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  1. 1. Principles of Management Module 12: The Individual and the Organization
  2. 2. Module Learning Outcomes Recognize how employee personality and attitude affect organizational fit 12.1: Recognize the role of personal values and personality at work 12.2: Explain common biases that can affect a manager’s perception of employees 12.3: Explain the major attitudes that affect job performance 12.4: List and explain common factors that influence job fitness and performance
  3. 3. Personal Values and Personality at Work
  4. 4. Learning Outcomes: Personal Values and Personality at Work 12.1: Recognize the role of personal values and personality at work 12.1.1: Describe Goldberg's "Big Five" personality traits 12.1.2: Evaluate whether personality tests can predict performance 12.1.3: Explain how work expresses individual values
  5. 5. Role of Personal Values and Personality • Employees are unique individuals • Several approaches to defining personality • Most common approach is known as the “Big Five” personality traits
  6. 6. Goldberg’s “Big Five” • OCEAN • Openness- how willing and eager individual is to try new experiences • Conscientiousness- how concerned an individual is to be organized/reliable • Extraversion- how eager individual is to be outgoing and have social interaction • Agreeableness- how desirous an individual is to please others and be friendly, sensitive and kind • Neuroticism- how negative, moody, and emotionally unstable an individual is
  7. 7. Openness • Advantages • Excel when flexibility is required • Do well in training • Adapt well to unexpected changes • Disadvantages • Can become bored with routine jobs
  8. 8. Conscientiousness • Advantages • High levels of effort and motivation • Low levels of absenteeism and turnover • Only personality trait that is consistently linked to career success over time • Disadvantage • Can become consumed with details and miss the big picture
  9. 9. Extraversion • Advantages • Can be successful managers who motivate employees • Often successful in jobs involving sales • Disadvantage • Can be poor fit for jobs that do not provide sufficient social interaction
  10. 10. Agreeableness • Advantages • Often display high willingness to help others at work and display good organizational citizenship behaviors • Create fair environments when in management positions • Work well in team settings • Disadvantage • Might be hesitant to engage in constructive criticism and encourage change, even when it is needed
  11. 11. Neuroticism • Advantages • Might be hesitant to engage in constructive criticism and encourage change, even when it is needed • Tendency to analyze self and world more realistically • High tendencies towards job dissatisfaction and intention to leave their jobs • Disadvantage • Tend to create unfair environments when in leadership positions
  12. 12. Myers-Briggs Type Indicator (MBTI) • Common tool designed for use in identifying an individual’s personality type- relies on psychological theories of Carl Jung • Basic assumption that individuals fall into fairly distinct classes or types • Individuals characterized by: • Extraversion (E) or Introversion (I) • Sensing (S) or Intuition (N) • Thinking (T) or Feeling (F) • Judging (J) or Perceiving (P)
  13. 13. MBTI: Disadvantages • Lack of scientific evidence • Divides individuals into different classes for each category, not indicating how strong an individual’s preference is towards that end of the spectrum • Reliability and stability- as much as 50% of individual’s MBTI classification will change from test to test • Warn strongly against use for purposes of hiring or promoting employees- intended as a learning tool and to help better understand oneself
  14. 14. Values • Terminal values: End goals that people hope to reach in life • Instrumental values: Modes of conduct considered appropriate and right (honesty, integrity, ambition) • Businesses use attributes to identify the best fit for employees and potential future employees • Wise business practice: To try to match individuals with optimum role in light of their personality and values
  15. 15. Values and Role Application Value Example of Role Application Universalism Cultural analyst and advisor for a company expanding its activities into new and foreign markets. Benevolence Focused on organizing activities giving back to company’s local community Security Risk analysis and contingency planning
  16. 16. Common Management Biases
  17. 17. Learning Outcomes: Common Management Biases 12.2: Explain common biases that can affect a manager’s perception of employees 12.2.1: Explain some of the biases that affect a manager's perception of employees
  18. 18. Perception and Attribution • Perception: Process through which we take in and process information from our surroundings: what we see, hear, feel, etc. • Example: studies have shown that people who are afraid of spiders tend to exaggerate their size- allow our minds to alter objective stimuli we perceive with our senses • Attribution: We look for the unseen cause behind what we see • Example: if a co-worker is late, we might make an assumption to why they are late (poor character or lack of responsibility) when really something unavoidable and unexpected delayed him
  19. 19. Common Biases Affecting Manager’s Perception • Stereotypes • Selective Perception and Confirmation Bias • First Impression Bias • Recency Bias • Spillover Bias • Negativity Bias • Ingroup Bias • Similarity Bias
  20. 20. Stereotypes • General opinion or assumption about a class of individuals that share a particular trait • General feelings or ideas based on gender, ethnic background, or age- from that we form opinions or make judgements about people • Women have been negatively impacted- workplace is not an exception • Age is another stereotype- believing potential employee isn’t good enough because they are too young or old • Studies show more attractive people tend to receive better grades in school, have higher likelihood of being hired for a job, and earn more $$
  21. 21. Selective Perception and Confirmation Bias • Bias by unknowingly paying attention to only a portion of the information available to them • Reinforces other types of biases often; if manager has negative opinion of an individual, they might be prone to pay more attention to negative behaviors or actions • When it is employed to confirm existing opinions, known as confirmation bias
  22. 22. First Impressions Bias • Giving too much prominence to first impression of an employee • Initial judgements the manager makes about the employee, often with very limited information, shape and control how they interpret evidence • Even when future information would seem to contradict initial picture, manager might be unwilling to change perspective
  23. 23. Recency Bias • Manager’s focus is unduly balanced in favor of employee’s most recent activities • Often happens in cases of annual performance reviews • Difficult to keep entire year’s activities in full view, and often employee’s most recent activities are over-weighted • If recent activities are negative, they can easily overshadow many months’ worth of strong previous performance • Poor performance might be mostly forgotten if employee has recently excelled
  24. 24. Spillover Bias • Can skew manager’s perspective by paying too much attention to past information • Usually relates to prominent episode in employee’s past activities • Example- employee played starring role in successful project and manager always thinks of employee in terms of success • Even if employee consistently underperforms after success • Inversely- if employee is unfortunate to be guilty of major failure, might be difficult to change manager’s opinion even if they do excellent work after
  25. 25. Negativity Bias • When we are presented with positive and negative information, we are prone to give more attention to negative information • Negative information predominates thoughts and moves us to form imbalanced conclusions on negative side
  26. 26. Ingroup Bias • Managers might tend to show favoritism in judgement • Those in manager’s “in” circle receive special positive judgements while those not in do not • Strength of this influence can dramatically vary and it may more may not be true actual negative perspective is displayed to those not in group
  27. 27. Similarity Bias • Reflects human tendency to focus on ourselves and prefer those who are like we are • Leads managers to give special, positive attention, and judgements to those who remind manager of themselves- hobby, same hometown/college • Manager might recognize similar personality traits in employee- can lead to preferential treatment
  28. 28. Consequences of Biases • Employees who forced to work extra hard to overcome bias can become to resentment • Studies have shown that employees who labor under negative biases tend to underperform as a result • Even positive biases can have negative impact; a manager might overlook faults and dangerous behaviors that need to be addressed • If employee realizes they will be given special evaluations, it can lead to give less effort and show less commitment
  29. 29. Practice Question 1 Jeffrie is a project manager at a large software development company. She has risen through the ranks through hard work and self-training. When it comes time to select the team for her project, Jeffrie selects engineers with limited formal training, preferring those who have learned their skills by doing. Jeffrie is displaying what common bias? 1. Ingroup bias. 2. Similarity bias. 3. Negativity bias. 4. Spillover bias.
  30. 30. Class Activity: Bias in the Workplace Break into small groups. You are leading a team of interviewers to screen candidates for upcoming openings for manufacturing jobs at your company. List the factors from the “Big Five” factors that you would be looking for from the candidate pool that would be most important for your search. What questions would you ask to ascertain if those factors are present in a candidate?
  31. 31. Attitudes that Affect Job Performance
  32. 32. Learning Outcomes: Attitudes that Affect Job Performance 12.3: Explain the major attitudes that affect job performance 12.3.1: Differentiate job satisfaction and organizational commitment 12.3.2: Explain the use of employee attitude surveys 12.3.3: Explain employees' perceptions of organizational justice
  33. 33. Attitudes Affecting Job Performance • When you think of effective employee- intelligence, skill, training, and others • Perhaps an even greater and more influential factor: attitude • Even most skilled employee might be prone to severe underperformance if attitude is lacking • Employees whose positive attitude of dedication/commitment leads to high levels of effort
  34. 34. Job Satisfaction and Organizational Commitment • Focus on optimizing job satisfaction will influence organization’s priorities from earliest stage in interaction with employees • Employee-to-job fit is important- those with excellent knowledge of industry but prefers to work in research and development shouldn’t be hired for role in marketing • Careful management practices will keep an eye on the changing developments of employee interests • Job satisfaction is primary factor in employee attitude- when high job satisfaction is matched with high organizational commitment, employees are very likely to have positive work attitude
  35. 35. Negative Job Satisfaction and Organizational Commitment • Employees who are very satisfied with job but not committed to organization are still likely to provide good effort • Committed to organization but has low job satisfaction- common that employees are willing to struggle through low job satisfaction which will likely wear on attitude • Can tie employee rewards to success of organization or seek to develop commitment by emphasizing to align employee perspectives with vision of organization
  36. 36. Organizational Justice • Usually, employees want workplace to be fair and where everyone is treated with equal respect • Employees tend to focus on pay equality and advancement opportunity- divisions between employees can arise • Highly important to provide fair workplace, no matter how difficult it may be • Difficult because employees exhibit bias in evaluations- might think to highly of themselves
  37. 37. Employee Attitude Surveys • Importance has led to increased use of employee attitude surveys- used to identify areas of concern that employees have • Wise to keep them confidential to give opportunity to share concerns without fear of being punished for voicing negative thoughts • Leaders should want to hear criticisms and be aware of concerns employees have- if problems, knowing about them gives them opportunity to fix them • Generally beneficial • Exit interviews prove to be successful as well
  38. 38. Practice Question 2 Jack is a knowledge worker for a business analyst firm. Jack loves his research job, but is concerned about advancement opportunities within the organization and how that will affect his career path. What can be expected about Jack’s job performance? 1. Jack will not stay with the organization very long. 2. Jack will not do a good job due to poor job-fit. 3. Jack will put in a good effort overall. 4. Jack will not have a good attitude.
  39. 39. Job Fitness and Performance
  40. 40. Learning Outcomes: Job Fitness and Performance 12.4: List and explain common factors that influence job fitness and performance 12.4.1: Explain the concept of "fitness" within an organization 12.4.2: Explain the influence of common factors (such as work-life balance, stress, interpersonal relationships, attitudes, work ethic) on job performance
  41. 41. Organizations Have Their Own Culture • Every organization promotes particular culture • May be healthy or unhealthy- strong influence on performance and productivity of members • Organizations that actively embrace concept of organizational culture have opportunity to intentionally shape culture into productive force
  42. 42. Healthy Environment, Productive Employees • Benefits of healthy culture within organization is significant • Basic idea summarized- concept that healthy environment results in productive employees • Unhealthy organizational culture leads to lower job satisfaction, worse attitudes, less productivity, increased levels of absenteeism, etc.
  43. 43. Managing Employee Stress Levels • Stress levels can become helpful overall indicator of how healthy organizational environment is • Attempting to remove all stress, however, wouldn’t be realistic or healthy- appropriate level may actually be essential part of healthy environment • One approach is teaching employee’s to manage stress- programs and resources but also changes to basic system
  44. 44. Work-Life Balance • Not possible to completely separate the two areas, as problems in one strongly affects the other • Two areas often compete with one another for individuals’ time, energy, and attention- causes lower performance levels • Not a beneficial situation—many things they can do to support such as limit expectations to reasonable levels of commitment • Providing enough vacation time is also wise to prevent employee burnout
  45. 45. Interpersonal Relationships • Because members of an organization spend a lot of time together and must collaborate with each other, how relationships function is important • Negative side- interpersonal conflict can become obstacle to productivity • Ideally, goal is deeper than avoiding major conflict- if employees develop strong relationships, organization is likely to reap benefits • Employees will work together better, enjoy time together more, and be less likely to leave
  46. 46. Health, Relaxation, and Entertainment • Physically healthy employees are more productive- more energy and miss fewer days for sickness • Companies often offer health- related incentives and create programs • Companies find it beneficial to provide certain types of extracurricular facilities such as fitness rooms, nap rooms, and entertainment rooms
  47. 47. Personal and Professional Development • Makes sense for business to invest time and resources into developing employee skills • Increasing these skills strengthens business • Many companies help fund employees’ education who want to pursue advanced degrees • Investing in personal development of employees also benefits organization • Still be related to professional functions- programs that help develop leadership skills
  48. 48. Quick Review • Can you describe Goldberg’s “big five” personality traits? • Can you evaluate whether personality tests can predict performance? • How does work express individual values? • What are some of the biases that affect a manager’s perception of employees? • Are you able to differentiate job satisfaction and organizational commitment? • Why are there employee attitude surveys? • What are employees’ perceptions of organizational justice? • Can you explain the concept of “fitness” within an organization? • Can you explain the influence of common factors (such as work-life balance, relationships, attitudes, work ethic) on job performance?