Mo Exam Notes

Chapter 5 : MOTIVATIONS Motivation is the processes that accounts for an individual’s intensity, direction, and persistence of effort toward attaining an organizational goal. Intensity refer to the amount of effort put forth to meet the goal, direction refer to the efforts channeled toward organizational goals, persistence refer to how long the effort is maintained. Maslow’s Hierarchy of Needs Theory Maslow stress that within every human being, there exists a hierarchy of five needs: 1. Physiological – hunger, thirst, shelter, sex, other survival needs. In business it means wages and pleasant working environment. 2. Safety – security and protection from physical and emotional harm. In business it means job security and company benefits. 3. Social – affection, belongingness, acceptance and friendship. In business it means to work as a team, friendly supervisors, and a cohesive team 4. Esteem – self-respect, autonomy, achievement, status and recognition. In business it means formal recognition by management and job titles. 5. Self-Actualization – the drive to become what one is capable of becoming. Achieving one’s potential at work. As each of these needs becomes satisfied, the next need becomes the next main needs. A partly satisfied need no longer motivates. If you want to motivate someone, you must first understand what level of hierarchy that person is currently on and focusing on satisfying the needs. Maslow separated the five needs into higher and lower orders. The first two is lower order needs and the other three are higher order needs. The different between the two was made on that the higher order needs are satisfied internally whereas the lower orders needs are satisfied externally. Expectancy Theory In this Victor Vroom’s expectancy theory, it stated that employees will be motivated to exert a high level of effort when they believe: •

That effort will lead to a good performance appraisal

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That a good appraisal will lead to organizational rewards, such as bonus or promotion.

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That the rewards will satisfy the employees’ personal goals.

The theory therefore focuses on 3 relationships: 1. Effort performance – the perceived by the individual that exerting a given amount of effort will lead to performance 2. Performance reward – the belief that successful performance leads to desired outcome. 3. Rewards personal goals – the attractiveness of organizational outcome to the individual.

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Individual effort

1

2 Individual performan ce

3 Organizatio nal rewards

Personal goals

Chapter 6 : MOTIVATIONS (CONCEPTS TO APPLICATION) Job Characteristics Model The job characteristics model proposes that any job can be described in terms of five core job dimensions 1. Skill Variety – the degree to which the job requires a variety of different activities so the worker can use a number of different skills and talent. High score means does a lot of multi-tasking job while low score means someone who does the same task every day. 2. Task Identity – the degree to which the job requires completion of a whole and identifiable piece of work. High score is someone who design, select and build to complete a masterpiece while low score is someone who solely operates to make a part. 3. Task Significance – the degree to which the job has a substantial impact on the lives or work of other people. High score refer to someone handling a important job like nurse while low score refer to someone like floor sweeper. 4. Autonomy – the degree to which the job provides substantial freedom, independence and discretion to the individual in carrying out his job. High score means someone like a salesperson who schedules his time without supervision while a low score means someone like a salesperson who is required to follow a set of lead or rules. 5. Feedback – the degree to which carrying out the work activities required by the job results in the obtaining direct information about the effectiveness of his performance. High feedbacks are someone who tests the result while low feedbacks are someone who sends for others to test. Core Job Dimensions

Critical psychological

Personal and work outcomes

states Skill Variety Task Identity Task Significance

Experienced meaningfulness of the work

Autonomy

Skill Variety Task Identity Task Significance

Feedback

Skill Variety Task Identity Task Significance

Employee Growth Need Strength

High Internal Work Motivation High Quality work Performance High Satisfaction with the work Low Absenteeism and turnover

The core dimensions can be combined into a single predictive index called the motivating potential score (MPS) which is calculated as follows: MPS =

X Autonomy X Feedback

Rewarding Employees The four major strategic rewards decisions that need to be made: 1. What to pay employee 2. How to pay individual employees 3. What benefits to offer, especially whether to offer employees choice in benefits 4. How to construct employee recognition programs Employees can be pay by: 1. Piece rate pay – workers are been paid a fixed sum for each unit of production completed and they gets no base salary. 2. Merit base pay – this also pay for individual performance but this system is based on performance appraisal ratings. Main advantage is it allows employees to be differentiated through performance thus this can be motivating. 3. Bonuses – rewards employees for recent performance and not historical performance. 4. Profit sharing plans – Organization wide programs that distribute compensation based on an established formula designed around profitability. It can be cash or stock options. 5. Gain sharing – this is a formula based group incentive plan. Compensation are based on sharing of gains from improved productivity. 6. Employee stock ownership plans – this is a plan where employees acquire the company stocks often at below-market prices.

Chapter 8 : FOUNDATIONS OF GROUP BEHAVIOR A group is defined as two of more individuals, interacting and interdependent, who have come together to achieve particular objectives. Groups can be either formal or informal. Formal groups are defined by the organization structure while informal groups are alliances that are not formally structured or organizationally determined. Formal groups

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Command group is determined by the organization chart. It is composed of the individuals who report directly to a given manager.

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Task group is also organizationally determined, working together to complete a job task. They are not limited to immediate superior and can cross command relationships.

Informal groups

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Interest groups are groups that work together to attain a specific objective or interest.

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Friendship groups are formed because each member has one or more common characteristics.

People join groups because of 6 reasons 1. Security – individuals can reduce the insecurity of having to stand on their own. People feel stronger and more resistant to threats when they are part of a group. 2. Status – inclusion in a group that is viewed as important by others provides recognition and status for its members. 3. Self-esteem – groups can provide people with feelings of self-worth. 4. Affiliation – groups can fulfill social needs. People enjoy the regular interaction that comes with group membership. 5. Power – what cannot be achieved individually often becomes possible through group action. There is power in number. 6. Goal achievement – sometimes it takes more than one person to accomplish a particular task, so people pool talents, knowledge or power. Five stage model of Group Development 1. Forming – uncertainty about purpose, structure and leadership 2. Storming – intergroup conflicts as members resist constraints. 3. Norming – group is cohesive with strong group identity.

4. Performing – group fully functional and working toward goals. 5. Adjourning – for temporary groups

Group Properties Work groups have properties that shape the behaviors of members and make it possible to explain and predict a large portion of individual behaviors within group as well as the performance of the group itself. 1. Roles – it is a set of expected behavior patterns that are attributed to occupying a given position in a social unit. Role identity is associated attitudes and behaviors. Role perception is the view of how we supposed to act in a given situation. Role expectations are how others believe you should act in a given situation. Role conflicts are experienced when multiple roles are incompatible. 2. Norms – it is a acceptable standards of behavior within a group that are shared by the group’s member. It is a powerful means of influencing behavior. 3. Status – it is a socially defined position or rank given to groups or group members by others and it is determined by the power a person wields over others, a person’s ability to contribute to a group’s goals and an individual’s personal characteristics. 4. Size – smaller groups are faster at completing tasks and members perform better. Larger groups are better at problem solving but one of the most important findings related to the size of a group is social loafing. 5. Cohesiveness – it is the degree to which members of the group are attracted to each other and motivated to stay in the group. Cohesiveness is important because it has been found to be related to the group productivity.

Chapter 9 : UNDERSTANDING WORK TEAMS

A work group interacts primarily to share information and to make decisions to help one another perform within each member’s area of responsibility. Work group have no need or chance to engage in collective work that requires joint effort. It is merely the summation of each member’s individual effort. A work team generates positive synergy through coordinated effort. Their individual efforts result in a level of performance that is greater than the sum of those individual inputs. Work Group

Work Teams

Share Information

Goal

Neutral Individual

Synergy Accountability

Random and Varied

Skills

Collective performance Positive Individual and mutual Complementary

Types of teams •

Problem Solving Teams – they are members often from the same department. They share ideas or suggest improvements but they are rarely given authority to implement any of their suggested actions.

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Self managed work teams – are groups of employees who perform highly related or interdependent jobs and take on many of the responsibilities of their former supervisors. This included planning, scheduling, assigning tasks and working with customers. They may select and evaluate members and effectiveness is situational dependent.

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Cross functional teams – the team are made up of members from the same level but from different work areas who come together to exchange information, develop ideas, solve problems and complete a task. Development may be time consuming due to complexity and diversity.

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Virtual teams – uses computer technology to tie dispersed team together to achieve a common goal. The 3 primary factors that differentiate are less social rapport, more task oriented and members less satisfied.

Key components of effective teams Context •

Adequate resources – All work teams rely on resources outside the group to sustain it. A scarcity of resources directly reduces the ability of the team to perform its job effectively. Teams must receive the necessary support from management and the larger organization if they are going to succeed in achieving goals.

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Leadership & Structure – team members must agree on who to do what and must ensure all members contribute equally in sharing the workload. Agreeing on the specifics of work requires team leadership and structure. This can be provided directly by management or team members.

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Climate of trust – members of effective teams trust each other and their leaders. Team members are more likely to take risks when they believe they can trust others.

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Performance evaluation and reward systems – in addition to evaluating and rewarding employees for their individual contributions, management should consider group based appraisals, profit sharing, gain sharing and other that will reinforce team effort and commitment.

Composition •

Abilities of members – part of a team performance depends on the knowledge, skills and abilities of its individual members. A team requires members with technical expertise, problem solving skills and good interpersonal skills.

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Personality – personality composition is important to team success. It is best to staff teams with people who are extraverted, agreeable, emotionally stable and open.

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Diversity – when a team is diverse in terms of personality, gender, age, education, specialization and experience, the probability is higher than the team will possess the needed characteristics to complete its tasks effectively.

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Size of teams – when team have excess members, cohesiveness and mutual accountability decline, social loafing increase. Large team also have trouble coordinating with one another.

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Member preferences – when selecting team members, individual preferences should be considered along with abilities, skills and personalities. High performing team are likely to consist of members who prefer working as a group.

Work Design Effective teams must work together and take collective responsibility to complete significant tasks. The work design category includes variables: •

Freedom and Autonomy

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Opportunity to use different skills and talents

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Ability to complete a whole and identifiable task

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Working on a task that has significance.

Process Process includes member commitment to a common purpose, establishment of specific team goals, team efficacy, a managed level of conflict and minimizing social loafing. •

Common purpose – effective teams have a common and meaningful purpose that provides direction, momentum and commitment for members.

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Specific goals – successful teams translate their common purpose into specific realistic performance goals which help them maintain their focus.

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Team efficacy – effective teams have confidence in themselves. Teams that have been successful raise their beliefs about future success which in turn motivates them to work harder.

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Conflict levels – conflicts can actually improve team effectiveness. Task conflicts stimulate discussion can lead to better team decisions.

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Social loafing – individuals can hide inside a group. Successful team make members individually and jointly accountable for the team purpose goals and approach.

Chapter 12 : POWER AND POLITICS A power refers to a capacity that A has to influence the behavior of B so that B acts in accordance with A’s wishes. Power potential need not be actualized to be effective and it requires a dependency relationship. Differences between Leadership and Power •

Goal compatibility – power does not require goal compatibility, only dependence. Leadership on the other hand requires some congruence between the goals of the leader and those being led

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Direction of influence – leadership focuses on downward influence, minimizes the importance of upward influence patterns while power focus with influence on all directions

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Research emphasis – leadership emphasizes on style while power focuses on tactics used by individuals and groups.

Formal power is based on an individual’s position in an organization. It can come in 3 forms. •

Coercive power – it is dependent on fear. One reacts to this power out of fear of the negative results that might occur if one failed to comply. One example is sexual harassment.

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Reward power – it is the opposite of coercive power. People comply to wishes because of the positive benefits which can be financial or nonfinancial.

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Legitimate power – it represents the formal authority to control and use organizational resources.

Personal power comes from an individual’s unique characteristics which is either expert power or referent power. •

Expert power – is influence wielded as a result of expertise, special skill or knowledge. Expertise has become one of the most powerful sources of influence as the world become more technologically oriented.

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Referent power – is based on identification with a person who has desirable resources or personal traits like charisma and out of admiration.

Power tactics is used to translate power based into specific actions that influence others. It is also more immediate than power bases and can result in the accumulation of a power base. 1. Legitimacy – relying on one’s authority position or stressing that a request is in accordance with organizational policies or rules. 2. Rational persuasion – using logical arguments and factual evidence to show that a request is reasonable. 3. Inspirational appeals – developing emotional commitment by appealing to a target’s values, needs, hopes. 4. Consultation – increase the motivation and support by involving them in deciding how a plan will be done. 5. Exchange – reward them with benefits or favors in exchange for a request.

6. Personal appeals – asking for favors based on friendship or loyalty. 7. Ingratiation – using flattery, praise or friendly behavior prior to making a request. 8. Pressure – using warnings, repeat demands and threats. 9. Coalitions – asking the aids or others to persuade the target. Some tactics are usually more effective than others. Evidence show that rational persuasion, inspirational appeals and consultation are more effective while pressure tends to backfire and the least effective. Individual factors contributing to political behaviors: •

Traits that encourages political action (High self monitors, High need for power)

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Situational influences leading illegitimate political actions (Lower organizational investment, greater number of preceived alternatives, greater expectations of success)

Organization factors contributing to political behaviors: •

Organizational resources declining or distribution shifting

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chances to get promotion

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Organizational culture issues (Lower trust, role amiguity, leading by poor example, high performance pressure, no reward)

Responds to organizational politics: •

unwilling to play, or with modest political skills. Hence, outcomes = negative

Chapter 13 : CONFLICT AND NEGOTIATION Conflict is the processes that begins when one party perceives that another party has negatively affected or is about to negatively affect something that the first party cares about. Conflicts that support the goals of the group and improve its performance are functional conflicts while conflicts that hinder group performance are dysfunctional conflicts. They are 3 types: 1. Task conflict – relates to the content and goals of the work. High level of conflicts create uncertainty about task roles leads to dysfunctional while low to moderate levels of task conflict consistently show a positive effect on group performance. 2. Relationship conflict – focus on interpersonal relationships. Relationship conflicts are almost always dysfunctional because friction and interpersonal hostilities inbuilt in relationship conflicts increase personality clashes and decrease mutual understanding. 3. Process conflict – relates to how the work gets done. Low to moderate levels of conflict are functional, for process conflicts to be productive it must be kept low. The Conflict Process Stage 1 Potential Opposition or incompatibility

Stage 2

Stage 3

Stage 4

Cognition and Personalization

Intentions

Behavior

Perceived conflict Antecedent conditions *Communication *Structure *Personal variables

Stage 5 Outcomes

Increased group performance Conflict-handling intentions *Competing *Collaborating *Compromising *Avoiding *Accommodating

Overt conflict *Party’s behavior *Other’s reaction Decreased group performance

Felt conflict

Stage 1 (Potential Opposition) The first step in the conflict process is the presence of conditions that create opportunities for conflict to arise. These can be group into 3 general categories. •

Communication – the potential for conflict increase when either there are too much or too little communications take place. Barriers such as insufficient exchange of information and noise in the communication channel can lead to conflicts.

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Structure – size and specialization act as forces to stimulate conflict. The larger the group and the more specialized its activities, the greater the likelihood of conflict. Rewards systems are also found to create conflict when one member’s gain is at another expense.

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Personal variables – certain personality types can lead to potential conflict. Emotions can also cause conflict. Values differences can also cause conflicts.

Stage 2 (Cognition and personalization) If the conditions in stage one negatively affect something that one party cares about is met, then the potential for opposition or incompatibility becomes actualized in the second stage. Parties must be aware of the existence of the conditions. Perceived conflict does not make it personalized, only at the felt conflict parties become emotionally involved and experience tension and hostility. Stage 3 (Intentions) Intentions are decisions to act in a given way. Intentions are separated out as a distinct stage because you have to infer the other’s intent to know how to respond to that other’s behavior. Behavior does not always accurately reflect a person’s intentions. There are 5 conflict handling intentions: •

Competing – assertive and uncooperative, to achieve your goal at the expense of other people

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Collaborating – assertive and cooperative, intent to find a win-win solutions for both parties

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Avoiding – unassertive and uncooperative, when you avoid a conflict and hope it will just go away

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Accommodating – unassertive and cooperative, when you give in just to please someone

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Compromising – mid-range on both assertive and cooperative, where the pie is

Stage 4 (Behavior) The behavior stage is where conflict becomes visible and includes statements, actions, and reactions made by the conflicting parties. These behaviors are usually overt attempts to implement each party intention. Functional conflicts are confined to lower range of band while dysfunctional conflicts belong to the upper range. Stage 5 (Outcomes) The outcomes can result in 2 types, the functional outcomes which result in improvement in group performance or the dysfunctional outcomes which hinders group performance. Functional outcomes: Conflict is constructive when •

Improves the quality of decisions

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Stimulates creativity and innovation

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Encourages interest and curiosity among group members

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Provides the medium through which problems can be aired and tensions released

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Fosters an environment of self-evaluation and change

Conflict can improve the quality of decision making by allowing all points particularly the ones that are unusual or held by a minority to be weighted in important decisions.

Dysfunctional outcomes The destructive consequences of dysfunctional outcomes can lead to group been less effective; cohesiveness and communications are reduced and eventually lead to the destruction of the group. Negotiation is a process which two or more parties exchange goods or services and attempt to agree on the exchange rate for them. There are generally 2 approaches to negotiation, distributive bargaining and integrative bargaining. Negotiation Process (5 steps) •

Preparation and planning – what’s the natural of conflict, what’s the history, who’s involved and what are their perceptions of the conflict. What do you want from the negotiation, what are your goals? Once you gathered all the information, develop a strategy.

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Definition of ground rules – once the planning and strategy is done; define the ground rules and procedures with the other party. Who will negotiate, where, time. During this phase, the parties will also exchange their initial proposals or demands.

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Clarification and justification – when initial positions have been exchanged, both parties will now explain, amplify, bolster and justify the original demands. This is the point where both parties want to provide any documentation to support the position.

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Bargaining and problem solving – the essence of the negotiation process is the actual give and take involved in hashing out an agreement. It is here where concessions will undoubtedly need to be made by both parties.

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Closure and Implementation – the final step is to formalizing the agreement that has been negotiated and developing any procedures that are necessary for implementation and monitoring.

Chapter 10 : COMMUNICATION Communication serves four major functions within a group organization. •

Control – Communication acts to control member behavior in several ways. Organizations have authority hierarchies and formal guidelines that employees are require to follow. Informal communication also controls behavior.

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Motivation – communication fosters motivation by clarifying to employees what is to be done and what can be done to improve performance. The formation of specify goals, feedback on progress toward the goals and reinforcement of desired behavior all stimulate motivation and require communication.

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Emotional expression – the communication that take place within a group is a fundamental mechanism by which members show their frustrations and feelings of satisfaction. Communication therefore provides a release for the emotional expression of feelings.

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Information – communication facilitates decision making. It provides the information that individuals and groups need to make decision by transmitting the data to identify and evaluate choices.

The Communication Process Sender Message to be send

Encoding message

Receiver Channel

Message decoding

Message received

Noise

Feedback

The sender initiates a message by encoding a thought. The message is the actual physical product from the sender’s encoding. The channel is the medium through which the message travels. It is select by the sender who decide whether to use a formal or informal channel. The receiver is the object to whom the message is directed. But before the message can be received, the symbols in it must be translate into a form that can be understood by the receiver. Noise represents communication barriers that distort the clarity of the message. The final link is the feedback loop to check how successful we have been in transferring our messages as originally intended and see if understanding have been achieved.

Channels of communication •

Formal: Authority Chain. Related to professional activities.

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Informal: Individual choice. More for personal or social messages

Interpersonal communication: •

Oral: Advantages: Speed, Feedback, Simple to correct Disadvantages: Distorted message when passed through people

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Written: Advantages: Black and write record, well thought-out, logical and clear Disadvantages: Time consuming, lack of feedback, may not be read

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Non verbal: Body language: Tones, Facial expression, Physical distance

Types of Network to cease communication: •

Chain: best accuracy

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Wheel: need to perform good leadership development

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All Channel: best for member satisfaction

Electronic Communication: •

Email: misinterpret, overused and overwhelms, privacy concerns

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Instant and Text Messaging: real-time, inexpensive, inappropriate for formal message

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Web Logs (Blog): explosive growth area, everyone can read

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Videoconferencing: conduct interactive meeting without physically together, save travel funds

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Knowledge Management: Load data into database and distribute information

Barriers to effective communication: •

Filtering: not sharing information

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Selective perception: believe on what they see and heard

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Information overload: too much information feeds

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Emotions

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Language

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Communication Apprehension: refused to share too much information

CHAPTER 11: LEADERSHIP Leadership : ability to influence a group toward achievement of a vision or a set of goals Differences: •

Leadership: about coping with change, set up direction with goal, align resources and inspire worker

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Management: about coping with complexity, bring order and consistency, draw up plans, structure, and monitor result

Traditional theories of leadership: •

Trait theories: differentiate leaders by focusing on personal qualities and characteristics (eg.: outgoing, hardworking, strong commitment, people will believe you)

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Behavioral theories: Based on Ohio State Studies, leadership behavior have two types, Initiating Structure (try to organize work, relationship, goal) and consideration (concern for followers' comfort, well-being, status, satisfaction)

Contingency Theories: (try to match leadership style with work conditions) •

Fiedler Model: least-preferred co-worker (LCP) determines leadership style (eg.: relationship oriented, task oriented). Match leader's style with degree of situational control (eg.: leadermember relations, task structure, position power)

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Leader-member exchange (LMX) theory: leader treat follower differently (eg.: In group member, get special privileges, lower turnover, great satisfaction, more leader attention, higher performance rating)

Comtemporary approaches to leadership: •

leaders as communicators

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framing the meaning of events

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leader inspire followers through words, ideas, behaviors. •

Charismatic leadership: Correlated to high performance and satisfaction, closely with upper management, best used when environment uncertain or stressful

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Transformational leadership: Motivated followers with clear task requirement and role, inspire followers to transcend their own self interest fro the good of organisation.

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Authentic leadership: know who they are, believe in and value, act on these . Hence, create trust, encourage open communication, link to charismatic leadership

Finding and creating effective leadership by selection (personality tests, interview link to situation experience to job situation) and training (train those willing to change behaviors, teach management skills, charismatic and transformational leadership skills)

CHAPTER 4: JOB ATTITUDES Attitudes reflect how one feels about something. Three Main components of attitudes: •

Congnition: an opinion or belief (eg.: I just found out I am paid 20% less than my coworker)

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Affect: the emotional or feeling segment associated with that belief. (eg.: I feel angry that I am not being treated fairly.)

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Behavior: the intention to behave in a certain way (eg.: I am going to quit this job soon as I can, and I am taking the red stapler with me)

Major Job Attitudes •

Job Satisfaction

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Job Involvement

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Psychological Empowerment

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Organisational Commitment: Affective, Continuance, Normative

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Employee Engagement

What causes Job Satisfaction? •

The work – strongest correlation with overall satisfaction

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Pay – not correlated after individual reaches a level of comfortable living

Benefits of Satisfaction •

Better job and organization performance

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Better organizational citizenship behaviors

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Greater levels of customer satisfaction

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Decreased instances of workplace deviance

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Generally lower absenteeism and turnover

CHAPTER 1: INTRO TO OB Organizational Behaviors: factors that influence individuals, groups and structure have on behaviors within organizations. Main goal to apply knowledge in order to improve effectiveness. Focus points of Organizational Behaviors: •

Jobs

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work

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absenteeism

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employment turnover

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productivity

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human performance

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management

Contributing Disciplines to OB field: (starts from micro, individual to marco, organization) •

psychology

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social psychology

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sociology

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anthropology

Ways to find out: •

Complementing Intuition with systematic study (improve ability to accurately predict behaviors)

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systematics study (examines relationship,attempt causes and effects, conclusion based on scientific evidence)

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Evidence-based management (complements systematic study, decision based on best available scientific evidence, forces managers be more scientific thinking

OB helps with: •

insight improve people skills, creating an ethnically workplace, coping in world of temporariness

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Valuing workforce diversity, dealing with labor shortages,

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empowering people and creating a positive work environment CHAPTER 3: PERSONALITY AND VALUES

Measuring personality:

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self report surveys (most common, prone to error)

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observer-rating surveys (independent assessment, maybe more accurate)

Measuring personality traits: The big five model •

Five traits: extroversion, agreeableness, conscientiousness, emotion stability, openness to experience

Major personality attitudes affect OB: •

core self -evaluation(self like/dislike)

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Type A personality (competitive, urgent, driven)

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self-monitoring (adjusts behaviors to meet external, situational factors)

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proactive personality (identified chances, show initiative, take action and preservees)

Hofstede's framework for assessing culture (five factors): •

Power distance

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Individualism vs collective

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masculinity vs femininity

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uncertainty avoidance

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long term vs short term

GLOBE framework for assessing cultures: •

assertiveness

- in-group collectivism

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future orientation

- performance orientation

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gender differentiation

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uncertainty avoidance

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power distance

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individualism/ collective

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humane orientation