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GAS 11-2
Group 5 & 6
VII- DIRECTING
A. Towards umderstanding organizational behavior
Early Advocates
The Hawthorne Studies
Early Motivation Theories
Early Leadership Theorires
B. Foundation of Behavior
Goals organizational Behavior
Attitudes
Perception
Emotional Quotient
DIRECTING
A basic management function that building an effective work climate and creating opportunity for
motivation, supervising, scheduling, and disciplining.
4. Chester Barnard
president of New Jersey Bell Telephone Company, saw organizations as social systems
that required human cooperation. a. He believed that managers’ major roles were to
communicate and stimulate subordinates to high levels of effort. b. He also introduced
the idea that managers have to examine the environment and then adjust the organization
to maintain a state of equilibrium.
Employees will avoid responsibilities and seek formal direction whenever possible.
Most workers place security above all other factors and will display little ambition.
Managers who accept theory-X assumptions have a tendency to structure, control and closely
supervise their employees. These managers think that external control is clearly appropriate for
dealing with unreliable, irresponsible and immature people.
1. Clarity.
Clear goals are measurable and unambiguous.
When a goal is dear and specific, with a definite time set for completion, there is less
misunderstanding about what behaviors will be rewarded.
2. Challenge.
People are often motivated by achievement, and they’ll judge a goal based on the significance of the
anticipated accomplishment. Rewards typically increase for more difficult goals. If you believe you’ll
be well compensated or otherwise rewarded for achieving a challenging goal that will boost your
enthusiasm and your drive to get it done.
3. Commitment.
Goals must be understood and agreed upon if they are to be effective. Employees are more likely to
“buy into” a goal if they feel they were part of creating that goal. The notion of participative
management rests on this idea of involving employees in setting goals and making decisions.
4. Feedback.
Feedback provides opportunities to clarify expectations, adjust goal difficulty, and gain recognition.
It’s important to provide benchmark opportunities or targets, so individuals can determine for
themselves how they’re doing.
5. Task Complexity
Self-efficiency
Self-efficiency is the individual’s self-confidence and faith that he has potential. if performing the
task. Higher the level of self-efficiency, greater will be the efforts pm in by the individual when they
face challenging tasks. While lower the level of self-efficiency, less will be the efforts put in by the
individual or he might even quit while meeting challenges.
Goal commitment
Goal setting theory assumes that the individual is committed to the goal and will not leave the goal.
The goal commitment is dependent on the following factors:
1. The willingness to work towards the attainment of the goal is the main source of job
motivation. Clear, particular and difficult goals arc greater motivating factors than easy,
general and vague goals.
2. Specific and clear goals lead to greater output and better performance. Unambiguous,
measurable and clear goals accompanied by a deadline for completion avoids
misunderstanding.
3. Goals should be realistic and challenging. This gives an individual a feeling of pride and
triumph when he attains them, and sets him up for the attainment of next goal. The more
challenging the goal the greater is the reward generally and the more is the passion for
achieving it.
4. Better and appropriate feedback of results directs the employee behavior and contributes
to higher performance than an absence of feedback. Feedback is a means of gaining
reputation, making clarifications and regulating goal difficulties. It helps employees to work
with more involvement and leads to greater job satisfaction.
5. Employees’ participation in goal is not always desirable. Participation in setting the goal,
however, makes the goal more acceptable and leads to more involvement.
Advantages of Goal Setting Theory
1. Goal setting theory is a technique used to raise incentives for employees to complete
work quickly effectively.
2. Goal setting leads to better performance by increasing motivation and efforts, but also
through increasing and improving the feedback quality.
1. At times, the organizational goals are in conflict with the managerial goals. Goal conflict
has a detrimental effect on the performance if it motivates incompatible action drift.
2. Very difficult and complex goals stimulate riskier behavior.
3. If the employee lacks skills and competencies to perform actions essential for goal, then
the goal-setting can fail and lead to an undermining of performance.
4. There is no evidence to prove that goal-setting improves job satisfaction.
Sources of Self-Efficacy Beliefs
Performance Accomplishments
Personal assessment information that is based on an individual’s personal
accomplishments.
Previous successes raise mastery expectations, while repeated failures lower them.
Vicarious Experience
Gained by observing others perform activities successfully.
This is often referred to as modeling, and it can generate expectations in observers that they can
improve their own performance by learning from what they have observed.
Social Persuasion
Activities where people are led, through suggestion, into believing that they can cope
successfully with specific tasks. Coaching and giving evaluative feedback on performance are
common types of social persuasion.
Negative Reinforcement
Negative reinforcement implies rewarding an employee by removing
negative/undesirable consequences. Both positive and negative reinforcement can be used for
increasing desirable / required behavior.
Punishment
Punishment reinforcement implies removing positive consequences so as to lower the
probability of repeating the undesirable behavior in future. In other words, punishment means
applying undesirable consequence for showing undesirable behavior.
Extinction
Extinction reinforcement implies the absence of reinforcements. In other words,
extinction implies lowering the probability of an undesired behavior by removing reward for that
kind of behavior.
.
Implications of Reinforcement Theory
Reinforcement theory explains in detail how an individual learns behavior.Managers who are
making attempt to motivate the employees must ensure that they do not reward all employees
simultaneously. The reinforcement theory suggests that managers should try to structure the
contingencies of rewards and punishments on the job in such a way that the consequences of
effective job behavior are positive while the consequences of ineffective work behavior are
negative o: unpleasant.
The basic notion underlying reinforcement theory is the concept of reinforcement itself. An event
is said to be reinforcing if the event following some behavior makes the behavior more likely to
occur again in the future.
9. Cognitive Evaluation Theory
Cognitive Evaluation Theory is a theory in Psychology that is designed to explain the effects of external
consequences on internal motivation. Cognitive Evaluation Theory theory suggests that there are actually
two motivation systems; intrinsic and extrinsic those correspond to two kinds of motivators.
Intrinsic Motivators
Achievement, responsibility, and competence — motivators that come from the actual
performance of the task or job — the intrinsic interest of the work.
Extrinsic Motivators
Pay, promotion, feedback, working conditions — things that come from a person’s environment,
controlled by others.
If the cognitive evaluation theory is valid, it should have major implications for managerial
practices.
If pay or other extrinsic rewards arc to be effective motivators, they should be made
contingent on an individual’s performance.
Cognitive evaluation theorists would argue that this will tend only to decrease the internal
satisfaction that the individual receives from doing the job.
If correct; it would make sense to make an individual’s pay non-contingent on
performance in order to avoid decreasing intrinsic motivation.
Vroom introduces three variables within the expectancy theory which are valence (V)
expectancy (E) and instrumentality (I).
The 3 elements are important in choosing one element over another because they are clearly
defined:
Expectancy is the belief that one’s effort (E) will result in attainment of desired performance (P)
goals usually based on an individual’s past experience, self-confidence, and the perceived
difficulty of the performance standard or goal.
Factors associated with the individual’s Expectancy perception are –
1. Self-efficacy,
2. Goal difficulty, and
3. Control.
Self-efficacy is the person’s belief in their ability to successfully perform a particular behavior.
2. Instrumentality: Performance—»Outcome(P—O)
Instrumentality is the belief that a person will receive a reward if the performance expectation is
met.
This reward may come in the form of a pay increase, promotion, recognition or sense of
accomplishment.
Instrumentality is low when the reward is given for all performances given.
Factors associated with the individual’s instrumentality for outcomes arc trust, control, and
policies.
If individuals trust their superiors, they are more likely to believe their leader’s promises. When
there is a lack of trust in leadership, people often attempt to control the reward system.
When individuals believe they have some kind of control over how, when, and why rewards are
distributed. Instrumentality tends to increase.
Formalized written policies impact the individuals’ instrumentality perceptions. Instrumentality
is increased when formalized policies associate rewards to performance.
3. Valence- V(R)
Valence is the value the individual places on the rewards based on their needs, goals, values, and
Sources of Motivation.
Factors associated with the individual’s valence for outcomes are values, needs, goals,
preferences, and Sources of Motivation Strength of an individual’s preference for a particular
outcome.
Inputs: Inputs include all the rich and diverse elements that employees believe they bring
or contribute to the job – their education, experience, effort, loyalty, commitment.
Outcomes: Outcomes are rewards they perceive they get from their jobs and employers
outcomes include- direct pay and bonuses, fringe benefit, job security, social rewards and
psychological.
Overrewarded: if employees fell over-rewarded equity theory predicts then they will
feel an imbalance in their relationship with their employee and seek to restore that balance.
Equity: if employees perceive equity then they will be motivated to continue to
contribute act about the same level.
Unrewarded: unrewarded who feel they have been unrewarded and seek to reduce their
feeling in equity through the same types of strategies but same of this specific action are now
reverse.
This theory is based on the following two assumptions about human behavior:
1. Individuals make contributions (inputs) for which they expect certain outcomes
(rewards). Inputs include such things as the person’s past training and experience, special
knowledge, personal characteristics etc. Outcomes include pay, recognition, promotion,
prestige, fringe benefits etc.
2. Individuals decide whether or not a particular exchange is satisfactory, by comparing
their inputs and outcomes to those of others, in the form of a ratio. Equity exists when an
individual concludes that his/her own outcome/input ratio is equal to that of other people.
1. Employees make comparisons between their job inputs and outcomes relative to
those of others.
If we perceive our ratio to be equal to that of the relevant others with whom
we compare ourselves, a state of equity is said to exist. We perceive our situation as
fair.
When we see the ratio as unequal, we experience equity tension.
2. Additionally, the referent that an employee selects adds to the complexity of equity
theory. There are four referent comparisons that an employee can use:
Self-inside: An employee’s experiences in a different position inside his or
her current organization.
Self-outside: An employee’s experiences in a situation or position outside his
or her current organization.
Other-inside: Another individual or group of individuals inside the employee’s
organization.
Other-outside: Another individual or group of individuals outside the
employee’s organization.
3. Which referent an employee chooses will be influenced by the information the
employee holds about referents, as well as by the attractiveness of the referent. There
are 4 moderating variables: gender, the length of tenure, level in the organization, and
the amount of education or professionalism.Men and women prefer same-sex
comparisons. This also suggests that if women are tolerant of lower pay, it may be due to
the comparative standard they use.Employees in jobs that are not sex-segregated will
make more cross-sex comparisons than those in jobs that are either male- or female-
dominated.
4. Employees with a short tenure in their current organizations tend to have little
information about others.
5. Employees with long tenure rely more heavily on coworkers for comparison.
6. Upper-level employees tend to be more cosmopolitan and have better information
about people in other organizations. Therefore, these types of employees will make more
other- outside comparisons.
7. When employees perceive an inequity, they can be predicted to make one of six
choices:
Change their inputs.
Change their outcomes.
Distort perceptions of self.
Distort perceptions of others.
Choose a different referent.
Leave the field.
8. The theory establishes the following propositions relating to inequitable pay:
Given payment by time, over-rewarded employees will produce more than will
equitably pay employees.
Given payment by the quantity of production, over-rewarded employees will
produce fewer, but higher quality, units that will equitably pay employees.
Given payment by time, under-rewarded employees will produce less or
poorer quality of output.
9. Given payment by the quantity of production, under-rewarded employees will
produce a large number of low-quality units in comparison with equitably paid employees.
10. These propositions have generally been supported with a few minor qualifications.
Inequities created by over-payment do not seem to have a very significant
impact on behavior in most work situations.
Not all people are equity-sensitive.
11. Employees also seem to look for equity in the distribution of other organizational
rewards.
12. Finally, recent research has been directed at expanding what is meant by equity or
fairness.
Historically, equity theory focused on distributive justice or the perceived
fairness of the amount and allocation of rewards among individuals.
Equity should also consider procedural justice, the perceived fairness of the
process used to determine the distribution of rewards.
The evidence indicates that distributive justice has a greater influence on
employee satisfaction than procedural justice,
Procedural justice tends to affect an employee’s organizational commitment,
trust in his or her boss, and intention to quit.
By increasing the perception of procedural fairness, employees are likely to
view their bosses and the organization as positive even if they are dissatisfied with
pay, promotions, and other personal outcomes.
Equity theory demonstrates that, for most employees, motivation is influenced significantly
by relative rewards as well as by absolute rewards, but some key issues are still unclear.
EARLY LEADERSHIP THEORIES
The Great Man theory evolved around the mid 19th century. Even though no one was able to identify
with any scientific certainty, which human characteristic or combination of, were responsible for
identifying great leaders. Everyone recognized that just as the name suggests; only a man could have the
characteristic (s) of a great leader.
The trait leadership theory believes that people are either born or are made with certain
qualities that will make them excel in leadership roles. That is, certain qualities such as
intelligence, sense of responsibility, creativity and other values puts anyone in the shoes of a
good leader. In fact, Gordon Allport, an American psychologist,"...identified almost 18,000
English personality-relevant terms" (Matthews, Deary & Whiteman, 2003, p. 3).
The behavioural theories are offering a new perspective, one that focuses on the behaviours of
the leaders as opposed to their mental, physical or social characteristics. Thus, with the
evolutions in psychometrics, notably the factor analysis, researchers were able to measure the
cause an effects relationship of specific human behaviours from leaders. From this point forward
anyone with the right conditioning could have access to the once before elite club of naturally
gifted leaders. In other words, leaders are made not born.
The Contingency Leadership theory argues that there is no single way of leading and that
every leadership style should be based on certain situations, which signifies that there are certain
people who perform at the maximum level in certain places; but at minimal performance when
taken out of their element.
The Transactional theories, also known as exchange theories of leadership, are characterized by
a transaction made between the leader and the followers. In fact, the theory values a positive and
mutually beneficial relationship.
The Transformational Leadership theory states that this process is by which a person interacts
with others and is able to create a solid relationship that results in a high percentage of trust, that
will later result in an increase of motivation, both intrinsic and extrinsic, in both leaders and
followers.
B. Foundations of Behaviour
2. Absenteeism—the failure to show up for work. It’s difficult for work to get done
if employees don’t show up. Studies have shown that the total of all major types
of absences cost organizations an average 35 percent of payroll, with unscheduled
absences costing companies around $660 per employee per year.1 Although
absenteeism can’t be totally eliminated, excessive levels have a direct and immediate
impact on the organization’s functioning.
3. Turnover—the voluntary and involuntary permanent withdrawal from an
organization. It can be a problem because of increased recruiting, selection, training
costs, and work disruptions. Just like absenteeism, managers can never eliminate
turnover, but it is something they want to minimize, especially among high-
performing employees.
ATTITUDE
PERCEPTION
• Explain how an understanding of perception can help managers better understand individual
behavior.
• Describe the key elements of attribution theory.
• Discuss how the fundamental attribution error and self- serving bias can distort attributions.
• Name three shortcuts used in judging others. Learning
• Explain how operant conditioning helps managers understand, predict, and influence behavior.
• Describe the implications of social learning theory for managing people at work.
• Discuss how managers can shape behavior.
EMOTIONAL QUOTIENT
Emotions and Intelligence
Emotions
Intense feelings (reactions) that are directed at specific objects (someone or something)
Universal emotions:
Anger
Fear
Sadness
Happiness
Disgust
Surprise