding policies regarding this conflict. Some solutions that have been offered are flexible scheduling and benefits, as well as on-site personal services such as dry cleaning or gym facilities. Research has shown that stress is caused not by time constraints but by the psychological incursion of work into the family aspect of life and vice versa. Some employees will want more integration of work and family, while others want more separation. Global Implications Selection practices and process will differ between countries and corresponding cultures. Practices differ by nation: global policies need to be modified to fit within local customs Use of educational qualifications may be universal

Performance evaluations also differ greatly because of differences in culture, such as the degree to which the culture focuses on individualism or collectivism or based on their time orientation. Summary and Managerial Implications Human resource practices play a significant role in the life of a manager all the way from finding the right employee for the job, training them to do well on the job, and evaluating their performance in a way that encourages growth and development in the employee.

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CHAPTER 18 :ORGANIZATIONAL CHANGE AND STRESS MANAGEMENT Forces for Change There are many things that force change in an organization such as the nature of the workforce, technology, competition, economic forces, social trends, and world politics. PLANNED CHANGE Organizations often face change that is unexpected and sudden but it can also be a purposeful decision that organizations undertake. There are ways to foster an environment that is able to adapt and change with the demands of the marketplace. Planned change is engaging in activities that are proactive and purposeful to improve the ability of the organization to handle change and to change employee behavior. Through this process change agents, those acting as leaders in the change process, are essential for successfully achieving the desired change. Resistance to change Whenever change is present, there is resistance to change. Individuals and groups become comfortable with things that are familiar, and change threatens the status quo. There are different ways that change is resisted by employees. It can be overt and immediate where complaints are voiced and people will fail to engage in job actions or perform negative actions that hinder productivity. It can also be implicit and deferred when employees lose their loyalty and their motivation. As the resistance is deferred, it becomes more difficult to find the link between the source and the reaction. Sources of resistance There are many sources of resistance to change, as seen in the visual in this slide. It can take the form of individual resistance, such as fear of the unknown or security issues or organizational resistance such as threat to expertise, structural inertia, or limited focus of change Individual Sources HabitTo cope with lifes complexities, we rely on habits or programmed responses. But when confronted with change, this tendency to respond in our accustomed ways becomes a source of resistance. SecurityPeople with a high need for security are likely to resist change because it threatens their feelings of safety. Economic factorsChanges in job tasks or established work routines can arouse economic fears if people are concerned that they wont be able to perform the new tasks or routines to their previous standards, especially when pay is closely tied to productivity.

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Fear of the unknownChange substitutes ambiguity and uncertainty for theunknown. Selective information processingIndividuals are guilty of selectively processing information in order to keep their perceptions intact. They hear what they want to hear, and they ignore information that challenges the world theyve created. Organizational Sources Structural inertiaOrganizations have built-in mechanismssuch as their selection processes and formalized regulationsto produce stability. When an organization is confronted with change, this structural inertia acts as a counterbalance to sustain stability. Limited focus of changeOrganizations consist of a number of interdependent subsystems. One cant be changed without affecting the others. So limited changes in subsystems tend to be nullified by the larger system. Group inertiaEven if individuals want to change their behavior, group norms may act as a constraint. Threat to expertiseChanges in organizational patterns may threaten the expertise of specialized groups. Threat to established power relationshipsAny redistribution of decision-making authority can threaten long-established power relationships within the organization Tactics for Overcoming Resistance to Change When managers face resistance to change there are some useful tactics they can utilize to help people overcome it. These tactics include education and communication, getting people to participate in the process, and building support and commitment. It can also include being sure to implement the change fairly by applying a consistent and fair process, using manipulation and cooptation to spin the message to gain cooperation or selecting people from the beginning who are more willing to accept change. Finally, a manager can resort to coercion, using direct threats and force to make people change. This is not often a good option.

The Politics of Change Change includes many political factors as the impetus for change is likely to come from outside those who are responsible for making the change happen. This can threaten those change agents within the organization and force them to implement incremental but not radical change. Embedded in the change dynamics will be the issue of power. Power struggles will have results that determine the speed and quality of change Lewins Three-Step Change Model Lewin offers a three-step model to help facilitate the change process. He sets forth that change efforts need to unfreeze individual resistance and group conformity to help them
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move forward and then you need to refreeze the changes by balancing driving and restraining forces. This will help to move people through the change process and solidify the desired behaviors/outcomes moving forward. In the unfreezing stage Lewin identifies driving and restraining forces. Driving forces are those that direct behavior away from the status quo. Restraining forces are those that hinder movement from the existing equilibrium. Kotters Eight-Step Plan Kotter also offers a model to look at change that builds on the initial ideas of Lewin. He sets forth the following eight steps: 1. 2. 3. 4. 5. 6. 7. 8. Establish a sense of urgency Form a coalition Create a new vision Communicate the vision Empower others by removing barriers Create and reward short-term wins Consolidate, reassess, and adjust Reinforce the changes

Action research Action research is another theory about change that says that the change process is based on a systematic collection of data and then selection of a change action based on what the data tells you. The process would be to diagnose the situation, analyze the data, obtain feedback from the data, take action, and then evaluate. The benefits of this approach is that it focuses on the problem instead of jumping to the solution and it also gets employees involved, thereby reducing their resistance to change.

Organizational development Organizational development is an area of study that is set up to determine what an organization needs to improve their effectiveness and employee well being. Some organizational development values include respect for people, trust and support, power equalization, confrontation, and participation. Six commonly used organizational development techniques There are six commonly used organizational development techniques.

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1. The first is sensitivity training that sets up groups that seek to change behavior through unstructured group interaction by providing an environment of increased awareness of others and of themselves. This increases their empathy, listening skills, openness, and tolerance for others. 2. The second technique is the survey feedback approach where the organization will use a questionnaire to identify discrepancies among member perceptions and then follow up with discussions and plans for improvement. 3. Process consultation is the third technique. In this technique there is a consultant involved who gives the clients some insights into what is happening in the organization and helps to identify a process for improvement. 4. The fourth technique is engaging in team building tools to increase trust and openness through increased interactions. 5. Intergroup development is an organizational development tool that attempts to change the attitudes, stereotypes, and perceptions that groups may have of each other. 6. Finally, the sixth commonly used technique is appreciative inquiry. This process seeks to identify the unique qualities and special strengths of an organization which they then use to build on to improve performance through a process. This process includes discovery (identifying the strengths of the organization), dreaming (speculating on the future of the organization), designing (finding a common vision), and destiny (deciding how to fulfill the dream). Create a culture for change through encouraging innovation Many organizations attempt to create a culture for change through encouraging innovation. There are many sources of innovation or the process of coming up with a new idea that helps to improve a current process, product or service. Innovation can occur through structural variables, long-tenured management, limitation in resources, or increased communication between units. For innovation to occur, there needs to be an idea champion who actively promotes the innovation.

Creating a Culture for Change: Learning Learning is another key component of creating a culture for change. A learning organization is one that has developed the continuous capacity to adapt and change. Learning organizations share some common characteristics such as sharing the same vision, getting rid of old ways of thinking, viewing the organization as a system of relationships, open communication, and working together to achieve a shared vision. To create a learning organization, managers must overcome some traditional organizational problems such as fragmentation, competition, and reactiveness. Learning can be managed
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by establishing a strategy that everybody understands and can buy into. Redesigning the organizations structure to increase communication and interactions and reshaping the organizations culture to reward risk-taking and good mistakes will help to increase the effectiveness of the learning initiatives. Work Stress When change occurs stress is found throughout the organization. Stress is defined as a dynamic condition in which an individual is confronted with an opportunity, constraint, or demand related to what he or she desires and for which the outcome is perceived to be both uncertain and important. There are different types of stress. There is challenge stress which is stress associated with workload, pressure to get work done, and time constraints. Hindrance stressors are those things that keep you from reaching your goals such as uncooperative employees or red tape. This can cause more stress than challenge stress often does. Demands-Resources Model of Stress There is a model that contrasts demands and resources. If there are high demands and the resources to meet those demands, stress is limited. However, if demands are high and the resources are not available to meet the demands, then stress is high. Potential Sources of Stress There are a number of sources of stress. There are environmental factors that include economic uncertainties of the business cycle as we have seen recently, political uncertainties and technological changes that cause uncertainties. There are also organizational factors that cause stress such as task demands, role demands, and interpersonal demands. Finally, there are personal factors that can cause stress such as personal relationships, economic problems, and personality issues. Consequences of Stress
Stress also has consequences for the individual experiencing stress. These can include physiological factors such as blood pressure, headaches, and strokes. Psychological factors are also a result of stress including dissatisfaction, tension, and boredom. These outcomes are most prevalent when roles are unclear. Finally, there can also be behavioral consequences such as change in job behaviors, an increase in drinking and smoking, change in eating habits, and sleep disorders

Not All Stress Is Bad However, not all stress is bad. It has been suggested that as stress rises to a healthy level, productivity can increase. There needs to be a healthy balance as too much or too little stress will reduce performance as seen in the graph above. Managing Stress

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Stress needs to be managed and maintained at a healthy level. Individuals often manage stress through time management techniques, physical exercise or expanding their social support network. Organizations can also help employees manage stress by providing training, realistic goal setting, solid designing of jobs, offering employee sabbaticals, and establishing a wellness program. Global Implications Organizational change will vary in different cultures depending on the peoples view of the possibility of change and their time orientation . Also, some cultures have strong traditions and this will create a higher resistance to change. The concept of power distance will impact how change is implemented as well as who is the best idea champion for leading the change. Stress also varies by cultures as different issues will cause stress in different cultures. However, stress is bad for everyone no matter which culture they belong to. Also, across cultures having a good support system of family and friends can reduce stress. Summary and Managerial Implications In summary, all organizations will go through change and managers are best set up to be the change agents to modify culture. Stress is a natural result of change but it has both positive and negative implications for employees so it is important to find ways to help balance stress through both individual and organizational methods to maximize performance and minimize job dissatisfaction.

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