2. A PRELIMINARY DEFINITION
It is a science
- not intuition
- not approximations
- It establishes cause – effect relationship
- It deals with people inside an organization
3. WHY STUDY OB?
• MANAGERIAL ROLES
• MANAGERIAL SKILLS
• MANAGERIAL CHALLENGES AND
OPPURTUNITIES
7. Management Skills
Management Skills
Technical skills
The ability to apply specialized knowledge or expertise.
Conceptual Skills
The mental ability to analyze and diagnose complex
situations.
Human skills
The ability to work with, understand, and motivate other people,
both individually and in groups
8. Challenges and Opportunities for OB
Challenges and Opportunities for OB
• Responding to Globalization
– 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 Workforce Diversity
– Embracing diversity
– Changing demographics
– Implications for managers
• Recognizing and responding to differences
9. Major Workforce Diversity Categories
Major Workforce Diversity Categories
Gender
Gender National
National
Disability
Disability Origin
Origin
Age
Age
Heterogeneous
Heterogeneous
Community/
Community/ religious mix
religious mix
Caste
Caste
Domestic
Domestic
Partners
Partners
10. Challenges and Opportunities for OB (cont’d)
Challenges and Opportunities for OB (cont’d)
• Improving Quality and Productivity
– Quality management (QM)
– Process reengineering
• Responding to the Labor Shortage
– Changing work force demographics
– Fewer skilled laborers
– Early retirements and older workers
• Improving Customer Service
– Increased expectation of service quality
– Customer-responsive cultures
11. Challenges and Opportunities for OB (cont’d)
Challenges and Opportunities for OB (cont’d)
• Quality management (QM)
– The constant attainment of customer satisfaction
through the continuous improvement of all
organizational processes.
– Requires employees to rethink what they do and
become more involved in workplace decisions.
• Process reengineering
– Asks managers to reconsider how work would be done
and their organization structured if they were starting
over.
– Instead of making incremental changes in processes,
reengineering involves evaluating every process in
terms of its contribution.
12. HAWTHORNE EXPERIMENTS
• Conducted between 1924 and 1930
• At Western Electric Company, Hawthorne
works in Illinois
• Elton Mayo, Harvard Professor
• Three stages – conflicting results
• Conclusions – novelty of the situation, type
of supervision, involvement in the
experiment
14. There Are Few Absolutes in OB
There Are Few Absolutes in OB
Contingency variables
Situational factors: variables that moderate the
relationship between two or more other variables and
improve the correlation
x Contingency
Variables y
15. Basic OB Model
Basic OB Model
Model
An abstraction of reality.
A simplified representation of some real-world
phenomenon.
16. A Better Definition
OB is the science of understanding,
predicting, and managing human behaviour
in organizations
17. Activity
What do you think is the single most critical “people”
problem facing your organisation today?
What is the cause and what are the effects of this
problem?
Can you analyze the issue at all three (individual, group,
and organizational) levels?
20. The S-O-B-C Model
Stimulus Organism Behaviour
Consequence
Individuals Perception
Groups Personality
Organisational Motivation
Systems & Structures Learning
22. What Is Perception, and Why Is
What Is Perception, and Why Is
It Important?
It Important?
Perception ••People’s behavior is
People’s behavior is
A process by which based on their
based on their
individuals organize and perception of what
perception of what
interpret their sensory reality is, not on reality
reality is, not on reality
impressions in order to itself.
itself.
give meaning to their
environment. ••The world as it is
The world as it is
perceived is the world
perceived is the world
that is behaviorally
that is behaviorally
important.
important.
24. Person Perception: Making
Judgments About Others
Attribution Theory
When individuals observe
behavior, they attempt to
determine whether it is
internally or externally
caused.
Distinctiveness: shows different behaviors in different situations.
Distinctiveness: shows different behaviors in different situations.
Consensus: response is the same as others to same situation.
Consensus: response is the same as others to same situation.
Consistency: responds in the same way over time.
Consistency: responds in the same way over time.
26. Errors and Biases in Attributions
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.
27. Errors and Biases in Attributions
Self-Serving Bias (cont’d)
The tendency for individuals to
attribute their own successes
to internal factors while putting
the blame for failures on
external factors.
28. Frequently Used Shortcuts in
Judging Others
Selective Perception
People selectively interpret what they see on the
basis of their interests, background, experience,
and attitudes.
29. Frequently Used Shortcuts in
Judging Others
Halo Effect
Drawing a general impression
about an individual on the
basis of a single characteristic
Contrast Effects
Evaluation of a person’s characteristics that
are affected by comparisons with other
people recently encountered who rank higher
or lower on the same characteristics.
30. Frequently Used Shortcuts in
Judging Others
Stereotyping
Projection
Judging someone on the
Attributing one’s own basis of one’s perception of
characteristics to other the group to which that
people. person belongs.
31. Specific Applications in
Organizations
• Employment Interview
– Perceptual biases of raters affect the accuracy of
interviewers’ judgments of applicants.
• Performance Expectations
– Self-fulfilling prophecy (pygmalion effect): The lower
or higher performance of employees reflects
preconceived leader expectations about employee
capabilities.
• Ethnic Profiling
– A form of stereotyping in which a group of individuals
is singled out—typically on the basis of race or
ethnicity—for intensive inquiry, scrutinizing, or
investigation.
32. Specific Applications in
Organizations (cont’d)
• Performance Evaluations
– Appraisals are often the subjective (judgmental)
perceptions of appraisers of another employee’s job
performance.
• Employee Effort
– Assessment of individual effort is a subjective
judgment subject to perceptual distortion and bias.
33. Activity
An employee does an unsatisfactory job on an
assigned project. Explain the attribution process
that this person’s manager will use to form
judgments about this employee’s job performance.
35. What is Personality?
Personality
The sum total of ways in which an individual reacts and
interacts with others.
Personality Traits Personality
Personality
Enduring characteristics Determinants
Determinants
that describe an • •Heredity
Heredity
individual’s behavior. • •Environment
Environment
• •Situation
Situation
36. The Myers-Briggs Type Indicator
Myers-Briggs Type Indicator (MBTI)
A personality test that taps four characteristics and
classifies people into 1 of 16 personality types.
Personality Types
Personality Types
• •Extroverted vs. Introverted (E or I)
Extroverted vs. Introverted (E or I)
• •Sensing vs. Intuitive (S or N)
Sensing vs. Intuitive (S or N)
• •Thinking vs. Feeling (T or F)
Thinking vs. Feeling (T or F)
• •Judging vs. Perceiving (P or J)
Judging vs. Perceiving (P or J)
38. The Big Five Model of
Personality Dimensions
Extroversion
Sociable, gregarious, and assertive
Agreeableness
Good-natured, cooperative, and trusting.
Conscientiousness
Responsible, dependable, persistent, and organized.
Emotional Stability
Calm, self-confident, secure (positive) versus nervous, depressed,
and insecure (negative).
Openness to Experience
Imaginativeness, artistic, sensitivity, and intellectualism.
39. Major Personality Attributes
Influencing OB
• Locus of control
• Machiavellianism
• Self-esteem
• Self-monitoring
• Risk taking
• Type A personality
40. Locus of Control
Locus of Control
The degree to which people believe they
are masters of their own fate.
Internals
Individuals who believe that they
control what happens to them.
Externals
Individuals who believe that
what happens to them is
controlled by outside forces
such as luck or chance.
41. Machiavellianism
Machiavellianism (Mach)
Degree to which an individual is pragmatic,
maintains emotional distance, and believes
that ends can justify means.
Conditions Favoring High Machs
Conditions Favoring High Machs
••Direct interaction
Direct interaction
••Minimal rules and regulations
Minimal rules and regulations
••Emotions distract
Emotions distract
42. Self-Esteem and Self-Monitoring
Self-Esteem (SE)
Individuals’ degree of liking
or disliking themselves.
Self-Monitoring
A personality trait that measures
an individuals ability to adjust his
or her behavior to external,
situational factors.
43. Risk-Taking
• High Risk-taking Managers
– Make quicker decisions
– Use less information to make decisions
– Operate in smaller and more entrepreneurial
organizations
• Low Risk-taking Managers
– Are slower to make decisions
– Require more information before making decisions
– Exist in larger organizations with stable environments
• Risk Propensity
– Aligning managers’ risk-taking propensity to job
requirements should be beneficial to organizations.
44. Personality Types
Type A’s
1. are always moving, walking, and eating rapidly;
2. feel impatient with the rate at which most events take place;
3. strive to think or do two or more things at once;
4. cannot cope with leisure time;
5. are obsessed with numbers, measuring their success in
terms of how many or how much of everything they acquire.
Type B’s
1. never suffer from a sense of time urgency with its
accompanying impatience;
2. feel no need to display or discuss either their achievements
or accomplishments;
3. play for fun and relaxation, rather than to exhibit their
superiority at any cost;
4. can relax without guilt.
45. Personality Types
Proactive Personality
Identifies opportunities,
shows initiative, takes
action, and perseveres
until meaningful change
occurs.
Creates positive change
in the environment,
regardless or even in
spite of constraints or
obstacles.
46. Achieving Person-Job Fit
Personality-Job Fit
Theory (Holland)
Personality Types
Personality Types
Identifies six personality
types and proposes that ••Realistic
Realistic
the fit between personality ••Investigative
Investigative
type and occupational
••Social
Social
environment determines
satisfaction and turnover. ••Conventional
Conventional
••Enterprising
Enterprising
••Artistic
Artistic
48. TEAM EXERCISE
What’s a “Team Personality”?
It is the unusual organization today that is not using work teams. But not
everybody is a good team player. This prompts the questions: What
individual personality characteristics enhance a team’s performance? And
what characteristics might hinder team performance?
(a) identify personality characteristics you think are associated with high
performance teams and justify their choices
(b) identify personality characteristics you think hinder high performance
teams and justify their choices, and
(c) resolve whether it is better to have teams composed of individuals with
similar or dissimilar traits.
50. Defining Motivation
Motivation
The processes that account for an individual’s
intensity, direction, and persistence of effort toward
attaining a goal.
Key Elements
Key Elements
1. Intensity: how hard a person tries
1. Intensity: how hard a person tries
2.
2. Direction: toward beneficial goal
Direction: toward beneficial goal
3.
3. Persistence: how long a person tries
Persistence: how long a person tries
51. Maslow’s Hierarchy of Needs
Higher-Order Needs
Needs that are satisfied
internally; social, esteem,
and self-actualization
needs.
Lower-Order Needs
Needs that are satisfied
externally; physiological
and safety needs.
Source: Motivation and Personality , 2nd ed,, by A.H. Maslow, 1970.
Reprinted by permission of Prentice Hall, Inc., Upper Saddle River, NJ.
52. Theory X and Theory Y
(Douglas McGregor)
Theory X
Assumes that employees dislike
work, lack ambition, avoid
responsibility, and must be
directed and coerced to perform.
Theory Y
Assumes that employees like
work, seek responsibility, are
capable of making decisions,
and exercise self-direction and
self-control when committed to a
goal.
53. Two-Factor Theory (Frederick
Herzberg)
Two-Factor (Motivation-Hygiene) Theory
Intrinsic factors are related to job satisfaction,
while extrinsic factors are associated with
dissatisfaction.
Hygiene Factors
Factors—such as company policy
and administration, supervision,
and salary—that, when adequate
in a job, placate workers. When
factors are adequate, people will
not be dissatisfied.
55. ERG Theory (Clayton Alderfer)
ERG Theory
There are three groups of core needs: existence,
relatedness, and growth.
Core Needs
Core Needs Concepts:
Concepts:
Existence: provision of
Existence: provision of More than one need can
basic material More than one need can
basic material be operative at the same
be operative at the same
requirements.
requirements. time.
time.
Relatedness: desire for
Relatedness: desire for If aahigher-level need
relationships. If higher-level need
relationships. cannot be fulfilled, the
cannot be fulfilled, the
Growth: desire for desire to satisfy aalower-
desire to satisfy lower-
Growth: desire for level need increases.
personal development.
personal development. level need increases.
56. David McClelland’s Theory of
Needs
Need for Achievement Need for Affiliation
The drive to excel, to achieve The desire for friendly
in relation to a set of and close personal
standards, to strive to relationships.
succeed.
Need for Power nPow
The need to make others
behave in a way that they
would not have behaved
otherwise.
nAch nAff
58. Job Design Theory
Job Characteristics
Model Characteristics:
Characteristics:
Identifies five job 1. Skill variety
1. Skill variety
characteristics and their 2. Task identity
relationship to personal 2. Task identity
and work outcomes. 3.
3. Task significance
Task significance
4.
4. Autonomy
Autonomy
5.
5. Feedback
Feedback
59. Job Design Theory (cont’d)
• Job Characteristics Model
– Jobs with skill variety, task identity, task significance,
autonomy, and for which feedback of results is given,
directly affect three psychological states of employees:
• Knowledge of results
• Meaningfulness of work
• Personal feelings of responsibility for results
– Increases in these psychological states result in
increased motivation, performance, and job satisfaction.
61. Computing a Motivating
Potential Score
People who work on jobs with high core dimensions are
People who work on jobs with high core dimensions are
generally more motivated, satisfied, and productive.
generally more motivated, satisfied, and productive.
Job dimensions operate through the psychological states in
Job dimensions operate through the psychological states in
influencing personal and work outcome variables rather
influencing personal and work outcome variables rather
than influencing them directly.
than influencing them directly.
62. Equity Theory
Equity Theory
Individuals compare their job inputs and outcomes
with those of others and then respond to eliminate
any inequities.
Referent
Referent
Comparisons:
Comparisons:
Self-inside
Self-inside
Self-outside
Self-outside
Other-inside
Other-inside
Other-outside
Other-outside
64. Expectancy Theory
Expectancy Theory (Victor Vroom)
The strength of a tendency to act in a certain way
depends on the strength of an expectation that the
act will be followed by a given outcome and on the
attractiveness of that outcome to the individual.
66. Employee Recognition Programs
• Types of programs
– Personal attention
– Expressing interest
– Approval
– Appreciation for a job well done
• Benefits of programs
– Fulfill employees’ desire for recognition.
– Encourages repetition of desired behaviors.
– Enhance group/team cohesiveness and motivation.
– Encourages employee suggestions for improving
processes and cutting costs.
68. What is Employee Involvement?
Employee Involvement Program
A participative process that uses the entire capacity of
employees and is designed to encourage increased
commitment to the organization’s success.
69. Examples of Employee
Involvement Programs
Participative Management
A process in which subordinates share a significant
degree of decision-making power with their
immediate superiors.
70. Examples of Employee
Involvement Programs (cont’d)
Representative
Participation
Works Councils
Workers participate in Groups of nominated or elected
employees who must be
organizational decision
consulted when management
making through a small makes decisions involving
group of representative personnel.
employees.
Board Representative
A form of representative
participation; employees sit on
a company’s board of directors
and represent the interests of
the firm’s employees.
71. Examples of Employee
Involvement Programs (cont’d)
Quality Circle
A work group of employees who meet regularly
to discuss their quality problems, investigate
causes, recommend solutions, and take
corrective actions.
72. Examples of Employee
Involvement Programs (cont’d)
Employee Stock Ownership Plans (ESOPs)
Company-established benefit plans in which
employees acquire stock as part of their benefits.
73. Linking EI Programs and
Motivation Theories
Employee Two-Factor
Two-Factor
Theory Y
Theory Y Employee
Participative Involvement Theory
Theory
Participative Involvement Intrinsic
Management Programs Intrinsic
Management Programs Motivation
Motivation
ERG Theory
ERG Theory
Employee
Employee
Needs
Needs
74. Job Design and Scheduling
Job Rotation
The periodic shifting of a worker
from one task to another.
Job Enlargement
The horizontal expansion
of jobs.
Job Enrichment
The vertical expansion of jobs.
75. Guidelines for Enriching a Job
Source: J.R. Hackman and J.L. Suttle, eds., Improving Life at Work (Glenview, IL: Scott Foresman, 1977), p. 138.
76. Work Schedule Options
Flextime
Employees work during a common core time period
each day but have discretion in forming their total
workday from a flexible set of hours outside the core.
Job Sharing
The practice of having two or more people split a 40-
hour-a-week job.
77. Work Schedule Options
Telecommuting
Employees do their work at home on a computer
that is linked to their office.
Categories of telecommuting jobs:
Categories of telecommuting jobs:
• • Routine information handling tasks
Routine information handling tasks
• • Mobile activities
Mobile activities
• • Professional and other knowledge-related tasks
Professional and other knowledge-related tasks
78. Variable Pay Programs
Variable Pay Programs
A portion of an employee’s pay is based on some
individual and/or organization measure of
performance.
• Piece rate pay plans
• Profit sharing plans
• Gain sharing plans
79. Flexible Benefits
Employees tailor their
benefit program to Core-Plus Plans:
Core-Plus Plans:
meet their personal aacore of essential
core of essential
need by picking and benefits and aamenu-like
benefits and menu-like
selection of other benefit
choosing from a menu selection of other benefit
options.
options.
of benefit options.
Modular Plans:
Modular Plans: Flexible Spending Plans:
Flexible Spending Plans:
predesigned benefits
predesigned benefits allow employees to use
allow employees to use
packages for specific
packages for specific their tax-free benefit
their tax-free benefit
groups of employees.
groups of employees. dollars purchase benefits
dollars purchase benefits
and pay service premiums.
and pay service premiums.
80. Implications for Managers
• Motivating Employees in Organizations
– Recognize individual differences.
– Use goals and feedback.
– Allow employees to participate in decisions
that affect them.
– Link rewards to performance.
– Check the system for equity.
81. Activity
How would you go about
motivating low-skilled workers in
any service industry of your
choice?
List the motivation initiatives and
give justifications
83. Learning
Any relatively permanent change in behavior
that occurs as a result of experience.
Learning
Learning
••Involves change
Involves change
••Is relatively permanent
Is relatively permanent
••Is acquired through experience
Is acquired through experience
84. Theories of Learning
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.
Key Concepts
Key Concepts
••Unconditioned stimulus
Unconditioned stimulus
••Unconditioned response
Unconditioned response
••Conditioned stimulus
Conditioned stimulus
••Conditioned response
Conditioned response
85. Theories of Learning (cont’d)
Theories of Learning (cont’d)
Operant Conditioning
A type of conditioning in which desired voluntary
behavior leads to a reward or prevents a punishment.
Key Concepts
Key Concepts
••Reflexive (unlearned) behavior
Reflexive (unlearned) behavior
••Conditioned (learned) behavior
Conditioned (learned) behavior
••Reinforcement
Reinforcement
86. Theories of Learning (cont’d)
Theories of Learning (cont’d)
Social-Learning Theory
People can learn through observation
and direct experience.
Key Concepts
Key Concepts
••Attentional processes
Attentional processes
••Retention processes
Retention processes
••Motor reproduction processes
Motor reproduction processes
••Reinforcement processes
Reinforcement processes
87. Theories of Learning (cont’d)
Theories of Learning (cont’d)
Shaping Behavior
Systematically reinforcing each successive step that
moves an individual closer to the desired response.
Key Concepts
Key Concepts
••Reinforcement is required to change behavior.
Reinforcement is required to change behavior.
••Some rewards are more effective than others.
Some rewards are more effective than others.
••The timing of reinforcement affects learning
The timing of reinforcement affects learning
speed and permanence.
speed and permanence.
88. Types of Reinforcement
Types of Reinforcement
• Positive reinforcement
– Providing a reward for a desired behavior.
• Negative reinforcement
– Removing an unpleasant consequence when the
desired behavior occurs.
• Punishment
– Applying an undesirable condition to eliminate
an undesirable behavior.
• Extinction
– Withholding reinforcement of a behavior to
cause its cessation.
89. Schedules of Reinforcement
Schedules of Reinforcement
Continuous Reinforcement
A desired behavior is reinforced
each time it is demonstrated.
Intermittent Reinforcement
A desired behavior is reinforced
often enough to make the
behavior worth repeating but not
every time it is demonstrated.
90. Schedules of Reinforcement (cont’d)
Schedules of Reinforcement (cont’d)
Fixed-Interval Schedule
Rewards are spaced at
uniform time intervals.
Variable-Interval Schedule
Rewards are initiated after a
fixed or constant number of
responses.
91. Behavior Modification
Behavior Modification
OB Mod
The application of reinforcement concepts
to individuals in the work setting.
Five Step Problem-Solving Model
Five Step Problem-Solving Model
1. Identify critical behaviors
1. Identify critical behaviors
2. Develop baseline data
2. Develop baseline data
3. Identify behavioral consequences
3. Identify behavioral consequences
4. Develop and apply intervention
4. Develop and apply intervention
5. Evaluate performance improvement
5. Evaluate performance improvement
92. OB MOD Organizational
OB MOD Organizational
Applications
Applications
• Well Pay versus Sick Pay
– Reduces absenteeism by rewarding attendance, not
absence.
• Employee Discipline
– The use of punishment can be counter-productive.
• Developing Training Programs
– OB MOD methods improve training effectiveness.
• Self-management
– Reduces the need for external management control.
93. Activity
Discuss how you would use OB
Mod to bring about behavioral
changes to improve punctuality
in the workplace
