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IBE

Despite its inherent complexity and unpredictability (while rich in opportunity


and excitement!) managerial work generally involves performing four
functions, usually simultaneously: planningthe process of determining the
organizations desired future position and deciding how to get there;
organizingthe process of designing jobs, grouping jobs into manageable
units, and establishing patterns of authority among jobs and groups of jobs;
leadingthe process of motivating members of the organization to work
together toward the organizations goals; and controllingthe process of
monitoring and correcting the activities of the organization and its people to
keep them headed toward their goals.

CHAPTER 1
I. Organizational Behavior
A. The Meaning of Organizational Behavior.
Organizational behavior is the study of human behavior in organizational
settings, the interface between human behavior and the organization, and the
organization itself. Thus, organizational behavior reflects several levels of
analysis and a wide variety of interactions among these levels.

III. Organizational Behavior and Managers Job.

B. The Importance of Organizational Behavior.

Managers must play a variety of roles using a set of critical skills in order to
carry out the basic management functions successfully.

Because most people are born, educated, work, and live and die in relation to
organizations, the study of behavior of people in organizations is extremely
important. Organizations influence our lives so powerfully that we must pay
close attention and be concerned about our behavior in organizations. Since
most people reading this book are either present or future managers, we take
a managerial perspective of the field.

A. Basic Managerial Roles.


1. Interpersonal roles are primarily social in nature. Examples include that of
figurehead, leader, and liaison.
2. Informational roles involve some aspect of information processing.
Examples include monitor, disseminator, and spokesperson.

C. Organizational Behavior and Management.


Since organizational behavior is not a defined business function or area such
as finance or marketing, one does not see a position labeled organizational
behavior manager in the typical organization chart. Rather, an understanding
of organizational behavior provides all managers with insights and tools to
carry out their jobs more effectively. Managers can use their understanding of
organizational behavior to understand why their colleagues, superiors,
coworkersand themselvesbehave as they do, regardless of the size or
type of organization.

3. Decision-making roles consist of four different types: entrepreneur,


disturbance handler, resource allocator, and negotiator.
B. Critical Managerial Skills.
1. Technical skills are necessary to accomplish specific tasks within the
organization.
2. Interpersonal skills are used to communicate with, understand, and
motivate individuals and groups.

II. Organizational Behavior and the Management Process.

3. Conceptual skills are the managers ability to think in the abstract.


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4. Diagnostic skills allow managers to understand better cause-and-effect


relationships and recognize the optimal solutions to problems.

3. Organizational processes and characteristics include organization structure,


organization design, organization culture, organization change and
development and research methods

IV. Contemporary Organizational Behavior.


Organizational behavior is characterized by an interdisciplinary focus and a
descriptive nature.

V. Contextual Perspectives on Organizational Behavior.

A. Characteristics of the Field.

Several contemporary perspectives have evolved from the field of


organizational behavior.

1. An Interdisciplinary Focus. Organizational behavior synthesizes several


other fields, including psychology, sociology, anthropology, political science,
economics, engineering, and medicine.

A. Systems and Situational Perspectives. The systems and situational


perspectives are concerned with interrelationships among organizational
elements and between organizational and environmental elements.

2. A Descriptive Nature. Currently the primary goal of organizational behavior


is to describe, rather than prescribe, relationships between two or more
behavioral variables. Reasons for organizational behaviors descriptive nature
include the immaturity of the field, the complexities of studying human
behavior, and the lack of valid, reliable, and accepted definitions and
measures.

1. The Systems Perspective. A system is an interrelated set of elements that


function as a whole. The framework for systems study consists of inputs,
transformation, outputs, and feedback (refer to Figure 1.5). An organizational
system receives four kinds of input from its environment: material, human,
financial, and informational. These inputs are combined and transformed and
then returned to the environment in the form of products or services, profits or
losses, employee behaviors, and additional information. Finally, the system
receives feedback from the environment regarding these outputs.

B. Basic Concepts of the Field.


The concepts of primary concern for organizational behavior can be grouped
into three categories: individual processes, interpersonal processes, and
organizational processes and characteristics.

2. The Situational Perspective. Because of the complexities of human


behavior and organizational settings, universal relationships seldom, if ever,
exist. Most relationships are contingent; that is, the relationship between any
two variables is likely to be influenced by other variables. There are distinct
differences between universal and situational perspectives (refer to Figure
1.6).

1. Individual processes include individual differences (attitudes, personalities,


etc.), employee motivation, performance, work stress, decision making,
problem solving, and creativity.
2. Interpersonal processes deal with group dynamics, teams, communication,
leadership, power, politics, workplace justice, conflict and negotiation
processes.

3. Interactionalism: People and Situations. The interactional view, a relatively


new approach to understanding organizational behavior, is based on the
assumption that individual behavior results from a continuous and
multidirectional interaction between characteristics of the person and those of
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the situation (refer to Figure 1.7.). This view attempts to explain how people
select, interpret, and change various situations.

o The shift toward an integrated global economy

Factors Increasing Globalization


o Advances in communication and transportation
o Growth by expansion into international markets
o Control of labor, distribution and distribution costs
o In response to increased international competition

VI. Managing for Effectiveness.


Goalsor outcomesexist at three different levels in an organization (refer to
Figure 1.8).
A. Individual-level outcomes. These outcomes result from individual
behaviors, including productivity, performance, absenteeism, and
turnover. Attitudes and stress are other individual-level outcomes
influenced by managers.
B. Group and team-level outcomes. These outcomes include
productivity, performance, and attitudes just as individuals do. But
groups may also develop norms of behavior and levels of
cohesiveness.
Cross-Cultural Differences and Similarities

C. Organization-level outcomes. In addition to those for individuals and


groups, these outcomes may include measures of financial
performance such as profitability, stock price, return on investment,
growth rate, and so on.
CHAPTER 2

Culture
o A set of shared values that help people in a group,
organization, or society understand which actions are
considered acceptable and which are deemed unacceptable

General Observations
o Cultural and national boundaries may not coincide
o Behavior in organizational settings varies across cultures
culture is one major cause of this variation

(The Changing Environment of Organizations)

Globalization and Business

Globalization
o The internationalization of business activities
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o The causes and consequences of behavior within


organizational settings are diverse across cultures
o Organizations and the way they are structured appears to be
growing increasingly similar
o The same individual behaves differently in different cultural
settings
o Cultural diversity can be an important source of synergy in
enhancing organizational effectiveness

Specific Cultural Issues

Geert Hofstedes Research


o Attitudes and behaviors differ significantly because of values
and beliefs that characterize different countries

Diversity and Business

Hofstedes Categories
o Individualism
o Collectivism
o Power distance
o Uncertainty avoidance
o Masculinity
o Long-versus short-term values

Hofstedes Primary Dimensions

Workforce Diversity
o The important similarities and differences among the
employees of organizations

Stereotypes
o Generalizations about a person or a group of persons based
on certain characteristics or traits

Prejudices
o Judgments about others that reinforce superiority
or inferiority beliefs

Pitfalls of Stereotyping and Prejudices

Stereotypes and Prejudices


o Can create management systems that do not meet the needs
of a diverse workforce

o Can cause failures to recognized employees distinctive


talents
o Can become self-fulfilling prophecies
Dimensions of Diversity

Primary Dimensions
o Factors that are either inborn or exert extraordinary influence
on early socialization
Age, race, ethnicity, gender, sexual orientation,
physical/mental abilities

Secondary Dimensions
o Factors that matter to us as individuals and that to some
extent define us to others
Educational background, geographical location,
income, marital status, military experiences, parental
status, religious beliefs, work experiences

Assimilation
o The process through which members of a minority group are
forced to learn the ways of the majority group

Assimilation Effects
o Homogeneity reduces awareness of diversity issues
o Perpetuation of false stereotypes and prejudices
o Dominant groups continue to make decisions based on their
own values and beliefs
o Minority groups have little say in decision-making

Benefits of Valuing Diversity

o Workers that are valued and therefore are more creative,


motivated, and productive
o Higher productivity, better teamwork, deeper employee
commitment to the organization and its goals

Diversity Issues

Diversitys Results
o A richness of ideas and perspectives which can lead to new
product and market development and improvement in
customer services

Ethics and Corporate Governance

The Value of Diversity


o Workforce composition affects organizational productivity
Diversity and the Modern Organization
o Celebrate the differences
o Utilize the variety of talents, perspectives, backgrounds of all
employees

Into the Melting Pot: Assimilation


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Ethics
o A persons beliefs about what constitutes
right and wrong behavior

Contemporary Ethical Issues


o Financial abuses resulting from rapid changes in business
relationships and organizational structures
o Executive compensation
o Environmental protection

o Working conditions in foreign factories


o Pricing policies
o Pressure to balance profits against costs

o Helps firms to focus on core activities


o Lowers labor costs through exportation of work

Ethics and Business Practices

Corporate Governance
o The oversight of a public corporation by its board of directors

Governance Issues
o Proper management of the business in the best interests of
the stakeholders
o Independence of the board from the business

Information Technology Issues


o Individual rights to personal information privacy
o Abuse of information technology
o Reduction of domestic job opportunities
CHAPTER 3

Management of Knowledge Workers


o Employees who add value in an organization simply because
of what they know
o Computer scientists, physical scientists, engineers, product
designers, video game developers

Knowledge Worker Employment Issues


o Unique working arrangements and performance motivation
requirements
o Specifically (individually) tailored compensation packages

Outsourcing

Disadvantage of Outsourcing
o Disaffected employees: out-of-job workers are used train the
newly-hired foreign replacements

New Employment Relationships

Advantages of Outsourcing

(Foundations of Individual Behavior)

People in Organizations

o The practice of hiring other firms to do work previously


performed by the organization itself

Psychological Contract
o A persons overall set of expectations regarding what he or

she will contribute to the organization and what the


organization, in return, will provide to the individual
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o Individuals contribute effort, skills, ability, time, loyalty


o Organizations provide inducements in the form of
tangible/intangible rewards

o The extent to which people are self-aware, can manage their


emotions, can motivate themselves, express empathy for
others, and possess social skills

The Psychological Contract

Person-Job Fit
o The extent to which the contributions made by the individual
match the inducements offered by the organization

Individual Differences
o Personal attributes that vary from one person to another

The Big Five Personality Traits


o A set of fundamental traits that are especially relevant to
organizations

The Myers-Briggs Framework


o Differentiation across four general dimensions
Sensing
Intuiting
Judging
Perceiving
o Sixteen personality classifications result from the higher and
lower positions of the general dimensions
o Myers-Briggs Type Indicator (MBTI) is a popular
questionnaire used to assess personality types
Communications styles
Interaction preferences

Dimensions of EQ
o Self-awareness
o Managing emotions
o Motivating oneself
o Empathy
o Social skills

Other Personality Traits at Work

Attitudes in Organizations

Emotional Intelligence (EQ)


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Attitudes
o A persons complexes of beliefs and feelings about specific
ideas, situations, other people
Structural Components of Attitudes
o Affect: a persons feelings toward something
o Cognitions: the knowledge a person presumes to have about
something

o Intention: a component of an attitude that guides a persons


behavior

o The set of processes by which an individual becomes aware


of and interprets information about the environment
Selective perception
Stereotyping

Cognitive Dissonance
o The anxiety a person experiences when he/she
simultaneously possesses two sets of knowledge or
perceptions that are contradictory or incongruent

Why Attitudes Change


o Availability of new information
o Changes in the object of the attitude

behaves in the same way in different situations

o Object of the attitude becomes less important

Types of Workplace Behavior

o To reduce cognitive dissonance

Workplace Behavior - A pattern of action by the members of an


organization that directly or indirectly influences organizational
effectiveness

Performance Behaviors - All of the total set of work-related behaviors


that the organization expects the individual to display

Dysfunctional Behaviors - Behaviors that detract from organizational


performance
o Absenteeism: when an individual does not show up for work
o Turnover: when people quit their jobs
Organizational Citizenship - The extent to which a persons behavior
makes a positive overall contribution to the organization

Perception in Organizations

Attribution Theory
o We attribute causes to behavior based on our observations of
certain characteristics of that behavior
Consensus - The extent to which other people in the
same situation behave in the same way.
Consistency - The degree to which the same person
behaves in the same way in different times.
Distinctiveness - The extent to which the same person

CHAPTER 4

Perception

(Motivation in Organizations)

The Nature of Motivation


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Motivation
o The set of forces that leads people to behave in particular
ways

The Importance of Motivation


o Job performance (P) depends upon motivation (M), ability,
and environment (E) (P = M + A + E)

Motivational Framework

How Motivational Processes Occur:


o A need is anything an individual requires or wants
o A need deficiency leads to need to satisfy the need
o Goal-directed behaviors result from individuals trying to
satisfy their need deficiencies
o Rewards and punishments are consequences of the goaldirected behavior

Scientific Management (Frederick Taylor) assumes that employees


are motivated solely by money

The Human Relations Approach


Assumes employees needs outweigh money and that fostering
favorable employee attitudes (the illusion of involvement) results in
motivation

The Human Resource Approach


Assumes people want to make genuine contributions; managers
should encourage their participation by providing the proper working
environment conditions

Need-Based Perspectives on Motivation

Historical Perspectives on Motivation

The Traditional Approach


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Need-Based Theories of Motivation


Assume that need deficiencies cause behavior

The Hierarchy of Needs (Abraham Maslow)


Assumes that human needs are arranged in a hierarchy of
importance.
o Basic (or deficiency) needs
Physiological
Security
Belongingness

o Growth needs
Esteem
Self-actualization

o The Need for Power


The desire to control the resources in ones
environment

The Hierarchy of Needs

ERG Theory (Clayton Alderfer)


Describes existence (E), relatedness (R), and growth (G) needs

Assumptions:
More than one need may motivate a person at the same time
Satisfaction-progression and frustration-regression components imply
that a person may not stay at the same level of need in Maslows
Hierarchy of Needs

The need for human companionship

Process-

The Dual-Structure Theory (Herzberg)


Assumes that motivation, as a construct, has two separate
dimensions:
o Motivation factors which affect satisfaction
o Hygiene factors which determine dissatisfaction
Assumes motivation occurs through job enrichment once hygiene
factors are addressed
Criticisms:
o May be both method and culture bound
o Fails to account for individual differences
o Factors (e.g., pay) may affect both dimensions

Based Perspectives on Motivation

Focus of Process-Based Perspectives


o Why people choose certain behavioral options to satisfy their
needs
o How people evaluate their satisfaction after they have
attained these goals

The Equity Theory of Motivation


o Focuses on the desire to be treated with equity and to avoid
perceived inequity

Other Important Needs


o The Need for Achievement (David McClelland)
The desire to accomplish a task or goal more
effectively than was done in the past
o The Need for Affiliation
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Equity is a perceptual belief that one is being treated


fairly in relation to others

Inequity is a perceptual belief that one is being


treated unfairly in relation to others

The Equity Comparison


o Outcomes (self) compared with Outcomes (other)Inputs (self)
Inputs (other)

The Expectancy Theory of Motivation (Vroom)


o Motivation depends on how much we want something and
how likely we think we are to get it

Key Components

The Porter-Lawler Model


o Focuses on the relationship between satisfaction and
performance
o Assumes that:
If rewards are adequate, high levels of performance
may lead to satisfaction.
Satisfaction is determined by the perceived equity of
intrinsic (intangible) and extrinsic (tangible) rewards
for performance.

Learning
A relatively permanent change in behavior or behavioral potential
resulting from direct or indirect experience

How Learning Occurs


Traditional View: Classical Conditioning
o A simple form of learning that links a conditioned response
with an unconditioned stimulus
Contemporary View: Learning as a Cognitive Process
o Assumes people are conscious, active participants in how
they learn

Reinforcement Theory and Learning


Operant Conditioning (Skinner)
o Behavior is a function of its consequences
o Reinforcement is the consequence of behavior
Types of Reinforcement

Social Learning in Organizations

Occurs when people observe the behaviors of others, recognize their


consequences, and alter their own behavior as a result

Conditions for social learning:

Guidelines for Using Expectancy Theory

Determine the primary outcomes each employee wants


Decide what levels/kinds of performance are needed to meet
organizational goals
Make sure the desired levels of performance are possible
Link desired outcomes and desired performance
Analyze the situation for conflicting expectancies
Make sure the rewards are large enough
Make sure the overall system is equitable for everyone

Learning-Based Perspectives on Motivation


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Behavior being observed and imitated must be relatively


simple
Observed and imitated behavior must be concrete, not
intellectual
Learner must have the physical ability to imitate the observed
behavior

Organizational Behavior Modification (OB Mod)


The application of reinforcement theory to people in organizational
settings

Effectiveness of OB Mod
Varying results in organizational applications
Lack of real world use

Ethics of OB Mod
Individual freedom of choice
Employee manipulation

CHAPTER 5

Job Specialization (Fredrick Taylor)


Jobs should be scientifically studied, broken down into small
component tasks, and then standardized across all workers doing
those jobs
Follows Adam Smiths concept of the division of labor
Jobs designed for efficiency can become boring and monotonous,
resulting in job dissatisfaction

Early Alternatives to Job Specialization

(Motivating Employee Performance through Work)

Using Theories of Motivation


o No single theory explains motivationeach theory covers
only some factors that motivate behavior
o More than one theory or method can be used to enhance
performance in an organization
o Each theory or method must be tied to specific need or
process and translated into operational terms that foster
enhanced performance

1.
2.
3.
4.
5.

The Job Characteristics Theory


Critical psychological states of workers
1. Experienced meaningfulness of the work
2. Experienced responsibility for work outcomes
3. Knowledge of results
Motivational properties of tasks
Skill variety
Task identity
Task significance
Autonomy
Feedback

Job Characteristics Theory: Research Findings

Work Design in Organizations

How organizations define and structure jobs to have a positive impact


on motivation, performance, and job satisfaction

Motivation and Employee Performance

Job Design
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Research generally supports the theory, however:

o Performance seldom found to correlate with job


characteristics
o Measures used to test theory are not always valid and reliable
o Role of individual differences is not supported
o Theory is lacking in specific guidelines for implementation

Flexible Work Arrangements

Telecommutings Benefits to Organizations

Employee Involvement and Motivation

Variable Work Schedules


Compressed work schedule
o Employees work a full forty-hour week in fewer than
the traditional five days
Flexible work schedules (flextime)
o Employees gain more personal control over the hours they
work each day
Job Sharing
Part-time employees share one full-time job
Telecommuting
Employees spend part of their time working off-site

Extending job design to include:


o Participation
Giving employees a voice in making decisions about
their own work
o Empowerment
Enabling workers to set their own work goals, make
decisions, and solve problems within their sphere of
responsibility and authority

o Reduced absenteeism and turnover

Early Perspectives on Employee Involvement

o Reduction in indirect expenses

o In the beginning:

Employee satisfaction is a result of their participation


in decision-making

o Employees miss the workplace social interaction


o Employees lack self-control/discipline

o Recently:

Telecommutings Downside Considerations

o Difficulties arise in coordinating in-face meetings

Employees are valued human resources who can


contribute to organizational effectiveness

o Workplace safety requirements

Their participation is valued

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Information security (cybercrime)

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