Summary Chapter 1 15 Organizational Behaviour

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Summary Chapter 1-15 Organizational Behaviour
Organizational Behaviour (Erasmus Universiteit Rotterdam)
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Summary Organizational Behavior (Lecture Slides by S.Giessner and G. Jacobs & Ob Literature)
Contents
Chapter 1 What is Organizational Behavior .......................................................................................... 1
Chapter 2 Foundation of individual behavior ....................................................................................... 4
Chapter 3 Attitudes and Job satisfaction .............................................................................................. 8
Chapter 4 Personality and values .......................................................................................................... 9
Chapter 5 Perception and Individual Decision making ....................................................................... 12
Chapter 6 Motivation concepts........................................................................................................... 16
Chapter 7 Motivation - applications ................................................................................................... 19
Chapter 8 Emotion and moods ........................................................................................................... 21
Chapter 9 Foundation of Group Behavior ........................................................................................... 23
Chapter 10 Understanding work teams .............................................................................................. 27
Chapter 11 Communication ................................................................................................................ 28
Chapter 12 Leadership ........................................................................................................................ 32
Chapter 13 Contemporary Issues in Leadership ................................................................................. 36
Chapter 14 Power and Politics ............................................................................................................ 38
Chapter 15 Conflict and Negotiation .................................................................................................. 41
Chapter 1 What is Organizational Behavior

Managers Individuals who achieve goals through other people
-Functions - Planning
- Organizing
- Leading
- Controlling
Mi tz e g s Ma age e t Roles
Interpersonal
(Figurehead/Symbolic head; Leader/Responsible for Motivation; Liaison/Network outside)
Informational
(Monitor/nerve center; Disseminator/Info outside to organization; Spokesperson/Info organ. to out.)
Decisional
(Entrepreneur/Searches org. for opportunities; Disturbance handler/corrective actions; Resource
allocator/significant decisions; Negotiator/responsible for negotiations)
Ro e t Katz s Ma age e t Skills

Technical Skills ability to apply specialized knowledge or expertise
Human Skills ability to work with understand and motivate other people
Conceptual Skills mental ability to analyze and diagnose complex situations
Lutha s Stud of Ma age ial A ti ities Effective vs. Successful

1. Traditional Management decision making, planning, controlling
2. Communication exchanging routine information and processing paperwork
3. HRM motivation, disciplining, managing conflict, staffing, training
4. Networking socializing, politicking, interacting with outsiders

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Successful Manager Networking (48%), Communication (28%)

Effective Manager Communication (48%), HRM (26%)
Average Manager Traditional Management (32%), Communication (29%)
Organizational Behavior (OB) Field of study that investigates the impact that individuals, groups,
and structure have in behavior within organizations, for the purpose of applying such knowledge
to a d i p o i g a o ga izatio s effe ti e ess
Why studying OB?
Leadership (effective and successful) needs people skills!

The difference between making a career (or not) in a business context is people skills
Systematic Study Looking at relationships and drawing conclusions based on scientific evidence
vs.
Intuition A gut feeling not necessarily supported by research
Hindsight bias
Events in the past appear simple, comprehensible, and predictable in comparison to events in
the future
The hindsight bias is the tendency for people with outcome knowledge to believe falsely that
they would have predicted the reported outcome of an event. After learning of the
occurrence of an event, people tend to exaggerate the extent to which they had foreseen the
likelihood of its occurrence
Conducive to arrogance
Outcomes should have been foreseeable
Evidence-based management (EBM) Basing managerial decisions on the best available scientific
evidence
Use evidence as much as possible to inform your intuition and experience. That is the promise of OB.
Core Values of Science

Accuracy
Objectivity
Skepticism
Open-Mindedness
Research Methods
Systematic Observation- behavior is systematically observed and recorded
– Naturalistic observation—systematically observe behavior in natural settings (e.g.,
more absenteeism in times of organizational crisis)
– Surveys—large sample of people answers questions about their attitudes/behavior
e.g. Is ou leade effe ti e?
Experimental Research
– manipulates some factor to see its effect on another
– Why do an experiment?

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• Infer causal relationships between constructs

• Testing theoretical models
Contingency variables variable that moderate the relationship between two or more other variables
Misleading correlation (Study in Sweden/Towns with most nests have most babies)
Independent variable Manipulated variables (by researcher)
Dependent variable Measures the predicted effects of the independent variables
Randomization Participants are randomly put into a condition
Correlation Method based on systematic observation
Experimental Method
Contributing Disciplines
Psychology Science that seeks to measure, explain and sometimes change behavior of
humans
Social Psychology Area of psychology that blends concepts from psychology and sociology and
focuses on the influence of people on one another
Sociology Study of people on relation to their social environment or culture
Anthropology Study of societies to learn about human beings and their activities
Absolutes in OB Situational factors that make the main relationship between two variables
change—e.g., the relationship may hold for one condition but not another.
Challenges and Opportunities for OB

- Responding to Globalization
- Managing Workforce Diversity
- Improving Quality and Productivity
- Improving Customer Service
- Improving People Skills
- Stimulating Innovation and Change
- Working in Networked Organizations
- Helping Employees Balance Work-Life Conflicts
- Creating a Positive Work Environment
- Improving Ethical Behavior
Responding
- Increased foreign assignments
- Working with people from different cultures
- Coping with anti-capitalism backlash
- Overseeing movement of jobs to countries with low-cost labor
- Managing people during the war on terror
Developing an OB Model
Basic OB model has three levels of analysis. Each level is constructed on the prior level
Individual Level Group Level Organization system Level
Ethical dilemmas Situation in which individuals are required to define right and wring conduct
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Model An abstraction of reality

Dependent variables
productivity a performance measure that includes effectiveness and efficiency
effectiveness Achievement of goals
efficiency The ratio of effective output to the input required to achieve it
absenteeism failure to report to work
turnover voluntary and involuntary permanent withdrawal from an organization
deviant workplace behavior- ude eha io i a o ga izatio , hi h iolates its o s
organizational citizenship eha io OCB eha io that is ot pa t of e plo ee s fo al jo +
job satisfaction positi e feeli g a out o e s jo
Independent variables
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
Chapter 2 Foundation of individual behavior

Genetic and Cultural Transmission
Cultural Orientations and their implications for Management

- Nature of people
Mixture of good and evil: Emphasize training and development
Good/Evil: Emphasize selection and fit
- Relationship to other people
Individualistic: Academic and employment records are reviewed to select the best person for the job
Collectivistic: The closest relative of the chief executive is the best person for the job.
- Activity
Doing: You live to work. Being: You work to live.
- Space
Private: Executives hold important meetings in an office behind closed doors
Public: Executives hold important meetings in an open area with many interruptions from employees
and visitors
A cultural self-knowledge approach to managing (Earley/Erez 1997)

Situational and cultural aspects
Managerial practices and techniques
- Self-knowledge Employee Action
Types of Selves
- private self- I a a fu pe so
- public self- Most people thi k I a fu
- collective self- I g oup, I a the fu o e
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- possible selves- I hope to e a ite / o edia
Self-Concept a schema consisting of an organized collection of self-beliefs and self-perceptions

-Functions: - organizes and interprets personal experiences
- regulates our thoughts, feelings, behaviors
- controls social world by managing the impression we make on others
- assesses competence, verifies self-conceptions, and enhances self-image
Collectivism: great emphasis on

1. Views, needs, and goals, of the in-group rather than of oneself,
2. Social norms and duty defined by the in-group rather than on pleasure,
3. Beliefs shared with the in-group rather than on beliefs that distinguish
oneself from in-group, and
4. Great readiness to cooperate with in-group members.
Individualism: great emphasis on
1. O e s o ie s, eeds a d goals athe tha those of othe s,
2. On pleasure, fun, personal enjoyment rather than on social norms or duty
as defined by others,
. O e s eliefs that a e u i ue, a d . Ma i izi g o e s o out o es.
Ability A i di idual s apa it to pe fo the a ious tasks i a jo

Intellectual abilities needed to perform mental tasks; thinking, reasoning, and problem solving
Dimensions: Number aptitude, Verbal comprehension, Perceptual speed, Memory, In-,Deductive
reasoning, Spatial visualization
Physical abilities needed to perform physical tasks; strength, dexterity, flexibility
Dimensions: Strength Dynamic, Trunk, Static, Explosive Flexibility Extend, Dynamic Other Body
coordination, Balanca, Stamina
General mental ability (GMA) overall aspect of intelligence
Biographical characteristics
- Age
Turnover: Older person, less probable to quit job
Absenteeism: Older person, lower rate on voluntary absenteeism, higher on involuntary
Productivity: not related to age
Job Satisfaction: mixed evidence; General: satisfaction increases with age in prof. jobs,
decreases in nonprof. jobs
- Gender
Women prefer flexible working times and are more absent than men
- Race
Positively discrimination of own race, different approach to black and white race, African
American perform worse in employment assessments/decisions
- Tenure
+ correlation to Job satisfaction
+ correlation to productivity
- correlation to absenteeism (seniority)
The longer a person works in a company, less probable to quit (Turnover)

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- Religion
- Sexual orientation
- Gender identity
Learning A relatively permanent change in behavior that occurs as a result of experience

Theories of Learning
Classical Conditioning
- A type of conditioning in which an individual responds to some stimulus that would not
ordinarily produce such a response.
Operant Conditioning
- A type of conditioning in which desired voluntary behavior leads to a reward or prevents a
pu ish e t to a hie e hat he a t, eha e to a oid that he does t a t
Social-Learning Theory
- People can learn through observation and direct experience
Classical Conditioning
E pe i e t: Pa lo s Dog E pe i e t
Unconditioned stimulus A naturally occurring phenomenon.

Unconditioned response The naturally occurring response to a natural stimulus.
Conditioned stimulus An artificial stimulus introduced into the situation.
Conditioned response The response to the artificial stimulus.
Operant conditioning
Behaviorism A theory that argues that behavior follows stimuli in a relatively unthinking manner
Reinforcement the consequences of behavior which can increase or decrease the likelihood of
behavior repetition.
Unrewarded/punished behavior is unlikely to be repeated; we act in response to stimuli, but all

process takes place on unconscious level
Social Learning
Based on the idea that people can also learn indirectly: by observation, reading, or just hearing about
so eo e else s – a model s – experiences.
Attentional processes Must recognize and pay attention to critical features to learn
Retention processes Model s a tio s ust be remembered to be learned
Motor reproduction processes Wat hi g the odel s ehavior must be converted to doing
Reinforcement processes Positive incentives motivate learners
Shaping behavior Systematically reinforcing each successive step that moves an individual
closer to the desired respond
Four Methods of Shaping Behavior:
Positive reinforcement Providing a reward for a desired behavior (learning)

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Negative reinforcement Removing an unpleasant consequence when the desired behavior

occurs (learning)
Punishment Applying an undesirable condition to eliminate an undesirable
eha io u lea i g
Extinction Withholding reinforcement of a behavior to cause its cessation
u lea i g
Continuous reinforcement reinforcing a desired behavior each time it is demonstrated

(Compliments)
Intermitted reinforcement reinforcing not regular, happens often enough to make one behave in
a desired way repeatedly
Reinforcement schedule
Fixed-interval schedule reinforcement is applied after particular period of time (Paychecks)
Variable-interval schedule reinforcement is applied on irregular time basis
Fixed-ratio schedule reinforcement is applied after certain and constant amount
Variable-ratio schedule reinforcement is applied on unpredictable basis (Commissioned sales)
Expectancy theory predicts that employees in an organization will be motivated when they believe
- putting in more effort will yield better job performance
- better job performance will lead to organizational rewards, such as an increase in salary or
benefits
- these predicted organizational rewards are valued by the employee in question.
OB Mod The application of reinforcement concepts to individuals in the work setting (5 Steps)
• 1 Identify critical behaviors
• 2 Develop baseline data
• 3 Identify behavioral consequences
• 4 Develop and apply intervention
• 5 Evaluate performance improvement
Cultural Intelligence Theory positing that understanding the impact of an individual's cultural
background on their behavior is essential for effective business, and measuring an individual's ability
to engage successfully in any environment or social setting
Cognitive
- Declarative and procedural knowledge
- Meta-Strategies
Motivational
- Efficacy
- Goals and Effort
- Perseverance
Behavioural
- Repertoire
- Mimicry
- Habits and Rituals

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Self-Efficacy o e s o fide e i a ilit to pe fo a task o ea h a goal
Process Aspects
Declarative (what I know about something)
Procedural (what I know about how something operates)
Three levels
Universal: processes and knowledge for general processing of a universal conception of
humanity
Mediate level: processes and knowledge that is culture-specific
Setting-specific level: processes and knowledge that is specifically tied to the context, people
and timing of events
Chapter 3 Attitudes and Job satisfaction
Attitudes Evaluative statements or judgments concerning objects, people or events
-Cognitive component opinion or belief segment of an attitude, describing things how they
are (Evaluation)
-Affective component emotional or feeling segment of an attitude (Feeling)
-Behavioral component intention to behave in a certain way toward someone or something
(Action)
Theory of planned behavior

Attitude to Beha io I fo ph si al fit ess , Su je t o s eigh o joggi g , Perceived Behavioral
Control (I could easily do this) Intention (I start tomorrow) Behavior
Does Behavior Always Follow from Attitudes? NO

- Self-presentation theory / Impression Management
- Cognitive dissonance - Any incompatibility between two or more attitudes or between
behavior and attitudes (Leon Festinger (1957))
- Self-perception theory
Experiment by Festinger & Carlsmith Insufficient Justification
Major Job Attitudes

Job satisfaction A positi e feeli g a out o e s jo esulti g f o e aluatio of its
characteristics
Job Involvement degree a person identifies with job, considers performance important to self-
worth
Psychological empowerment belief in the degree to which they affect their work environment
Organizational Commitment e plo ee s ide tifi atio ith o pa s goals
- Affective Commitment emotional attachment to organization
- Continuance Commit. Perceived financial benefit to stay in firm
- Normative Commit. Feeling obligated to stay in company because of morals/ethic

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Perceived Organizational Support (POS) degree to which employees belief that the
organization supports them
Employee engagement e plo ee s e thusias fo the o k he does
Job satisfaction
1987 61% (Pay and promotion are the most problematic elements)
1995 59%
2005 52%
2006 47%
1) Single global rating (one question/one answer)
- All thi gs o side ed, ho satisfied a e ou ith ou jo ?
2) Summation score (many questions/one average)
Pay influences job satisfaction only to a point:

After about $40,000 a year (in the U. S.), there is no relationship between amount of pay and job
satisfaction.
Employee Responses to Dissatisfaction

• Exit (Active/Destructive)
Behavior directed toward leaving the organization
• Voice (Active/Constructive)
Active and constructive attempts to improve conditions
• Neglect (Passive/Destructive)
Allowing conditions to worsen
• Loyalty (Passive/Constructive)
Passively waiting for conditions to improve
Despite the overwhelming evidence of the impact of job satisfaction on the bottom line, most
managers are either unconcerned about or overestimate worker satisfaction!
Western workers appear to be more satisfied than those in Eastern cultures.
Job Satisfaction
Denmark
Switzerland
USA
…
Russia
Hungary
Japan
Chapter 4 Personality and values
Personality The sum total of ways in which an individual reacts to and interacts with others

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Heredity Factors determined at conception: physical stature, facial attractiveness, gender,

temperament, muscle composition and reflexes, energy level, and bio-rhythms
Personality Traits E du i g ha a te isti s that des i e i di idual s eha io
Myers-Briggs Type Indicator (MBTI)

Personality test / 4 Characteristics / 16 Types
- Extraverted / Introverted
- Sensing / Intuitive
- Thinking / feeling
- Judging / Perceiving
Each of the sixteen possible combinations has a name, for instance:

- Visionaries (INTJ) – original, stubborn, and driven
- Organizers (ESTJ) – realistic, logical, analytical, and businesslike
- Conceptualizer (ENTP) – entrepreneurial, innovative, individualistic, and resourceful
- Intuitive Thinkers (NTs) only 5 % of population
The Big Five Personality Model

Personality assessment / 5 Basic dimensions
- Extraversion sociable, gregarious, assertive
- Agreeableness good natured, cooperative, trusting
- Consciententiousness responsible, dependable, persistent, organized
- Emotional stability calm, self-confident, secure (+); nervous, depressed, insecure (-)
- Openness to experience imagination, sensitivity, curiosity
Disadvantage: It forces a person to be categorized as either one type or another
Other OB Models
Core self-evaluation degree to which individual likes or dislikes him-/herself
Machiavellianism degree to which individual maintains emotional distance good negotiator
Narcissism tendency to be arrogant, great sense of self-importance good leader
Self-monitoring measures ability to adjust behavior to external, situational factors
Risk taking willingness to take changes, take risk
Type A personality people who are highly competitive, aggressive in pursuing their goals (USA: +)
(Type B) never hurry, more relaxed; Type A is better in work interviews and work
Proactive personality person identifies opportunities, shot initiative, take action
Values
Basic convictions on how to conduct yourself or how to live your life that is personally or socially
preferable – Ho To li e life p ope ly.
Value system hie a h ased o i di idual s alues i te s of thei intensity

Terminal values desirable end-states of existence; goals a person would like to achieve in life
Instrumental values p efe a le odes of eha io o ea s of a hie i g o e s te i al alues
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Value difference between groups

Executives (e.g. Self-respect, Family security, freedom, …, happi ess)
Union members (e.g. Family security, freedom, happiness, self- espe t,…
Activist (e.g. Equality, A world of peace, Family security, self-respect, freedom)
S h a tz Value Model
- Empirical support in over 40 countries
- Values as motivational constructs
-
Generation value
Veterans (1950s-eraly 1960s) Hardworking, loyal, conservative
Boomers (1965-1985) Success, carrier-orientated, ambition
Xers (1985-2000) Work/life balance, team-orientated, dislike rules
Nexters (2000 to present) Confident, financial success, self-reliant & team-orientated
Linking personality and values
Joh Holla d s Personality-Job Fit Theory

Six personality types
Realistic – Investigative – Artistic – Social – Enterprising – Conventional (- Realistic – I est….
The closer the occupational fields, the more compatible.
Key Points of the Model:
- There appear to be intrinsic differences in personality between people
- There are different types of jobs
- People in jobs congruent with their personality should be more satisfied and have lower
turnover
Person-Organization Fit:
- The e plo ee s pe so alit ust fit ith the o ga izatio al ultu e.
- People are attracted to organizations that match their values.
- Those who match are most likely to be selected.
- Mismatches will result in turnover.
- Can use the Big Five personality types to match to the organizational culture.
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Hofstede s F a e o k fo assessing culture – five value dimensions:

• Power Distance
• Individualism vs. Collectivism
• Masculinity vs. Femininity
• Uncertainty Avoidance
• Long-term vs. Short-term Orientation (Explanation p. 159)
GLOBE Framework for Assessing Cultures

Global Leadership and Organizational Behavior Effectiveness (GLOBE) research program.
- Nine dimensions of national culture
Si ila to Hofstede s f a e o k ith these additio al di e sio s:
- Humane Orientation: how much society rewards people for being altruistic, generous,
and kind.
- Performance Orientation: how much society encourages and rewards performance
improvement and excellence.
Chapter 5 Perception and Individual Decision making
Perception A process by which individuals organize and interpret their sensory impressions in
order to give meaning to their environment
Factors that Influence Perception

Factors in the perceiver Attitudes, Interests, Motives, Experience, Expectations
Factors in the situation Time, Work setting, Social setting
Factors in the target Novelty, Motion, Sounds, Size, Background, Proximity, Similarity
Attribution Theory an attempt to deter i e hethe a i di idual s eha io is i te all o

externally caused
Internal causes u de that pe so s o t ol (personality characteristics, beliefs)
External causes not – person forced to act in that way (situational pressure, influence)
Determine whether it is external or internal caused:

Harold Kelley (1967)
Consensus:
Do others behave similarly in this situation?
Consistency:
Does the person usually behave this way in this situation?
Distinctiveness:
Does the person behave similarly in different situations?
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Mental shortcuts individuals use in making judgments about others
Fundamental attribution error The tendency to underestimate the influence of external

factors and overestimate the influence of internal factors
when making judgments about the behavior of others
– We blame people first, not the situation
Self-Serving Bias The tendency for individuals to attribute their own successes
to internal factors while putting the blame for failures on
external factors
– It is ou su ess ut thei failu e
Selective Perception People selectively interpret what they see on the basis of their
interests, background, experience, and attitudes
Halo Effect Drawing a general impression about an individual on the basis of a
single characteristic
Contrast Effects E aluatio of a pe so s ha a te isti s that a e affe ted
comparisons with other people recently encountered who rank higher
or lower on the same characteristics
Stereotyping Judgi g so eo e o the asis of o e s pe eptio of the group to
which that person belongs
Profiling A form of stereotyping in which members of a group are singled out
for intense scrutiny based on a single, often racial, trait
Employment Interview
– Perceptual biases of raters affect the accuracy of i te ie e s judg e ts of
applicants
– Formed in a single glance – 1/10 of a second!
Performance Expectations
– Self-fulfilling prophecy (Pygmalion effect): The lower or higher performance of
employees reflects preconceived leader expectations about employee capabilities
Performance Evaluations
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– Appraisals are often the subjective (judgmental) perceptions of appraisers of another

e plo ee s jo pe fo a e
– Critical impact on employees
Decision-Making
Problem A perceived discrepancy between the current state of affairs and a desired state
Decisions Choices made from among alternatives developed from data
Rational Characterized by making consistent, value-maximizing choices within specific
constraints (not highly valued across culutures)
Link between Perception and Individual decision making

All elements of problem identification and the decision making process are influenced by perception
a) Rational decision-making model A decision-making model that describes how individuals

should behave in order to maximize some outcome
Pe fe t a of solving problems
Steps:
1. Define problem
2. Identify the decision criteria
3. Allocate weights to the criteria
4. Develop alternatives
5. Evaluate alternatives
6. Select the best alternative
b) Bounded rationality process of making simplified models for complex problems

c) Intuitive decision making unconscious process created out of distilled experience
Common biases and errors in decision making
- Overconfidence bias we overestimate our abilities and knowledge in decision making

- Anchoring bias using early, first received information as the basis for making
subsequent judgments
- Confirmation bias selecting and using only facts that support our decision
- Availability bias basing decisions on information that is already gathered
- Escalation of commitment increase commitment to a previous decision in spite of negative info
- Randomness error tendency to believe that one can predict random events
- Wi e s u se Winner always pays too much for the winning item in an auction
- Hindsight bias after an outcome is already known, believing it could have been
accurately predicted beforehand
Organizational constrains
- Performance evaluation managers are influenced in decision-making by criteria by their later
evaluation
- Reward system reward system in an organization influences decision-making
- Formal regulations decisions which are made have to fit to regulations and rules
- System-imposed time constraints deadlines influence decision making
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- Historical precedents toda s hoi e is i flue ed past hoi es
Ethics in decision making

Utilitarianism decisions are made to get greatest good for greatest number
(+) efficiency, productivity
(-) ignoring rights of individuals
Rights respecting and protecting basis rights of individuals (e.g. Whistle-blowers)
(+) gives individual freedom, rights
(-) law-bases environment hinders productivity
Whistle-blowers Individuals who report unethical practices by their employer to outsiders
Justice Imposing and enforcing rules fairly and impartially

(+) protects rights of underrepresented
(-) creates sense of entitlement, reduces risk taking
Creativity ability to produce novel and useful ideas

Who has the greatest creative potential?
- Those who score high in Openness to Experience
- People who are intelligent, independent, self-confident, risk-taking
Three component model of creativity
The proportion that individual creativity requires

- Expertise (is the foundation)
- Task Motivation (is the desire to do the job because of
its characteristics)
- Creative thinking skills (are the personality
characteristics associated with creativity)
Global consequences
Attributions - attributions which people make differ across countries; no to be aware
Decision-Making - culture has influence on the decision-making process
Ethics - No global ethical standards exist (e.g. Asian countries tend not to see ethical
issues i la k a d hite ut as shades of g a )
- Global companies need global standards for managers
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Chapter 6 Motivation concepts
Motivation The p o esses that a ou t fo a i di idual s i te sit , di e tio , a d

persistence of effort toward attaining a goal – specifically, an organizational
goal
Three key elements:
Intensity how hard a person tries
Direction lead to the desired outcome
Persistence how long a person can maintain effort
Early Theories of Motivation

a) Hie a h of Needs Theo A aha Maslo s
Hierarchy of 5 needs, in which, as each need it sustainably satisfied, the next need becomes dominant
1st Level Physiological (hunger, thirst, shelter, sex)

2nd Level Safety (security, protection) lower order needs
3rd Level Social (friendship, belongingness)
4th Level Esteem (respect, status, recognition)
5th Level Self-actualization (self-fulfillment) higher order needs
a.1) ERG theory A theory that posits three groups of core needs: Existence, relatedness,
growth
b) Theory X and Theory Y
Theory X The assumption that employees dislike work, are lazy, dislike responsibility,
and must be coerced to perform
Theory Y The assumption that employees like work, are creative, seek responsibility,
and can exercise self-direction
c) He z e g s T o-Factor Theory
Key Point: Satisfaction and dissatisfaction are not opposites but separate constructs
Hygiene factors Factors; such as company policy and administration, supervision, salary, work
conditions; that, when adequate in a job, placate workers. When these factors
are adequate, people will not be satisfied.
vs.
Motivators such as growth, responsibility, achievement, recognition
He z e g s Theo is idel iti ized
d) M Clella d s Theo of Needs
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A theory which states that achievement, power, and affiliation are three important need that help
explain motivation
Need for achievement (nAch) The drive to excel, to achieve in relation to a set of standards,
to strive to succeed
Need for Power (nPow) The need to make others behave in a way that they would not
have behaved otherwise
Need for Affiliation (nAff) The desire for friendly and close interpersonal relationships
People have varying levels of each of the three needs: Hard to measure
High nAch: avoiding very low or high risk situations

not necessarily make good managers
Contemporary Theories of Motivation
a) Cognitive Evaluation Theory A theory that states that allocating extrinsic rewards for
behavior that had been previously intrinsically rewarding trends to decrease that overall level
of motivation
Providing an extrinsic reward for behavior that had been previously only intrinsically
rewarding tends to decrease the overall level of motivation
– Extrinsic rewards decrease intrinsic rewards
– Pay should be noncontingent on performance
– Verbal rewards increase intrinsic motivation; tangible rewards reduce it
Self-concordance theory
– When the personal reasons for pursuing goals are consistent with personal interests
and core values (intrinsic motivation), people are happier and more successful
b) Locke’s Goal-Setting Theory A theory that says that specific and difficult goals, with
feedback, lead to higher performance
Relationship between goals and performance depends on:

– Goal commitment (the more public the better!)
– Task characteristics (simple, well-learned)
– Culture (best match is in North America)
Management by objectives (MBO) A program that encompasses specific goals, anticipatively set,
for an explicit time period, with feedback on goal progress
Setting SMART goals
c) Self-efficacy Theory (Albert Bandura) A i di idual s elief that he o she is apa le of

performing a task and can achieve a goal
Four ways to increase self-efficacy
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1. Enactive mastery gaining relevant experience with the task

2. Vicarious modeling more confidence watching someone else doing the task
3. Verbal persuasion more confidence because someone convinces you that you have the
necessary skills
4. Arousal arousal leads to an energized state, which drives a person to complete
a taks
d) Reinforcement Theory A theory that says that behavior is a function of its consequences
e) Ada s’ E uity Theo y Employees compare their ratios of outcomes-to-inputs of relevant

others.
Comparisons:
1. Self-inside e plo ee s e pe ie e i a diffe e t positio i the o ga izatio
2. Self-outside e plo ee s experience outside the current organization
3. Other-inside another individual/group inside the organization
4. Other-outside another individual/group outside the current organization
When ratios are unequal: tension exists due to unfairness

- Underrewarded states cause anger
- Overrewarded states cause guilt
Employee behaviors to create equity:

- Change inputs (slack off)
- Change outcomes (increase output)
- Distort/change perceptions of self
- Distort/change perceptions of others
- Choose a different referent person
- Leave the field (quit the job)
e.1) Justice and Equity Theory

• Distributive Justice Fairness of outcome
• Procedural Justice Fairness of outcome process
• Interactional Justice Being treated with dignity and respect ___________________
Organizational Justice Overall perception of what is fair in the workplace.
f) Expectancy Theory (Victor Vroom) strength to act depends on strength of expectation by

a given outcome and on the attractiveness of that outcome to the individual
i) Effort-performance relationship The ha de I t , the ette out o e ill e

ii) Performance- e a d elatio ship The o e I sell, the highe the o us I ill get
iii) Reward-pe so al goal elatio ship The highe o us I get, the ette a I ill u
Motivation theories are often culture-bound:
Not global Maslo s Hie a h of Needs Theo
M Clella d s Th ee Needs Theo
Ada s E uit Theo
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Desire for interesting work seems to be universal He z e g s two factor Theory

Average work hours per week:
1. South Korea 46.7
2. Greece 39.9
3. Hungary 38.6
… 1 . USA…
27. Germany 27.8
28. Netherlands 26.1
29. Norway 26.0
Chapter 7 Motivation - applications
Job Characteristics Model (JCM)

Ha k a a d Oldha s o ept that a jo a e des i ed th ough fi e o e jo di e sio s:
Skill variety Requirements for different tasks in the job.
Task identity Completion of a whole piece of work.
Task significance The jo s i pa t o othe s.
Autonomy Level of discretion in decision making.
Feedback Amount of direct and clear information on performance.
Motivating Potential Score (MPS) A predictive index that suggest the motivating
potential
of a job
Redesign of jobs
Job Rotation The periodic shifting of a worker from one task to another
Job Enlargement Increasing the number and variety of tasks that an individual performs (horiz.)
Job Enrichment Increasing the degree to which the worker controls the controls the planning,
execution and evaluation of the work (vertical)
Guidelines for Enriching a Job

- Suggest Action Core Job Dimensions
- Combine tasks - Skill variety
- Form natural work units - Task identity
- Establish client relationships -Task significance
- Expand jobs vertically -Autonomy
- Open feedback channels -Feedback
Alternative Job arrangements

Flextime flexible work hours (everybody has to be at workplace at core time)
Job sharing two or more workers share a 40-hour week job
Telecommuting working from home (The Virtual Office: permanent from home)
- Advantages of Telecommuting are e.g. lower turnover, disadvantages are e.g. the
missing control by a supervisor and problems to coordinate teamwork
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Ability and Opportunity

Performance = Ability *Motivation * Opportunity
Employee Involvement A participative process that uses the input of employees to

increase their commitment to the o ga izatio s su ess.
Programs:
a) Participative Management joint decision between employees and their supervisors
b) Representative participation representative employees take part in decision making for all
employees
c) Quality circle work group of employees who meet to discuss quality
problems, take corrective actions and make presentations to the management
Rewards as motivation
a) What to pay?
Internal equity The worth of the job to the organization
External equity The competitiveness of the compa s pa elati e to pa else he e i the
industry
Choose organizational position
Pay leaders Greater employee loyalty; Attracts better-quality employees
Pay laggards accept high turnover for low hourly costs
b) How to Pay - Variable Pay Programs

A pay pla that ases a po tio of a e plo ee s pa o so e i di idual easu e of pe fo a e
Piece-rate pay plan workers are paid a fixed sum for each unit of production completed
Merit-based pay plan based on performance appraisal ratings
Skill-based pay sets pay levels on the basis of how many skills employees have
Profit-sharing plans organizationwide program that distributes compensation based on
some established formula
Gainsharing An incentive plan in which improvements in group productivity
determine the total amount of money that is allocated
Employee Stock Ownership Plans (ESOPs) Company-established benefit plans in which
employees acquire stock as part of their benefits
c) Flexible benefits Employees tailor their benefit program to meet their personal need
by picking and choosing from a menu of benefit options.
Modular Plans Predesigned benefits packages for specific groups of employees
Core-Plus Plans A core of essential benefits and a menu-like selection of other benefit options
Flexible Spending Plans Allow employees to use their tax-free benefit dollars to purchase
benefits and pay service premiums
d) Employee Recognition Programs

Intrinsic Rewards Stimulate Intrinsic Motivation, Personal attention given to employee
Approval and appreciation for a job well done
Benefits of Programs Fulfill e plo ees desi e fo e og itio , Inexpensive to implement
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Drawbacks of Programs Susceptible to manipulation by management
Chapter 8 Emotion and moods
Affect a broad range of feelings that people experience ( Emotions and Moods)
Emotions Intense feelings that are directed at someone or something
Moods feelings that tend to be less intense than emotions and that lack a contextual
stimulus
Emotions were ignored in OB because they were seen as Emotions were seen as irrational and it was
believe that they are disruptive
While not universally accepted, there appear to be six basic emotions:

1. Anger
2. Fear
3. Sadness
4. Happiness
5. Disgust
6. Surprise
Basic Moods: Positive and Negative Affect
The Structure of Mood
- E otio s a t e eut al
Positive affect a mood dimension that consists of specific positive emotions such as
excitement, self assurance, and cheerfulness at the high end and boredom
and tiredness at the low end
Negative affect a mood dimension that consist of emotions such as nervousness, stress and
anxiety at the high end and relaxations and poise at the low end
Positivity offset the tendency of most individuals to experience a mildly positive mood at zero
input
Function of Emotion
Do Emotions Make Us Irrational?

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- Emotions are critical to rational decision-making

- Emotions help us understand the world around us
What Functions Do Emotions Serve?
- Darwin argued they help in survival problem-solving
- Evolutionary psychology: people must experience emotions as there is a purpose
behind them, serve to protect ourselves when we feel that we are threatened
Sources of Emotion and Mood

Personality affect intensity Individual differences in the strength with
which they experience their emotions
Day and Time of the Week common pattern: Happier toward the end of the week and around
3pm
Weather Illusory correlation (tendency of people to associate two events when
in reality there is no connection)
Stress Even low levels of constant stress can worsen moods
Social Activities Physical, informal, and dining activities increase positive moods
Sleep Poor sleep quality increases negative affect
Exercise Does somewhat improve mood, especially for depressed people
Age Older folks experience fewer negative emotions
Gender Women tend to be more emotionally expressive, feel emotions more
intensely, have longer-lasting moods, and express emotions more
frequently than do men
Emotional Labor A e plo ee s e p essio of o ga izatio all desi ed e otio s during

interpersonal transactions at work
Emotional dissonance Employees have to project one emotion while simultaneously feeling
another
Felt emotions a i di idual s a tual e otio s
Displayed emotions emotions that are organizationally required and considered
appropriate in a given job
- Surface acting hidi g o e s i e feeli gs a d displaying appropriately
- Deep acting t i g to odif o e s i e feeli gs ased o displa ules
Affective Events Theory (AET)

A model that suggests that workplace events cause emotional reactions on the part of employees,
which then influence workplace attitudes and behaviors
- Both negative and positive emotions can distract workers and reduce job
performance
- Emotions provide valuable insights about behavior
- Emotions, and the minor events that cause them, should not be ignored at work: they
accumulate
Emotional Intelligence (IE)

A pe so s a ilit to (1) be self-aware (recognizes own emotions when experienced)
(2)detect information in others
(3) manage emotional cues and information
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- EI is controversial and not wholly accepted

Case for EI (+) Intuitive appeal; predicts criteria that matter; is biologically-based.
Case against EI (-) Too ague a o ept; a t e easu ed; its alidit is suspe t
OB applications of moods and emotions

Selection more and more employers use EI in tests in hiring
Decision making influence on decision making
Creativity good modes lead to creativity
Motivation organizations which promote positive moods are likely to have motivated em
Leadership Leaders should usually display emotions
Negotiation Mood and emotions are negative for negotiations
Customer Service e otio al o tagio p o ess hi h peoples e otio s a e ause
emotions of others)
Job attitudes good/bad day at work good/bad mood
Deviant workplace behavior negative emotions lead to deviant workplace behavior
Global:
- Do people experience emotions equally?
- No. Culture can determine type, frequency, and depth of experienced emotions
- Do people interpret emotions the same way?
- Yes. Negative emotions are seen as undesirable and positive emotions are desirable
- However, value of each emotion varies across cultures
- Do norms of emotional expression vary?
- Yes. Some cultures have a bias against emotional expression; others demand some
display of emotion
- Ho the e otio s a e e p essed a ake i te p etatio outside of o e s ultu e
difficult
Extra Lecture 6: Attraction & Persuasion

Reward Theory of Attraction
We like those whose behavior is rewarding to us, or whom we associate with rewarding events
Need for Affiliation
Similarity-Attraction
attitude similarity discovering similarity in attitudes, beliefs, values, and interests
reciprocal positive evaluations expressing positive evaluations for each other (flattery)
Persuasion
• Central route to persuasion (analytical)
• Peripheral route to persuasion (not analytical)
Chapter 9 Foundation of Group Behavior

Group Two or more individuals interacting and interdependent, who have come together to
achieve particular objectives
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Types
Formal group work group defined by organizational structure
Informal group it is not formally structured, formed by the needs of social contacts
Command group group composed of people who report directly to a manger
Task group people working together to complete a task
Interest group people working together to attain a specific objective
Friendship group people brought together because they share common characteristics
Reasons to join a group: security, status, self-esteem, affiliation, power and goal-achievement
Has the presence of others an effect on us? (Robert Zajonc ) Arousal as key mechanism
Five-Stage model (of group development)

Stage 1 Forming stage characterized by much uncertainty
Stage 2 Storming stage characterized by intragroup cinflict
Stage 3 Norming stage characterized by close relationship and cohesiveness
Stage 4 Performing stage group is fully functional
Stage 5 Adjourning stage temporary groups: concerned with wrapping up
Critique:
- Not always true – group behavior is more complex
- High levels of conflict may be conducive to high performance
- Several stages may occur simultaneously
Te po a y g oups ith deadli es do ’t follo the fi e-stage model
Punctuated-equilibrium model
Temporary groups under

deadlines go through
transitions between inertia and
activity—at the halfway point,
they experience an increase in
productivity.
Group properties
1.) Role A set of expected behavior patterns attributed to someone occupying a given position
in a social unit
Role Identity Certain attitudes and behaviors consistent with a role
Role Perception A i di idual s ie of ho he o she is supposed to act in a given situation
Role Expectations How others believe a person should act in a given situation
Psychological Contract: an unwritten agreement that sets out mutual expectations of
management and employees
Role Conflict A situation in which an individual is confronted by divergent role expectations
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Zi a do s P iso E pe i e t
2.) Norms Acceptable standards of behavior within a group that a e sha ed the g oup s
members
Classes of Norms
Performance norms level of acceptable work
Appearance norms what to wear
Social arrangement norms friendships and the like
Allocation of resources norms distribution and assignments of jobs and material
Hawthorne Studies (people behave different when observed)

As h s Stud Of Co fo it (37 % incorrect answers, p essu e
Deviant Workplace Behavior

Also called antisocial behavior or workplace incivility (Cheating high in group, stealing, lying)
Typology:
Production working speed
Property damage and stealing
Political favoritism and gossip
Personal Aggression sexual harassment
3.) Status A socially defined position or rank given to groups or group members by
others – it differentiates group members
Status Characteristics Theory

Status derived from one of three sources:
- Power a person has over others
- Ability to contribute to group goals
- Personal characteristics
4.) Size
Group size affects behavior
– T el e o o e e e s is a la ge g oup
– Seven or fe e is a s all g oup
Problems:
Social loafing the tendency for individuals to expend less effort when working collectively
than when working individually
5.) Cohesiveness Degree to which group members are attracted to each other and are
motivated to stay in the group
Managerial Implication to increase cohesiveness:

- Make the group smaller.
- Encourage agreement with group goals.
- Increase time members spend together.
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- Increase group status and admission difficulty.

- Stimulate competition with other groups.
- Give rewards to the group, not individuals.
Group decision making
Group Strengths:
– Generate more complete information and knowledge
– Offer increased diversity of views and greater creativity
– Increased acceptance of decisions
– Generally more accurate (but not as accurate as the most accurate group member)
Group Weaknesses:
– Time-consuming activity
– Conformity pressures in the group
– Discussions can be dominated by a few members
– A situation of ambiguous responsibility
Groupshift a change in decision risk between a group s de isio that a e e ithi the g oup
would make; the shift can be toward either conservatism or greater risk
Groupshift / Group-Polarization
James Stoner, 1961 (master thesis!)
- First individual decision on such scenarios
- Afterwards group decisions
Groupthink phenomenon on which the norm for consensus overrides the realistic appraisal of
alternative courses of action
Symptoms:
- Group members rationalize any resistance to the assumptions they have made
- Members who have doubts or differing points of view keep silent about misgivings
Minimize Groupthink by:
- Reduce the size of the group to 10 or less
- Encourage group leaders to be impartial
Group Decision-making Techniques

Interacting groups typical groups in which members interact with each other face-to-face
Brainstorming An idea-generating process designed to overcome pressure for conformity
Not efficient
Nominal group technique group decision-making method in which individual members meet
face-to-face to pool their judgments, but before each member
independently write down ideas on the problem
Electronic meeting uses computers to hold large meetings of up to 50 people
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Chapter 10 Understanding work teams
Workgroup A group that interacts primarily to share information and to make decisions to
help each group member perform within his or her area of responsibility
Work team group whose individual efforts result in performance that is greater than the
sum of the individual inputs
Work group Work team

Goal share information Collective performance
Synergy Neutral (sometimes negative) Positive
Accountability Individual Individual and mutual
Skills Random and varied Complementary
Types of teams:
Problem-Solving Teams Groups of 5 to 12 employees from the same department who meet
for a few hours each week to discuss ways of improving quality,
efficiency, and the work environment
Self-Managed Work Teams Groups of 10 to 15 people who take on the responsibilities of their
former supervisors
Cross-Functional Teams Employees from about the same hierarchical level, but from different
work areas, who come together to accomplish a task
Virtual Teams Teams that use computer technology to tie together physically
dispersed members in order to achieve a common goal
Creating effective teams

Adequate Resources Need the tools to complete the job
Effective Leadership and Structure Agreeing to the specifics of work and how the team fits
together to integrate individual skills,
E e self- a aged tea s eed leade s,
Leadership especially important in multi-team systems
Climate of Trust Members must trust each other and the leader
Performance and Rewards Systems that Reflect Team Contributions cannot just be based on
individual effort
Composition
Abilities of Members Need technical expertise, problem-solving, decision-making, and good
interpersonal skills
Personality of Members Conscientiousness, openness to experience, and agreeableness
Allocating Roles and Diversity Many necessary roles must be filled
Organizational demography (degree to which members share
common demographic attribute)
Size of Team The smaller the better: 5 to 9 is optimal
Me e s P efe e e fo Tea o k Do the members want to be on teams?
Work design ( Chapter 7)

Freedom and Autonomy Ability to work independently
Skill Variety Ability to use different skills and talents
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Task Identity Ability to complete a whole and identifiable task or product

Task Significance Working on a task or project that has a substantial impact on others
Process
Commitment to a Common Purpose Create a common purpose that provides direction
Have reflexivity: willing to adjust plan if necessary
Establishment of Specific Team Goals Must be specific, measurable, realistic, and challenging
Team Efficacy Team believes in its ability to succeed
Mental Model Have an accurate and common mental map of how the work
gets done
A Managed Level of Conflict Task conflicts are helpful; interpersonal conflicts are not
Minimized Social Loafing Team holds itself accountable both individually and as a team
Turning Individuals into Team Players

Selection Make team skills one of the interpersonal skills in the hiring process.
Training Individualistic people can learn
Rewards Continue to recognize individual contributions while still emphasizing
the importance of teamwork
Teams take more time and resources than does individual work.
1. Is the work complex and is there a need for different perspectives
2. Does the work create a common purpose
3. Are members of the group involved in interdependent tasks?
Team Cultural Diversity and Team Performance

- Diversity caused by national differences interferes with team efficiency, at least in the short
run
- After about three months the differences between diverse and non-diverse team
performance disappear
Companies like Hewlett-Packard, Boeing, Ford, and GE have been heavy users of virtual teams.
Chapter 11 Communication
Communication the transfer and understanding of meaning
Functions of Communication
1. Control
2. Emotional expression
3. Motivation
4. Information
If not satisfied:
- Severe consequences for our psychic well being and our physical health
- Permanent loneliness can lead to depression, alcoholism or misuse of other drugs
- Break off of communication between married couples one of the few agreed on reasons for
unhappy marriages
- Ageing and even death can be accelerated by a lack of communication
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Communication process
The steps between a source and a receiver that result in the transference and understanding of
meaning
1. The Sender initiates message

2. Encoding translating thought to message
3. The Message what is communicated
4. The Channel the medium the message travels through
5. Decoding the e ei e s a tio i aki g se se of the essage
6. The Receiver person who gets the message
7. Noise things that interfere with the message
8. Feedback a return message regarding the initial communication
Formal channels are established by the organization and transmit messages that are
related to the professional activities of members
Informal channels used to transmit personal or social messages in the organization.
These informal channels are spontaneous and emerge as a response
to individual choices
Direction of Communication
Downward Communication Communication flows from upper level to lower in the organizational
hierarchy
Upward Communication flows from lower to higher levels in the organizational hierarchy
Lateral Communication Communication between members on the same level
Interpersonal Communication
Oral Communication (+) Speed and feedback
(-) Distortion of the message
Written Communication (+) Tangible and verifiable
(-) Time-consuming and lacks feedback
Nonverbal Communication (+) Supports other communications and provides observable
expression of emotions and feelings
(-) Misperception of body language or gestures can influence
e ei e s interpretation of message
- Eye contact
- Body posture
- Head and Facial Movements
- Vocal quality
- Distracting personal habits
Exerting social control

- Li guisti tools: o e satio eaks, to efe to the o e satio pa t e as ‚ e i stead of
‚ ou a d ‚I
- non-verbal behaviour and conversation structure
one talks more than the conversation partner
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one interrupts the conversation partner

one talks less and asks more instead and so avoids talking about oneself
one uses formal expressions
one gazes at the other
one takes an obviously relaxed position
Impression Management
The existence of control indicators in the conversation style of a person influences the evaluation of
her social position and her general competence
- the use of differentiated vocabulary
- a high talking speed
- a socially recognised pronunciation
Formal communication networks

a) Formal Small-Group Networks
Chain: Rigidly follows the chain of command
Wheel: Relies on a central figure to act as the conduit for all communication
Team with a strong leader
All Channel: All group members communicate actively with each other
Self-managed teams
TYPES OF NETWORKS
Criteria Chain Wheel All Channel
Speed Moderate Fast Fast
Accuracy High High Moderate
Emergence of a leader Moderate High None
Member satisfaction Moderate Low High
b) The Grapevine o ga izatio s i fo al o u i atio et o k

Three Main Grapevine Characteristics
- Informal, not controlled by management
- Perceived by most employees as being more believable and reliable than formal
communications ((+) 75% hear information first through rumors in the grapevine)
- Largely used to serve the self-interests of those who use it
The Grapevine se es e plo ee s so ial eeds
Reducing rumors
1. Announce timetables for making important decisions
2. Explain decisions and behaviors 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—they are almost never as anxiety-provoking as the
unspoken fantasy
c) Electronic Communications
i) Email
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Advantages: quickly written, sent, and stored; low cost for distribution
Disadvantages: Messages are easily and commonly misinterpreted
Not appropriate for sending negative messages
Overused and overloading readers
Diffi ult to get e otio al state u de stood – emoticons
ii) Instant/Text Messaging
Fo s of eal ti e o u i atio of short messages that often use portable communication
devices
Instant Messaging Immediate e- ail se t to e ei e s desktop o de i e
Text Messages Short messages typically sent to cell phones or other handheld devices
iii) Networking Software

Linked systems organically spread throughout the nation and world that can be accessed by a PC ,
e.g. Facebook, Myspace
iv) Knowledge Management

The p o ess of o ga izi g a d dist i uti g a o ga izatio s olle ti e isdo so the ight
information gets to the right people at the right time
Choice of Communication Channel

A i h ha el is o e that can:
- Handle multiple cues simultaneously
- Facilitate rapid feedback
- Be very personal
High-performing managers tend to be very media-sensitive
Media richness model
Hig
h
rich
nes
s
Common barriers to effective communication

Filtering A se de s anipulation of information so that it will be seen more favorably
by the receiver
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Selective Perception People selectively interpret what they see on the basis of their interests,
background, experience, and attitudes
Information Overload A condition in whi h i fo atio i flo e eeds a i di idual s p o essi g
capacity
Emotions How a receiver feels at the time a message is received will influence how the
message is interpreted
Language Words have different meanings to different people
Communication Apprehension Undue tension and anxiety about oral communication, written
communication, or both
Gender Differences Men tend to talk to emphasize status while women talk to create connections
Politi all Co e t PC Co u i atio so concerned with being inoffensive that meaning and
simplicity are lost or free expression is hampered
The 4 aspects of a message (Schulz von Thun)

Matter-of-fact The t affi light is g ee
Self-disclosure I a i a hu y
Relationship You eed y help
Appeal Go faste
Global Implications
Cross-cultural factors increase communication difficulties
Cultural Barriers: Se a ti s: so e o ds a e t t a slata le
Word Connotations: some words imply multiple meanings beyond their
definitions
Tone Differences: the acceptable level of formality of language
Perception Differences: language affects worldview
Body Language Issues
Cultural Context:
Low-context cultures (like the US) rely on words for meaning
High-context cultures gain meaning from the whole situation
Communication is improved by:

! Choosing the correct channel !
! Being a good listener !
! Using feedback !
Chapter 12 Leadership
Leadership the ability to influence a group toward the achievement of a vision or set of goals
Trait theories of Leadership theories that consider personal qualities and characteristics that
differentiate leader from nonleaders
Leade s a e o , ot ade
Big Five Personality Framework
- Leadership Traits
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• Extroversion
• Conscientiousness
• Openness
• Emotional Intelligence (Qualified)
• Self-Monitoring
Physical Traits: Height, Gender, Face, Hair, Age, Weight, etc.

- Height is related to Leadership
- Taller people more likely leaders
- Higher salaries
- More social esteem
Traits can predict leadership, but they are better at predicting leader emergence than effectiveness
Behavioral Theories of Leadership Theories proposing that specific behaviors differentiate

leaders from non-leaders
Trait theory: leadership is inherent, so we must identify the leader based on his or her
traits
Behavioral theory: leadership is a skill set and can be taught to anyone, so we must identify the
proper behaviors to teach potential leaders
Ohio State University Studies

Found two key dimensions of leader behavior:
- Initiating structure the defining and structuring of roles
- Consideration job relationships that reflect trust and respect
University of Michigan Studies

Also found two key dimensions of leader behavior:
- Employee-oriented – emphasizes interpersonal relationships and is the most powerful
dimension
- Production-oriented – emphasizes the technical aspects of the job
Blake a d Mouto s Managerial Grid
– Co e fo People is
Consideration and Employee-
Orientation
– Co e fo P odu tio is
Initiating Structure and
Production-Orientation
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Contingency Theories While trait and behavior theories do help us understand leadership,
an important component is missing: the environment in which the
leader exists
a) Fiedler Model
The theo that effe ti e g oups depe d o a p ope at h et ee a leade s st le of i te a ti g
and the degree to which the situation gives control and influence to the leader
- Fiedler's contingency model assumes that an individual's leadership style is fixed
Least preferred coworker (LPC) An instrument that purports to measure whether a person is
task or relationship orientated; questionnaire with a scale
from 1-8)
Leader-member relations The degree of confidence, trust, and respect subordinates have in
their leader
Task structure The degree to which job assignments are procedurized
Position power I flue e de i ed f o o e s fo al st u tu al positio i the
organization; includes power to hire, fire, discipline, promote and give
salary increases
If there is NOT a match of leadership style to the group situation:

First, you can change the leader to fit the situation. The second alternative would be to change the
situation to fit the leader.
Cognitive resource theory A theory of leadership that states that stress unfavorably affects a
situation and that intelligence and experience can reduce the
influence of stress on the leader
b) He se & Bla ha d s Situatio al Leade ship A contingency theory that focuses on

follo e s eadi ess
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- Followers can accept or reject the leader

- Effe ti e ess depe ds o the follo e s espo se to the leade s a tio s
- Readi ess is the e te t to hi h people ha e the ability and willingness to accomplish a
specific task
c) House s Path-Goal Theory

The Theory: Leade assits
- Leaders provide followers with information, support, and resources to help them achieve
their goals
- Leade s help la if the path to the o ke s goals
- Four types of leaders:
Directive focuses on the work to be done
Supportive focuses on the well-being of the worker
Participative consults with employees in decision-making
Achievement-Oriented sets challenging goals
- Two classes of contingency variables:

Environmental are outside of employee control
Subordinate factors are internal to employee (Personal characteristics)
d) Leader-Member Exchange (LMX) Theory

A theo that suppo ts leade s eatio of i -groups and out-groups; subordinates with in-group
status will have higher performance ratings, less turnover and greater job satisfaction
- Because of time pressures, leaders form a special relationship with a small group of followers:
the i -g oup
- This in-g oup is t usted a d gets o e ti e a d atte tio f o the leade o e e ha ges
- All other follo e s a e i the out-g oup a d get less of the leade s atte tio a d te d to
ha e fo al elatio ships ith the leade fe e e ha ges
e) V oo a d Yetto s Leader-Participation Model

Relates leadership behavior and participation to decision making
- 12 contingency variables
- Often too complicated for managers/leaders to actually put into place of organizations
Global implications
- These leadership theories are primarily studied in English-speaking countries
- Leaders should take culture into account
- GLOBE does have some country-specific insights
- Brazilian teams prefer leaders who are high in consideration, participative, and have high LPC scores
- French workers want a leader who is high on initiating structure and task-oriented
- Egyptian employees value team-oriented, participative leadership, while keeping a high-power
distance
- Chinese workers may favor a moderately participative style
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Chapter 13 Contemporary Issues in Leadership

Framing A way of using language to manage meaning
Charismatic Leadership A leadership theory that states that followers make attributions of
heroic or extraordinary leadership abilities when they observe certain
behaviors
Four characteristics of charismatic leaders:
- Have a vision
- Are willing to take personal risks to achieve the vision
- Are sensitive to follower needs
- Exhibit behaviors that are out of the ordinary
People can be trained to exhibit charismatic behaviors

How Charismatic Leaders Influence Followers
A four-step process:
1. Leader articulates an attractive vision Vision Statement: A formal, long-term strategy to
attain goals; Links past, present, and future
2. Leader communicates high performance expectations and confidence in follower ability
3. Leader conveys a new set of values by setting an example
4. Leader engages in emotion-inducing and often unconventional behavior to demonstrate
convictions about the vision
Charismatic Leadership Issues

Charisma works best when:
- The follo e s task has a ideologi al o po e t
- There is a lot of stress and uncertainty in the environment
- The leader is at the upper level of the organization
- Followers have low self-esteem and self-worth
(-) Ego-driven ha is ati s allow their self-interest and personal goals to
o e ide the o ga izatio s goals
Level-5 leaders Leaders who are fiercely ambitious and driven but whose ambition is directed
toward their company rather than themselves
Transactional & Transformational Leadership

Transactional leaders Leaders who guide or motivate their followers in the direction of
established goals by clarifying role and task requirements
Transformational leaders Leaders who inspire followers to transcend their own self-interests
and who are capable of having a profound and extraordinary effect on
followers
Transactional Transformational
Contingent Reward: Idealized Influence:
- Contracts exchange of rewards - Provides vision and sense of
for effort, promises rewards for mission, instills pride, gains
good performance, recognizes respect and trust
accomplishments
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Management by Exception: Inspiration:

- Active: Watches and searches - Communicates high
for deviations from rules and expectations, uses symbols to
standards, takes corrective focus efforts, expresses
action important issues simply
- Passive: Intervenes only if
standards are not met
Laissez-Faire: Intellectual Stimulation:

- Abdicates responsibilities, avoids - Promotes intelligence,
making decisions rationality, and problem solving
Individualized Consideration:
- Gives personal attention,
coaches, advises
Full Range of Leadership Model
- Leadership styles listed from passive to very active
- Note the ineffective styles are mostly transactional
- It is all about influencing followers
Authentic leaders Leaders who know who they

are, know what they believe in
and value, and act on those
values and beliefs openly and
candidly. Their followers would
consider them to be ethical
people
Socialized charismatic leadership A leadership concept that states that leaders convey vales
that are other-centered versus self-centered and who role model
ethical conduct
Trust a positive expectation that another will not act opportunistically

Dimensions of Trust (1) Integrity, (2) Competence, (3) Consistency, (4) Loyalty
Deterrence-based trust trust based on fear of reprisal if the trust is violated
Knowledge-based trust trust based on behavioral predictability that comes from a history of
interaction
Identification-based trust t ust ased o a utual u de sta di g of ea h othe s i te tio s a d
app e iatio of ea h othe s a t and desires
Mentor a senior employee who sponsors and supports a less-experienced

employee, called a protégé
Self-leadership a set of processes through which individuals control their own

behavior
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Online-leadership words are sent digitally
Implicit Leader Theories

Implicit theories of followers shape perceptions of leaders
- Think Manager, Think Male
Social Identity Model of Leadership

Leader = Group member perception and evaluations based on the level of the group
- Group Prototypicality
o fuzzy set of characteristics that in a given context define the group
o embodiment of group identity
o Defined on a group level and not on context level
- Group-oriented motivation
o Group membership leadership perceptions based on prototypicality-
perceptions and trust in group-orientedness
Attribution Theory of Leaderships

The idea that leadership is merely an attribution that people make about other individuals
Qualities attributed to leaders:
- Leaders are intelligent, outgoing, have strong verbal skills, are aggressive, understanding,
and industrious.
- Effective leaders are perceived as consistent and unwavering in their decisions.
- Effective leaders project the appearance of being leaders.
Finding and Creating Effective Leaders th ough Sele tio a d T ai i g
Chapter 14 Power and Politics

Power A capacity that A has to influence the behavior of B so that B acts in accordance with
A s ishes
Dependency B s elatio ship to A he A possesses so ethi g that B e ui es
Contrasting Leadership and Power

Power
- Used as a means for achieving goals
- Requires follower dependency
- Used to gain lateral and upward influence
Leadership
- Focuses on goal achievement
- Requires goal compatibility with followers
- Focuses influence downward
Bases of Power: Formal Power Established a i di idual s positio i a o ga izatio
Coercive Power A power base dependent on fear of negative results
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Reward Power Compliance achieved based on the ability to distribute rewards that
others view as valuable
Legitimate Power The formal autho it to o t ol a d use esou es ased o a pe so s
position in the formal hierarchy
Bases of Power: Personal Power Po e that o es f o a i di idual s u i ue ha a te isti s

– these are the most effective
Expert Power Influence based on special skills or knowledge

Referent Power Influence based on possession by an individual of desirable resources
or personal traits
Dependency: The Key to Power

– The g eate B’s depe de y o A, the g eate the po e A has o e B
Dependency increases when resources are:
Important
Scarce
Nonsubstitutable
Power Tactics Ways in which individuals translate power bases into specific actions
Nine influence tactics:
1. Legitimacy authority position
2. Rational persuasion* logical arguments
3. Inspirational appeals* developing emotional commitment
4. Consultation* i easi g ta get s oti atio
5. Exchange rewarding the target
6. Personal appeals asking for compliance based on friendship
7. Ingratiation using praise
8. Pressure using warnings
9. Coalitions enlisting the aid of other people
*(most effective)
Upward Influence Downward Influence Lateral Influence
Rational persuasion Rational persuasion Rational persuasion
Inspirational appeals Consultation
Pressure Ingratiation
Consultation Exchange
Ingratiation Legitimacy
Exchange Personal appeals
Legitimacy Coalitions
Political skill that a ilit to i flue e othe s i su h a a as to e ha e o e s o je ti es

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Sexual Harassment a u a ted a ti it of a se ual atu e that affe ts a i di idual s

employment and creates a hostile work environment
Se ual ha ass e t is t a out se : it is a out a usi g a u e ual po e elatio ship
Political behavior
Activities that are not re ui ed as pa t of o e s fo al role in the organization, but that influence, or
attempt to influence, the distribution of advantages or disadvantages within the organization
Legitimate Political Behavior Normal everyday politics - complaining, bypassing, obstructing
Illegitimate Political Behavior Extreme political behavior that violates the implied rules of
the game: sabotage, whistle-blowing, and symbolic protest
Reality of Politics
Judg e ts o ualit diffe a kedl ased o the o se e s pe eptio
- Bla i g othe s o fi i g espo si ilit
- Co e i g ou ea o do u e ti g de isio s
- Pe fe tio ist o atte ti e to detail
Factors that Influence Political Behavior
© 2009 Prentice-Hall Inc. All rights reserved.
Employee Responses to Organizational Politics
Perceptions of organizational politics

decrease job satisfaction
increase anxiety and stress
increase turnover
reduced performance
Defensive behavior reactive and protective behaviors to avoid action, blame, or change
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Avoiding Action Over conforming, buck passing, playing dumb, stalling

Avoiding Blame Bluffing, playing safe, justifying
Avoiding Change Prevention, self-protection
Impression Management (IM)

The process by which individuals attempt to control the impression others form of them
IM Techniques
- Conformity ag eei g ith so eo e else s opi io
- Excuses explanation of a predicament-creating event
- Apologies
- Self-Promotion highlighti g o e s est ualities
- Flattery complimenting others
- Favors doing something nice for someone
- Association e ha i g o p ote ti g o e s i age
Ethics of behaving political

Difficult Three questions help:
1. What is the utility of engaging in the behavior?
2. Does the utility balance out any harm done by the action?
3. Does the action conform to standards of equity and justice?
Global
Preference for Power Tactics
- The choice of effective tactics is heavily dependent on the culture of the country in which
they are to be used
Effectiveness of Power Tactics
- Still open to debate; too little research has been done
Chapter 15 Conflict and Negotiation

Conflict A process that begins when one party perceives that another party has negatively
affected, or is about to negatively affect, something that the first party cares about
Traditional view of conflict the belief that all conflict is harmful and must be avoided (30s-40s)
- Conflict resulted from:
– Poor communication
– Lack of openness
– Failure to respond to employee needs
Human relations view of conflict The belief that conflict is a natural and inevitable outcome in
any group (1940s – mid-1970s)
Interactionist View of Conflict The belief that conflict is not only a positive force in a group
but that it is absolutely necessary for a group to perform
effectively (current view)
Functional Conflict Conflict that supports the goals of the group and improves its performance
Dysfunctional Conflict Conflict that hinders group performance
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Task Conflict Conflict over content and goals of the work (functional)
Process Conflict Conflict over how the work gets done (functional)
Relationship Conflict Conflict based on interpersonal relationship (dysfunctional)
Conflict Process
Stage I
Communication Se a ti diffi ulties, isu de sta di gs, a d oise
Structure Member/goal incompatibility
Leadership styles (close or participative)
Reward systems (win-lose)
Dependence/interdependence of groups
Personal Variables Differing individual value systems
Personality types
Stage II
Perceived Conflict Awareness by one or more parties of the existence of conditions that create
opportunities for conflict to arise
Felt Conflict Emotional involvement in a conflict creating anxiety, tenseness, frustration, or
hostility
Stage III
Intentions decisions to act in a given way
Cooperativeness Attempting to satisfy the other
pa t s concerns
Assertiveness Attempting to satisfy
o eso o e s
Stage IV
Conflict Management The use of resolution and stimulation techniques to achieve the desired level
of conflict
Conflict-Intensity
Conflict Resolution Techniques (p.526)
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Stage V
Functional Increased group performance, Improved quality of decisions, Stimulation of
creativity and innovation
Dysfunctional Reduced group effectiveness, Retarded communication, Reduced group
cohesiveness, Infighting among group members overcomes group goals
Creating Functional Conflict Reward dissent and punish conflict avoiders
Negotiation A process in which two or more parties exchange goods or services and
attempt to agree on the exchange rate for them
Distributive Bargaining Negotiation that seeks to divide up a fixed amount of resources; a win-lose
situation
Integrative Bargaining Negotiation that seeks one or more settlements that can create a win-win
solution
Fixed pie the belief that there is only a set amount of goods or services to be divvied up
between the parties
Bargaining Distributive Integrative

Characteristic Bargaining Bargaining
Goal Get all the pie you Expand the pie

can
Motivation Win-Lose Win-Win
Focus Positions Interests
Information Sharing Low High
Duration of Short-Term Long-Term

Relationships
© 2009 Prentice-Hall Inc. All rights reserved.
The Negotiation Process

1. Preparation and planning
2. Definition of ground rules
3. Clarification and justification
4. Bargaining and problem solving
5. Closure and implementation
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BATNA the Best Alternative To Negotiate Agreement; the least the individual should accept
the otto li e fo egotiatio s
Individual Differences in Negotiation Effectiveness

Personality Traits Extroverts and agreeable people weaker at distributive negotiation –
disagreeable introvert is best
Intelligence is a weak indicator of effectiveness
Mood and Emotion Ability to show anger helps in distributive bargaining
Positive moods and emotions help integrative bargaining
Gender Men and women negotiate the same way, but may experience different
outcomes
Women and men take on gender stereotypes in negotiations: tender and
tough
Women are less likely to negotiate
Third-Party Negotiations
Mediator A neutral third party who facilitates a negotiated solution by using reasoning,
persuasion, and suggestions for alternatives
Arbitrator A third party to a negotiation who has the authority to dictate an agreement.
Conciliator A trusted third party who provides an informal communication link between
the negotiator and the opponent
Consultant An impartial third party, skilled in conflict management, who attempts to
facilitate creative problem solving through communication and analysis
Global
Conflict and Culture
- Japanese and U.S. managers view conflict differently
- U.S. managers more likely to use competing tactics while Japanese managers are likely to use
compromise and avoidance
Cultural Differences in Negotiations
- American negotiators are more likely than Japanese bargainers to make a first offer
- North Americans use facts to persuade, Arabs use emotion, and Russians used asserted ideals
- B azilia s sa o o e ofte tha A e i a s o Japa ese
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by Max Strack-Zimmermann
45

Summary Chapter 1 15 Organizational Behaviour

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Summary Chapter 1-15 Organizational Behaviour

Organizational Behaviour (Erasmus Universiteit Rotterdam)

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Chapter 1 What is Organizational Behavior

Ro e t Katz s Ma age e t Skills

Lutha s Stud of Ma age ial A ti ities Effective vs. Successful

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Successful Manager Networking (48%), Communication (28%)

Why studying OB?

Leadership (effective and successful) needs people skills!

Core Values of Science

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• Infer causal relationships between constructs

Challenges and Opportunities for OB

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Model An abstraction of reality

Chapter 2 Foundation of individual behavior

Cultural Orientations and their implications for Management

A cultural self-knowledge approach to managing (Earley/Erez 1997)

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- possible selves- I hope to e a ite / o edia

Self-Concept a schema consisting of an organized collection of self-beliefs and self-perceptions

Collectivism: great emphasis on

Ability A i di idual s apa it to pe fo the a ious tasks i a jo

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Learning A relatively permanent change in behavior that occurs as a result of experience

Unconditioned stimulus A naturally occurring phenomenon.

Unrewarded/punished behavior is unlikely to be repeated; we act in response to stimuli, but all

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Negative reinforcement Removing an unpleasant consequence when the desired behavior

Continuous reinforcement reinforcing a desired behavior each time it is demonstrated

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Self-Efficacy o e s o fide e i a ilit to pe fo a task o ea h a goal

Chapter 3 Attitudes and Job satisfaction

Attitudes Evaluative statements or judgments concerning objects, people or events

Theory of planned behavior

Does Behavior Always Follow from Attitudes? NO

Experiment by Festinger & Carlsmith Insufficient Justification

Major Job Attitudes

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Employee engagement e plo ee s e thusias fo the o k he does

Pay influences job satisfaction only to a point:

Employee Responses to Dissatisfaction

Western workers appear to be more satisfied than those in Eastern cultures.

Chapter 4 Personality and values

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Heredity Factors determined at conception: physical stature, facial attractiveness, gender,

Myers-Briggs Type Indicator (MBTI)

Each of the sixteen possible combinations has a name, for instance:

The Big Five Personality Model

Value system hie a h ased o i di idual s alues i te s of thei intensity

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Value difference between groups

Linking personality and values

Joh Holla d s Personality-Job Fit Theory

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Hofstede s F a e o k fo assessing culture – five value dimensions:

GLOBE Framework for Assessing Cultures

Chapter 5 Perception and Individual Decision making

Factors that Influence Perception

Attribution Theory an attempt to deter i e hethe a i di idual s eha io is i te all o

Determine whether it is external or internal caused:

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