Organizationalbehavior 638slidespresentation-090903124620-phpapp02

OrganizationalOrganizational
BehaviorBehavior
SchermerhornSchermerhorn, Hunt, and, Hunt, and
OsbornOsbornOsbornOsborn
Prepared by
Michael K. McCuddy
Valparaiso University

Chapter 1 Study Questions
What is organizational behavior and why is
it important?
What are organizations like as work
Organizational Behavior: Chapter 1 2
What are organizations like as work
settings?
What is the nature of managerial work?
How do we learn about organizational
behavior?

Study Question 1: What is organizational
behavior and why is it important?
Workplace success depends on:
– Respect for people.
– Understanding of human behavior in complex
– Understanding of human behavior in complex
organizational systems.
– Individual commitment to flexibility,
creativity, and learning.
– Individual willingness to change.

Organizations and their members are
challenged to:
– Simultaneously achieve high performance and
– Simultaneously achieve high performance and
high quality of life.
– Embrace ethics and social responsibility.
– Respect the vast potential of demographic and
cultural diversity among people.
– Recognize the impact of globalization.

Organizational behavior.
– Study of human behavior in
organizations.
organizations.
– A multidisciplinary field devoted to
understanding individual and group
behavior, interpersonal processes, and
organizational dynamics.

Pick up Figure 1.1 from the textbook.

Reasons for importance of scientific
thinking.
– The process of data collection is
controlled and systematic.
controlled and systematic.
– Proposed explanations are carefully
tested.
– Only explanations that can be
scientifically verified are accepted.

Contingency approach.
– Tries to identify how different situations can
be best understood and handled.
– Important contingency variables include:
– Important contingency variables include:
• Environment.
• Technology.
• Tasks.
• Structure.
• People.

Modern workplace trends.
– Commitment to ethical behavior.
– Importance of human capital.
– Demise of “command and control.”
– Demise of “command and control.”
– Emphasis on teamwork.
– Pervasive influence of information
technology.
– Respect for new workforce expectations.
– Changing definition of “jobs” and “career.”

Study Question 2: What are organizations
like as work settings?
An organization is a collection of people
working together in a division of labor to
working together in a division of labor to
achieve a common purpose.

The core purpose of an organization is the
creation of goods and services.
Missions and mission statements focus
attention on the core purpose.
attention on the core purpose.
Mission statements communicate:
– A clear sense of the domain in which the
organization’s products and services fit.
– A vision and sense of future aspirations.

A strategy is a comprehensive plan that
guides organizations to operate in ways
that allow them to outperform their
competitors.
competitors.
Key managerial responsibilities include
strategy formulation and implementation.
Knowledge of OB is essential to
effectively strategy implementation.

Stakeholders.
– People, groups, and institutions having an
interest in an organization’s performance.
– Customers, owners, employees, suppliers,
– Customers, owners, employees, suppliers,
regulators, and local communities are key
stakeholders.
– Interests of multiple stakeholders sometimes
conflict.
– Executive leadership often focuses on
balancing multiple stakeholder expectations.

Organizational culture and diversity.
– Organizational culture refers to the shared beliefs and
values that influence the behavior of organizational
members.
members.
– Positive organizational cultures:
• Have a high-performance orientation.
• Emphasize teamwork.
• Encourage risk taking.
• Emphasize innovation..
• Respect people and workforce diversity.
– Success in business world is tied to valuing diversity.

Organizational effectiveness approaches.
– Systems resource approach focuses on
inputs.
inputs.
– Internal process approach focuses on the
transformation process.
– Goal approach focuses on outputs.
– Strategic contingencies approach
focuses on impact on key stakeholders.

Longitudinal views of organizational
effectiveness.
– Short-run emphasis on goal accomplishment,
– Short-run emphasis on goal accomplishment,
resource utilization, and stakeholder
satisfaction.
– Intermediate-run emphasis on organization’s
adaptability and development potential.
– Long-run emphasis on survival.

Study Question 3: What is the nature
of managerial work?
Managers perform jobs that involve
directly supporting the work efforts of
others.
Managers assume roles such as
coordinator, coach, or team leader.

of managerial work?
The management process.
– An effective manager is one whose
organizational unit, group, or team
consistently achieves its goals while its
consistently achieves its goals while its
members remain capable, committed, and
enthusiastic.
– Key results of effective management:
• Task performance.
• Job satisfaction.

of managerial work?

of managerial work?
The nature of managerial work.
– Managers work long hours.
– Managers are busy people.
– Managers are busy people.
– Managers are often interrupted.
– Managerial work is fragmented and variable.
– Managers work mostly with other people.
– Managers spend a lot of time communicating.

of managerial work?

of managerial work?
Managerial mind-sets.
– Reflective mind-set — managing one’s self.
– Analytic mind-set — managing organizational
– Analytic mind-set — managing organizational
operations and decisions.
– Worldly mind-set — managing in a global context.
– Collaborative mind-set — managing relationships.
– Action mind-set — managing change.

of managerial work?
Managerial skills and competencies.
– A skill is an ability to translate knowledge into
action that results in a desired performance.
action that results in a desired performance.
– Categories of skills.
• Technical.
• Human.
• Conceptual.

Study Question 4: How do we learn
about organizational behavior?
Learning is an enduring change in behavior
that results from experience.
Organizational learning is the process of
acquiring knowledge and utilizing
information to adapt successfully to
changing circumstances.

.

What is a high-performance organization?
What is multiculturalism, and how can
workforce diversity be managed?
workforce diversity be managed?
How do ethics and social responsibility
influence human behavior in
organizations?
What are key OB transitions in the new
workplace?

Study Question 1: What is a high-
performance organization?
High-performance organizations.
– Value and empower people, and respect diversity.
– Mobilize the talents of self-directed work teams.
Use cutting-edge technologies to achieve success.
– Use cutting-edge technologies to achieve success.
– Thrive on learning and enable members to grow and
develop.
– Are achievement-, quality-, and customer-oriented, as
well as being sensitive to the external environment.

Stakeholders.
– The individuals, groups, and other
organizations affected by an
organizations affected by an
organization’s performance.
Value creation.
– The extent to which an organization
satisfies the needs of strategic
constituencies.

Total quality management (TQM).
– A total commitment to:
• High-quality results.
• Continuous improvement.
• Continuous improvement.
• Customer satisfaction.
– Meeting customers’ needs.
– Doing all tasks right the first time.
– Continuous improvement focuses on two questions:
• Is it necessary?
• If so, can it be done better?

Human capital.
– The economic value of people with job-relevant
abilities, knowledge, ideas, energies, and
commitments.
Knowledge workers.
– People whose minds rather than physical capabilities
create value for the organization.
Intellectual capital.
– The performance potential of the expertise,
competencies, creativity, and commitment within an
organization’s workforce.

Empowerment.
– Allows people, individually and in groups, to
use their talents and knowledge to make
use their talents and knowledge to make
decisions that affect their work.
Social capital.
– The performance potential represented in the
relationships maintained among people at
work.

Learning and high-performance cultures.
– Uncertainty highlights the importance of
organizational learning.
organizational learning.
– High-performance organizations are designed
for organizational learning.
– A learning organization has a culture that
values human capital and invigorates learning
for performance enhancement.

Study Question 2: What is multi-culturalism,
and how can workforce diversity be managed?
Workforce diversity.
– Describes differences among people with respect to
age, race, ethnicity, gender, physical ability, and
sexual orientation.
sexual orientation.
Multiculturalism.
– Refers to pluralism and respect for diversity and
individual differences in the workplace.
Inclusivity.
– The degree to which the organization’s culture
respects and values diversity.

Diversity biases in the workplace.
– Prejudice.
– Discrimination.
– Discrimination.
– The glass ceiling effect.
– Sexual harassment.
– Verbal abuse.
– Pay discrimination.

Managing diversity.
– Developing a work environment and organizational
culture that allows all organization members to reach
their full potential.
A diversity mature organization is created when:
A diversity mature organization is created when:
– Managers ensure the effective and efficient utilization
of employees in pursuit of the corporate mission.
– Managers consider how their behaviors affect
diversity.
Well-managed workforce diversity increases
human capital.

Study question 3: How do ethics and
social responsibility influence human
behavior in organizations?
Ethical behavior.
– “Good” or “right” as opposed to “bad”
– “Good” or “right” as opposed to “bad”
or “wrong” in a particular setting.
The public demands that people in
organizations act according to high
moral standards.

Immoral managers.
– Do not subscribe to any ethical principles;
pursuit of self-interest.
Amoral managers.
Amoral managers.
– Ethics is simply not on this manager’s “radar
screen.”
Moral managers.
– Incorporate ethical principles and goals into
their personal behavior .

Study question 3: How do ethics and social
responsibility influence human behavior in
organizations?

Ways of thinking about ethical behavior.
– Utilitarian view –– the greatest good for the
greatest number of people.
– Individualism view –– best serving long-term
self-interests.
– Moral-rights view –– respects and protects the
fundamental rights of all human beings.
– Justice view –– fair and impartial in the
treatment of all people.

Different types of justice.
– Procedural justice –– properly following rules
and procedures in all cases.
and procedures in all cases.
– Distributive justice –– treating people the
same under a policy, regardless of
demographic differences.
– Interactional justice –– treating people affected
by a decision with dignity and respect.

Study question 3: How do ethics and social
responsibility influence human behavior in
organizations?
Ethical dilemmas.
– Occur when someone must choose
whether or not to pursue a course of
whether or not to pursue a course of
action that, although offering the
potential of personal or
organizational benefit or both, may
be considered unethical.

Rationalizations for unethical behavior.
– Pretending the behavior is not really unethical
or illegal.
or illegal.
– Saying the behavior is really in the
organization’s or person’s best interest.
– Assuming the behavior is acceptable if others
don’t find out about it.
– Presuming that superiors will support and
protect you.

Organizational social responsibility.
– The obligation of organizations to behave in
ethical and moral ways as institutions of the
broader society.
broader society.
– Managers should commit organizations to:
• Pursuit of high productivity.
• Corporate social responsibility.
– A whistleblower exposes others’ wrongdoings
in order to preserve high ethical standards.

Study question 4: What are key OB
transitions in the new workplace?
Corporate governance and ethics
leadership.
– Society expects and demands ethical decisions
– Society expects and demands ethical decisions
and actions from businesses and other social
institutions.
– Corporate governance.
• The active oversight of management decisions,
corporate strategy, and financial reporting by
Boards of Directors.

Corporate governance and ethics
leadership (cont.).
– Ethics leadership.
• Making business and organizational decisions with
• Making business and organizational decisions with
high moral standards that meet the ethical test of
being “good” and not “bad,” and of being “right”
and not “wrong.” .
– Integrity.
• Acting in ways that are always honest, credible,
and consistent in putting one’s values into practice.

Positive organizational behavior.
– Quality of work life.
• The overall quality of human experience in the
• The overall quality of human experience in the
workplace.
• Commitment to quality of work life is an important
value within organizational behavior.
• Theory Y provides the theoretical underpinnings
for contemporary quality of work life concepts.

Positive organizational behavior (cont.).
– Positive organizational behavior focuses on
practices that value human capacities and
encourage their full utilization.
encourage their full utilization.
– Positive organizational behavior is based on
the core capacities of:
• Confidence.
• Hope.
• Optimism.
• Resilience.

Globalization, job migration, and
organizational transformation.
– Globalization.
– Globalization.
• The worldwide interdependence of resource flows,
product markets, and business competition.
– Job migration.
• The shifting of jobs from one nation to another.

Globalization, job migration, and
organizational transformation (cont.).
– Global outsourcing.
• Involves employers cutting back on domestic jobs
and replacing them with contract workers in other
nations.
– Job migration and global outsourcing have
contributed to organizations redesigning
themselves for high performance in a changed
world.

Personal management and career planning.
– Shamrock organizations.
• Relatively small core group of permanent, full-time
• Relatively small core group of permanent, full-time
employees with critical skills.
• Outside operators contracting to core group to
perform essential daily activities.
• Part-timers hired by core group on an as-needed
basis.

Personal management and career planning
(cont.).
– Personal management.
• Understand one’s self, exercising initiative,
accepting responsibility, working well with others,
and continually learning from experience.
– Self-monitoring.
• Observing and reflecting on one’s own behavior
and acting in ways that adapt to the situation.

Why is globalization significant for
organizational behavior?
What is culture and how can we
understand cultural differences?
What is culture and how can we
understand cultural differences?
How does cultural diversity affect people
at work?
What is a global view on organizational
learning?

Study Question 1: Why is globalization
significant for organizational behavior?
Most organizations must achieve high
performance within a complex and competitive
global environment.
global environment.
Globalization refers to the complex economic
networks of international competition, resource
suppliers, and product markets.

Forces of globalization.
– Rapid growth in information technology and
electronic communication.
– Movement of valuable skills and investments.
– Movement of valuable skills and investments.
– Increasing cultural diversity.
– Implications of immigration.
– Increasing job migration among nations.
– Impact of multicultural workforces.

Globalization is contributing to the
emergence of regional economic alliances.
Important regional alliances.
– European Union (EU).
– North American Free Trade Agreement
(NAFTA).
– Asia-Pacific Economic Co-operation Forum
(APEC).

Outsourcing.
– Contracting out of work rather than accomplishing it
with a full-time permanent workforce.
Off shoring.
– Contracting out work to persons in other countries.
Job migration.
– Movement of jobs from one location or country to
another.

Global managers.
– Know how to conduct business in multiple
countries.
– Are culturally adaptable and often
– Are culturally adaptable and often
multilingual.
– Think with a worldview and are able to map
strategy in the global context.
– Have a global attitude.
– Have a global mindset.

Culture.
– The learned, shared way of doing things in a
particular society.
– The “software of the mind.”
– The “software of the mind.”
– Helps define boundaries between different
groups and affects how their members relate to
one another.
– Cultural intelligence is the ability to identify,
understand, and act with sensitivity and
effectiveness in cross-cultural situations.

Study Question 2: What is culture and how can
we understand cultural differences?
Language.
– Perhaps the most visible aspect of culture.
– Whorfian hypothesis — considers language as
– Whorfian hypothesis — considers language as
a major determinant of thinking.
– Low-context cultures — the message is
conveyed by the words used.
– High-context cultures — words convey only a
limited part of the message.

Time orientation.
– Polychronic cultures.
• Circular view of time.
• Circular view of time.
• No pressure for immediate action or performance.
• Emphasis on the present.
– Monochronic cultures.
• Linear view of time.
• Create pressure for action and performance.
• Long-range goals and planning are important.

Use of space.
– Proxemics.
• The study of how people use space to
• The study of how people use space to
communicate.
• Reveals important cultural differences.
– Concept of personal space varies across
cultures.
– Space is arranged differently in different
cultures.

Religion.
– A major element of culture.
– Can be a very visible aspect of culture.
– Can be a very visible aspect of culture.
– Influences codes of ethics and moral behavior.
– Influences conduct of economic matters.

Values and national culture.
– Cultures vary in underlying patterns of values
and attitudes.
– Hofstede’s five dimensions of national culture:
– Hofstede’s five dimensions of national culture:
• Power distance.
• Uncertainty avoidance.
• Individualism-collectivism.
• Masculinity-femininity.
• Long-term/short-term orientation.

Power distance.
– The willingness of a culture to accept status
and power differences among members.
– Respect for hierarchy and rank in
– Respect for hierarchy and rank in
organizations.
– Example of a high power distance culture —
Indonesia.
– Example of a low power distance culture —
Sweden.

Uncertainty avoidance.
– The cultural tendency toward discomfort with
risk and ambiguity.
– Preference for structured versus unstructured
– Preference for structured versus unstructured
organizational situations.
– Example of a high uncertainty avoidance
culture — France.
– Example of a low uncertainty avoidance
culture — Hong Kong.

Individualism-collectivism.
– The cultural tendency to emphasize individual
or group interests.
or group interests.
– Preferences for working individually or in
groups.
– Example of an individualistic culture —
United States.
– Example of a collectivist culture — Mexico.

Masculinity-femininity.
– The tendency of a culture to value
stereotypical masculine or feminine traits.
stereotypical masculine or feminine traits.
– Emphasizes competition/assertiveness versus
interpersonal sensitivity/relationships.
– Example of a masculine culture — Japan.
– Example of a feminine culture — Thailand.

Long-term/short-term orientation.
– The tendency of a culture to emphasize future-
oriented values versus present-oriented values.
– Adoption of long-term or short-term
– Adoption of long-term or short-term
performance horizons.
– Example of a long-term orientation culture —
South Korea.
– Example of a short-term orientation culture —
United States.

Understanding cultural differences helps in
dealing with parochialism and
ethnocentrism.
Parochialism — assuming that the ways of
– Parochialism — assuming that the ways of
one’s own culture are the only ways of doing
things.
– Ethnocentrism — assuming that the ways of
one’s culture are the best ways of doing
things.

Cultural differences in handling
relationships with other people.
– Universalism versus particularism.
– Universalism versus particularism.
• Relative emphasis on rules and consistency, or on
relationships and flexibility.
– Individualism versus collectivism.
• Relative emphasis on individual freedom and
responsibility, or on group interests and consensus.

relationships with other people (cont.).
– Neutral versus affective.
– Neutral versus affective.
• Relative emphasis on objectivity and detachment,
or on emotion and expressed feelings.
– Specific versus diffuse.
• Relative emphasis on focused and narrow
involvement, or on involvement with the whole
person.

relationships with other people (cont.).
– Achievement versus prescription.
– Achievement versus prescription.
• Relative emphasis on performance-based and
earned status, or on ascribed status.

Cultural differences in attitudes toward
time.
– Sequential view of time.
– Sequential view of time.
• Time is a passing series of events.
– Synchronic view of time.
• Time consists of an interrelated past, present, and
future.

Cultural differences in attitudes toward the
environment.
– Inner-directed cultures.
– Inner-directed cultures.
• Members view themselves as separate from nature
and believe they can control it.
– Outer-directed cultures.
• Members view themselves as part of nature and
believe they must go along with it.

Study Question 3: How does cultural
diversity affect people at work?
Multinational corporation (MNC).
– A business firm that has extensive
international operations in more than one
foreign country.
foreign country.
– Have a total world view without allegiance to
any one national home.
– Have enormous economic power and impact.
– Bring benefits and controversies to host
countries.

Multicultural workforces and expatriates.
– Styles of leadership, motivation, decision
making, planning, organizing, and controlling
vary from country to country.
vary from country to country.
– Expatriates.
• People who live and work abroad for extended
periods of time.
• Can be very costly for employers.
• Progressive employers take supportive measures to
maximize potential for expatriate success.

Ethical behavior across cultures.
– Ethical challenges result from:
• Cultural diversity.
• Variations in governments and legal systems.
• Variations in governments and legal systems.
– Prominent current issues.
• Corruption and bribery.
• Poor working conditions.
• Child and prison labor.
• Business support of repressive governments.
• Sweatshops.

Advice regarding cultural relativism and
ethical absolutism.
– Multinational businesses should adopt core or
– Multinational businesses should adopt core or
threshold values that respect and protect
fundamental human rights.
– Beyond the threshold, businesses should adapt
and tailor actions to respect the traditions,
foundations, and needs of different cultures.

Study Question 4: What is a global
view on organizational learning?
Organizational learning.
– The process of acquiring the knowledge
necessary to adapt to a changing
environment.
environment.
Global organizational learning.
– The ability to gather from the world at large
the knowledge required for long-term
organizational adaptation.

Are management theories universal?
– Answer is “no.”
– Cultural influences should be carefully
considered in transferring theories and their
applications across cultures.

Best practices around the world.
– Global organizational learning should identify
best practices around the world.
best practices around the world.
– Potential high-performance benchmarks exist
throughout the world.
– Cultural diversity enriches global organization
learning.

What is personality?
How do personalities differ?
What are value and attitude differences
What are value and attitude differences
among individuals, and why are they
important?
What are individual differences and how
are they related to workforce diversity?

Study Question 1: What is personality?
Personality.
– The overall profile or combination of
characteristics that capture the unique nature
of a person as that person reacts and interacts
with others.
with others.
– Combines a set of physical and mental
characteristics that reflect how a person looks,
thinks, acts, and feels.
– Predictable relationships are expected between
people’s personalities and their behaviors.

Heredity and environment.
– Heredity sets the limits on the development of
personality characteristics.
– Environment determines development within these
limits.
– About a 50-50 heredity-environment split.
– About a 50-50 heredity-environment split.
– Cultural values and norms play a substantial role in
the development of personality.
– Social factors include family life, religion, and many
kinds of formal and informal groups.
– Situational factors reflect the opportunities or
constraints imposed by the operational context.

Personality and the self-concept.
– Personality dynamics.
• The ways in which an individual integrates and
organizes social traits, values and motives,
personal conceptions, and emotional adjustments.
personal conceptions, and emotional adjustments.
– Self-concept.
• The view individuals have of themselves as
physical, social, and spiritual or moral beings.
• Self-esteem.
• Self-efficacy.

Study Question 2: How do
personalities differ?
“Big Five” personality dimensions.
– Extraversion
• Being outgoing, sociable, assertive.
– Agreeableness.
• Being good-natured, trusting, cooperative.
• Being good-natured, trusting, cooperative.
– Conscientiousness.
• Being responsible, dependable, persistent.
– Emotional stability.
• Being unworried, secure, relaxed.
– Openness to experience.
• Being imaginative, curious, broad-minded.

Social traits.
– Surface-level traits that reflect the way a
person appears to others when interacting in
various social settings.
various social settings.
– An important social trait is problem-solving
style.
• The way a person goes about gathering and
evaluating information in solving problems and
making decisions.

Information gathering in problem solving.
– Getting and organizing data for use.
– Sensation-type individuals prefer routine and
– Sensation-type individuals prefer routine and
order and emphasize well-defined details in
gathering information.
– Intuitive-type individuals like new problems
and dislike routine.

Information evaluation in problem solving.
– Making judgments about how to deal with
information once it has been collected.
– Feeling-type individuals are oriented toward
– Feeling-type individuals are oriented toward
conformity and try to accommodate
themselves to other people.
– Thinking-type individuals use reason and
intellect to deal with problems and downplay
emotions.

Personal conception traits.
– The way individuals tend to think about their
social and physical settings as well as their
major beliefs and personal orientation.
major beliefs and personal orientation.
– Key traits.
• Locus of control.
• Authoritarianism/dogmatism.
• Machiavellianism.
• Self-monitoring.

Locus of control.
– The extent to which a person feels able to
control his/her own life.
– Externals.
– Externals.
• More extraverted in their interpersonal
relationships and more oriented toward the world
around them.
– Internals.
• More introverted and more oriented towards their
own feelings and ideas.

Study Question 2: How do personalities differ?

Authoritarianism/dogmatism.
– Authoritarianism.
• Tendency to adhere rigidly to conventional values
and to obey recognized authority.
– Dogmatism.
• Tendency to view the world as a threatening place.

People with a high-Machiavellian personality:
– Approach situations logically and
thoughtfully.
– Are capable of lying to achieve personal goals.
– Are rarely swayed by loyalty, friendships, past
promises, or others’ opinions.
– Are skilled at influencing others.
– Try to exploit loosely structured situations.
– Perform in a perfunctory or detached manner
in highly structured situations.

People with a low-Machiavellian personality:
– Accept direction imposed by others in loosely
structured situations.
structured situations.
– Work hard to do well in highly structured
situations.
– Are strongly guided by ethical considerations.
– Are unlikely to lie or cheat.

Self-monitoring.
– A person’s ability to adjust his/her behavior to
external situational factors.
– High self-monitors.
– High self-monitors.
• Sensitive to external cues.
• Behave differently in different situations.
– Low self-monitors.
• Not sensitive to external cues.
• Not able to disguise their behaviors.

Emotional adjustment traits.
– How much an individual experiences distress
or displays unacceptable acts.
Type A orientation.
– Type A orientation.
• Characterized by impatience, desire for
achievement, and perfectionism.
– Type B orientation.
• Characterized as more easygoing and less
competitive in relation to daily events.

Study Question 3: What are value and attitude
differences among individuals, and why are they
important?
Values.
– Broad preferences concerning appropriate
courses of action or outcomes.
Values influence behavior and attitudes.
– Values influence behavior and attitudes.
– Parents, friends, teachers, and external
reference groups can influence individual
values.
– Values develop as a product of learning and
experiences.

important?
Pick up Figure 4.5 from the textbook.

important?
Gordon Allport’s values categories.
– Theoretical values.
– Economic values.
– Economic values.
– Aesthetic values.
– Social values.
– Political values.
– Religious values.

important?
Maglino’s categories of workplace values.
– Achievement.
– Helping and concern for others.
– Helping and concern for others.
– Honesty.
– Fairness.

important?
Attitudes.
– Are influenced by values and are acquired
from the same sources as values.
from the same sources as values.
– Are more specific and less stable than values.
– An attitude is a predisposition to respond in a
positive or negative way to someone or
something in one’s environment.

important?

important?
The attitude-behavior relationship is
stronger when:
– Attitudes and behaviors are more specific.
– There is freedom to carry out the behavioral
intent.
– The person has experience with the attitude.

important?
Attitudes and cognitive consistency.
– Cognitive dissonance.
• Describes a state of inconsistency between an
• Describes a state of inconsistency between an
individual’s attitudes and his or her behavior.
– Cognitive dissonance can be reduced by:
• Changing the underlying attitude.
• Changing future behavior.
• Developing new ways of explaining or
rationalizing the inconsistency.

important?
Attitudes and cognitive consistency (cont.).
– Dissonance reduction choices are influenced
by:
• The degree of control a person has over the
situation.
• The magnitude of the rewards involved.

Study Question 4: What are individual differences
and how are they related to workforce diversity?
Workforce diversity.
– The presence of individual human
characteristics that make people different
characteristics that make people different
from one another.
Challenge of workforce diversity.
– Respecting individuals’ perspectives and
contributions and promoting a shared sense
of organizational vision and identity.

As workforce diversity increases, the
possibility of stereotyping and
discrimination increases.
– Demographic characteristics may serve as the
basis for stereotypes.

Equal employment opportunity.
– Nondiscriminatory employment decisions.
• No intent to exclude or disadvantage legally
• No intent to exclude or disadvantage legally
protected groups.
– Affirmative action.
• Remedial actions for proven discrimination or
statistical imbalance in workforce.

Demographic characteristics.
– The background characteristics that help shape what a
person becomes.
Important demographic characteristics for the
Important demographic characteristics for the
workplace.
– Gender.
– Age.
– Able-bodiedness.
– Race.
– Ethnicity.

Gender.
– No consistent differences between men and
women in:
• Problem-solving abilities.
• Problem-solving abilities.
• Analytical skills.
• Competitive drive.
• Motivation.
• Learning ability.
• Sociability.

Gender (cont.).
– As compared to men, women:
• Are more conforming.
• Have lower expectations of success.
• Have higher absenteeism.
• Are more democratic as leaders.

Age.
– Aging workforce.
– Older workers are more susceptible to stereotyping.
– Older workers are more susceptible to stereotyping.
– Age discrimination lawsuits are increasingly common
in the United States.
– Small businesses tend to value older workers.
– Experienced workers, who are usually older, tend to
perform well, be absent less, and have low turnover.

Able-bodiedness.
– Despite evidence of effective job performance,
most disabled persons are unemployed.
– Most disabled persons want to work.
– More firms are likely to hire disabled workers
in the future.

Racial and ethnic groups.
– African Americans, Asian Americans, and
Hispanic Americans make up an ever-
increasing percentage of the American
increasing percentage of the American
workforce.
– Potential for stereotypes and discrimination
can adversely affect career opportunities.
– Race cannot be a BFOQ.

Important lessons regarding demographic
characteristics.
– Respect and deal with the needs and concerns
– Respect and deal with the needs and concerns
of people with different demographics.
– Avoid linking demographics to stereotypes.
– Demography is not a good indicator of
individual-job fits.

Aptitude.
– A person’s capability of learning something.
Ability.
– A person’s existing capacity to perform the
various tasks needed for a given job.
– Includes relevant knowledge and skills.

What is the perception process?
What are common perceptual
distortions?
distortions?
How can perceptions be managed?
What is attribution theory?

Study Question 1: What is the
perception process?
Perception.
– The process by which people select, organize,
interpret, retrieve, and respond to information.
interpret, retrieve, and respond to information.
– People process information inputs into
responses involving feeling and action.
– The quality or accuracy of a person’s
perceptions has a major impact on responses.

Study Question 1: What is the perception
process?

perception process?

perception process?
Information attention and selection.
– Selective screening.
• Lets in only a tiny portion all the information that
• Lets in only a tiny portion all the information that
is available.
– Two types of selective screening.
• Controlled processing.
• Screening without perceiver’s conscious
awareness.

perception process?
Organization of information.
– Schemas.
• Cognitive frameworks that represent organized
knowledge about a given concept or stimulus
knowledge about a given concept or stimulus
developed through experience.
– Types of schemas:
• Self schemas.
• Person schemas.
• Script schemas.
• Person-in-situation schemas.

perception process?
Information interpretation.
– Uncovering the reasons behind the ways
stimuli are grouped.
– People may interpret the same information
differently or make different attributions about
information.

perception process?
Information retrieval.
– Attention and selection, organization, and
– Attention and selection, organization, and
interpretation are part of memory.
– Information stored in memory must be
retrieved in order to be used.

Study Question 2: What are common
perceptual distortions?

Stereotypes or prototypes.
– Combines information based on the category
or class to which a person, situation, or object
or class to which a person, situation, or object
belongs.
– Individual differences are obscured.
– Strong impact at the organization stage.

Halo effects.
– Occur when one attribute of a person or
situation is used to develop an overall
situation is used to develop an overall
impression of the individual or situation.
– Likely to occur in the organization stage.
– Important in the performance appraisal
process.

Selective perception.
– The tendency to single out those aspects of a
situation, person, or object that are consistent
situation, person, or object that are consistent
with one’s needs, values, or attitudes.
– Strongest impact is at the attention stage.
– Perception checking with other persons can
help counter the adverse impact of selective
perception.

Projection.
– The assignment of one’s personal attributes to
other individuals.
other individuals.
– Especially likely to occur in interpretation
stage.
– Projection can be controlled through a high
degree of self-awareness and empathy.

Contrast effects.
– Occur when an individual is compared to other
people on the same characteristics on which
the others rank higher or lower.
– People must be aware of the impact of contrast
effects in many work settings

Self-fulfilling prophecy.
– The tendency to create or find in another
situation or individual that which one expected
situation or individual that which one expected
to find.
– Also called the “Pygmalion effect.”
– Can have either positive or negative outcomes.
– Managers should adopt positive and optimistic
approaches to people at work.

Study Question 3: How can
perceptions be managed?
Impression management.
– A person’s systematic attempt to behave in
ways that create and maintain desired
ways that create and maintain desired
impressions in others’ eyes.
– Successful managers:
• Use impression management to enhance their own
images.
• Are sensitive to other people’s use of impression
management.

Study Question 3: How can
perceptions be managed?
Distortion management.
– Managers should:
• Balance automatic and controlled information
processing at the attention and selection stage.
• Broaden their schemas at the organizing stage.
• Be attuned to attributions at the interpretation
stage.

Study Question 4:What is
attribution theory?
Attribution theory aids in perceptual
interpretation by focusing on how people
attempt to:
attempt to:
– Understand the causes of a certain event.
– Assess responsibility for the outcomes of the
event.
– Evaluate the personal qualities of the people
involved in the event.

attribution theory?
Factors influencing internal and external
attributions.
– Distinctiveness — consistency of a person’s
– Distinctiveness — consistency of a person’s
behavior across situations.
– Consensus — likelihood of others responding
in a similar way.
– Consistency — whether an individual
responds the same way across time.

attribution theory?
Fundamental attribution error.
– Applies to the evaluation of someone’s else
behavior.
behavior.
– Attributing success to the influence of
situational factors.
– Attributing failure to the influence of personal
factors.

attribution theory?
Self-serving bias.
– Applies to the evaluation of our own behavior.
– Attributing success to the influence of
personal factors.
– Attributing failure to the influence of
situational factors.

attribution theory?
Techniques for effectively managing perceptions
and attributions.
– Be self-aware.
– Seek a wide range of differing information.
– Seek a wide range of differing information.
– Try to see a situation as others would.
– Be aware of different kinds of schemas.
– Be aware of perceptual distortions.
– Be aware of self and impression management.
– Be aware of attribution theory implications.

What is motivation?
What do the content theories suggest about
individual needs and motivation?
individual needs and motivation?
What do the process theories suggest about
individual motivation?
What are reinforcement theories and how
are they linked to motivation?

Study Question 1:What is motivation?
Motivation refers to forces within an individual
that account for the level, direction, and
persistence of effort expended at work.
– Direction — an individual’s choice when presented
– Direction — an individual’s choice when presented
with a number of possible alternatives.
– Level — the amount of effort a person puts forth.
– Persistence — the length of time a person stays with a
given action.

Study Question 1:What is motivation?
Categories of motivation theories.
– Content theories.
• Focus on profiling the needs that people seek to
fulfill.
fulfill.
– Process theories.
• Focus on people’s thought or cognitive processes.
– Reinforcement theories.
• Emphasize controlling behavior by manipulating
its consequences.

Study Question 2: What do the content theories
suggest about individual needs and motivation?
Content theories.
– Motivation results from the individual’s attempts to
satisfy needs.
Major content theories.
Major content theories.
– Hierarchy of needs theory.
– ERG theory.
– Acquired needs theory.
– Two-factor theory.
Each theory offers a slightly different view.

ERG theory.
– Existence needs.
• Desire for physiological and material well-being.
– Relatedness needs.
• Desire for satisfying interpersonal relationships.
– Growth needs.
• Desire for continued personal growth and
development.

Acquired needs theory.
– Need for achievement (nAch).
• The desire to do something better or more efficiently, to solve
problems, or to master complex tasks.
Need for affiliation (nAff).
– Need for affiliation (nAff).
• The desire to establish and maintain friendly and warm
relations with others.
– Need for power (nPower).
• The desire to control others, to influence their behavior, or to
be responsible for others.

Study Question 3: What do the process theories
suggest about individual motivation?
Process theories.
– Focus on the thought processes through which
people choose among alternative courses of
action.
action.
The chapter focuses on two process
theories:
– Equity theory.
– Expectancy theory.

Equity theory.
– People gauge the fairness of their work outcomes in
relation to others.
– Felt negative inequity.
– Felt negative inequity.
• Individual feels he/she has received relatively less
than others in proportion to work inputs.
– Felt positive inequity.
• Individual feels he/she has received relatively more
than others in proportion to work inputs.

Equity restoration behaviors.
– Change work inputs.
– Change the outcomes received.
Leave the situation.
– Leave the situation.
– Change the comparison person.
– Psychologically distort the comparisons.
– Take actions to change the inputs or outputs of
the comparison person.

Coping methods for dealing with equity
comparisons.
– Recognize that equity comparisons are inevitable in the
workplace.
workplace.
– Anticipate felt negative inequities when rewards are given.
– Communicate clear evaluations for any rewards given.
– Communicate an appraisal of performance on which the reward
is based.
– Communicate comparison points that are appropriate in the
situation

A person’s motivation is a multiplicative function
of expectancy, instrumentality, and valence (M =
E x I x V).
Motivational implications of expectancy theory.
Motivational implications of expectancy theory.
– Motivation is sharply reduced when, expectancy,
instrumentality, or valence approach zero.
– Motivation is high when expectancy and
instrumentality are high and valence is strongly
positive.

Extrinsic rewards.
– Positively valued work outcomes given to the
individual by some other person.
individual by some other person.
Intrinsic rewards.
– Positively valued work outcomes that the
individual receives directly as a result of task
performance.

Guidelines for the distribution of extrinsic
rewards.
– Clearly identify the desired behaviors.
– Clearly identify the desired behaviors.
– Maintain an inventory of rewards that have the
potential to serve as positive reinforcers.
– Recognize individual differences in the
rewards that will have a positive value for
each person.

Guidelines for the distribution of extrinsic
rewards (cont.).
– Let each person know exactly what must be done to
receive a desirable reward; set clear target antecedents
and give performance feedback.
and give performance feedback.
– Allocate rewards contingently and immediately upon
the appearance of the desired behaviors.
– Allocate rewards wisely in terms of scheduling the
delivery of positive reinforcement.

Study Question 4: What are reinforcement
theories and how are they linked to motivation?
Reinforcement.
– The administration of a consequence as a
result of a behavior.
result of a behavior.
– Proper management of reinforcement can
change the direction, level, and persistence of
an individual’s behavior.

Law of effect.
– Theoretical basis for manipulating
consequences of behavior.
consequences of behavior.
– Behavior that results in a pleasant outcome is
likely to be repeated while behavior that
results in an unpleasant outcome is not likely
to be repeated.

Organizational behavior modification (OB
Mod).
– The systematic reinforcement of desirable
work behavior and the nonreinforcement or
work behavior and the nonreinforcement or
punishment of unwanted work behavior.
– Uses four basic strategies:
• Positive reinforcement.
• Negative reinforcement.
• Punishment.
• Extinction.

Positive reinforcement.
– The administration of positive consequences
to increase the likelihood of repeating the
to increase the likelihood of repeating the
desired behavior in similar settings.
– Rewards are not necessarily positive
reinforcers.
– A reward is a positive reinforcer only if the
behavior improves.

Principles governing reinforcement.
– Law of contingent reinforcement.
• The reward must be delivered only if the desired
• The reward must be delivered only if the desired
behavior is exhibited.
– Law of immediate reinforcement.
• The reward must be given as soon as possible after
the desired behavior is exhibited.

Scheduling reinforcement.
– Continuous reinforcement.
• Administers a reward each time the desired
• Administers a reward each time the desired
behavior occurs.
– Intermittent reinforcement.
• Rewards behavior periodically — either on
the basis of time elapsed or the number of
desired behaviors exhibited.

Negative reinforcement.
– Also known as avoidance.
– The withdrawal of negative consequences to
increase the likelihood of repeating the desired
behavior in a similar setting.

Punishment.
– The administration of negative consequences
or the withdrawal of positive consequences to
reduce the likelihood of repeating the behavior
in similar settings.

Implications of using punishment.
– Punishing poor performance enhances
performance without affecting satisfaction.
performance without affecting satisfaction.
– Arbitrary and capricious punishment leads to
poor performance and low satisfaction.
– Punishment may be offset by positive
reinforcement from another source.

Extinction.
– The withdrawal of the reinforcing
consequences for a given behavior.
consequences for a given behavior.
– The behavior is not unlearned; it simply is not
exhibited.
– The behavior will reappear if it is reinforced
again.

Ethical issues with reinforcement usage.
– Is improved performance really due to reinforcement?
– Is the use of reinforcement demeaning and
dehumanizing?
dehumanizing?
– Will managers abuse their power by exerting external
control over behavior?
– How can we ensure that the manipulation of
consequences is done in a positive and constructive
fashion?

How are motivation, job satisfaction, and
performance related?
What are job-design approaches?
What are job-design approaches?
How are technology and job design
related?
What alternative work arrangements are
used today?

Study Question 1: How are motivation,
job satisfaction, and performance related?
Job satisfaction.
– The degree to which individuals feel positively
or negatively about their jobs.
or negatively about their jobs.
– Job satisfaction can be assessed:
• By managerial observation and interpretation.
• Through use of job satisfaction questionnaires.

Implications of key work decisions for job
satisfaction.
– Joining and remaining a member of an organization.
– Joining and remaining a member of an organization.
• Satisfied workers have better attendance and less turnover.
– Working hard in pursuit of high levels of task
performance.
• Three alternative relationships between performance and
satisfaction.

Argument: satisfaction causes
performance.
– Managerial implication — to increase
– Managerial implication — to increase
employees’ work performance, make them
happy.
– Job satisfaction alone is not a consistent
predictor of work performance.

Argument: performance causes
satisfaction.
– Managerial implication — help people achieve
high performance, then satisfaction will
high performance, then satisfaction will
follow.
– Performance in a given time period is related
to satisfaction in a later time period.
– Rewards link performance with later
satisfaction.

Argument: rewards cause both satisfaction
and performance.
– Managerial implications.
– Managerial implications.
• Proper allocation of rewards can positively
influence both satisfaction and performance.
• High job satisfaction and performance-contingent
rewards influence a person’s work performance.
• Size and value of the reward should vary in
proportion to the level of one’s performance.

Study question 2: What are job-
design approaches?

design approaches?
Scientific management.
– Sought to improve work efficiency by creating
small, repetitive tasks and training workers to
do these tasks well.
do these tasks well.
– Job simplification.
• Standardizes work procedures and employs people
in clearly defined and highly specialized tasks.
• Intent is to increase efficiency, but it may be
decreased due to the motivational impact of
unappealing jobs.

design approaches?
Job enlargement and job rotation.
– Job enlargement.
• Increases task variety by combining into one job
two or more tasks that were previously assigned to
two or more tasks that were previously assigned to
separate workers.
– Job rotation.
• Increases task variety by periodically shifting
workers among jobs involving different tasks.
– Enlargement and rotation use horizontal
loading to increase job breadth.

design approaches?
Job enrichment.
– The practice of enhancing job content by
building motivating factors such as
building motivating factors such as
responsibility, achievement, recognition, and
personal growth into the job.
– Adds planning and evaluating duties to the job
content.
– Uses vertical loading to increase job depth.

design approaches?
Ways to increase job depth.
– Allow workers to plan.
– Allow workers to control.
– Maximize job freedom.
– Maximize job freedom.
– Increase task difficulty.
– Help workers become task experts.
– Provide performance feedback.
– Increase performance accountability.
– Provide complete units of work.

design approaches?
Concerns about job enrichment.
– Job enrichment can be very costly.
– Controversy concerning whether pay
– Controversy concerning whether pay
must be increased when jobs are
enriched.
• Herzberg’s argument regarding the impact
of competitive pay and enriched jobs.

Study question 3: What are the keys
to designing motivating jobs?

Core job characteristics.
– Skill variety.
• Degree to which a job requires a variety of different activities
and involves the use of a number of different skills and
and involves the use of a number of different skills and
talents of the individual.
– Task identity.
• Degree to which the job requires the completion of a “whole”
and identifiable piece of work; one that involves doing a job
from beginning to end with a visible outcome.

Core job characteristics (cont.).
– Task significance.
• Degree to which the job is important and involves a
meaningful contribution to the organization or society in
meaningful contribution to the organization or society in
general.
– Autonomy.
• Degree to which the job gives the employee substantial
freedom, independence, and discretion in scheduling the
work and in determining the procedures used in carrying it
out.

Core job characteristics (cont.).
– Job feedback.
• Degree to which carrying out the work activities provides
direct and clear information to the employee regarding how
well the job has been done. .

Motivating potential score.
– Combined together, the core job
characteristics create a motivating potential
characteristics create a motivating potential
score (MPS).
– MPS indicates the degree to which the job is
capable of motivating people.
– A job’s MPS can be raised by enriching the
core characteristics.

Critical psychological states.
– When the core characteristics are highly
enriched, three critical psychological states
are positively influenced.
are positively influenced.
• Experienced meaningfulness of work.
• Experienced responsibility for work outcomes.
• Knowledge of actual results of work activities.
– Positive psychological states create positive
work outcomes.

Enriched core job characteristics will
create positive psychological states, which
in turn will create positive work outcomes
in turn will create positive work outcomes
only when:
– Employee growth-need strength is high.
– The employee has the requisite knowledge and
skill.
– Employee context satisfaction exists.

Social information processing theory.
– Social information in organizations influences
the way people perceive their jobs and respond
the way people perceive their jobs and respond
to them.
– Research evidence shows that both social
information and the core characteristics are
important determinants of how people
perceive their jobs.

Managerial and global implications of
enriching jobs.
– Not everyone’s job should be enriched.
– Job enrichment can apply to groups.
– Culture has a substantial impact on job
enrichment.

Study Question 4: How are technology
and job design related?
Sociotechnical systems.
– Reflects the importance of integrating people
and technology to create high-performance
and technology to create high-performance
work systems.
– Essential for new developments in job design,
given the impact of computers and information
technology in the modern workplace.

Flexible manufacturing systems.
– Adaptive computer-based technologies and
integrated job designs that are used to shift
work easily and quickly among alternative
work easily and quickly among alternative
products.
– Workers develop expertise across a wide range
of functions.
– Jobs offer a wealth of potential for enriched
core job characteristics.

Workflow and process reengineering.
– Process reengineering is the analysis,
streamlining, and reconfiguration of actions
streamlining, and reconfiguration of actions
and tasks required to reach a work goal.
– This approach for improving workflows and
job designs is driven by one question:
• What is necessary and what else can be eliminated?

Study Question 5: What alternative
work arrangements are used today?
Compressed work weeks.
– Any scheduling of work that allows a full-time
job to be completed in fewer than the standard
job to be completed in fewer than the standard
five days.
– “4/40” is most common form.

Compressed work weeks (cont.).
– Advantages.
• For workers: added time off.
• For organizations: lower absenteeism and
• For organizations: lower absenteeism and
improved recruiting of new employees.
– Disadvantages.
• For workers: increased fatigue and family
adjustment problems.
• For organizations: work scheduling problems,
customer complaints, and possible union
opposition.

Flexible working hours.
– Gives individuals a daily choice in the timing of
their work commitments.
– Advantages:
– Advantages:
• For workers: shorter commuting time, more leisure
time, more job satisfaction, and greater sense of
responsibility.
• For organizations: less absenteeism, tardiness, and
turnover; more commitment; and higher
performance.

Job sharing.
– One full-time job is assigned to two or more
persons who divide the work according to
persons who divide the work according to
agreed-upon hours.
– Advantages.
• For workers: less burnout and higher energy level.
• For organizations; attracting talented people who
who would otherwise be unable to work.

Work at home and the virtual office.
– Telecommuting.
• Work done at home or in a remote location via use
of computers and advanced communication
of computers and advanced communication
linkages with a central office or other employment
locations.
– Variants of telecommuting.
• Flexiplace.
• Hoteling.
• Virtual office.

Advantages of telecommuting.
– For workers: flexibility, comforts of home, and choice
of work locations consistent with one’s lifestyle.
– For organizations: costs savings, efficiency, and
improved employee satisfaction.
Disadvantages of telecommuting.
– For workers: isolation from co-workers, decreased
identification with work team, and technical
difficulties with computer linkages.

Part-time work.
– Temporary part-time work.
• An employee is classified as temporary and works
• An employee is classified as temporary and works
less than the standard 40-hour work week.
– Permanent part-time work.
• An employee is classified as a permanent member
of the workforce and works less than the standard
40-hour work week.

Advantages of part-time work.
– For workers: appeals to people who want to
supplement other jobs or do not want full-time work.
– For organizations: lower labor costs, ability to better
– For organizations: lower labor costs, ability to better
accommodate peaks and valleys of business cycle, and
better management of retention quality.
Disadvantages of part-time work.
– For workers: added stress and potentially diminished
performance if holding two jobs, failure to qualify for
benefits, and lower pay rates than full-time
counterparts.

What is goal setting?
What is performance appraisal?
What are compensation and rewards?
What are compensation and rewards?
What are human resource
development and person-job fit?

Study Question 1: What is goal setting?

Goal setting guidelines.
– Difficult goals are more likely to lead to
higher performance than are less difficult
ones.
– Specific goals are more likely to lead to higher
– Specific goals are more likely to lead to higher
performance than are no goals or vague or
general ones.
– Task feedback, or knowledge of results, is
likely to motivate people toward higher
performance by encouraging the setting of
higher performance goals.

Goal setting guidelines (cont.).
– Goals are most likely to lead to higher
performance when the people have the
abilities and the feeling of self-efficacy
abilities and the feeling of self-efficacy
required to accomplish them.
– Goals are most likely to motivate people
toward higher performance when they are
accepted and there is commitment to them.

Goal setting and MBO.
– Management by objectives (MBO) is a process
of joint goal setting between a supervisor and
a subordinate.
– MBO is consistent with the goal setting
– MBO is consistent with the goal setting
guidelines derived from the Locke and Latham
model.
– MBO establishes performance goals consistent
with higher level work unit and organizational
objectives.

Potential problems with MBO.
– Too much paperwork. in documenting goals and
accomplishments.
– Too much emphasis on:
– Too much emphasis on:
• Goal-oriented rewards and punishments.
• Top-down goals.
• Goals that are easily stated in objective terms.
• Individual goals instead of group goals.
– MBO may need to be implemented organization-wide.

Study Question 2: What is performance
appraisal?
Performance appraisal.
– Helps both the manager and subordinate
maintain the organization-job-employee
maintain the organization-job-employee
characteristics match
– The process of systematically evaluating
performance and providing feedback upon
which performance adjustments can be made.

appraisal?
Functions of performance appraisal.
– Define the specific job criteria against which
performance will be measured.
performance will be measured.
– Measure past job performance accurately.
– Justify rewards, thereby differentiating
between high and low performance.
– Define ratee’s needed development
experiences.

appraisal?
Two general purposes of good
performance appraisal.
– Evaluation.
– Evaluation.
• Concerned with such issues as promotions,
transfers, terminations, and salary increases.
– Feedback and development.
• Let workers know their status relative to firm’s
expectations and performance objectives.

appraisal?
Who does the performance appraisal?
– Traditionally done by ratee’s immediate
superior.
People other than immediate superior may
– People other than immediate superior may
have better information on certain aspects of
ratee’s performance.
– 360-degree evaluation provides appraisal
information from multiple perspectives.

appraisal?
Performance appraisal dimensions and
standards.
– Output measures.
– Output measures.
• Quantity of work output.
• Quality of work output.
– Activity measures.
• Behavioral measures that are typically obtained
from the evaluator’s observation and rating.

appraisal?
Comparative methods of performance
appraisal.
– Ranking.
• Raters rank order people from best to worst.
• Raters rank order people from best to worst.
– Paired comparisons.
• Raters compare each person with every other
person.
– Forced distribution.
• Raters place a specific proportion of employees
into each performance category.

appraisal?
Absolute methods of performance appraisal.
– Graphic rating scales.
• Raters assign scores on a list of dimensions related
to high performance outcomes in a given job.
to high performance outcomes in a given job.
– Critical incident diary records.
• Rater records incidents of unusual success or
failure in a given performance aspect.
– Behaviorally anchored rating scales (BARS).
• Rater identifies observable job behaviors.

appraisal?
Absolute methods of performance appraisal
(cont.).
– Behavioral observation scale (BOS).
• Rater rates each observable job behavior on a five-
point frequency scale.
– Management by objectives.
• Jointly established goals used as standards against
which the subordinate’s performance is evaluated.

appraisal?
To be meaningful, an appraisal system must be:
– Reliable — provide consistent results across time.
– Valid — actually measure people on relevant job
– Valid — actually measure people on relevant job
content.
Measurement errors can threaten the reliability or
validity of performance appraisals.

appraisal?
Measurement errors in performance appraisal.
– Halo errors.
• Raters evaluate on several different dimensions and
give a similar rating for each dimension.
give a similar rating for each dimension.
– Leniency errors.
• Raters tend to give everyone relatively high
ratings.
– Strictness errors.
• Raters tend to give everyone relatively low ratings.

appraisal?
Measurement errors in performance appraisal
(cont.).
– Central tendency errors.
• Raters lump everyone together around the average
• Raters lump everyone together around the average
or middle.
– Low differentiation errors.
• Raters restrict themselves to a small part of the
rating scale.
• Examples include leniency, strictness, and central
tendency errors.

appraisal?
Measurement errors in performance appraisal
(cont.).
– Recency errors.
• Raters allow recent events to exercise undue
influence on ratings.
influence on ratings.
– Personal bias errors.
• Raters let personal biases, such as stereotypes,
unduly influence the ratings.
– Cultural bias errors.
• Raters allow cultural differences of employees to
influence the performance appraisal.

appraisal?
Ways to reduce rating errors in performance
appraisals.
– Training raters to understand the evaluation process
and recognize errors.
and recognize errors.
– Ensuring that raters observe ratees on an ongoing
basis.
– Not having the rater evaluate too many ratees.
– Ensuring the clarity and adequacy of performance
dimensions and standards.
– Avoiding terms that have different meanings for
different raters.

appraisal?
Guidelines for ensuring the legality of
performance appraisal systems.
– Base appraisal on job requirements as
reflected in performance standards.
reflected in performance standards.
– Ensure that employees clearly understand the
performance standards.
– Use clearly defined dimensions.
– Use behaviorally-based dimensions supported
by observable evidence.

appraisal?
Guidelines for ensuring the legality of
performance appraisal systems (cont.).
– Avoid abstract trait names.
– Ensure that scale anchors are brief and
logically consistent.
– Ensure that the system is valid and
psychometrically sound.
– Provide an appeal mechanism to handle
appraisal disagreements.

Study Question 3: What are
compensation and rewards?
Pay as an extrinsic reward.
– Pay can help organizations attract and retain
highly capable workers, and help satisfy and
motivate these workers.
motivate these workers.
– High levels of job performance must be
viewed as the path through which high pay can
be achieved.
– Merit pay bases an individual’s salary or wage
increase on the person’s performance.

Pay as an extrinsic reward (cont.).
– Merit pay should be based on realistic and
accurate measures of individual work
accurate measures of individual work
performance.
– Some people argue that merit pay plans ignore
the high degree of task interdependence
among employees.

Creative pay practices.
– Skill-based pay.
• Rewards people for acquiring and developing job-
relevant skills.
relevant skills.
– Gain-sharing plans.
• Give workers an opportunity to share in
productivity gains through increased earnings.
– Profit-sharing plans.
• Reward employees based on the entire
organization’s performance

Creative pay practices (cont.).
– Employee stock ownership plans (ESOPs).
• Give company stock to employees or allow them to
purchase it at a price below market value
purchase it at a price below market value
– Lump-sum pay increases.
• Provide wage or salary increase in one or more
lump-sum payments.
– Flexible benefit plans.
• Allow workers to select benefits according to their
individual needs.

Study Question 4: What are human
resource development and person-job fit?
Human resource development (HRD) and
the person-job fit.
– HRD and the person-job fit are key
contributing activities in performance
contributing activities in performance
management and rewards.
– Human resource strategic planning provides
the foundation for HRD and the person-job fit.
– Staffing, training, and career planning and
development are important functions in HRD
and achieving a person-job fit.

Job analysis.
– The process and procedures used to collect
and classify information about tasks the
and classify information about tasks the
organization needs to complete.
– Identifies the worker characteristics needed to
perform the job.
– Forms the basis for a job description and job
specifications.

Recruitment.
– The process of attracting the best qualified individuals
to apply for a given job.
– Typical recruitment steps.
– Typical recruitment steps.
• Advertisement of a position vacancy.
• Preliminary contact with potential job candidates.
• Preliminary screening to obtain a pool of candidates.
– Recruitment approaches are external or internal.
– Realistic job previews.

Selection.
– A series of steps from initial applicant
screening to final hiring of the new employee.
– Selection process.
– Selection process.
• Completing application materials.
• Conducting an interview.
• Completing any necessary tests.
• Doing a background investigation.
• Deciding to hire or not to hire.

Socialization.
– Process that adapts employees to the
organization’s culture.
– Occurs during and after completion of the
– Occurs during and after completion of the
staffing process.
– Phases of socialization.
• Anticipatory socialization.
• Encounter.
• Change and acquisition.

Training.
– A set of activities that provides the
opportunity to acquire and improve job-related
skills.
skills.
– Types of training.
• On-the-job training involves job instruction while
performing the job in the actual workplace.
• Off-the-job training commonly involves lectures,
videos, and simulations, and increasingly is done
through e-training.

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