Solution Manual for M Organizational Behavior 5th Edition by Steven McShane, Mary Von Glinow

Solution Manual for M Organizational Behavior 5th Edition by Steven Mc shane, Mary Von Glinow

SOLUTIONS Solution Manual for M Organizational Behavior 5th Edition by Steven Mc shane, Mary Von Glinow

Chapter 1: Introduction to the Field of Organizational Behavior

Solution Manual for M Organizational Behavior 5th Edition by Steven McShane, Mary Von Glinow

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Introduction to the Field of Organizational Behavior

LEARNING OBJECTIVES After reading this chapter, students should be able to:

1-1 Define organizational behavior and organizations.

1-2 Explain why organizational behavior knowledge is important for you and for organizations. 1-3 Describe the anchors on which organizational behavior knowledge is based.

1-4 Summarize the workplace trends of diversity and the inclusive workplace, work-life integration, remote work, and emerging employment relationships.

1-5 Describe the four factors that directly influence individual behavior and performance. 1-6 Summarize the five types of individual behavior in organizations.

CHAPTER GLOSSARY ability — the learned capabilities and natural aptitudes required to successfully complete a task corporate social responsibility (CSR) — organizational activities intended to benefit society and the environment beyond the firm’s immediate financial interests or legal obligations counterproductive work behaviors (CWBs) — voluntary behaviors that have the potential to directly or indirectly harm the organization deep-level diversity — differences in the psychological characteristics of employees, including personalities, beliefs, values, and attitudes evidence-based management — the practice of making decisions and taking actions based on research evidence human capital — the knowledge, skills, abilities, creative thinking, and other valued resources that employees bring to the organization inclusive workplace — a workplace that values people of all identities and allows them to be fully themselves while contributing to the organization

MARS model — a model depicting the four variables— motivation, ability, role perceptions, and situational factors—that directly influence an individual’s voluntary behavior and performance motivation — the forces within a person that affect his or her direction, intensity, and persistence of effort for voluntary behavior open systems — the view that organizations depend on the external environment for resources, affect that environment through their output, and consist of internal subsystems that transform inputs to outputs organizational behavior (OB) — the study of what people think, feel, and do in and around organizations organizational citizenship behaviors (OCBs) — various forms of cooperation and helpfulness to others that support the organization’s social and psychological context. organizational effectiveness — an ideal state in which an organization has a good fit with its external environment, effectively transforms inputs to outputs through human capital, and satisfies the needs of key stakeholders

Solution Manual for M Organizational Behavior 5th Edition by Steven Mc shane, Mary Von Glinow

Chapter 1: Introduction to the Field of Organizational Behavior

organizations — groups of people who work interdependently toward some purpose role perceptions — the degree to which a person understands the job duties assigned to or expected of him or her stakeholders — individuals, groups, or other entities that affect, or are affected by, the organization’s objectives and actions surface-level diversity — the observable demographic or physiological differences in people, such as their race, ethnicity, gender, age, and physical disabilities

task performance — the individual’s voluntary goal- directed behaviors that contribute to organizational objectives values — relatively stable, evaluative beliefs that guide a person’s preferences for outcomes or courses of action in a variety of situations work-life integration — the degree that people are effectively engaged in their various work and nonwork roles and have a low degree of role conflict across those life domains

CHAPTER SUMMARY BY LEARNING OBJECTIVE 1-1 Define organizational behavior and organizations.

Organizational behavior is the study of what people think, feel, and do in and around organizations. It examines how individuals and teams in organizations relate to one another, and how organizations interact with their external environments. This field of knowledge emerged around the early 1940s, but organizations have been studied by other disciplines for more than 2,000 years. Organizations are groups of people who work interdependently toward some purpose. They consist of people who interact with one another in an organized way and have a collective sense of purpose.

1-2 Explain why organizational behavior knowledge is important for you and for organizations.

Organizational behavior is important for you because it offers a core foundation of knowledge and skill development for your success in organizations. The skills and knowledge that employers look for in new hires, above anything else, are the topics found in organizational behavior, including problem solving, working effectively in teams, communication, and leadership. More broadly, OB helps you adopt better personal theories to understand, predict, and influence organizational events. OB knowledge is for everyone, not just managers.

OB theories and practices are vital to the organization’s survival and success. In fact, most OB theories implicitly or explicitly try to improve organizational effectiveness—an ideal state in which an organization has a good fit with its external environment, effectively transforms inputs to outputs through human capital, and satisfies the needs of key stakeholders. Organizational behavior knowledge is highly relevant to the open systems view of organizations by identifying organizational characteristics that “fit” some external environments better than others. OB theories offer guidance on how to effectively transform inputs to outputs.

OB is also important for organizations because it identifies ways for organizations to develop and leverage the potential of human capital—the knowledge, skills, abilities, creativity, and other valued resources that employees bring to the organization. Several organizational behavior topics also give us a better understanding of relations with stakeholders—individuals, groups, and other entities that affect, or are affected by, the organization’s objectives and actions. This latter focus includes the role of personal values (the relatively stable, evaluative beliefs that guide a person’s preferences for outcomes or courses of action in a variety of situations) and corporate social responsibility (organizational activities intended to benefit society and the environment beyond the firm’s immediate financial interests or legal obligations).

1-3 Describe the anchors on which organizational behavior knowledge is based.

The systematic research anchor states that OB knowledge should be based on systematic research, consistent with evidence-based management. The practical orientation anchor states that OB theories need to be useful in practice, such as by helping organizations become more effective. The multidisciplinary anchor states that the field should develop from knowledge in other disciplines (e.g., psychology, sociology, economics), not just from its own isolated research base. The contingency anchor states that OB theories generally need to consider that there will be different

Solution Manual for M Organizational Behavior 5th Edition by Steven Mc shane, Mary Von Glinow

Chapter 1: Introduction to the Field of Organizational Behavior

consequences in different situations. The multiple levels of analysis anchor states that OB topics may be viewed from the individual, team, and organization levels of analysis.

1-4 Summarize the workplace trends of diversity and the inclusive workplace, work–life integration, remote work, and emerging employment relationships.

An inclusive workplace values people of all identities and allows them to be fully themselves while contributing to the organization. It views diversity as a valued resource. An organization’s workforce has both surface-level diversity (observable demographic and other overt differences in people) and deep-level diversity (differences in personalities, beliefs, values, and attitudes). Inclusive workplaces produce better decisions, employee attitudes, team performance, and a host of other favorable outcomes for employees and the organization. However, diversity also poses challenges, such as dysfunctional conflict and slower team development.

Work-life integration refers to the degree that people are effectively engaged in their various work and nonwork roles and have a low degree of role conflict across those life domains. Various work and nonwork roles are inherently integrated because the physical, cognitive, and emotional resources produced or consumed by one role potentially enrich or undermine the success and enjoyment of other roles. There are several ways to maximize work–life integration, such as doing things that mix two roles, engaging in flexible work scheduling, ensuring that work and nonwork roles are aligned with your personal characteristics, and engaging in some degree of “boundary management” across roles.

An increasing percentage of the workforce performs their job remotely some or all of the time rather than at the organization’s physical work site. Some organizations are completely remote—everyone works at home and cafés and the company has no physical head office. Working remotely potentially benefits employees and employers, but there are also disadvantages. The effectiveness of remote work depends on the employee, job, and organization.

Most of the workforce has a direct employment relationship—working as an employee for an organization—but an increasing percentage has more fragile direct employment relationships (part-time, on-call, etc.). The largest labor market growth has been indirect (outsourced/agency) and contract work. Some contractors negotiate their own contracts with the client, whereas others work through branded platform companies (e.g., Uber).

These emerging employment relationships have both positive and negative consequences for job performance, job satisfaction, team dynamics, self-concept stability and clarity, and the ambiguity of managerial roles.

1-5 Describe the four factors that directly influence individual behavior and performance.

Four variables—motivation, ability, role perceptions, and situational factors—which are represented by the acronym MARS, directly influence individual behavior and performance. Motivation represents the forces within a person that affect his or her direction, intensity, and persistence of voluntary behavior; ability includes both the natural aptitudes and the learned capabilities required to successfully complete a task; role perceptions are the extent to which people understand the job duties (roles) assigned to them or expected of them; and situational factors include conditions beyond the employee’s immediate control that constrain or facilitate behavior and performance.

1-6 Summarize the five types of individual behavior in organizations.

There are five main types of workplace behavior. Task performance refers to goal-directed behaviors under the individual’s control that support organizational objectives. It includes proficiency, adaptivity, and proactivity.

Organizational citizenship behaviors consist of various forms of cooperation and helpfulness to others that support the organization’s social and psychological context. Counterproductive work behaviors are voluntary behaviors that have the potential to directly or indirectly harm the organization. Joining and staying with the organization refers to agreeing to become an organizational member and remaining with the organization.

Maintaining work attendance includes minimizing absenteeism when capable of working and avoiding scheduled work when not fit (i.e., low presenteeism).

Solution Manual for M Organizational Behavior 5th Edition by Steven Mc shane, Mary Von Glinow

Chapter 1: Introduction to the Field of Organizational Behavior

LECTURE OUTLINE Slide 1: Introduction to the Field of Organizational Behavior Slide 2: Learning Objectives After reading this chapter, students should be able to: 1. Define organizational behavior and organizations.

2. Explain why organizational behavior knowledge is important for you and for

organizations.

3. Discuss the anchors on which organizational behavior knowledge is based.

4. Summarize the workplace trends of diversity and the inclusive workplace, work-life

integration, remote work, and emerging employment relationships.

5. Describe the four factors that directly influence individual behavior and performance.

6. Summarize the five types of individual behavior in organizations.

Slide 3: Organizational Behavior and Organizations Organizational behavior (OB) • Studies what people think, feel, and do in and around organizations • Became a distinct field in 1940s, but OB topics studied for 2,500 years Organizations • Groups of people who work interdependently toward some purpose • Collective entities • Collective sense of purpose

Slide 4: Importance of OB for You The most important skills and knowledge employers look for in new hires are OB • Problem solving, teamwork, communication, leadership OB helps students adopt better personal theories to understand, predict, and influence organizational events • Comprehend workplace events — fulfills need to understand what goes on around us • Better able to predict workplace events • Get things done by influencing and coordinating with others OB is important for everyone, not just for “management.”

Solution Manual for M Organizational Behavior 5th Edition by Steven Mc shane, Mary Von Glinow

Chapter 1: Introduction to the Field of Organizational Behavior

Slide 5: Importance of OB for Organizations OB theories ultimately try to improve the organization’s effectiveness — an ideal state in which the organization: • Has a good fit with its external environment (open system) • Effectively transforms inputs to outputs (human capital) • Satisfies the needs of key stakeholders Organizational effectiveness is considered the ultimate dependent variable in OB. OB improves organizational effectiveness • Companies that apply OB concepts have better sales and profitability, patient survival, and other indicators of effectiveness • Several OB variables (leadership, performance-based rewards, employee development, and employee attitudes) are “positive screens” for selecting companies with best investment returns

Slide 6: Organizations as Open Systems Organizations are complex systems that “live” within (and depend upon) the external environment.

Effective organizations • Maintain a close “fit” with those changing conditions — inputs, processes, and outputs are aligned with the resources available and needs of the external environment • Transform inputs to outputs — coordination is vital in the relationship among internal subsystems

Slide 7: Human Capital as Competitive Advantage Human capital — knowledge, skills, abilities, creative thinking, and other valued resources that employees bring to the organization.

Human capital is competitive advantage because: • Employees are essential for the organization’s survival and success • Employee talents are difficult to find or copy • Employee talents are difficult to replace them with technology

Solution Manual for M Organizational Behavior 5th Edition by Steven Mc shane, Mary Von Glinow

Chapter 1: Introduction to the Field of Organizational Behavior

Human capital improves organizational effectiveness: • Developing employee skills and knowledge directly improves individual behavior and performance • Skilled, motivated employees adapt better to rapidly changing environments because they are better at performing diverse tasks in unfamiliar situations • Investing in and rewarding employees motivates them to reciprocate through greater effort in their jobs and assistance to coworkers

Slide 8: Organizations and Their Stakeholders Stakeholders: any entity who affects or is affected by the organization’s objectives and actions — e.g., employees, shareholders, suppliers, unions, government, etc.

Organizations are more effective when they understand, manage, and satisfy stakeholder needs and expectations.

Challenges: (1) Stakeholders have conflicting interests and (2) firms have limited resources to satisfy all stakeholders.

Personal values influence how corporate boards and CEOs allocate organizational resources.

Values – Relatively stable, evaluative beliefs that guide our preferences for outcomes or courses of action in various situations.

Slide 9: Stakeholders and CSR Corporate social responsibility (CSR) is associated with stakeholders • Organizational activities intended to benefit society and the environment beyond the firm’s immediate financial interests or legal obligations Triple-bottom-line philosophy • Economic – survive and be profitable • Society – maintain or improve conditions for society • Environment – maintain or improve the physical environment Evidence that a positive CSR reputation results in better financial performance, more loyal employees, better relations with customers and other stakeholders

Slide 10: Integrative Model of OB Individual inputs and processes influence individual outcomes which have a direct effect on the organization’s effectiveness

Solution Manual for M Organizational Behavior 5th Edition by Steven Mc shane, Mary Von Glinow

Chapter 1: Introduction to the Field of Organizational Behavior

Team inputs influence team processes which then affect team performance and other outcomes Team processes and outcomes affect individual processes and outcomes Organizational inputs and processes have macro-level influence on both teams and individuals

Slide 11: Organizational Behavior Anchors

1. Systematic research anchor • OB knowledge should be based on systematic research • Forming research questions, collecting data, and testing hypotheses

Evidence-based management • Making decisions and taking actions based on research evidence • Systematic research, not fads and personal beliefs that are untested Why decision makers don’t apply evidence-based management • Bombarded with popular press and nonresearched sources • OB knowledge is generic — difficult to see relevance to specific situations • Fads are heavily marketed, so they seem convincing • Perceptual errors bias decision maker toward popular and personal theories and to ignore contrary evidence Creating a more evidence-based organization • Be skeptical of hype (beware of “new,” “revolutionary,” “proven”) • Embrace collective expertise, not charismatic stars and management gurus • Use stories/examples to illustrate, not as conclusive evidence • Take a neutral stance toward popular trends and ideologies

2. Practical orientation anchor • OB theories need to be useful in practice • Implicit or explicit objective of making organizations more effective • True “impact” of an OB theory — actually applied and valued in organizations

3. Multidisciplinary anchor • Many OB concepts adopted from other disciplines ➡ e.g., psychology (individual, interpersonal behavior); sociology (team dynamics,

power); communications; marketing; information systems, etc.

• OB develops its own theories, but also scans other fields

Solution Manual for M Organizational Behavior 5th Edition by Steven Mc shane, Mary Von Glinow

Chapter 1: Introduction to the Field of Organizational Behavior

• Risks of OB not developing more of its own theoretical foundations

4. Contingency anchor • A particular action may have different consequences in different situations — no single

solution is best all the time • Need to understand and diagnose the situation and select the strategy most appropriate under those conditions

5. Multiple levels of analysis anchor • Individual – includes characteristics and behaviors as well as thought processes, e.g.,

motivation, perception, and values • Team (including interpersonal) – looks at the way people interact, e.g., team dynamics, decisions, power • Organizational – how people structure their working relationships and how organizations interact with their environment • OB topics usually relevant at all three levels of analysis

Slide 12: Emerging Workplace: Inclusive Workplace Inclusive workplace • Values people of all identities — allows people to be fully themselves while contributing to the organization • Diversity viewed as a valued resource • Individual level – people of all backgrounds feel psychologically safe, engaged, valued, authentic, listened to, and respected • Collective level – diverse groups have voice through formal structures and everyday processes — continually assesses fairness of organizational systems Surface-level diversity • Observable demographic or physiological differences in people (e.g., race, ethnicity, gender, age, physical capabilities) • Surface-level diversity is increasing in many countries Deep-level diversity • Differences in the psychological characteristics of employees (e.g., personalities, beliefs, values, and attitudes) • Example: Differences across age cohorts (e.g., Gen-X, Gen-Y) • Some deep-level diversity is associated with surface-level diversity (e.g., gender differences in values, attitudes, personality, etc.)

Solution Manual for M Organizational Behavior 5th Edition by Steven Mc shane, Mary Von Glinow

Chapter 1: Introduction to the Field of Organizational Behavior

Generational diversity considers deep-level diversity, not just surface diversity — but generational differences due more to stage of life than to cohort (decade of birth)

Slide 13: Workplace Diversity Benefits and Challenges Benefits of diversity • Inclusive workplaces tend to produce better decisions, employee attitudes, team performance • Teams with high informational diversity (different knowledge and skills) — more creativity, better decisions in complex situations • Better representation to recognize and address community needs • Surface-level and some deep-level diversity is a moral/legal imperative • Inclusive workplace improves cooperation and coordination by nurturing as culture of respect • Benefits of diversity depend on several factors (leadership, team structure, psychological safety) Challenges of diversity • Diverse teams usually take longer to perform effectively together • Higher risk of dysfunctional conflict — less information sharing and morale

Slide 14: Emerging Workplace: Work-Life Integration Work-life integration — the degree that people are effectively engaged in their various work and nonwork roles and have a low degree of role conflict across those life domains • Occurs by satisfying the demands and experiencing the positive emotions of our various segments of life • Life roles are inherently integrated — resources generated and consumed by one role enhance or starve other roles Problem: heavy demands of one role deplete personal resources, which starve other roles Example: consuming most energy and time performing/thinking about job leaves insufficient time and energy for other life roles Practicing work-life integration 1. Literally integrate two or more roles • meetings while exercising; dogs at work; on-site child care 2. Flexible work scheduling • attend meetings remotely from home then flexible work next day; parental leave programs

Solution Manual for M Organizational Behavior 5th Edition by Steven Mc shane, Mary Von Glinow

Chapter 1: Introduction to the Field of Organizational Behavior

3. Align work and nonwork roles with personality, values, and other personal characteristics 4. Boundary management — separate work from nonwork time

Slide 15: Emerging Workplace: Remote Work Remote work – performing the job away from the organization’s physical work site Most common is working from home or other non-client site away from the traditional workplace, but may also include working at client sites Remote employees typically connected to coworkers, clients, and company data through information technology Some companies are completely remote (distributed or virtual) — no physical offices, all staff work remotely

Slide 16: Remote Work Benefits and Risks Remote work benefits • Better work-life integration — but requires sufficient work space and privacy at home — undermined by increased family responsibilities on telecommuting days • Valued job benefit — factor in lower turnover • Higher productivity — due to lower stress, transferring some commuting time to work time, ability to work when weather prevents office work • Better for the environment — reduces greenhouse gas emissions, road use • Lower corporate real estate costs Remote work disadvantages • More social isolation — due to less connection with coworkers • Less informal communication that helps career (word-of-mouth information about promotional opportunities) • Lower team cohesion • Weaker organizational culture

Slide 17: Remote Work Contingencies Employee characteristics • High self-motivation • High self-organization • High need for autonomy • Good skill with information technology

Solution Manual for M Organizational Behavior 5th Edition by Steven Mc shane, Mary Von Glinow

Chapter 1: Introduction to the Field of Organizational Behavior

• Able to fulfill their social needs outside work

Job characteristics • Tasks require few workplace resources • Tasks are performed independently from coworkers • Task performance is measurable Organizational characteristics • Reward employees for performance not office presence (face time) • Maintaining team cohesion and psychological connectedness with the organization — limit remote work days, have special in-person meetings/events, video communication

Slide 18: Emerging Workplace: Employment Relationships 1. Direct employment • Traditional arrangement — employee working directly with employer • Typically full-time, permanent employment • Increasing percent in “fragile” direct employment — part-time, on-call, casual,

seasonal employment 2. Indirect employment — fastest labor market growth • Outsourced/agency work — temporarily or indefinitely assigned to client firms • Due to firms outsourcing their non-core work activities 3. Contract employment — “gig economy” • Worker represents one organization that directly or indirectly provides services to a

client organization • Independent contractor (work independently) vs dependent contractor (such as those dependent on Uber, Airbnb, and other platforms) Consequences of emerging employment relationships • Direct employment tends to have higher work quality, innovation, and agility — due to lower turnover, higher commitment, and more involvement, and more organizational investment in human capital • Teams with direct and indirect employment members tend to have weaker social networks and less information sharing • Indirect employment workers tend to have lower job satisfaction than do direct and contract employment workers • Direct employment workers tend to have lower satisfaction and commitment when working with indirect employment workers

Solution Manual for M Organizational Behavior 5th Edition by Steven Mc shane, Mary Von Glinow

Chapter 1: Introduction to the Field of Organizational Behavior

• Managers experience more ambiguity in their roles and less discretion in guiding work

performance of indirect employment workers

Slide 19: MARS Model of Individual Behavior Individual voluntary behavior and performance is influenced by motivation, ability, role perceptions, and situational factors • Represented by the acronym MARS • Need to understand all four factors to diagnose and influence individual behavior and performance MARS is built on earlier models of individual behavior and performance: • Performance = person × situation — person includes individual characteristics and situation represents external influences on the individual’s behavior • Performance = ability × motivation — “skill-and-will” model, two specific characteristics within the person • Ability–motivation–opportunity (AMO) — refers to the three variables but with a limited interpretation of the situation • Role perceptions literature

Slide 20: MARS Model: Employee Motivation Internal forces (cognitive and emotional conditions) that affect a person’s effort for voluntary behavior • Direction – path along which people steer their effort — motivation is goal-directed, not random • Intensity – amount of effort allocated to the goal • Persistence – continuing the effort for a specific amount of time

Slide 21: MARS Model: Employee Ability Natural aptitudes and learned capabilities required to successfully complete a task • Aptitudes – natural talents that help people learn specific tasks more quickly and perform them better • Learned capabilities – acquired physical and mental skills and knowledge Person-job matching – produces higher performance and tends to increase the employee’s well-being 1. Select applicants who demonstrate the required competencies

Solution Manual for M Organizational Behavior 5th Edition by Steven Mc shane, Mary Von Glinow

Chapter 1: Introduction to the Field of Organizational Behavior

2. Provide training to enhance individual performance and results 3. Redesign the job so employees perform only tasks they are currently able to perform

Slide 22: MARS Model: Role Perceptions The extent to which people understand the job duties (roles) assigned to or expected of them.

Role perceptions are clearer (role clarity) when we: • Understand which tasks or consequences we are accountable for • Understand the priority of tasks and performance expectations • Understand the preferred behaviors/procedures for tasks Benefits of clear role perceptions: • More accurate/efficient job performance (due to clearer direction of effort) • Better coordination with others • Higher motivation due to clearer link between effort and outcomes

Slide 23: MARS Model: Situational Factors Any context beyond the individual’s immediate control.

Two influences of situation on behavior 1. Constraint or facilitator – e.g., time, budget, work facilities, consumer preferences, economic conditions 2. Cues – communicate information, such as safety warnings and other role obligations

Slide 24: Types of Individual Behavior (1 of 2) Task performance Voluntary goal-directed behaviors under the individual’s control that contribute to organizational objectives • Involve working with people, data, things, and ideas Three types of performance: 1. Proficient task performance – employees work efficiently and accurately 2. Adaptive task performance – employees modify their thoughts and behavior to align with and support a new or changing environment 3. Proactive task performance – employees take initiative to anticipate and initiate new work patterns that benefit the organization

Solution Manual for M Organizational Behavior 5th Edition by Steven Mc shane, Mary Von Glinow

Chapter 1: Introduction to the Field of Organizational Behavior

Organizational citizenship behaviors (OCBs) Various forms of cooperation with and helpfulness to others that support the organization’s social and psychological context Directed toward: • Individuals — e.g., adjusting work schedule to accommodate coworkers • Organization — e.g., supporting the company’s public image Some OCBs are discretionary (don’t need to perform them), whereas other OCBs are job requirements even if they aren’t explicitly stated OCBs can have a significant effect on individual, team, and organizational effectiveness OCBs can have negative consequences for employees — take effort away from task performance and nonwork obligations

Slide 25: Types of Individual Behavior (2 of 2) Counterproductive work behaviors Voluntary behaviors that have the potential to directly or indirectly harm the organization Examples: harassing co-workers, creating unnecessary conflict, avoiding work obligations Joining and staying with the organization Forming the employment relationship and remaining with the organization Organization’s effectiveness hurt by: • Lack of job applicants — unable to keep up with business demand • High employee turnover — loss of human capital — removes valuable knowledge, skills, and relationships with coworkers and external stakeholders Maintaining work attendance Absences due mainly to situation (weather) and motivation (avoiding stressful workplace) Presenteeism – attending scheduled work when one’s capacity to perform is significantly diminished by illness or other factors

Solution Manual for M Organizational Behavior 5th Edition by Steven Mc shane, Mary Von Glinow

Chapter 1: Introduction to the Field of Organizational Behavior

BONUS RESOURCE: CRITICAL-THINKING QUESTIONS STUDENT HANDOUT

1.

A friend suggests that organizational behavior courses are useful only to people who will enter management careers. Discuss the accuracy of your friend’s statement.

2.

A young student from the United States is interested in doing international business across China, India, Brazil, and Russia. Discuss how the knowledge of OB can be useful to the student.

3. Work-life integration is one of the most important issues that job applicants consider when choosing where to work. Think about the variety of specific benefits, working conditions, or resources that employers offer to support work-life integration. Which of these is most valuable to you personally at this stage in your life and career? Why? In what ways have you personally been able to minimize conflict between your work (including school) and nonwork roles?

4. Why might employees display presenteeism? What can organizations do to reduce presenteeism and how ethical are these strategies?

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Chapter 1: Introduction to the Field of Organizational Behavior

BONUS RESOURCE: CRITICAL-THINKING QUESTIONS CONFIDENTIAL

INSTRUCTOR

NOTES

Suggested Answers to Critical-Thinking Questions 1.

A friend suggests that organizational behavior courses are useful only to people who will enter management careers. Discuss the accuracy of your friend’s statement.

This chapter explains that although technical skills and knowledge are important in many occupations, the skills and knowledge that employers tend to rank above anything else are the topics associated with organizational behavior, such as problem solving, team work, communicating, and leading others. In addition to helping students acquire these valuable skills and knowledge foundations, organizational behavior helps students to adopt better personal theories to understand, predict, and influence organizational events. By adopting better personal theories, we are able to make more accurate sense of what goes on around us and are better able to coordinate our work objectives with coworkers and other organizational stakeholders. In other words, OB knowledge helps us to get things done more effectively in organizations. The above benefits of OB lead to a key principle in this book, namely that OB is for everyone who works in and around organizations. Although managers may require OB knowledge more intensively, people in all jobs ultimately require the skills that employers seek out and people need to develop more accurate personal theories of why events and behavior occur in organizational settings.

2.

A young student from the United States is interested in doing international business across China, India, Brazil, and Russia. Discuss how the knowledge of OB can be useful to the student.

The study of OB is for anyone who works in an organization. If a student from USA is interested in doing international business across the emerging economies, Brazil, Russia, China, and India, s/he will need to work as an individual, in groups and teams or in an organization with those from the other countries. In either case, s/he needs to understand how people think, feel, and do in and around organizations. The study of OB looks at employee behavior, decisions, perceptions, and emotional responses at multiple levels, individual, teams, and organizations; as well as how organizations interact with the external environment. Thus, knowledge acquired by study of OB can provide the student an understanding of these aspects of organizations and behavior and thus help in getting things done while doing international business.

3. Work-life integration is one of the most important issues that job applicants consider when choosing where to work. Think about the variety of specific benefits, working conditions, or resources that employers offer to support work-life integration. Which of these is most valuable to you personally at this stage in your life and career? Why? In what ways have you personally been able to minimize conflict between your work (including school) and nonwork roles?

This question prompts open discussion of students’ personal preferences and the variety of work-life integration benefits, conditions, and resources available in organizations. It also brings out specific examples of ways that people effectively integrate their work (or school duties) and nonwork life roles.

Numerous work-life integration benefits, conditions, and resources might be discussed. Here is a small set of them: • Remote work • Flexible hours • Workplace recreation facilities • Activity-based meetings • Exercising while working Page 1-16 Copyright © 2022 McGraw Hill. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill.

Chapter 1: Introduction to the Field of Organizational Behavior

• Paid parental leave.

• Company policies restricting after-work communication • Flexible vacation schedules • Sabbaticals • Child care center support or in-house • Career counseling (for better alignment of job requirements with personal characteristics) 4. Why might employees display presenteeism? What can organizations do to reduce presenteeism and how ethical are these strategies?

Presenteeism occurs when people attend work even though their capacity to work is significantly diminished by illness, fatigue, personal problems or other factors. There could be several reasons for presenteeism. First, employees could be highly motivated and loyal, with a strong sense of ownership over their work and would therefore avoid missing work even when legitimate justification such as illness occurs. Some people’s motivation is so high—to the point of workaholism—that they are internally motivated to work to an excessive extent and to demonstrate high levels of presenteeism. Secondly, some employees (particularly in certain jobs and roles) may feel that they are not substitutable and that if they do not show up at work, the job may not get done or people would not get essential services (e.g., being the only doctor in a rural area). Similarly, a heavy workload and the need to show high-level results could also lead to presenteeism, as people feel they must work to achieve what is expected of them. Finally, employees with low job security and who lack paid sick leave may show up to work even with low capacity to work.

Organizations may see presenteeism in a positive light and as an indicator of a devoted workforce. However, it is the role of the organization to ensure the wellbeing of its employees, avoid burnout, and offer them a work-life balance, both for ethical reasons and for long-term performance. In addition, when employees show up to work, even when they are sick, they pose a risk to everyone else around them. It is therefore important to have a clear policy regarding the importance of staying away from the office while sick, to follow up with employees who tend to demonstrate presenteeism, and to display reasonable demands. Educating employees on the matter could also have positive results.

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Chapter 1: Introduction to the Field of Organizational Behavior

BONUS RESOURCE: WORLD CAFÉ ON THE EMERGING WORKPLACE STUDENT HANDOUT

World Café Discussion Themes Table 1: Inclusive Workplace An inclusive workplace values people of all identities (i.e., surface- and deep-level diversity) and allows them to be fully themselves while contributing to the organization.

1. What challenges do organizations and their employees experience on their journey toward an inclusive workplace? Provide specific examples.

2. How can leaders (supervisors to executives) support and maintain workplace diversity? Provide specific examples from your experience in an organization that emphasizes and leverages (or undermines) the value of diversity.

3. What personal characteristics of leaders (supervisors to executives) make them better (or worse) equipped to support and lead people in an inclusive workplace? Why are those attributes important?

Table 2: Remote Workers Remote workers are people who work from home or other off-site location (not at client sites) some or all of the time.

1. What are the challenges for the organization and for employees who work remotely in terms of their effectiveness and well-being in this work arrangement? Provide specific examples. Several firms (Yahoo, IBM, etc.) have recently reduced the level of remote work. What problems do you think they experienced?

2. What personal characteristics enable some people to work remotely better (or worse) than other people? Why are those attributes important?

3. How can leaders (supervisors to executives) support and maintain the performance of remote workers?

Provide specific examples from your experience as a remote worker, a supervisor of remote workers, or knowledge of others in those situations.

Table 3: Agency and Contract Workers Agency workers work regularly at a client site but are employed by another firm (outsource company). Contractors are self-employed. This table will refer only to contractors who work at client sites.

1. What are the challenges for the organization and for employees who work as agency employees or contractors in terms of their effectiveness and well-being in this work arrangement? Provide specific examples.

2. What personal characteristics enable some people to work as agency/contract workers better (or worse) than other people? Why are those attributes important?

3. How can leaders (supervisors to executives) support and maintain the performance of agency and contract workers who are not their own employees? Provide specific examples from your experience as an agency/contract worker, a manager of agency/contract workers, or knowledge of others in those situations.

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Chapter 1: Introduction to the Field of Organizational Behavior

BONUS RESOURCE: WORLD CAFÉ ON THE EMERGING WORKPLACE CONFIDENTIAL

INSTRUCTOR

NOTES

Purpose This exercise is designed to help students understand organizational behavior issues that arise in the emerging workplace landscape, particularly regarding inclusive workplace, remote work, and emerging employment relationships (agency and contract workers).

Materials The learning space should allow for one large table or other dedicated area for every 10 or so students in the class. One person at each table (the “scribe”) should have some means (e.g., paper/pencil, computer/tablet) of documenting ideas presented.

Instructions Step 1: Students are organized into teams of approximately 10 people. Each team is initially assigned to a large table or dedicated space for the team. The instructor will assign one of the three themes (see below) to each table. For example, if the class has 60 students, there would be six tables of 10 students. Two tables would be assigned the theme of inclusive workplace, two tables would look at remote work, and two tables would look at employment relationships (agency/contract work).

Step 2: One person on each team volunteers to be the “scribe” for that table. Throughout the exercise, the scribe documents the main ideas presented by students who attend that table. The scribe remains at that table for the entire exercise (other team members will move to other tables during the exercise). All scribes will later debrief the class on the key points they documented on the theme assigned to their table.

Step 3: Teams will read the questions assigned to the theme of their initial table (see below). They have a fixed time (usually between 10 and 15 minutes) to discuss their views and offer answers to those questions.

Step 4: After the preset discussion time has ended, the instructor will direct students at each table (except the scribe who remains at the table) to another table that has a different theme. For example, students at a “remote work” table would move to a table assigned the “agency/contract work” or “inclusive workplace” theme. Students will read the questions assigned to the theme of this second table. The instructor again assigns a fixed time (10 to 15 minutes) for students to discuss their new theme.

Step 5: The scribe will add the ideas presented by the second group to those provided by the first group. The scribe should not tell the second group what the first group discussed about this theme. The scribe should remain quiet, except for asking for clarification.

Step 6: After the preset discussion time has ended, the instructor will direct students at each table (except the scribe who remains at the table) to the third table that has a different theme from the previous two tables. Scribes document ideas from their third group without informing them of what the previous teams discusses on that theme.

Step 7: After the third round of discussion has ended, the whole class will gather and listen to the main ideas documented by the scribes. This is usually three to five minutes per scribe. If two or more tables have the same theme, the scribes of those tables should present at the same time or consecutively (e.g., if two scribes have the remote work theme, they should speak to the class together or one after the other).

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Chapter 1: Introduction to the Field of Organizational Behavior

Comments for Instructors This is an excellent activity to involve students on topics that they know about or at least likely have opinions about.

The World Café structure of the exercise is particularly helpful because it can be used in larger classes. (Steve has conducted this activity in MBA classes with almost 80 students using six tables — two sets of each of the three topics listed above and 13 people per table!)

The first piece of advice, particularly for instructors in larger classes, is ORGANIZATION. Have café tables set up with sufficient space for all students in each cohort to gather around.

Also important is to carefully instruct students on the process before the process begins. Few would have done a world café previously and there is potential for confusion when teams move to the next table. Instructors should carefully describe how one person needs to take notes and remain at the table for the entire exercise, how after a fixed time (when the instructor advises to move) all members of a group except the scribe will move to the next café table, how the scribe remains quiet except asking for clarification (e.g., the scribe does NOT summarize any notes to the next team arriving at the table), and how the team discusses the topic associated with each table, so everyone (except scribes) eventually discusses all three topics after moving through the three tables.

Several minutes before each move, let each table know where they will move next and in how many minutes (e.g., “This group, except the scribe, will move the table near the window in about four minutes. I’ll advise the class when it is time to move.”). Be sure to remind the scribe to stay at the table and to AVOID summarizing current notes to the next group. If the next group just repeats the same ideas, that merely reinforces the importance of those ideas (and requires less note-taking). Teams and scribes also need to be reminded that the topic at each table is fixed, so that when they move to the next table they then discuss the topic assigned at the beginning to that table.

A major challenge for scribes is to present a brief summary of the key points. One challenge is for scribes to organize the ideas for a class presentation. In some instances, the class might have a break before debriefing, which gives scribes time to organize their ideas. In any event, emphasize that scribes are not expected to repeat everything that was discussed, just the main/more frequently discussed ideas. The other challenge is to condense the ideas into a three- minute (up to five-minute) debriefing to the class. Scribes often talk longer due to lack of organization and desire to get every idea into the summary.

Another key role for instructors is to encourage scribes to ask one or two specific students to repeat the excellent examples they mentioned in the café. The instructor should adjust the debriefing time for examples provided by one or more students to the class during the debriefing.

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Chapter 1: Introduction to the Field of Organizational Behavior

SA

SELF-ASSESSMENT 1.1: ARE YOU A GOOD REMOTE WORKER?

Overview and Instructions Remote work (formerly known as telecommuting) is an increasingly popular workplace relationship, and it potentially offers benefits for both companies and remote workers. However, some people are better suited than others to working away from the traditional workplace. You can discover how well you adjust to remote work by locating this selfassessment in Connect if it is assigned by your instructor.

This instrument is designed to help you to identify your “remote work disposition,” that is, the degree to which your needs, values, and competencies are compatible with remote work arrangements. This scale does not cover every personal characteristics related to effective remote work, but it measures three of the most important dispositions.

Also, please keep in mind that this scale only considers your personal characteristics. Other factors, such as organizational, family, and technological systems support must also be taken into account.

Feedback for the Remote Work Scale Some people thrive in remote work arrangements, whereas others discover that it is neither a satisfying nor productive work environment for them. This scale assesses three personal dispositions that are identified in the literature as characteristics of effective remote workers: (a) high company alignment, (b) low social needs at work and (c) independent initiative.

Company alignment Company alignment estimates the extent to which you follow company procedures and have values congruent with company values. The greater the alignment, the more likely that you can abide by company practices while working alone and with direct supervision. While some deviation from company practices may be appropriate, remote workers need to agree with company values and provide work that is consistent with company expectations most of the time. Scores on this scale range from 4 to 20.

Score

Interpretation

15 to 20 points

High company alignment

9 to 14 points

Moderate company alignment

4 to 8 points

Low company alignment

Low social needs at work People with a high score on this subscale do not rely on co-workers to satisfy their social needs. Successful remote workers tend to score higher on this subscale (i.e., have lower social needs at work) because working from home or similar remote site offers less opportunity for social interaction with co-workers than when working in an office setting each day. Scores on this scale range from 4 to 20.

Score

Interpretation

15 to 20 points

High score (low social need at work)

9 to 14 points

Moderate score (medium social need at work)

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Chapter 1: Introduction to the Field of Organizational Behavior

Score 4 to 8 points

Interpretation Low score (high social need at work)

Independent initiative One of the most important characteristics of successful remote workers is that they are able to set their own work goals and maintain a productive work schedule without direct supervision. People who score higher on this subscale tend to have a higher degree of independent initiative. Scores on this scale range from 6 to 30.

Score

Interpretation

15 to 20 points

High company alignment

9 to 14 points

Moderate company alignment

4 to 8 points

Low company alignment

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Chapter 2: Individual Differences: Personality and Values

Instructor’s Manual to Accompany

M:Organizational Behavior 5/e

by Steven L. McShane and Mary Ann Von Glinow

Chapter 2: Individual Differences: Personality and Values Prepared by Steven L. McShane, University of Newcastle (Australia)

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Chapter 2: Individual Differences: Personality and Values

2

Individual Differences: Personality and Values

LEARNING OBJECTIVES After reading this chapter, students should be able to:

2-1 Define personality and discuss how the Big Five personality factors relate to workplace behavior and performance.

2-2 Describe the dark triad of personality and the MBTI types and discuss their implications for organizational behavior.

2-3 Summarize Schwartz’s model of individual values and discuss the conditions where values influence behavior.

2-4 Describe four ethical principles and discuss three factors that influence ethical behavior. 2-5 Describe five values commonly studied across cultures.

CHAPTER GLOSSARY achievement-nurturing orientation — cross-cultural value describing the degree to which people in a culture emphasize competitive versus cooperative relations with other people

extraversion — a personality dimension describing people who are outgoing, talkative, sociable, and assertive

agreeableness — a personality dimension describing people who are trusting, helpful, good-natured, considerate, tolerant, selfless, generous, and flexible

five-factor model (Big Five) model — the five broad dimensions representing most personality traits: conscientiousness, emotional stability, openness to experience, agreeableness, and extraversion

collectivism — a cross-cultural value describing the degree to which people in a culture emphasize duty to groups to which they belong and to group harmony

individualism — a cross-cultural value describing the degree to which people in a culture emphasize independence and personal uniqueness

conscientiousness — a personality dimension describing people who are organized, dependable, goal-focused, thorough, disciplined, methodical, and industrious

Machiavellianism — a personality trait of people who demonstrate a strong motivation to achieve their own goals at the expense of others, who believe that deceit is a natural and acceptable way to achieve their goals, who take pleasure in outwitting and misleading others using crude influence tactics, and who have a cynical disregard for morality

counterproductive work behaviors (CWBs) — voluntary behaviors that have the potential to directly or indirectly harm the organization dark triad — a cluster of three socially undesirable (dark) personality traits: Machiavellianism, narcissism, and psychopathy

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Chapter 2: Individual Differences: Personality and Values

mindfulness — a person’s receptive and impartial attention to and awareness of the present situation as well as to one’s own thoughts and emotions in that moment moral intensity — the degree to which an issue demands the application of ethical principles moral sensitivity — a person’s ability to recognize the presence of an ethical issue and determine its relative importance Myers-Briggs Type Indicator (MBTI) — an instrument designed to measure the elements of Jungian personality theory, particularly preferences regarding perceiving and judging information narcissism — a personality trait of people with a grandiose, obsessive belief in their superiority and entitlement, a propensity to aggressively engage in attention-seeking behaviors, an intense envy of others, and tendency to exhibit arrogance, callousness, and exploitation of others for personal aggrandizement neuroticism — a personality dimension describing people who tend to be anxious, insecure, self-conscious, depressed, and temperamental openness to experience — a personality dimension describing people who are imaginative, creative, unconventional, curious, nonconforming, autonomous, and aesthetically perceptive

organizational politics — the use of influence tactics for personal gain at the perceived expense of others and the organization personality — the relatively enduring pattern of thoughts, emotions, and behaviors that characterize a person, along with the psychological processes behind those characteristics power distance — a cross-cultural value describing the degree to which people in a culture accept unequal distribution of power in a society psychopathy — a personality trait of people who ruthlessly dominate and manipulate others without empathy or any feelings of remorse or anxiety, use superficial charm, yet are social predators who engage in antisocial, impulsive, and often fraudulent thrillseeking behavior uncertainty avoidance — a cross-cultural value describing the degree to which people in a culture tolerate ambiguity (low uncertainty avoidance) or feel threatened by ambiguity and uncertainty (high uncertainty avoidance) values — relatively stable, evaluative beliefs that guide a person’s preferences for outcomes or courses of action in a variety of situations

CHAPTER SUMMARY BY LEARNING OBJECTIVE 2-1 Define personality and discuss how the Big Five personality factors relate to workplace behavior and performance.

Personality refers to the relatively enduring pattern of thoughts, emotions, and behaviors that characterize a person, along with the psychological processes behind those characteristics. Personality is formed through heredity (nature) as well as socialization (nurture).

The Big Five personality factors include conscientiousness, agreeableness, neuroticism, openness to experience, and extraversion. Conscientiousness and extraversion are the best overall predictors of job performance in most job groups. Extraversion and openness to experience are the best predictors of adaptive and proactive performance.

Emotional stability (low neuroticism) is also associated with better adaptivity. Conscientiousness and agreeableness are the two best personality predictors of organizational citizenship and (negatively) counterproductive work behaviors.

Four issues to consider about the Big Five personality factors is that (1) people with higher personality levels aren’t necessarily the best performers, (2) specific personality traits are sometimes better predictors of behavior than are the broader Big Five factors, (3) personality changes to some extent over a person’s lifetime, and (4) the five-factor model doesn’t cover all of an individual’s personality.

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Chapter 2: Individual Differences: Personality and Values

2-2 Describe the dark triad of personality and the MBTI types and discuss their implications for organizational behavior.

The dark triad is a cluster of three socially undesirable personality traits: Machiavellianism, narcissism, and psychopathy. They have a common core of low humility/honesty or a tendency to malevolently undermine others to maximize one’s own gains. Machiavellianism refers to people who demonstrate a strong motivation to achieve their own goals at the expense of others, who believe that deceit is a natural and acceptable way to achieve their goals, who take pleasure in outwitting and misleading others using crude influence tactics, and who have a cynical disregard for morality. Narcissism is a personality trait of people with a grandiose, obsessive belief in their superiority and entitlement, a propensity to aggressively engage in attention-seeking behaviors, an intensive envy of others, and tendency to exhibit arrogance, callousness, and exploitation of others for personal aggrandizement. Psychopathy refers to people who ruthlessly dominate and manipulate others without empathy or any feelings of remorse or anxiety, use superficial charm, yet are social predators who engage in antisocial, impulsive, and often fraudulent thrill-seeking behavior. People with the dark triad personality engage in more organizational politics, white-collar crime, workplace aggression, and (to some degree) poor team behavior. They also make riskier decisions, resulting in poorer investment returns.

However, the dark triad personality is also associated with manipulative political skill that can lead to higher performance reviews and better pay.

Based on Jungian personality theory, the Myers-Briggs Type Indicator (MBTI) identifies competing orientations for getting energy (extraversion versus introversion), perceiving information (sensing versus intuiting), processing information and making decisions (thinking versus feeling), and orienting to the external world (judging versus perceiving). The MBTI improves self-awareness for career development and mutual understanding but is more popular than valid.

2-3 Summarize Schwartz’s model of individual values and discuss the conditions where values influence behavior.

Values are stable, evaluative beliefs that guide our preferences for outcomes or courses of action in a variety of situations. Compared to personality traits, values are evaluative (rather than descriptive), more likely to conflict, and formed more from socialization than heredity. Schwartz’s model organizes 57 values into a circumplex of 10 dimensions along two bipolar dimensions: openness to change to conservation and selfenhancement to self- transcendence. Values influence behavior in three ways: (1) shaping the attractiveness of choices, (2) framing perceptions of reality, and (3) aligning behavior with self-concept and self-presentation.

However, the effect of values on behavior also depends on whether the situation supports or prevents that behavior and on how actively we think about them and understand their relevance to the situation. Values congruence refers to how similar a person’s values hierarchy is to the values hierarchy of another source (organization, team, etc.).

2-4 Describe four ethical principles and discuss three factors that influence ethical behavior.

Ethics refers to the study of moral principles or values that determine whether actions are right or wrong and outcomes are good or bad. Four ethical principles are utilitarianism (greatest good for the greatest number), individual rights (upholding natural rights), distributive justice (same or proportional benefits and burdens), and ethic of care (the moral obligation to help others). Ethical behavior is influenced by the degree to which an issue demands the application of ethical principles (moral intensity), the individual’s ability to recognize the presence and relative importance of an ethical issue (moral sensitivity), and situational forces. Ethical conduct at work is supported by codes of ethical conduct, mechanisms for communicating ethical violations, the organization’s culture, and the leader’s behavior.

2-5 Describe five values commonly studied across cultures.

Five values often studied across cultures are individualism (valuing independence and personal uniqueness), collectivism (valuing duty to in-groups and group harmony), power distance (valuing unequal distribution of power), uncertainty avoidance (tolerating or feeling threatened by ambiguity and uncertainty), and achievement- nurturing orientation (valuing competition versus cooperation).

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Chapter 2: Individual Differences: Personality and Values

LECTURE OUTLINE Slide 1: Individual Differences: Personality and Values Slide 2: Learning Objectives 1. Define personality and discuss how the Big Five personality factors relate to workplace

behavior and performance.

2. Describe the dark triad of personality and the MBTI types and discuss their implications

for organizational behavior.

3. Summarize Schwartz’s model of individual values and discuss the conditions where

values influence behavior.

4. Describe four ethical principles and discuss three factors that influence ethical behavior.

5. Describe five values commonly studied across cultures.

Slide 3: Personality in Organizations Personality defined — relatively enduring pattern of thoughts, emotions, and behaviors that characterize a person, along with the psychological processes behind those characteristics • Estimate personality from individual’s observable behaviors • Infer internal states from observable behaviors Personality traits — broad concepts referring to discernible patterns that allow us to label and understand individual differences Traits are evident across situations, but people do vary their behavior to suit the situation, even if the behavior is at odds with their personality • E.g., talkative people may talk less in a library where “no talking” rules are explicit and enforced

Slide 4: Nature vs Nurture of Personality Nature: Heredity explains up to 50 percent of behavior and 30 percent of temperament preferences Nurture: Socialization, life experiences, and other interactions with the environment also affect personality Personality stabilizes in young adulthood (about age 30)

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Chapter 2: Individual Differences: Personality and Values

We form a clearer and more rigid self-concept as we get older • Executive function (part of the brain that monitors and regulates goal-directed behavior) tries to keep our behavior consistent with self-concept But some personality factors continue to change • E.g., agreeableness, conscientiousness tend to increase through to late life • E.g., openness to experience, social vitality increase to young adulthood, then decline in later years • E.g., personality affected by long-term job activity and by migration to another culture

Slide 5: Five-Factor Personality Model Conscientiousness • High: organized, dependable, goal-focused, thorough, disciplined, methodical, industrious • Low: careless, disorganized, less thorough Agreeableness • High: trusting, helpful, good-natured, considerate, tolerant, selfless, generous, flexible • Low: uncooperative, intolerant of others’ needs, more suspicious, self-focused Neuroticism • High: anxious, insecure, self-conscious, depressed, temperamental • Low (high emotional stability): poised, secure, calm Openness to experience • High: imaginative, creative, unconventional, curious, nonconforming, autonomous, aesthetically perceptive • Low: resistant to change, less open to new ideas, more conventional and fixed in their ways Extraversion • High: outgoing, talkative, energetic, sociable, assertive • Low (introversion): quiet, cautious, less interactive with others

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Chapter 2: Individual Differences: Personality and Values

Slide 6: Five Factor Model and Work Performance Personality mainly affects behavior and performance through motivation — influences direction, intensity, and persistence of effort All Big Five dimensions predict individual behavior to some extent Personality predictors of proficient task performance • Conscientiousness is best personality predictor of proficient task performance

• Especially industriousness (achievement, self-discipline, purposefulness) and dutifulness • Set higher personal goals, more persistent

• Extraversion second best personality predictor of proficient task performance • Especially specific traits of assertiveness and positive emotionality

• Assertive employees frame situations as challenges rather than threats

Personality predictors of adaptive task performance • Emotional stability (low neuroticism): cope with ambiguity and uncertainty of change • Extraversion (especially assertiveness): comfortable influencing others, engaging with environment • Openness to experience: have more curiosity, imagination, and tolerance of change Personality predictors of proactive task performance • Extraversion (especially assertiveness): comfortable influencing others, engaging with environment • Openness to experience: have more curiosity, imagination, and tolerance of change Personality predictors of organizational citizenship • Conscientiousness: more dutiful, dependable • Agreeableness: motivated to be cooperative, sensitive, flexible, and supportive

Personality predictors of counterproductive work behaviors • Conscientiousness (negative correlation): people with low conscientiousness are less

dependable and feel less obligation toward others

• Agreeableness (negative correlation): people with low agreeableness are less caring of

others, less need to be liked

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Chapter 2: Individual Differences: Personality and Values

Slide 7: Five Factor Model and Behavior: Further Information Effective leaders and salespeople tend to be somewhat more extraverted than general population — influencing others, being comfortable in social settings Openness to experience is associated with successful performance in creative work Conscientiousness is usually a weak predictor of adaptive and proactive performance (require more structure, clarity) Agreeableness • Fairly good personality predictor of performance as team members and in customer service jobs • A weak predictor of proficient or proactive task performance (lower motivation to set goals, achieve results)

Slide 8: Five-Factor Model Caveats 1. Higher Big Five scores aren’t always better • Model implies that higher scores are better • But personality-performance relationship may be nonlinear — optimal level

somewhere between high and low • Example: best salespeople have moderate extraversion, not very high or low 2. Specific traits may predict better than their Big Five factor • Some specific traits predict behavior/performance better than the broader Big Five

factor • Example: assertiveness and positive emotionality (traits within extraversion) predict proficient task performance better than the overall extraversion factor 3. Personality isn’t static • False assumption that adults have a fixed/static personality • Some Big Five factors tend to increase or decrease as we age • Changes in our environment — new culture, new type of work — can change

personality over a long time 4. The five-factor model doesn’t cover all personality concepts • Several perspectives of personality, whereas five-factor model represents only some

perspectives • Dark Triad and Jungian model (MBTI) only partially overlap with the Big Five

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Chapter 2: Individual Differences: Personality and Values

Slide 9: The Dark Triad Five Factor model development excluded explicitly positive/negative valence words Dark Triad — re-examined personality clusters with valences — three socially undesirable personality traits of Machiavellianism, narcissism, and psychopathy Machiavellianism • Strong motivation to get what they want at the expense of others — believe that getting more than one deserves is acceptable • Believe that deceit is a natural and acceptable way to achieve goals — cynical disregard for moral principles • Take pleasure in misleading, outwitting, and otherwise controlling others • Seldom empathize with or trust coworkers Narcissism • Obsessive belief in their superiority, entitlement (often called “grandiose narcissism”) • Excessive need for attention — engage in self-promotion, exhibitionism, other attention-seeking behaviors • Intensely envious — eventually shows as arrogance, schadenfreude (pleasure from others' misfortune), callous disregard for others’ feelings, exploitation of others for personal power/status Psychopathy • Considered the most sinister of the triad — callously do as they please and take what they want • Social predators — ruthlessly dominate and manipulate others without empathy or feelings of remorse or anxiety • Mask of psychopathy — use superficial charm while being selfish self-promoters • Engage in antisocial, impulsive, and often fraudulent thrill-seeking behavior

Slide 10: Dark Triad and Workplace Behavior Dark Triad (Machiavellianism, narcissism, psychopathy) are prevalent throughout the workplace 1. Serious white-collar crime activity 2. Workplace aggression/bullying 3. Excessively risky decision making

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Chapter 2: Individual Differences: Personality and Values

4. Organizational politics • Using influence tactics for personal gain at the expense of others and the interests of

the entire organization • The Dark Triad motivates political tactics because dishonesty and malevolently undermining others are core characteristics 5. Ineffective team behaviors • Complex effect — helpful in short-term to gain favors, but long term distrust

coworkers and focus on their own goals at the expense of team goals Dark triad personality sometimes predicts better promotions and pay: • Some supervisors rate manipulative skill favorably — can result in higher power by gaining more central positions • Narcissistic CEOs — higher direct pay — higher pay gap from other executives

Slide 11: Jungian Personality Theory and MBTI Swiss psychiatrist Carl Jung proposed that personality is primarily represented by the individual’s preferences regarding perceiving the environment and judging (obtaining and processing) information Myers-Briggs Type Indicator (MBTI) — estimates Jungian personality types Extroversion versus introversion (E – I) • Similar to Big Five factor with same names Perceiving information (S – N) • Sensing – perceiving information directly through the five senses to acquire factual and quantitative details • Intuition – relies on insight and subjective experience Judging, i.e., making decisions (T – F) • Thinking – rely on rational cause-effect logic and systematic data collection to make decisions • Feeling – rely on emotional responses to the options as well as how those choices affect others Orientation toward the outside world (P – J) • Perceiving – open curious, flexible, adapt spontaneously to events, prefer to keep options open • Judging – prefer order and structure; want to resolve problems quickly

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Chapter 2: Individual Differences: Personality and Values

Slide 12: Evaluating the MBTI Most widely used personality test Most widely studied measure of cognitive style Adopts a neutral view of score results (higher vs. lower are different, not better or worse) Improves self-awareness and mutual understanding — i.e., good for career counseling and executive coaching Poor predictor of job performance — should be avoided for employment selection and promotion decisions

Slide 13: Values in the Workplace Stable, evaluative beliefs that guide our preferences for outcomes or courses of action in a variety of situations • Define right/wrong, good/bad • Tell us what we “ought” to do (moral compass) • Direct our motivation and, potentially, our decisions and behavior • Provide justification for past decisions and behavior Values system — hierarchy of values preferences — relatively stable, long-lasting Values exist within individuals, but OB also refers to shared values within a team, department, organization, profession, and society Values differ from personality traits • Values are evaluative (what we ought to do); personality traits are descriptive (what we tend to do) • Values conflict with each other (e.g., valuing excitement conflicts with valuing stability); personality traits have minimal conflict • Values affected more by nurture (socialization, reinforcement) than nature (heredity); personality about equally affected by nature and nurture

Slide 14: Schwartz’s Values Model Dominant model of personal values was developed and tested by social psychologist Shalom Schwartz and many others 57 specific values cluster into 10 broad value categories — further clustered into four quadrants

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Chapter 2: Individual Differences: Personality and Values

Openness to change • Motivated to pursue innovative ways Conservation • Motivated to preserve the status quo Self-enhancement • Motivated by self-interest Self-transcendence • Motivated to promote the welfare of others and nature

Slide 15: How Values Influence Decisions and Behavior Directly motivate behavior by affecting the relative attractiveness (valence) of the choices available — more positive feelings toward choices consistent with our values Indirectly motivate behavior by framing perceptions — influence whether we notice something and how we interpret it Motivated to act consistently with self-concept and public self — values are part of our identity and image

Slide 16: When Values Don’t Predict Behavior • Situational factors — barriers or lack of opportunity — e.g., more difficult to be

environmentally friendly if no recycling facilities

• Counter-motivational forces — coercion from others (threat of job loss) motivates people

to engage in unethical business activities

• Lack of values awareness (salience) — we often ignore values in our decisions/actions

because: • (A) Values are abstract (difficult to link to specific behavior) • (B) Behavior is often routine, so less mindful of consistency with personal values

Slide 17: Values Congruence Values congruence — how similar a person’s values hierarchy is to the values hierarchy of the organization, a co-worker, or another source Congruence with team values — higher team cohesion and performance Congruence with organization’s values — higher job satisfaction, loyalty, and organizational citizenship, lower stress and turnover

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Chapter 2: Individual Differences: Personality and Values

Slide 18: Ethical Values and Behavior Ethics – the study of moral principles or values that determine whether actions are right or wrong and outcomes are good or bad Four Ethical Principles • Utilitarianism • Seek greatest good for the greatest number of people — highest overall satisfaction to

those affected • Problem: Cost-benefit analysis — many outcomes aren’t measurable • Problem: Focuses on the consequences, but means of achieving those consequences could be immoral • Individual rights principle • Everyone has same natural rights — moral norm of society, not just legal rights —

e.g., freedom of speech • Problem: conflicting rights — e.g., shareholders’ right to be informed conflicts with executive’s right to privacy • Distributive justice principle • Benefits and burdens similar individuals should be the same; otherwise should be proportional — e.g., those who contribute equally in their work should receive similar

rewards; those who contribute less should receive lower rewards • Inequalities are acceptable when they benefit the least well off • Problem: difficult to agree on “similar” rewards and contributions and what factors in reward distribution are “relevant” • Ethic of Care • Caring for others is a fundamental characteristic of humanity • Includes being attentive to others’ needs, showing responsibility for others, giving

care to others, having empathy for others • Core concept in stakeholder theory and servant leadership

Slide 19: Moral intensity and Ethical Conduct The degree that an issue demands the application of ethical principles High moral intensity — ethical implications, need to carefully apply ethical principles

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Chapter 2: Individual Differences: Personality and Values

Moral intensity depends on: • how seriously (good or bad) people will be affected by the decision • the probability that those good or bad outcomes will occur • how many people will be affected

Slide 20: Moral Sensitivity and Ethical Conduct A person’s ability to detect a moral dilemma and estimate its relative importance More quickly and accurately estimate an issue’s moral intensity Not more ethical behavior, just better awareness of a moral situation Moral sensitivity is higher in people with: 1. Expertise/knowledge of prescriptive norms and rules — more aware of illegal or otherwise unethical conduct — e.g., expertise in accounting 2. Previous experience with specific moral dilemmas — internal cues develop to trigger awareness when moral issue arises again 3. Empathy with those affected — more sensitive to the needs and situation of others 4. A self-view of being a morally sensitive person — put more energy into maintaining ethical conduct 5. Situational mindfulness — receptive and impartial attention to and awareness of the present and to own thoughts and emotions in that moment — higher moral sensitivity by monitoring the environment ➡ Problem: natural tendency to minimize effort, so less mindfulness Situational factors (including opportunity and motivational forces) also influence people to act contrary to moral principles and personal values

Slide 21: Supporting Ethical Behavior Corporate code of ethical conduct • Describe firm’s desired practices, rules of conduct, and philosophy in relations with stakeholders and environment • Problem: Limited effect on ethical conduct Train and evaluate employee knowledge of ethical conduct (e.g., quizzes test knowledge of ethics code, desired ethical behavior in various situations)

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Chapter 2: Individual Differences: Personality and Values

Systems for reporting unethical conduct, and for impartially investigating wrongdoing • Confidential ethics hotlines and websites • Ethics ombudspersons Ethical culture and ethical leadership • Firm’s values aligned with ethical conduct • Ethical conduct and vigilance of corporate leaders — role model ethical standards

Slide 22: Individualism Emphasize independence and person uniqueness Value personal freedom, self-sufficiency, control over one’s life, and unique personal qualities Country examples: • High: United States, Chile, Canada, South Africa • Medium: Japan, Denmark • Low: Taiwan, Venezuela

Slide 23: Collectivism Value duty to groups to which we belong and to group harmony Define by group memberships, emphasize personal connection to others in in-groups, and value goals and well-being of people within those groups Note: Contrary to popular belief, individualism is not the opposite of collectivism — the two concepts are unrelated (both horizontally and vertically) Country examples: • High: Israel, Taiwan • Medium: India, Denmark • Low: United States, Germany, Japan

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Chapter 2: Individual Differences: Personality and Values

Slide 24: Power Distance Extent to which people accept unequal distribution of power in a society High power distance • Accept and value unequal power • Value obedience to authority • Comfortable receiving commands from superiors without consultation • Prefer to resolve conflicts through formal rules rather than directly Low power distance • Expect relatively equal power sharing • View relationship with boss as interdependent, not dependence • Expect power sharing and consultation in decisions affecting them Country examples: • High: India, Malaysia • Medium: United States, Japan • Low: Denmark, Israel

Slide 25: Uncertainty Avoidance Degree to which people tolerate ambiguity or feel threatened by ambiguity and uncertainty High uncertainty avoidance • Feel threatened by ambiguity and uncertainty • Value structured situations, clear documentation, direct communication Low uncertainty avoidance • Tolerate ambiguity and uncertainty Country examples: • High: Belgium, Greece • Medium: United States, Norway • Low: Denmark, Singapore

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Chapter 2: Individual Differences: Personality and Values

Slide 26: Achievement-Nurturing Competitive versus cooperative view of relations with other people High achievement orientation • Value assertiveness, competitiveness, materialism • Appreciate people who are tough, who favor acquisition of money/material goods High nurturing orientation • Emphasize relationships and the well-being of others • Focus on human interaction and caring, not competition/personal success Country examples: • High: Austria, Japan • Medium: United States, Brazil • Low: Sweden, Netherlands

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Chapter 2: Individual Differences: Personality and Values

STUDENT HANDOUT

CRITICAL-THINKING QUESTIONS 1.

All candidates applying for a management trainee position are given a personality test that measures the five dimensions in the five-factor model. Which personality traits would you consider to be the most important for this type of job? Explain your answer.

2.

The dark triad is understandably a personality cluster of great concern in organizations. Yet, even though it consists of three socially undesirable personality traits, there is evidence that senior executives are more likely than the rest of us to possess some of these traits. Why would this occur? Does this mean that the dark triad isn’t so bad after all?

3.

“All decisions are ethical decisions.” Comment on this statement, particularly by referring to the concepts of moral intensity and moral sensitivity.

4.

People in a particular South American country have high power distance and high collectivism. What does this mean, and what are the implications of this information when you (a senior executive) visit employees working for your company in that country?

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Chapter 2: Individual Differences: Personality and Values

CONFIDENTIAL INSTRUCTOR NOTES

SUGGESTED ANSWERS TO CRITICAL-THINKING QUESTIONS 1.

All candidates applying for a management trainee position are given a personality test that measures the five dimensions in the five-factor model. Which personality traits would you consider most important for this type of job? Explain your answer.

The textbook provides information about how much each Big Five personality dimension is associated with various forms of behavior and performance. All five personality dimensions predict employee performance and related behaviors to some extent, but three dimensions probably apply best to managerial roles.

First, conscientiousness (especially industriousness and dutifulness) and extraversion (especially assertiveness) is important because it is the best predictor of proficient task performance in almost every job group. Various studies have reported that conscientious employees set higher personal goals for themselves, are more motivated, and have higher performance expectations than do employees with low levels of conscientiousness. They also tend to have higher levels of organizational citizenship and are less likely to engage in counterproductive work behaviors.

Another important personality dimension is extraversion. It is the second best predictor of proficient task performance.

Extraverts frame situations as challenges. They are also comfortable interacting with and influencing people.

Extraversion is also one of the strongest personality predictors of predicts both adaptive and proactive performance. All of these factors—proficient, adaptive, proactive task performance, organizational citizenship, low counterproductive behavior, comfortable in social and influence situations—make extraversion an important personality dimension to consider for managerial positions.

Emotional stability (lower neuroticism) is a third personality dimension that students should consider. It is a significant predictor of adaptive task performance, which relates to managerial roles in managing change. Emotional stability is also associated (although only moderately or inconsistently) with task proficiency, organizational citizenship, and counterproductive behaviors. Emotionally stable people also cope better with ambiguous situations, which applies to managers in more strategic roles.

2.

The dark triad is understandably a personality cluster of great concern in organizations. Yet, even though it consists of three socially undesirable personality traits, there is evidence that senior executives are more likely than the rest of us to possess some of these traits. Why would this occur? Does this mean that the dark triad isn’t so bad after all?

This question calls for recollection of information in the book as well as some speculation about why people are motivated to follow those with dark triad characteristics. The book notes that employees with manipulative political skill sometimes receive better performance ratings, including promotions into management. Their motivation to manipulate others also places them in more strategic and central positions in the organization, which increases their potential to enter management positions.

Narcissistic people have an obsessive belief in their superiority and entitlement. These traits produce higher confidence, which people associate with leadership. The sense of entitlement likely motivates narcissistic people to move into leadership roles without the hesitation that others might experience. Those with psychopathic tendencies are self-promoters, which under some conditions can increase their likelihood of entering management positions (due to confidence and persuasion). The “mask of psychopathy” refers to the short-term ability to charm others, which might also open doors to management roles.

This question also leads to open debate about why people follow others. Students will refer to the persons’ confidence as a key factor, as well as their associated comfort with being in positions of power and motivation to get ahead in the organizational hierarchy. Students may also note the dark triad personality’s tendency to undermine

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Chapter 2: Individual Differences: Personality and Values

others, which may reduce opposition to management roles. Finally, some students might argue that effective leaders can’t be swayed too much by others’s opinion of them or how others feel (e.g., leaders need to have moderate or lower agreeableness), and dark triad personality has extreme levels of this insensitivity.

3.

“All decisions are ethical decisions.” Comment on this statement, particularly by referring to the concepts of moral intensity and moral sensitivity.

This sweeping statement is false. For a decision to have an ethical dimension it has to have some moral intensity associated with it. Moral intensity is a characteristic of the situation. It refers to the degree to which an issue demands the application of ethical principles. “Who should be laid off?” would have high moral intensity. On the other hand, a decision to take an umbrella to work because it might rain has no moral intensity. This is because morally intense issues involve others in the society who may think the decision is good or evil, or the issue quickly affects people.

Moral sensitivity refers to a characteristic of the decision maker, not the situation. Faced with the same issue, two decision makers may be more or less moral sensitive. This means that people differ in their ability to recognize the presence and determine the relative importance of an ethical issue.

Moral intensity and moral sensitivity are different, but they go hand-in-hand. An issue with high moral intensity might be decided without the required ethical consideration because the decision maker doesn’t recognize its ethical importance (i.e., the person has low moral sensitivity). Thus, both concepts are important factors in the extent to which we apply ethical principles to issues.

4.

People in a particular South American country have high power distance and high collectivism. What does this mean, and what are the implications of this information when you (a senior executive) visit employees working for your company in that country?

In high power distance cultures, people tend to accept the power differential which exists in their society. This extends to the workplace as well. I would expect the employees to address me by my surname. I would not interpret this as being aloof or unfriendly. The social interchange between the employees and I would be formal.

High collectivism would encourage me to celebrate the achievements of everyone as a group. Any discussion would emphasize and focus on improving or maintaining group harmony and teamwork.

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Chapter 2: Individual Differences: Personality and Values

STUDENT HANDOUT

CLASS EXERCISE: ETHICS DILEMMA VIGNETTES Instructions Read each of these ethics dilemmas and be prepared to discuss the extent to which the company’s action in each case was ethical. In particular, consider the moral intensity and ethical principles relevant to each incident. In smaller classes, you may be assigned to a team where these incidents are discussed before debriefing to the entire class.

Case One

Computer printer manufacturers usually sell printers at a low margin over cost and generate much more income from subsequent sales of the high-margin ink cartridges required for each printer. One global printer manufacturer now designs its printers so that they work only with ink cartridges made in the same region.

Ink cartridges purchased in Canada will not work with the same printer model sold in Europe, for example. This “region coding” of ink cartridges does not improve performance. Rather, it prevents consumers and grey marketers from buying the product at a lower price in another region. The company says this policy allows it to maintain stable prices within a region rather than continually changing prices due to currency fluctuations.

Case Two A 16-year-old hired as an office administrator at a small import services company started posting her thoughts about the job on her Facebook site. After her first day, she wrote: “first day at work. omg!! So dull!!” Two days later, she complained “all i do is shred holepunch n scan paper!!! omg!” Two weeks later she added “im so totally bord!!!” These comments were intermixed with the other usual banter about her life.

Her Facebook site did not mention the name of the company where she worked. Three weeks after being hired, the employee was called into the owner’s office, where he fired her for the comments on Facebook, then had her escorted from the building. The owner argues that these comments put the company in a bad light, and her “display of disrespect and dissatisfaction undermined the relationship and made it untenable.”

Case Three

The waiter at a café in a large city mixed up Heidi Clarke’s meal order with the meal that a male customer at a nearby table had requested. The two strangers discovered the mistake and briefly enjoyed a friendly chat while swapping plates. The male patron departed soon after but accidentally left his new tuxedo jacket behind on his chair. Clarke wanted to meet him again, so she took the jacket home. Following a friend’s suggestion, Heidi launched a YouTube video and website, in which she shyly told her story, detailed the jacket’s features, and prominently displayed a label with the name of a popular fashion retailer. The website even included photos of Heidi posing in the jacket. The next day, she gave the café staff the jacket and a note with her name and phone number. Heidi’s YouTube video soon went viral, her website crashed from so many visitors, and a major newspaper and television station featured Heidi’s quest to find the man with the missing jacket. The incident is a romantic reversal of the Cinderella story. . .except it was a fake event staged by a marketing company. “Heidi” is an actress and model hired by the marketer to promote the fashion retailer’s new line of jackets for men. A partner at the marketing firm justified the hoax by saying that “when you’ve got a very well-established brand you need to do something that’s got talkability and intrigue to reassess what that brand is about.” The marketing executive argued that this was an acceptable marketing event because “nobody’s been harmed” and the firm intended to eventually reveal the truth. Indeed, the actress (whose real name is Lily, not Heidi) released a second video acknowledging that the incident was fake and explaining that she’s a hopeless romantic who loves a good love story.

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Chapter 2: Individual Differences: Personality and Values

CONFIDENTIAL INSTRUCTOR NOTES

CLASS EXERCISE: ETHICS DILEMMA VIGNETTES Comments for Instructors There are, of course, no right answers to this exercise, but the process and application of ethics principles is important in the discussion. Students tend to get into debates about the merits and problems with each activity, but they also should dig deeper into the three ethics principles, and the moral intensity of each issue. Here are each of the vignettes along with background and comments:

Case One This case refers to actions by Hewlett Packard (HP). (See David Pringle and Steve Stecklow, “Electronics with borders,” Wall Street Journal, January 17, 2005, B1.) Students might see both sides of the issue here. Although the sense of freedom to purchase globally may dominate the discussion, some students might agree with the concern that companies are buffeted by currency fluctuations to such an extent that they cannot adapt quickly enough to price changes and shifting supplies with those currency fluctuations. For instance, a large buyer of HP printer ink in Europe might ship much of that ink to the United States if the Euro rises appreciatively against the U.S. dollar, thereby causing a shortage of printer ink in Europe. Others may argue that this supply shift is a small portion of the supply of ink cartridges in most regions, so HP’s actions are unfair. In terms of moral intensity, students may realize that few people are affected by HP’s restrictions and that it has low proximity (not nearby), so moral intensity is low. In classes where most students believe there is no (or minimal) moral dilemma with HP’s actions, I show the newspaper article and ask why the story was on the front business page of a leading newspaper!

Update: HP recently introduced printers that issue failure warnings when non-branded ink cartridges are used, even though the non-HP products work on the printers. HP claims the required use of HP-branded ink (which costs more than luxury perfume per quart or per litre) is to protect its intellectual property in the printer. The rejection of the budget inks occurred after HP issued a firmware update, in some cases long after consumers had purchased the printer and had been using generic ink cartridges (see Z. Kleinman, “HP printers Start Rejecting Budget Ink Cartridges,” BBC News, September 19, 2016 (http://www.bbc.com/news/technology-37408173).

Case Two This case occurred at a small industrial services business in the United Kingdom (see: A. Levy, “Teenage office worker sacked for moaning on Facebook about her ‘totally boring’ job,” Daily Mail, February 26, 2009). However, there are several similar cases involving Facebook, blogs, and other social media, where employees write negative comments about their employer. For example, this incident parallels two earlier cases in which (a) a Starbucks employee was fired for complaining about his boss’s decision on a work issue and (b) an employee who worked in marketing for government in northern Canada was fired for posting artistic photos of garbage in the snow. To some people, the case of the teenage Facebook complainer is a clear case of an employee who should be dismissed because she lacks sufficient commitment to and appreciation of the job. The company owner later explained to media: “We were looking for a long- term relationship with Miss Swann as we do with all our staff. Her display of disrespect and dissatisfaction undermined the relationship and made it untenable.” But others would say that the owner’s activities were unethical because (a) the owner was snooping on the employee’s private communication (although obviously open for others to read), (b) her statements may have been an accurate reflection of the work, (c) there is no evidence that her work performance was undermined by her statements or attitude, and (d) she did not name the company when writing these negative comments. To add interest to this class activity, look for the YouTube video in which the fired employee is interviewed. (Note: A news segment on this incident might still be available on YouTube.)

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Chapter 2: Individual Differences: Personality and Values

Case Three This case occurred in Sydney, Australia in 2009. The marketing firm claims that the event captured considerable attention, the truth would have been revealed soon afterwards, and “nobody’s been harmed.” Yet a few commentators subsequently discussed this event on the basis of its questionable ethics. Students should examine the moral intensity of this hoax. First, did it have substantially good or bad consequences? Some may argue that the event reduced trust in social media and, indeed, in marketing firms. Others support the marketer’s claim that no one was harmed. Second, do most people consider this activity/hoax as bad or harmless? It may be useful to have a show of hands regarding how much students view the moral intensity of this incident (i.e., negligible, low, medium, high moral intensity). Third, if there are potentially negative consequences, what is the risk that those consequences will occur? Students should consider the issues raised in the first question (e.g., trust unsocial media and in marketing firms) and determine whether any lost trust is long-lasting or brief. Fourth, how many people are affected by this activity? The event was widely publicized as a quirky Cinderella-in-reverse story (instead of a guy finding the woman through the missing glass slipper, the woman tries to find the guy with the lost jacket). As such, this incident had moral intensity to the extent that a large number of people were aware of and potentially affected by the incident (at least, within Australia). See: C. Marcus, “A lost jacket and a stolen heart,” Sydney Morning Herald, 18 January 2009; C. Marcus, “You’ve been had: Sydney Cinderella’s ‘jacket man’ exposed as viral ad,” Sydney Morning Herald, 20 January 2009; A. Moses, “YouTube jacket hoaxer unveils the truth,” Sydney Morning Herald, 21 January 2009.

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Chapter 2: Individual Differences: Personality and Values

SA

SELF-ASSESSMENT 2.1: WHAT IS YOUR BIG FIVE PERSONALITY?

Overview and Instructions Personality experts have organized the dozens of personality traits into five main dimensions, known as the fivefactor or “Big Five” model. Each dimension consists of several specific personality traits that cluster together. Most scholarly research on personality relies on this model, but it is also useful in everyday life as a relatively easy categorization of personalities.

This self-assessment estimates your self-assessed tendencies regarding each of these Big Five personality dimensions.

To complete this instrument, indicate the extent to which each of the 40 words listed below accurately or inaccurately describes you. Think of yourself generally or typically, as compared with other persons you know of the same gender and of roughly your same age.

Feedback for the Big Five Personality Measure This instrument is Saucier’s widely used “mini-marker” brief version of the IPIP Big Five personality test. All five scales range from 8 to 72. The feedback currently does not divide scores into specific groups from low to high. However, the following information provides the average score on each personality dimension from a large group of students.

Personality Dimension

Average Score

Conscientiousness

50

Agreeableness

57

Neuroticism

33

Openness to Experience

53

Extraversion

47

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Chapter 2: Individual Differences: Personality and Values

SA

SELF-ASSESSMENT 2.2: ARE YOU INTROVERTED OR EXTRAVERTED?

Overview and Instructions One of the most widely studied and discussed personality dimensions in the five-factor (Big Five) model of personality is introversion-extraversion. Introversion characterizes people who tend to be quiet, shy, and cautious.

Extraversion characterizes people who tend to be outgoing, talkative, sociable, and assertive.

The statements in this scale represent the 10-item introversion-extroversion scale in the International Personality Item Pool. This is the short version, so it estimates overall introversion-extroversion but not specific facets within the personality dimension.

Feedback for the IPIP Introversion-Extraversion Scale Extroversion characterizes people who are outgoing, talkative, sociable, and assertive. It includes several facets, such as friendliness, gregariousness, assertiveness, activity level, excitement-seeking, and cheerfulness. The opposite of extroversion is introversion, which refers to the personality characteristics of being quiet, shy, and cautious.

Extroverts get their energy from the outer world (people and things around them), whereas introverts get their energy from the internal world, such as personal reflection on concepts and ideas. Introverts are more inclined to direct their interests to ideas rather than to social events.

This is the short version of the IPIP Introversion-Extroversion Scale, so it estimates overall introversion-extroversion but not specific facets within the personality dimension. Scores range from 0 to 40. Low scores indicate introversion; high scores indicate extroversion. The norms in the following table are estimated from results of early adults (under 30 years old) in Scotland and undergraduate psychology students in the United States. However, introversionextroversion norms vary from one group to the next; the best norms are likely based on the entire class you are attending or with past students in this course.

Score

Interpretation

35-40 28-34 21-27 7-20 0-6

High extroversion Moderate extroversion In-between extroversion and introversion Moderate introversion High introversion

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Chapter 2: Individual Differences: Personality and Values

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SELF-ASSESSMENT 2.3: CAN YOU IDENTIFY PERSONALITY TRAITS FROM BLOGGING WORDS?

Overview and Instructions Personality influences all aspects of our lives, including the words we use when writing blogs. In fact, some companies now use sophisticated software to estimate the personality traits of job applicants from the words they use in blogs and other online writing.

In this self-assessment, students are shown a list of 25 words that were commonly found in several hundred weblogs.

How often each word was used was associated with the blog author's personality. Students are asked to select the Big Five personality dimension of authors who are most likely to use each word in their weblogs. For example, select “extraversion” for words that you think are used more often by blog authors with high extraversion than by blog authors with other dominant personalities.

Feedback for the Personality Traits from Blogging Words Measure This measure estimates how well students can identify the personality of weblog authors from the words they use in their blogs. The overall score and graphic display indicate the percentage of words that the student identified correctly with the corresponding personality dimension (range is from 0 to 100). In addition, students can see the percentage of words that they identified correctly for each of the five personality dimensions. The instrument does not provide feedback on how well students typically perform in this activity.

This instrument illustrates the importance of personality in many aspects of our lives. In this case, personality predicts the language we use in weblogs and related writing. Using sophisticated software and algorithms, a few companies are even researching blogs, social media sites (such as Facebook), and other public domains to estimate the dominant personality traits of the job applicants who created those sites.

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Chapter 2: Individual Differences: Personality and Values

SA

SELF-ASSESSMENT 2.4: HOW MACHIAVELLIAN ARE YOU?

Overview and Instructions Machiavellianisn is a personality trait characteristic of people who demonstrate a strong motivation to achieve their own goals at the expense of others, who believe that deceit is a natural and acceptable way to achieve their goals, who take pleasure in outwitting and misleading others using crude influence tactics, and who have a cynical disregard for morality. Few people want to be viewed as Machiavellian, yet many of us exhibit aspects of this trait to some extent.

Students are asked to indicate the extent to which they agree or disagree that each statement in this instrument describes them.

Feedback for the Machiavellianism Scale Machiavellianism is named after Niccolo Machiavelli, the 16th-century Italian philosopher who wrote The Prince, a famous treatise about political behavior. People with high Machiavellian values are comfortable with getting more than they deserve, and believe that deceit is a natural and acceptable way to achieve this goal. They seldom trust coworkers and tend to use cruder influence tactics, such as bypassing one’s boss or being assertive, to get their own way.

Scores on this scale range from 40 to 160. A higher score indicates a higher tendency toward Machiavellian behaviors.

Students, college instructors, and accountants have average scores between 86 and 90 points. The table shown here represents the distribution of scores for more than 2,000 students, college instructors, and accountants.

Score

Interpretation

121 to 160 93 to 120 76 to 92 61 to 75 40 to 60

High Machiavellianism Above average Machiavellianism Average Machiavellianism Below average Machiavellianism Low Machiavellianism

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Chapter 2: Individual Differences: Personality and Values

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SELF-ASSESSMENT 2.5: ARE YOU A SENSING OR INTUITIVE TYPE?

Overview and Instructions Nearly a century ago, Swiss psychiatrist Carl Jung proposed that personality is primarily represented by the individual's preferences regarding perceiving and judging information. Jung explained that perceiving, which involves how people prefer to gather information or perceive the world around them, occurs through two competing orientations: sensing (S) and intuition (N).

This self-assessment estimates whether students have a preference for sensing or intuition when perceiving the world around them. The measure asks them to indicate the point that best places them between the two opposing labels of each scale. There is no exact “in-between” option, so students need to indicate which label describes them better, even if only very slightly. This survey has 10 statements.

Feedback for the Sensing-Intuitive Type Measure Jung’s theory proposes that perceiving involves bringing data to a person’s consciousness. It relates to how people prefer to gather information or perceive the world around them. Perceiving occurs through two competing functions: sensing (S) and intuition (N). Scores on this instrument range from 10 (clear intuition) to 60 (clear sensing). The results show categories of scores across the range, based on results from a large number of MBA students.

1. Sensing: This function involves perceiving information directly through the five senses; it relies on an organized structure to acquire factual and preferably quantitative details. People with a clear preference for sensing focus on the present. They prefer working with tangible, specific data rather than conceptual information.

2. Intuition: This function relies on insight and subjective experience to see relationships among variables.

Intuitive types focus on future possibilities. They prefer information that is theoretical and abstract.

Score

Interpretation

54-60

Clear sensing

42-53

Moderate sensing

36-41

Slight sensing

28-35

Slight intuition

18-27

Moderate intuition

10-17

Clear intuition

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Chapter 2: Individual Differences: Personality and Values

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SELF-ASSESSMENT 2.6: WHAT ARE YOUR DOMINANT VALUES?

Overview and Instructions Values are stable, evaluative beliefs that guide our preferences for outcomes or courses of action in a variety of situations. They are perceptions about what is good or bad, right or wrong. We arrange our personal values into a hierarchy of preferences, called a value system. Each person’s unique value system tends to be stable and long lasting because it was developed and reinforced through socialization from parents, religious institutions, friends, personal experiences, and the society in which we live.

Schwartz’s values circumplex organizes the dozens of personal values into 10 categories placed in a circle (circumplex). In this questionnaire students are to ask themselves: “What values are important to ME as guiding principles in MY life, and what values are less important to me?” There are two lists of values in this self-assessment.

These values come from different cultures. In the parentheses following each value is an explanation to help students understand its meaning.

Feedback for Schwartz’s Dominant Values Scale This instrument estimates preferences for a broad range of personal values. These values are grouped into 10 broad domains of values, described below. Scores on each domain potentially range from -1 to +7. However, students are unlikely to have such an extreme score on any domain because the self-assessment asked them to use the extreme responses sparingly. Instead, the results shown in this instrument give students an estimate of their value system. They indicate their relative preference across the broad range of values.

POWER: social status and prestige, control or dominance over people and resources ACHIEVEMENT: personal success through demonstrating competence according to social standards HEDONISM: pleasure or sensuous gratification for oneself STIMULATION: excitement, novelty, and challenge in life SELF-DIRECTION: independent thought and action — choosing, creating, exploring UNIVERSALISM: understanding, appreciation, tolerance, and protection for the welfare of all people and for BENEVOLENCE: preservation and enhancement of the welfare of people with whom one is in frequent personal contact TRADITION: respect, commitment, and acceptance of the customs and ideas that traditional culture or religion provide CONFORMITY: restraint of actions, inclinations, and impulses likely to upset or harm others and violate social expectations or norms SECURITY: safety, harmony, and stability of society, of relationships, and of self

Score

Interpretation

+5 to +7 +2 to +4 -1 to +1

High importance Moderate importance Low importance

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Chapter 2: Individual Differences: Personality and Values

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SELF-ASSESSMENT 2.7: HOW MUCH DO YOU VALUE INDIVIDUALISM AND COLLECTIVISM?

Overview and Instructions Cross-cultural values have become an important part of organizational life due to globalization and an increasingly multicultural workforce. Organizational behavior researchers have studied several cross-cultural values, but none has had as much attention as the two measured in this self-assessment: individualism and collectivism. At one time, experts thought that these two cross-cross-cultural values were opposites. Now, we understand that they represent separate values that are generally unrelated to each other.

Students are asked to read each of the statements in this instrument and select the response that they believe best indicates how well these statements describe them. This instrument has 16 statements.

Feedback for the Individualism-Collectivism Scale Each scale has a potential score ranging from 8 to 40 points. Higher scores indicate that the person has a higher level of each cross-cultural value.

Individualism Individualism refers to how much we value our independence and personal uniqueness. Highly individualist people value personal freedom, self-sufficiency, control over their own lives, and appreciation of their unique qualities that distinguish them from others. The following graph shows the range of individualism in general. However, keep in mind that the average level of individualism is higher in some cultures (such as the United States) than in others.

Score

Interpretation

31 to 40 23 to 30 8 to 22

High individualism Moderate individualism Low individualism

Collectivism Collectivism refers to how much we value our duty to groups to which we belong, and to group harmony. Highly collectivist people define themselves by their group membership and value harmonious relationships within those groups. The following graph shows the range of collectivism in general. However, keep in mind that the average level of collectivism is lower in some cultures (such as the United States) than in others.

Score

Interpretation

31 to 40 23 to 30 8 to 22

High collectivism Moderate collectivism Low collectivism

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Chapter 2: Individual Differences: Personality and Values

SA

SELF-ASSESSMENT 2.8: WHAT IS YOUR LEVEL OF POWER DISTANCE?

Overview and Instructions Some employees value obedience to authority and are comfortable receiving commands from their superiors without consultation or debate. Others expect equal status and authority with their manager. This power distance orientation varies from one person to the next; it also varies across cultures. This instrument estimates your power distance orientation. To complete this instrument, read the nine statements and indicate how accurately each statement describes you.

Feedback for the Power Distance Scale This instrument estimates power distance orientation. Power distance refers to the extent to which people accept unequal distribution of power in a society. Those with high power distance accept and value unequal power. They value obedience to authority and are comfortable receiving commands from their superiors without consultation or debate, and prefer to resolve differences through formal procedures rather than directly. In contrast, people with low power distance expect relatively equal power sharing. They view the relationship with their boss as one of interdependence, not dependence; that is, they believe their boss is also dependent on them, so they expect power sharing and consultation before decisions affecting them are made.

The power distance instrument ranges from 9 (low power distance) to 63 (high power distance). The results are organized into three categories along the range, as indicated in the table below.

Score

Interpretation

50 to 63 25 to 49 9 to 24

High power distance Moderate power distance Low power distance

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Chapter 3: Perceiving Ourselves and Others in Organizations

Instructor’s Manual to Accompany

M:Organizational Behavior 5/e

by Steven L. McShane and Mary Ann Von Glinow

Chapter 3: Perceiving Ourselves and Others in Organizations Prepared by Steven L. McShane, University of Newcastle (Australia)

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Chapter 3: Perceiving Ourselves and Others in Organizations

3

Perceiving Ourselves and Others in Organizations

LEARNING OBJECTIVES After reading this chapter, students should be able to:

3-1 Describe the elements of self-concept and explain how each affects an individual’s behavior and well- being.

3-2 Outline the perceptual process and discuss the effects of categorical thinking and mental models in that process.

3-3 Discuss how stereotyping; attribution; self-fulfilling prophecy; and the halo, false-consensus, recency, and primacy effects influence the perceptual process.

3-4 Discuss three ways to improve perceptions, with specific application to organizational situations.

CHAPTER GLOSSARY attribution process — the perceptual process of deciding whether an observed behavior or event is caused largely by internal or external factors

fundamental attribution error — the tendency to see the person rather than the situation as the main cause of that person’s behavior

categorical thinking — organizing people and objects into preconceived categories that are stored in our long-term memory

halo effect — a perceptual error whereby our general impression of a person, usually based on one prominent characteristic, colors our perception of other characteristics of that person

confirmation bias — the processing of screening out information that is contrary to our values and assumptions, and to more readily accept confirming information. contact hypothesis — a theory stating that the more we interact with someone, the less prejudiced or perceptually biased we will be against that person empathy — a person’s understanding of and sensitivity to the feelings, thoughts, and situation of others false-consensus effect — a perceptual error in which we overestimate the extent to which others have beliefs and characteristics similar to our own

Johari Window — a model of mutual understanding that encourages disclosure and feedback to increase our own open area and reduce the blind, hidden, and unknown areas locus of control — a person’s general belief about the amount of control he or she has over personal life events mental models — knowledge structures that we develop to describe, explain, and predict the world around us perception — the process of receiving information about, and making sense of, the world around us

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Chapter 3: Perceiving Ourselves and Others in Organizations

primacy effect — a perceptual error in which we quickly form an opinion of people based on the first information we receive about them recency effect — a perceptual error in which the most recent information dominates our perception of others selective attention — the process of attending to some information received by our senses and ignoring other information self-concept — an individual’s self-beliefs and selfevaluations self-efficacy — a person’s belief that he or she has the ability, motivation, correct role perceptions, and favorable situation to complete a task successfully

self-enhancement — a person’s inherent motivation to have a positive self-concept (and to have others perceive him or her favorably), such as being competent, attractive, lucky, ethical, and important self-fulfilling prophecy — the perceptual process in which our expectations about another person cause that person to act in a way that is consistent with those expectations self-serving bias — the tendency to attribute our favorable outcomes to internal factors and our failures to external factors self-verification — a person’s inherent motivation to confirm and maintain his or her existing self-concept social identity theory — a theory stating that people define themselves by the groups to which they belong or have an emotional attachment stereotype threat — an individual’s concern about confirming a negative stereotype about his or her group stereotyping — the process of assigning traits to people based on their membership in a social category

CHAPTER SUMMARY BY LEARNING OBJECTIVE 3-1 Describe the elements of self-concept and explain how each affects an individual’s behavior and well-being.

Self-concept includes an individual’s self-beliefs and self-evaluations. It has three structural characteristics— complexity, consistency, and clarity—all of which influence employee well-being, behavior, and performance.

People are inherently motivated to promote and protect their self-concept (self-enhancement) and to verify and maintain their existing self-concept (self-verification). Self-evaluation consists of self-esteem, self-efficacy, and locus of control. Self-concept also consists of both personal identity and social identity. Social identity theory explains how people define themselves by the groups to which they belong or have an emotional attachment.

3-2 Outline the perceptual process and discuss the effects of categorical thinking and mental models in that process.

Perception involves selecting, organizing, and interpreting information to make sense of the world around us.

Perceptual organization applies categorical thinking—the mostly nonconscious process of organizing people and objects into preconceived categories that are stored in our long-term memory. Mental models—knowledge structures that we develop to describe, explain, and predict the world around us—also help us make sense of incoming stimuli.

3-3 Discuss how stereotyping; attribution; self-fulfilling prophecy; and the halo, falseconsensus, recency, and primacy effects influence the perceptual process.

Stereotyping occurs when people assign traits to others based on their membership in a social category. This assignment economizes mental effort, fills in missing information, and enhances our self-concept, but it also lays the foundation for stereotype threat as well as systemic and intentional discrimination. The attribution process involves deciding whether an observed behavior or event is caused mainly by the person (internal factors) or the environment (external factors). Attributions are decided by the perceived consistency, distinctiveness, and

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Chapter 3: Perceiving Ourselves and Others in Organizations

consensus of the behavior. This process is subject to self-serving bias and fundamental attribution error. A selffulfilling prophecy occurs when our expectations about another person cause that person to act in a way that is consistent with those expectations. This effect is stronger when employees first join the work unit, when several people hold these expectations, and when the employee has a history of low achievement. Four other perceptual errors commonly noted in organizations are the halo effect, false-consensus effect, recency effect, and primacy effect.

3-4 Discuss three ways to improve perceptions, with specific application to organizational situations.

One way to minimize perceptual biases is to become more aware of their existence. Awareness of these biases makes people more mindful of their thoughts and actions, but this training sometimes reinforces rather than reduces reliance on stereotypes and tends to be ineffective for people with deeply held prejudices. A second strategy is to become more aware of biases in our own decisions and behavior. Self-awareness increases through formal tests such as the Implicit Association Test (IAT) and by applying the Johari window, which is a process in which others provide feedback to you about your behavior, and you offer disclosure to them about yourself. The third strategy is meaningful interaction, which applies the contact hypothesis that people who interact will be less prejudiced or perceptually biased toward one another. Meaningful interaction is strongest when people work closely and frequently with relatively equal status on a shared meaningful task that requires cooperation and reliance on one another. Meaningful interaction helps improve empathy, which is a person’s understanding and sensitivity to the feelings, thoughts, and situations of others.

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Chapter 3: Perceiving Ourselves and Others in Organizations

LECTURE OUTLINE Slide 1: Perceiving Ourselves and Others in Organizations Slide 2: Learning Objectives Describe the elements of self-concept and explain how each affects an individual’s behavior and well-being.

3-1

Outline the perceptual process and discuss the effects of categorical thinking and mental models in that process.

3-2

Discuss how stereotyping; attribution; self-fulfilling prophecy; and the halo, falseconsensus, recency, and primacy effects influence the perceptual process.

3-3

Discuss three ways to improve perceptions, with specific application to organizational situations.

3-4

Slide 3: Self-Concept Defined Our self-beliefs and self-evaluations • We ask ourselves “Who am I?” and “How do I feel about myself?”

• Guide our decisions and actions We compare our images of a job with our current (perceived self) and desired (ideal self) to determine fit Three levels of self-concept: • Individual self — personal traits • Relational self — connections to friends and coworkers • Collective self — membership in teams, organizations, social groups, etc

Slide 4: Self-Concept Model: Three C’s and Four Selves Three C’s — characteristics of self-concept • Complexity • Consistency • Clarity Four selves — four self-concept processes • Self-enhancement • Self-verification • Self-evaluation • Social self

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Chapter 3: Perceiving Ourselves and Others in Organizations

Slide 5: Self-Concept Characteristics (3 C’s) Complexity • Number of distinct and important roles/identities people perceive about themselves • People have multiple self-concepts — e.g., student, friend, daughter, etc • Self-expansion — human motivation to increase one’s complexity ➡ Higher complexity with self-expansion

• Self-concept complexity partly defined by degree of separation of selves — less

complexity when selves are related (example: all work-related) • Specific selves dominate at different times ➡ Domain specific (e.g., parent at home, manager at work)

Consistency • High consistency when : (a) multiple selves require similar personal characteristics and/or (b) multiple selves require personal characteristics that are similar to our actual personal attributes • Low consistency when multiple selves differ significantly (e.g., cautiousness in one identity, risk-oriented in another identity) and/or multiple selves differ from our actual personal characteristics Clarity • High clarity — person's self-concept is clear, confidently defined, and stable ➡ Confident about “who I am” ➡ Can describe our important identities to others ➡ Can provide the same description of dominant selves across time

• Clarity increases with age because: ➡ personality and values become relatively stable by adulthood ➡ we develop better self-awareness through life experiences

• Clarity higher when multiple selves have higher consistency — consistency reduces

ambiguity of various identities

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Chapter 3: Perceiving Ourselves and Others in Organizations

Slide 6: Outcomes of Self-Concept Characteristics Better psychological well-being with: • Multiple selves (complexity) ➡ Protects self-esteem when some identities are threatened or damaged

• Selves are similar to each other and compatible with personal traits (consistency) ➡ Too much variation causes internal tension and conflict • Well-established selves (clarity) ➡ Less ambiguity, less swayed by influential people, less stress in decisions, less threatened by threats to self-esteem

Effects on individual behavior/performance • Self-concept complexity ➡ Complex identities are more adaptive — easily alter thinking and behavior to suit new tasks

and work environments ➡ Often produces more diverse social networks — more resources and social support ➡ High complexity requires more effort to maintain and juggle — more stressful ➡ Less complexity — resources develop fewer identities better

• Self-concept clarity ➡ Higher performance, vital for leadership ➡ More focused career development paths ➡ Feel less threatened by interpersonal conflict — more constructive problem-solving ➡ Very high clarity may have role inflexibility — less adaptive to change

Slide 7: Self-Concept: Self-Enhancement An innate human drive to promote/protect a positive self-view — and to be perceived favorably by others • Being competent, attractive, lucky, ethical, valued • Most evident in situations that are common and important Self-enhancement outcomes: • Better mental/physical health • Higher motivation due to “can-do” beliefs (self-efficacy) — motivates persistence in difficult or risky tasks • Problems: More risk-oriented decisions, inflated estimate of personal causation, slower to recognize mistakes

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Chapter 3: Perceiving Ourselves and Others in Organizations

Slide 8: Self-Concept: Self-Verification Motivation to confirm and maintain our existing self-concept Stabilizes our self-concept — anchors our thoughts and actions • We actively communicate our self-concept (tell others who we are) • Seek and welcome feedback consistent with our self-concept — even if not flattering (e.g., not good at accounting) Self-verification outcomes: • Affects perceptions — recall information consistent, screen out inconsistent, with our self-concept • More likely to dismiss feedback contradicting their self-concept • Motivated to interact with others who affirm individual’s self-concept — affects how well employees get along with team members and bosses

Slide 9: Self-Concept: Self-Evaluation Our evaluation of ourselves has three elements Self-esteem • Extent to which people like, respect, and are satisfied with themselves (global self-evaluation) • High self-esteem — less influenced by others, more persistent, more logical thinking Self-efficacy • Person’s belief about successfully completing a task (“can-do” attitude) • Perceived ability, motivation, role clarity, and favorable situation (MARS elements) • Typically task specific (confidence in performing a specific task) • General self-efficacy — self-efficacy across various situations • Higher self-efficacy produces higher overall self-evaluation Locus of control • Person’s general beliefs about the amount of control over personal life events • Internal locus of control — believe that life events are caused mainly by their personal characteristics • External locus of control — believe events are mainly beyond personal control (fate, luck, external environment) • Person’s locus of control is most apparent in new situations — ability to control events is uncertain

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Chapter 3: Perceiving Ourselves and Others in Organizations

• People with an internal locus of control have a more positive self-evaluation — also

tend to perform better, have more successful careers, earn more money, better suited for leadership, cope better in stressful situations

Slide 10: Self-Concept: Social Self Two opposing human motives: personal and social identity Personal identity (internal self-concept) • Supports need to be distinctive and unique from others • Includes attributes that highlight a person’s uniqueness (unusual skill or accomplishment) Social identity (external self-concept) • People define themselves by the groups to which they belong or have an emotional attachment.

• Supports need for inclusion and assimilation with others • Several factors influence social identity: 1. How easily others identify you with a social group (gender, race, etc) 2. Your minority status in a social setting (e.g., gender where most people are the opposite

gender) 3. Social group’s status — we identify with groups that make us feel better about ourselves — self-enhancement (e.g., high status groups)

People differ in priority for uniqueness (personal identities) vs. belongingness (social identities) Those with strong social identity self-concepts • More motivated to abide by team norms • More easily influenced by peer pressure Those with strong personal identity self-concepts • Speak out more frequently against the majority • Less motivated to follow the team’s wishes • Expressing disagreement — a sign of distinctiveness, forms clearer (personal identity) self-concept

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Chapter 3: Perceiving Ourselves and Others in Organizations

Slide 11: Perception and Selective Attention Perception defined: process of receiving information about and making sense of the world around us • Determining which information gets noticed • Determining how to categorize this information • Determining how to interpret information within our existing knowledge framework Selective attention: Process of attending to some information received by our senses and ignoring other information Influences on selective attention: • Characteristics of the person or object being perceived — size, intensity, motion, repetition, novelty, context • Characteristics of the perceiver — assumptions, expectations, needs, etc Our brain quickly and nonconsciously assesses incoming stimuli and attaches emotional markers (worry, happiness, etc) • Help us store information in memory, later reproduced when recalling information Selective attention biases • Assumptions/expectations — focus on some types of incoming stimuli, but screen out other useful information • Confirmation bias — nonconsciously screen out information contrary to our decisions, beliefs, values, and assumptions and to more readily accept confirming information

Slide 12: Perceptual Organization/Interpretation Perceptual grouping processes reduce volume and complexity of incoming information Categorical thinking • Perceptual grouping process — organizing people/things into preconceived categories that are stored in our long-term memory • Mostly nonconscious Perceptual grouping principles • Similarity or proximity to others • Filling in missing information • See trends in otherwise ambiguous information Interpreting incoming information • Emotional markers automatically evaluate information as good or bad • Quick judgments of perceptual interpretation — 1/20th of a second (200 milliseconds)

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Chapter 3: Perceiving Ourselves and Others in Organizations

Slide 13: Mental Models in Perceptions Knowledge structures we develop to describe, explain, and predict the world around us • Visual (image road maps) or relational (cause-effect) representations of our environment — important for sense making • Mental models partly rely on perceptual grouping (fill in missing information) • Important for sense making Problem: Mental models make it difficult to see the world in different ways • Block recognition of new opportunities Need to constantly question our mental models

Slide 14: Stereotyping Process of assigning traits to people based on their membership in a social category (c) Assign (usually difficult to observe) traits to identifiable groups (d) Automatically transfer those features to people we believe belong to that group Stereotypes are shared beliefs across society, sometimes across several cultures • Usually have a few kernels of truth • But embellished and distorted — and include features that do not represent the group Why people stereotype: • Categorical thinking — nonconscious energy-saving process, simplifies perceptions • Fulfills drive to comprehend and predict others — stereotypes quickly fill in missing information • Motivated by observer’s need for self-enhancement and social identity — categorization, homogenization, differentiation

Slide 15: Categorization, Homogenization, Differentiation Combination of social identity and self-enhancement occurs through: 1. Categorization — naturally tend to categorize people into identifiable groups 2. Homogenization — assign similar traits to members within a group; different traits to

other groups

3. Differentiation — tend to assign more favorable characteristics to our groups than to other groups ➡ Fulfills inherent need to have a distinct and positive self-concept ➡ Generates negative stereotypes of people outside our social identity groups

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Chapter 3: Perceiving Ourselves and Others in Organizations

Slide 16: Problems with Stereotyping 1. Overgeneralizes • Stereotypes do not accurately describe everyone in a social category (members are

not identical) • Stereotype characteristics are distorted and embellished 2. Stereotype threat — individual’s concern about confirming a negative stereotype about

his/her group • Stereotyped group member tries to avoid confirming the undesirable trait and tries to push the negative image from their mind — diverts energy and attention • Weakens self-efficacy (less confident in performing tasks) • Results in poorer behavior/performance — often displays the stereotype trait they are trying to avoid

3. Foundation for discriminatory attitudes and behavior • Unintentional (systemic) discrimination — person who doesn’t fit the “ideal” person in

a specific role receives a less favorable evaluation • Intentional discrimination (prejudice) — unfounded negative attitudes toward people belonging to a particular stereotyped group Overcoming stereotype biases: • Difficult to prevent stereotype activation — hardwired in our brain cells • Possible to minimize stereotype application — consciously minimize the extent to which we rely on that stereotypic information

Slide 17: Attribution Theory The perceptual process of deciding whether an observed behavior or event is caused mainly by internal or external factors Internal Attribution — perceiving that behavior/event is caused mainly by the person (ability or motivation) External Attribution — perceiving that behavior/event is caused mainly by factors beyond the person’s control (resources, coworkers, luck)

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Chapter 3: Perceiving Ourselves and Others in Organizations

Slide 18: Attribution Rules Three rules: • Consistency — Did this person act this way in this situation in the past?

• Distinctiveness — Does this person act this way in other situations?

• Consensus — Do other people act this way in this situation?

Internal attribution when: • High consistency — person has had same behavior/outcomes in this situation in the past (e.g., employee produces poor quality on this machine) • Low distinctiveness — person has same behavior/outcomes in other situations (e.g., employee produces poor quality on other machines) • Low consensus — other people have different behavior/outcomes in this situation (e.g., others produce good quality on this machine) External attribution when: • High consistency — person has had same behavior/outcome in this situation in the past (e.g., employee produces poor quality on this machine) • High distinctiveness — person has different behavior/outcomes in other situations (e.g., employee produces good quality on other machines) • High consensus — other people also behave this way in similar situations (e.g., others produce poor quality on this machine) NOTE: Both attributions have high consistency because consistency increases our confidence in our perception of internal or external causality. Low consistency gives us less confidence in our attribution perception because the person’s behavior varies.

Slide 19: Attribution Outcomes and Errors Importance of the attribution process • Improves our mental model of causation — enables us to work more effectively with others and to assign praise or blame to them • We respond differently to attributions of our own behavior and performance — e.g., more likely to quit if your poor performance is perceived as an external attribution (due to lack of control over the outcome) Self-Serving Bias • Tendency to attribute our failures more to external causes, and attribute our successes more to internal causes • We take credit for our successes and blame others or the situation for our mistakes

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Chapter 3: Perceiving Ourselves and Others in Organizations

• Due to self-enhancement process (more positive self-concept)

Fundamental attribution error (correspondence bias) • Tendency to overemphasize internal causes of another person’s actions (i.e., their motivation, ability) and to discount or ignore external causes of their behavior • Observers can’t easily see external factors constraining another person’s behavior.

• Fundamental attribution error does occur, but it may be less common than previously thought.

Slide 20: Self-Fulfilling Prophecy Cycle Expectations about another person cause that person to act in a way that is consistent with those expectations 1. Supervisor forms expectations about the employee • E.g., Supervisor develops expectations about employee's future behavior and performance 2. Supervisor’s expectations affect behavior toward employee — high-expectancy

employees receive: • More emotional support through nonverbal cues (e.g., more smiling and eye contact) • More frequent/valuable feedback/reinforcement • More challenging goals and better training • More opportunities to demonstrate their performance

3. Supervisor’s behavior affects employee’s ability and motivation (self-confidence) • Better training/more practice — results in more skills and knowledge • Employee becomes more self-confident 4. Employee’s behavior/performance becomes more consistent with supervisor’s initial

expectations • High-expectancy employees have higher motivation and better skills, resulting in higher performance — opposite effect on low-expectancy employees

Slide 21: Contingencies of Self-Fulfilling Prophecy Self-fulfilling prophecy effect is strongest: • At the beginning of the relationship (such as when employee is first hired) • When several people hold same expectations of the person • When the employee has a history of low achievement

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Chapter 3: Perceiving Ourselves and Others in Organizations

Main lesson from the self-fulfilling prophecy — leaders need to develop and maintain a positive, yet realistic, expectation toward all employees • Communicate realistic hope and optimism to employees Minimizing self-fulfilling prophecy error • Awareness of this error has minimal benefit at reducing it • Positive self-fulfilling prophecy through organizational culture of support/learning • Hiring supervisors who are inherently optimistic toward their staff

Side 22: Other Perceptual Effects Halo effect • General impression of a person, usually based on one prominent characteristic, colors our perception of other characteristics of that person • General impression (halo) fills in missing information — when concrete information is missing or perceiver lacks motivation to search for it False-consensus effect (similar-to me effect) • Overestimate extent that others have beliefs/characteristics similar to our own • Occurs because: 1. Comfort from belief that others engage in similarly unfavorable behavior 2. More interaction with people who do that behavior, not representative of population 3. Confirmation bias — we remember events consistent with our own views 4. Social identity homogenization process — perceive all in group have similar behavior

Recency effect • Most recent information dominates our perceptions — e.g., most recent observations overweighted in supervisor’s evaluation of employee’s performance • Most common when people make a complex evaluation Primacy effect (first impressions are lasting impressions) • Quickly form opinion of others based on first information received about them • Difficult to change (first impressions are lasting impressions) — we seek confirming information (confirmation bias) of first impressions, particularly negative impressions

Slide 23: Improving Perceptions 1. Awareness of perceptual biases • Knowing perceptual biases exist — more mindful of our thoughts and actions • Problems: ➡ Unintended effect of reinforcing reliance on stereotypes we are trying to dispel

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Chapter 3: Perceiving Ourselves and Others in Organizations

➡ Limited effect on reducing perceptual biases and prejudices

2. Improving self-awareness • Become more aware of our beliefs, values, and attitudes • Better understand biases in our own decisions and behavior • Implicit association test (IAT) — estimates implicit biases toward specific groups (older

people, different ethnic groups, etc) • Johari Window — self-awareness and mutual understanding (see next slide) — divides information about you into four “windows” based on what is known to you and others 3. Meaningful interaction • Any activity in which people engage in valued (meaningful, not trivial) activities • Applies contact hypothesis — the more we interact with someone, the less prejudiced

or perceptually biased we will be against that person • Best conditions for meaningful interaction ➡ Close, frequent interaction ➡ Shared goal requiring mutual cooperation and reliance ➡ Equal status in a meaningful task, and positive interaction experiences

• Improves empathy ➡ Understanding and being sensitive to the feelings, thoughts, and situations of others ➡ Visualize ourselves in the other person’s place (cognitive), feel the other’s emotions (emotional), and somewhat react somewhat similarly to those thoughts and feelings (experiential) ➡ Improves attribution — more sensitive to external causes of other person’s behavior

Slide 24: Know Yourself (Johari Window) Model of self-awareness and mutual understanding — developed by Joseph Luft and Harry Ingram (hence "Johari") Four “windows” 1. Open area — information about you known to you and others 2. Blind area — information known to others but not to yourself 3. Hidden area — information known to you, unknown to others 4. Unknown area — values, beliefs, and experiences not known to you or others Objective is to increase size of open area so that both you and colleagues are aware of your perceptual limitations: • Disclosure — tell others about yourself (reduces hidden area) • Feedback — receive feedback about your behavior (reduces blind area)

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Chapter 3: Perceiving Ourselves and Others in Organizations

STUDENT HANDOUT

CRITICAL-THINKING QUESTIONS 1.

You are the manager of a district that has just hired several recent university and college graduates. Most of these people are starting their first full-time job, though most of them have held part-time and summer positions in the past. They have general knowledge of their particular skill area (accounting, engineering, marketing, etc.) but know relatively little about specific business practices and developments. Explain how you would nurture the self-concepts in these new hires to strengthen their performance and maintain their psychological wellbeing. Also explain how you might reconcile the tendency for self-enhancement while preventing the new employees from forming a negative self-evaluation.

2.

A high-performance company has launched a “total focus” initiative that requires all employees to give complete attention and dedication to the company’s growth and success. In an email to all staff members, the CEO wrote: “We live in a competitive world, and only those businesses whose employees give their total focus to the business will survive. As such, we are offering a generous severance to employees leaving because they can’t devote 110 percent to this firm.” The company announced that it would invest heavily in employee training and career development, but employees who held second jobs or were engaged in time-consuming hobbies would be asked to leave. Discuss the company’s “total focus” initiative and its consequences from the perspective of employee self-concept complexity, consistency and clarity

3.

Before joining an organization or beginning education at a new school, we form mental models of what the work setting and activities will be like. How did your pre-employment or pre-enrollment mental models differ from the actual situation? Why did your mental models differ from reality, and what effect did those differences have on your adjustment to the new work or school?

4.

Describe how a manager or coach could use the process of self-fulfilling prophecy to enhance an individual’s performance.

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Chapter 3: Perceiving Ourselves and Others in Organizations

CONFIDENTIAL INSTRUCTOR NOTES

SOLUTIONS TO CRITICAL-THINKING QUESTIONS 1.

You are the manager of a district that has just hired several recent university and college graduates. Most of these people are starting their first full-time job, though most of them have held part-time and summer positions in the past. They have general knowledge of their particular skill area (accounting, engineering, marketing, etc.) but know relatively little about specific business practices and developments. Explain how you would nurture the self-concepts in these new hires to strengthen their performance and maintain their psychological well-being.

Also explain how you might reconcile the tendency for self-enhancement while preventing the new employees from forming a negative self-evaluation.

This question asks students to apply the core information about self-concept to this specific situation. The answer can be approached systematically by reviewing each of the three characteristics and four processes: Complexity — Well-being and likely performance can be enhanced by encouraging employees to develop diverse strengths. within the organization, manager might help employees to become better technically as well as nurture their leadership talents. Managers should also encourage employees to develop personal strengths outside of work, such as sports and volunteering, and to recognize/reward these outside interests.

Consistency — Managers can support self-concept by discovering the employee’s personality, values, and competencies, and then guiding them into careers that are consistent with those personal attributes. They can also help employees to understand “who they are,” so they personally recognize when a role (at work or outside work) is incompatible with their personal attributes and with other aspects of self.

Clarity — Clarity tends to develop through experience and maturity. However, managers can help this dimension of self-concept by developing the employee’s self-confidence when dilemmas arise and by giving them experience and feedback in various roles. For example, if the employee opposes or strongly encourages something in a meeting, the manager can later thank the employee for standing up for his/her beliefs. Similarly, the manager can offer supportive feedback when an employee recognizes that a particular role or situation is incompatible with his/ her strengths or character.

Self-enhancement — This is perhaps the most difficult self-concept process to manage because people tend to have more favorable image of themselves than is the case. The most important task for a manager would be to ensure that the employee engages in some self-enhancement (which then relates to a positive self-evaluation). At the same time, managers (and coworkers) are challenged by employees who have substantially inflated selfconcept (i.e., too much self-enhancement). The latter part of this question refers to this issue. The best advice might be the evidence on feedback that is discussed in Chapter 5. Specifically, people prefer to receive negative feedback from nonsocial sources. If self-enhancement is too strong, then the employee should experience more accurate information about themselves, but it should arrive through nonsocial sources and privately. This “reality check” will sting, but less so than if delivered by the boss or publicly displayed.

Self-verification — This process refers to the motivation to receive feedback that is consistent with our self-concept and to maintain that self-concept. Managers can play a role in this process by (a) monitoring how well coworkers recognize the employee in terms of his/her self-concept, and (b) coaching and giving the employee opportunities to develop and demonstrate his or her self-concept strengths.

Self-evaluation — This is likely the most widely discussed self-concept process in managing employees.

Essentially, managers need to help employees to develop a strong, positive self-concept around specific selves.

This occurs by recognizing and rewarding employees for their positive performance and other behaviors and by supporting them when they experience negative shocks to their self-concept. Positive organizational behavior practices (such as strengths-based or appreciative coaching) apply here. When employees experience significant failures in one of Page 3-18 Copyright © 2022 McGraw-Hill. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill.

Chapter 3: Perceiving Ourselves and Others in Organizations

their significant selves (e.g., failing a professional entrance exam; losing a promotion opportunity), the manager can offer emotional support and coach them to develop strengths in one or more of their other selves.

Indeed, managers can help avoid these majors shocks by nurturing a complex self-concept in employees (as discussed above).

Social self (social identity) — Managers can develop employee performance and wellbeing by steering employees toward peers with desirable characteristics and away from those who can undermine the employee’s self-concept. specifically, employees work better around peers who appreciate and support the employee’s talents, accept their self-views, and have a positive, performance-oriented (yet balanced) orientation toward their work and careers. As employees define themselves with teams and work units where these values and norms operate, they will guide the employee’s behavior and performance.

2.

A high-performance company has launched a “total focus” initiative that requires all employees to give complete attention and dedication to the company’s growth and success. In an email to all staff members, the CEO wrote: “We live in a competitive world, and only those businesses whose employees give their total focus to the business will survive. As such, we are offering a generous severance to employees leaving because they can’t devote 110 percent to this firm.” The company announced that it would invest heavily in employee training and career development, but employees who held second jobs or were engaged in time-consuming hobbies would be asked to leave. Discuss the company’s “total focus” initiative and its consequences from the perspective of employee self-concept complexity, consistency and clarity The company’s “total focus” initiative will likely have the effect of reducing self-concept complexity among employees. It clearly encourages employees to leave if they have nonwork self-views that consume a considerable part of their overall identity and cognitive energy, with the result that those remaining would have a high percentage of their self-concept connected to various work-related selves. The initiative may also cause some employees to reduce their attention to nonwork-related selves and to give higher priority and attention to workrelated selves in their everyday thinking and self-perception.

Some or many employees in this company would still have many selves, but most of them would be correlated with each other through work. For example, employees may still identify as an engineer, manager, and friend, but these may be mostly attached to their work environment. By reducing self-concept complexity, this initiative may motivate employees to focus their development on a narrower range of (work-related) life roles, such as managing others and better skill development in their profession. But this reduced range and higher correlation of roles also have negative consequences, such as less social networking with distant groups and increased mental health problems, particularly when employees lose their jobs or discover they are not performing well in their main work- related roles.

The “total focus” initiative would have a mixed effect on self-concept consistency. On the one hand, it may increase self-concept consistency because those who do not strongly identify with their work and company (e.g., incompatible values with the company values) would leave and those who identify with the company are more likely to remain. However, it may somewhat weaken self-concept consistency if it motivates those who remain to devote more of their attention and identity to selves that are not as compatible with their underlying personal attributes. For example, someone who has a creative streak but works in a fairly noncreative job can fulfill their creativity through nonwork roles. But if the company discourages nonwork outlets for creativity and force employees to amplify their work roles in overall self-concept, then the person’s self-concept consistency would be lower.

The effect of this initiative on self-concept clarity is also mixed. On the one hand, focusing more on a few roles in an environment that reinforces that identity may increase a persons’s self-concept clarity. On the other hand, this assumes that the company actually encourages and reinforces development of each person’s work-related selfview. The company might actually have a political environment that causes many people to questions their value, or might not provide the experiences necessary for employees to nurture development of their work-related selves.

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Chapter 3: Perceiving Ourselves and Others in Organizations

3.

Before joining an organization or beginning education at a new school, we form mental models of what the work setting and activities will be like. How did your pre-employment or preenrollment mental models differ from the actual situation? Why did your mental models differ from reality, and what effect did those differences have on your adjustment to the new work or school?

This is an open discussion question that asks students to reflect on the visual and relational (causal) images and assumptions their formed before beginning a new job or beginning education at a particular school.

Students may raise a variety of issues based on their individual experiences and perceptions. Encourage students to focus on their mental images and their assumptions and expectations of their job or education. In the example of entering a new educational program or school, for example, ask students to think about what they expected in terms of relations with other students and with instructors, about the physical setting (what the classrooms would look like), and about what the class assignments might be like (team vs, individual, heavy vs light load, practical vs abstract content, etc.).

This chapter provides limited information on the outcomes of inaccurate mental models, but the topic is given attention later in the book. For instance, the consequences of mental models of work that differ from perceived reality are discussed in the chapter on organizational socialization. The gap tends to produce “reality shock” (particularly when the reality falls short of the mental model expectations), but the degree of resulting stress and dissatisfaction depends on whether the employee concludes that the company provided misleading information (didn’t live up to its promises) or whether the employee concludes that s/he formed false expectations (i.e., takes personal responsibility for the gap between expectations and reality).

4.

Describe how a manager or coach could use the process of self-fulfilling prophecy to enhance an individual’s performance.

Self-fulfilling prophecy occurs when our expectations about another person causes that person to act in a way that is consistent with those expectations. When the boss/coach believes in others, individuals can achieve increased levels of performance. In other words, the boss/coach can influence reality. Steps include: a) Form a positive expectation about the individual’s future behavior and performance and increase individual self- efficacy by displaying confidence in his/her skills and ability. b) Develop a learning orientation, i.e., appreciate the value of the individual’s learning, not just completing tasks. c) Apply leadership behaviors including skill development, emotional support, feedback, challenging goals, etc., as appropriate to the situation.

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Chapter 3: Perceiving Ourselves and Others in Organizations

STUDENT HANDOUT

CASE STUDY: HY DAIRIES, INC. Syd Gilman read the latest sales figures with a great deal of satisfaction. The vice president of marketing at Hy Dairies, Inc., a large Midwestern milk products manufacturer, was pleased to see that the marketing campaign to improve sagging sales of Hy’s gourmet ice cream brand was working. Sales volume and market share of the product had increased significantly over the past two quarters compared with the previous year.

The improved sales of Hy’s gourmet ice cream could be credited to Rochelle Beauport, who was assigned to the gourmet ice cream brand last year. Beauport had joined Hy Dairies less than two years ago as an assistant brand manager after leaving a similar job at a food products firm. She was one of the few women of color in marketing management at Hy Dairies and had a promising career with the company. Gilman was pleased with Beauport’s work and tried to let her know this in annual performance reviews. He now had an excellent opportunity to reward her by offering her the recently vacated position of market research coordinator. Although technically only a lateral transfer with a modest salary increase, the marketing research coordinator job would give Beauport broader experience in some high-profile work, which would enhance her career with Hy Dairies. Few people were aware that Gilman’s own career had been boosted by working as marketing research coordinator at Hy several years before.

Rochelle Beauport had also seen the latest sales figures on Hy’s gourmet ice cream and was expecting Gilman’s call to meet with her that morning. Gilman began the conversation by briefly mentioning the favorable sales figures, and then explained that he wanted Beauport to take the marketing research coordinator job. Beauport was shocked by the news. She enjoyed brand management and particularly the challenge involved with controlling a product that directly affected the company’s profitability. Marketing research coordinator was a technical support position—a “back room” job— far removed from the company’s bottom-line activities.

Marketing research was not the route to top management in most organizations, Beauport thought.

She had been sidelined.

After a long silence, Beauport managed a weak, “Thank you, Mr. Gilman.” She was too bewildered to protest.

She wanted to collect her thoughts and reflect on what she had done wrong. Also, she did not know her boss well enough to be openly critical.

Gilman recognized Beauport’s surprise, which he assumed was her positive response to hearing of this wonderful career opportunity. He, too, had been delighted several years earlier about his temporary transfer to marketing research to round out his marketing experience. “This move will be good for both you and Hy Dairies,” said Gilman as he escorted Beauport from his office.

Beauport was preoccupied with several tasks that afternoon but was able to consider the day’s events that evening. She was one of the top women and few minorities in brand management at Hy Dairies and feared that she was being sidelined because the company didn’t want women or people of color in top management. Her previous employer had made it quite clear that women “couldn’t take the heat” in marketing management and tended to place women in technical support positions after a brief term in lower brand management jobs. Obviously Syd Gilman and Hy Dairies were following the same game plan. Gilman’s comments that the coordinator job would be good for her was just a nice way of saying that Beauport couldn’t go any further in brand management at Hy Dairies.

Beauport now faced the difficult decision of whether to confront Gilman and try to change Hy Dairies’ sexist and possibly racist practices or to leave the company.

Discussion Questions 1. Apply your knowledge of stereotyping and social identity theory to explain what went wrong here.

2. What other perceptual errors are apparent in this case study?

3. What can organizations do to minimize misperceptions in these types of situations?

© Copyright 2000 Steven L. McShane. This case is based on actual events, but names and some facts have been changed to provide a fuller case discussion

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Chapter 3: Perceiving Ourselves and Others in Organizations

CONFIDENTIAL INSTRUCTOR NOTES

CASE STUDY: HY DAIRIES, INC. TEACHING NOTES Case Synopsis Syd Gilman, the vice-president of marketing at Hy Dairies, Inc., is pleased with the performance of Rochelle Beauport, the brand manager for gourmet ice cream. In his meeting with Beauport, Gilman makes a few comments about the favorable sales results, then proceeds to tell Beauport that she will be transferred to the recently-vacated position of market research coordinator. Gilman views this as an important career opportunity, although only a lateral transfer.

Beauport perceives that she has been sidelined. She is neither aware of Gilman’s true perceptions nor his past career experiences. However, a similar experience with a previous employer leaves her with the impression that Gilman doesn’t want women and visible minorities to get ahead in this organization.

Suggested Answers to Case Questions 1.

Apply your knowledge of stereotyping and social identity theory to explain what went wrong here.

Many students will jump on the idea that this case involve stereotyping, specifically that Syd Gilman has stereotyped Rochelle Beauport. In fact, there is no apparent evidence of this stereotyping. From all accounts, Gilman is sincere in assigning Beauport to the marketing research coordinator job. He seems to be providing — or believes that he is providing — a good career opportunity for further advancement. If stereotyping exists in this case, it is that Rochelle Beauport is stereotyping Syd Gilman as a typical sexist and racist white male.

Social identity theory applies to this case in that Rochelle Beauport has an explicit sense of her social identity as a women and visible minority in a management position. This likely occurs because these are distinctive features for someone in management, as indicated by her statement that she was “one of the top women and few minorities in brand management” at Hy Dairies. This strong social identity may have contributed to her perceptual interpretation of her boss, Syd Gilman, namely that she grouped him in with other men in management positions. In other words, Beauport may have engaged in categorization, homogenization, and differentiation.

2.

What other perceptual error is apparent in this case study?

False-consensus effect. There is evidence of false-consensus effect. Syd Gilman overestimated the extent to which Beauport had beliefs and characteristics similar to his own. Specifically, he assumed Beauport would welcome a transfer to the position of marketing research coordinator, and incorrectly interpreted Beauport’s nonverbal behavior as evidence supporting his assumption.

Some students might refer to self-fulfilling prophecy (SFP) as a relevant perceptual concept in this case. However, SFP occurs when the supervisor’s expectations influence the employee in a way that eventually becomes consistent with the supervisor’s initial expectations. Gilman’s initial expectations seem to be positive about Beauport, yet the eventual behavior is that she is thinking of quitting.

NOTE: Concepts from other chapters are relevant to this case. These include equity theory (Chapter 5) and exit-voice-loyalty-neglect (Chapter 4).

3.

What can organizations do to minimize misperceptions in these types of situations?

The clearest answer to this question is to improve mutual understanding. Syd Gilman needs to understand and be more sensitive to Rochelle Beauport’s past, and vice versa. Beauport might discover that Gilman was once the marketing research coordinator and had profited from the experience. Gilman could find out that Beauport had experienced blatant gender discrimination with her previous employer and that staff jobs (such as marketing

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Chapter 3: Perceiving Ourselves and Others in Organizations

research coordinator) are not always valued. This recommendation relates to the Johari Window, in which both parties need to increase the “open” window area.

In addition to gaining mutual understanding, both parties should become aware of the perceptual process and the opportunities for perceptual errors in that process. By being knowledgeable of social identity theory distortions, for example, Beauport might evaluate Gilman for carefully rather than automatically label him within a category. similarly, Gilman might be more sensitive to this incident of false-consensus effect.

Finally, both parties might communicate with others to compare perceptions and gain additional information about the event and the other person. Beauport could talk to other employees. They might clarify her misconception that the marketing research coordinator job is a “sideline” position. Or she might muster enough courage to ask Gilman (without anger) why she should be transferred. Gilman could talk to other managers about the transfer to find out how others may react differently.

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Chapter 3: Perceiving Ourselves and Others in Organizations

SA

SELF-ASSESSMENT 3.1: HOW MUCH DOES WORK DEFINE YOUR SELF-CONCEPT?

Overview and Instructions Work is an important part of our lives, but some people view it as secondary to other life interests, whereas others view work as central to their identity as individuals. This scale estimates the extent to which students view work as a central or notso-central life interest.

Students are asked to read each of the statements below and decide how accurate each one is in describing their focus in life. Class discussion will focus on the meaning of this scale and its relevance to self-concept and perceptions.

Feedback for the Work Centrality Scale The work centrality scale measures the extent that work is an important part of the individual’s self-concept. People with high work centrality define themselves mainly by their work roles and view nonwork roles as much less significant.

Consequently, people with a high work centrality score likely have lower complexity in their self-concept. This can be a concern because if something goes wrong with their work role, their nonwork roles are not of sufficient value to maintain a positive self-evaluation. At the same time, work dominates our lives, so those with very low scores would be more of the exception than the rule in most societies.

Scores range from 6 to 36 with higher scores indicating higher work centrality. The norms in the following table are based on a large sample of employees in North America (average score was 20.7). However, work centrality norms vary from one group to the next. For example, the average score in a sample of nurses was around 17 (translated to the scale range used here).

Work Centrality Norms Score

Interpretation

29 to 36

High work centrality

24 to 28

Above average work centrality

18 to 23

Average work centrality

13 to 17

Below average work centrality

6 to 12

Low work centrality

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Chapter 3: Perceiving Ourselves and Others in Organizations

3.2: HOW MUCH GENERAL SA SELF-ASSESSMENT SELF-EFFICACY DO YOU HAVE? Overview and Instructions Self-efficacy refers to a person’s belief that he or she has the ability, motivation, and resources to complete a task successfully. Self-efficacy is usually conceptualized as a situation-specific belief. You may believe that you can perform a certain task in one situation, but are less confident with that task in another situation. However, there is also evidence that people develop a more general self-efficacy.

Students are asked to read each of the statements and circle the response that best fits their personal belief. This self- assessment is completed alone so that students rate themselves honestly without concerns of social comparison.

However, class discussion will focus on the meaning of self-efficacy, how this scale might be applied in organizations, and the limitations of measuring self-efficacy in work settings.

Comments for Instructors One issue is where this scale may be applied in organizational settings. It is probably easy to fake the results — people who want to look good will answer each item so that a high self-efficacy score results. Thus, it is probably inappropriate for employment selection. Instead, students might suggest that this scale may be useful for coaching and career development where employees are more willing to be honest with themselves.

Students can identify several ways to improve self-efficacy. One way is through supportive coaching from leaders and coworkers. Someone with low self-efficacy may develop a stronger “can-do” attitude when his or her supervisor indicates a strong belief in the employee’s potential. (This is discussed under the topic of effort-to-performance expectancy in the motivation chapter and self-fulfilling prophecy in the chapter on perceptions.) Feedback may also increase self-efficacy where employees learn that their actions are having a favorable result. For example, knowing that you are serving customers well would increase your self-efficacy regarding this customer service task. The third strategy is to match people with jobs for which they possess the necessary competencies. The more we possess the necessary skills and knowledge, the more confidence we have in performing the task.

Scores on the general self-efficacy scale range from 8 to 40. Higher scores indicate that you have a higher general selfefficacy. The following graph shows the range of scores compared to undergraduate psychology students in the United States (77% female; average age = 23).

General Self-Efficacy Norms Score

Interpretation

Above 34

High self-efficacy

32 to 34

Above average

28 to 31

Average

24 to 27

Below average

Below 24

Low self-efficacy

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Chapter 3: Perceiving Ourselves and Others in Organizations

SA

SELF-ASSESSMENT 3.3: WHAT IS YOUR LOCUS OF CONTROL?

Overview and Instructions Locus of control is one component of self-evaluation, which is part of an individual's self-concept. It is a person’s general belief about the amount of control he or she has over personal life events. Individuals who feel that they are very much in charge of their own destiny in the workplace have an internal locus of control; those who think that events in their work life are due mainly to fate/luck or powerful others have an external locus of control.

The Work Locus of Control Scale is designed to assess control beliefs in the workplace. For each statement, students are asked to select the response that best indicates the degree to which they agree or disagree with that statement. This instrument has 16 statements, which concern beliefs about jobs in general. They do not refer only to the person’s present job.

Feedback for the Work Locus of Control Scale Scores on the scale can range from 16 to 96. Higher scores indicate that you have a higher external work locus of control.

Lower scores indicate more of an internal work locus of control. The average score for employees and students in Canada and the United States is 40.

Work Locus of Control Scale Norms Score

Interpretation

70 to 96

External locus of control

43 to 69

In-between locus of control

16 to 42

Internal locus of control

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Chapter 3: Perceiving Ourselves and Others in Organizations

3.4: HOW MUCH SA SELF-ASSESSMENT PERCEPTUAL STRUCTURE DO YOU NEED? Overview and Instructions Some people have a greater need than do others to quickly or completely “make sense” of things around them. This personal need for perceptual structure relates to selective attention as well as perceptual organization and interpretation.

This self-assessment is designed to help you to estimate your personal need for perceptual structure. Students are asked to read each of the statements and select the response that best indicates the degree to which they personally agree or disagree with that statement. Class discussion will focus on the meaning of need for structure in terms of how we engage differently in the perceptual process at work and in other settings.

Feedback for the Personal Need for Structure Scale Some people need to “make sense” of things around them more quickly or completely than do other people. This personal need for perceptual structure relates to selective attention as well as perceptual organization and interpretation. For instance, people with a strong personal need for closure might form first impressions, fill in missing pieces, and rely on stereotyping more quickly than people who don’t mind incomplete perceptual situations.

The Personal Need for Structure (PNS) Scale estimates the extent to which people are motivated to structure their world in a simple and unambiguous way. Scores range from 12 to 72 with higher scores indicating a high personal need for structure, that is, a higher need to quickly and unambiguously make sense of the world. PNS norms vary from one group to the next. For instance, a study of Finnish nurses reported a mean PNS score of 34 whereas a study of 236 male and 303 female undergraduate psychology students in the United States had a mean score of 42. This graph shows your score on the PNS scale compared with results from the U.S. sample of undergraduate psychology students .

Personal Need for Structure Scale Norms Score

Interpretation

58 to 72

High personal need for structure

47 to 57

Above average personal need for structure

38 to 46

Average personal need for structure

27 to 37

Below average personal need for structure

12 to 26

Low personal need for structure

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Chapter 3: Perceiving Ourselves and Others in Organizations

SA

SELF-ASSESSMENT 3.5: HOW STRONG IS YOUR PERSPECTIVE TAKING (COGNITIVE EMPATHY)?

Overview and Instructions Empathy refers to a person’s understanding of and sensitivity to the feelings, thoughts, and situation of others. The “understanding” part of empathy is called perspective taking or cognitive empathy. It represents an intellectual understanding of another person’s situational and individual circumstances.

This self-assessment is designed to help students estimate their propensity for perspective taking. It includes seven statements, and students are asked to indicate the degree to which each statement does or does not describe them very well.

Feedback for the Cognitive Empathy (Perspective-Taking) Scale This self-assessment is designed to help students to estimate their propensity for perspective taking. Perspective taking is an important part of the perceptual process because it makes us more aware of the external causes of another person’s performance and behavior. It also improves the communication process by helping us to put the words of other people in their proper context.

This score represents a personal estimate of how well students can understand the feelings, thoughts, and situation of others.

Scores on this scale range from 7 to 35. A higher score indicates a higher level of perspective taking (also called cognitive empathy).

The following graph shows the range of perspective taking scores and where students score in comparison. The average score in recent studies across several U.S. and Canadian groups of people is approximately 20. Also, keep in mind that women tend to score about 1.5 points higher than men on this perspective taking scale.

Perspective Taking (Cognitive Empathy) Scale Norms Score

Interpretation

26 to 35

High perspective taking

16 to 25

Moderate perspective taking

7 to 15

Low perspective taking

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Chapter 3: Perceiving Ourselves and Others in Organizations

3.6: HOW STRONG IS SA SELF-ASSESSMENT YOUR EMOTIONAL EMPATHY? Overview and Instructions Empathy refers to a person’s understanding of and sensitivity to the feelings, thoughts, and situation of others. The “sensitivity” part of empathy is called emotional empathy. It refers to experiencing the feelings of the other person.

This self-assessment is designed to help students to estimate their propensity for emotional empathy. It includes seven statements, and students are asked to indicate the degree to which each statement does or does not describe them very well.

Feedback for the Emotional Empathy Scale This self-assessment is designed to help students to estimate their propensity for emotional empathy. Emotional empathy is an important part of the perceptual process because it makes us more aware of the external causes of another person’s performance and behavior. It also improves the communication process by helping us to put the words of other people in their proper context.

This score represents a personal estimate of how sensitive students are to the feelings, thoughts, and situation of others. Scores on this scale range from seven to 35. A higher score indicates a higher level of emotional empathy.

The following graph shows the range of perspective taking scores and where students score in comparison. The average score in recent studies across several U.S. and Canadian groups of people is approximately 23. Also, keep in mind that women tend to score about two points higher than men on this emotional empathy scale.

Emotional Empathy Scale Norms Score

Interpretation

26 to 35

High perspective taking

16 to 25

Moderate perspective taking

7 to 15

Low perspective taking

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Chapter 4: Workplace Emotions, Attitudes, and Stress

Instructor’s Manual to Accompany

M:Organizational Behavior 5/e

by Steven L. McShane and Mary Ann Von Glinow

Chapter 4: Workplace Emotions, Attitudes, and Stress Prepared by Steven L. McShane, University of Newcastle (Australia)

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Chapter 4: Workplace Emotions, Attitudes, and Stress

4

Workplace Emotions, Attitudes, and Stress

LEARNING OBJECTIVES After reading this chapter, students should be able to:

4-1 Explain how emotions and cognition (conscious reasoning) influence attitudes and behavior.

4-2 Discuss the dynamics of emotional labor and the role of emotional intelligence in the workplace.

4-3 Summarize the consequences of job dissatisfaction, as well as strategies to increase organizational (affective) commitment.

4-4 Describe the stress experience and review four major stressors. 4-5 Identify five ways to manage workplace stress.

CHAPTER GLOSSARY affective organizational commitment — an individual’s emotional attachment to, identification with, and involvement in a particular organization

exit-voice-loyalty-neglect (EVLN) model — the four ways, as indicated in the name, that employees respond to job dissatisfaction

attitudes — the cluster of beliefs, assessed feelings, and behavioral intentions toward a person, object, or event (called an attitude object)

general adaptation syndrome — a model of the stress experience, consisting of three stages: alarm reaction, resistance and exhaustion

cognitive dissonance — an emotional experience caused by a perception that our beliefs, feelings, and behavior are incongruent with one another

job satisfaction — a person’s evaluation of his or her job and work context

continuance commitment — an individual’s calculative attachment to an organization emotional intelligence (EI) — a set of abilities to perceive and express emotion, assimilate emotion in thought, understand and reason with emotion, and regulate emotion in oneself and others emotional labor — the effort, planning, and control needed to express organizationally desired emotions during interpersonal transactions emotions — physiological, behavioral, and psychological episodes experienced toward an object, person, or event that create a state of readiness

norm of reciprocity — a felt obligation and social expectation of helping or otherwise giving something of value to someone who has already helped or given something of value to you service profit chain model — a theory explaining how employees’ job satisfaction influences company profitability indirectly through service quality, customer loyalty, and related factors stress — an adaptive response to a situation that is perceived as challenging or threatening to the person’s well-being stressors — any environmental conditions that place a physical or emotional demand on the person

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Chapter 4: Workplace Emotions, Attitudes, and Stress

trust — positive expectations one person has toward another person in situations involving risk

work-life integration —the degree that people are effectively engaged in their various work and nonwork roles and have a low degree of role conflict across those life domains

CHAPTER SUMMARY BY LEARNING OBJECTIVE 4-1 Explain how emotions and cognition (conscious reasoning) influence attitudes and behavior.

Emotions are physiological, behavioral, and psychological episodes experienced toward an object, person, or event that create a state of readiness. Emotions differ from attitudes, which represent a cluster of beliefs, feelings, and behavioral intentions toward a person, object, or event. Beliefs are a person’s established perceptions about the attitude object. Feelings are positive or negative evaluations of the attitude object.

Behavioral intentions represent a motivation to engage in a particular behavior toward the target.

Attitudes have traditionally been described as a purely rational process in which beliefs predict feelings, which predict behavioral intentions, which predict behavior. We now know that emotions have an influence on behavior that is equal to or greater than that of cognition. This dual process is apparent when we internally experience a conflict between what logically seems good or bad and what we emotionally feel is good or bad in a situation.

Emotions also affect behavior directly. Behavior sometimes influences our subsequent attitudes through cognitive dissonance.

4-2 Discuss the dynamics of emotional labor and the role of emotional intelligence in the workplace.

Emotional labor consists of the effort, planning, and control needed to express organizationally desired emotions during interpersonal transactions. It is more common in jobs requiring a variety of emotions and more intense emotions, as well as in jobs in which interactions with clients are frequent and long in duration. Employees experience stress, job dissatisfaction, and low job performance when the emotions they are required to display differ markedly from the emotions they actually experience at that time. The extent to which employees are expected to hide their true emotions varies considerably across cultures.

Employees sometimes fulfill their emotional labor obligations through surface acting—they consciously display behaviors that represent the expected emotions even though their actual emotions are different. A second strategy is deep acting, whereby employees actively change their true emotions so they are similar to the required emotions. The five ways to regulate emotions are to (1) change the situation, (2) modify the situation, (3) suppress or amplify emotions, (4) shift attention, and (5) reframe the situation.

Emotional intelligence is the ability to perceive and express emotion, assimilate emotion in thought, understand and reason with emotion, and regulate emotion in oneself and others. This concept includes four components arranged in a hierarchy (from lowest to highest): awareness of one’s own emotions, management of one’s own emotions, awareness of others’ emotions, and management of others’ emotions. Emotional intelligence can be learned to some extent.

4-3 Summarize the consequences of job dissatisfaction, as well as strategies to increase organizational (affective) commitment.

Job satisfaction represents a person’s evaluation of his or her job and work context. Four types of job dissatisfaction consequences are quitting or otherwise getting away from the dissatisfying situation (exit), attempting to change the dissatisfying situation (voice), patiently waiting for the problem to sort itself out (loyalty), and reducing work effort and performance (neglect). Job satisfaction has a moderate relationship with job performance and with customer satisfaction. Affective organizational commitment (loyalty) is the employee’s emotional attachment to, identification with, and involvement in a particular organization. This form contrasts with continuance commitment, which is a calculative bond with the organization. Normative commitment—a felt obligation or moral duty to the organization—is a third form of organizational commitment. Companies build Page 4-3 Copyright © 2022 McGraw Hill. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill.

Chapter 4: Workplace Emotions, Attitudes, and Stress

loyalty through justice and support, shared values, trust, organizational comprehension, and employee involvement.

4-4 Describe the stress experience and review three major stressors.

Stress is an adaptive response to a situation that is perceived as challenging or threatening to a person’s wellbeing. The stress experience, called the general adaptation syndrome, involves moving through three stages: alarm, resistance, and exhaustion. Stressors are the causes of stress and include any environmental conditions that place a physical or emotional demand on a person. Four of the most common workplace stressors are organizational constraints, interpersonal conflict, work overload, and low task control.

4-5 Identify five ways to manage workplace stress.

Many interventions are available to manage work-related stress, including removing the stressor, withdrawing from the stressor, changing stress perceptions, controlling stress consequences, and receiving social support.

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Chapter 4: Workplace Emotions, Attitudes, and Stress

LECTURE OUTLINE Slide 1: Workplace Emotions, Attitudes, and Stress Slide 2: Learning Objectives 1. Explain how emotions and cognition (conscious reasoning) influence attitudes and

behavior.

2. Discuss the dynamics of emotional labor and the role of emotional intelligence in the

workplace.

3. Summarize the consequences of job dissatisfaction, as well as strategies to increase

organizational (affective) commitment.

4. Describe the stress experience and review four major stressors.

5. Identify five ways to manage workplace stress.

Slide 3: Emotions Defined Psychological, behavioral, and physiological episodes experienced toward an object, person, or event that create a state of readiness • Experiences — represent changes in our physiological state (e.g., heart rate), psychological state (e.g., thought processes), and behavior (e.g., facial expression) • Brief events or episodes directed toward someone or something (e.g., joy or anger toward tasks, customers, etc) • Most emotions are subtle and occur without our awareness • Emotions motivate — put us in a state of readiness to act Moods — Non-directed emotions, tend to be longer-term emotional states

Slide 4: Types of Emotions Two dimensions of all emotions depicted in the circumplex model 1. Activation • Emotions put us in a state of readiness • Generate some level of energy within us — primary source of motivation 2. Evaluation (core affect) • Emotions generate a global evaluation • Positive or negative valence (e.g., that something is good or bad, helpful or harmless)

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Chapter 4: Workplace Emotions, Attitudes, and Stress

Slide 5: Attitudes versus Emotions Attitudes • Cluster of beliefs, assessed feelings, and behavioral intentions toward an attitude object (i.e., person, object or event) • Judgments — involve conscious logical reasoning • More stable over time Emotions • Experiences related to an attitude object • Operate as events, usually without our awareness • People experience most emotions briefly

Slide 6: Emotions, Attitudes, and Behavior Model Behavior influenced by both attitudes and emotions Traditional attitude model (left side of model) considers only logic and perceptions, not emotions Also need to consider contingencies — explains why people in same situation form different attitudes and behavior

Traditional Model of Attitudes Beliefs • Established perceptions about the attitude object • Formed from experience, other learning ➡ E.g., employee discovers that job involves long hours and challenging work

Feelings • Conscious positive/negative evaluations of the attitude object • Feelings formed from valences of beliefs about the attitude object ➡ E.g., people form a negative feeling about their job from negative valences of job elements

such as long hours, challenging work, unfriendly coworkers

Behavioral intentions • Motivation to engage in a particular behavior regarding the attitude object • Intentions are formed from feelings — the source and direction of motivation Behavior • Behavioral intentions (motivation to act) are the best predictor of behavior.

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Chapter 4: Workplace Emotions, Attitudes, and Stress

Slide 7: Attitude-Behavior Contingencies Beliefs-Feelings Contingencies: Two people have the same belief but different valences about that belief — affects feelings toward attitude object ➡ E.g., challenging work is positive for some, negative for others Feelings-Behavioral Intentions Contingencies: Two people have the same feelings but form different behavioral intentions due to unique experience, personality, social norms ➡ E.g., two employees dislike long work hours, but one complains about long hours; the other doesn’t complain because complaining didn’t work in past Behavioral Intentions-Behavior Contingencies: Two people have same behavioral intentions, but different situation or skills enables only one of them to act ➡ E.g., employee wants to quit (intention) but can’t find a suitable job elsewhere (behavior)

Slide 8: How Emotions Influence Attitudes and Behavior • Emotional markers are automatically (nonconsciously) attached to incoming sensory

information (see Chapters 3, 4, and 5).

• Emotional experiences occur when information is first received and later when thinking

about that information (remembering activates emotional markers).

• Feelings and beliefs are influenced by cumulative emotional episodes (fuzzy dots in

model) along with cognitive evaluation described earlier.

• Emotions influence (potentially distort/bias) our cognitive thinking (beliefs, feelings,

intentions) about the attitude object.

• We “listen in” on our emotions while thinking through what we like or dislike.

• Emotions also directly affect behavior — e.g., facial expression • Potential conflict (“mental tug-of-war”) when cognitive and emotional processes disagree

with each other • I.e., sensing that something isn’t right even though they can’t think of any logical reason to be concerned

• Emotions are also partly determined by a person’s personality, not just by workplace

experiences.

• Companies try to create a workplace that generates more positive than negative

emotions.

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Chapter 4: Workplace Emotions, Attitudes, and Stress

Slide 9: Cognitive Dissonance Emotional experience (feeling hypocritical) caused by a perception that our beliefs, feelings, and behavior are incongruent with one another • Violates need to appear rational and logical • Emotional response motivates more consistency by changing one or more elements Usually difficult to undo or reverse decisions and behavior (e.g., remove expensive digital whiteboards) Reducing cognitive dissonance — change beliefs and feelings in three ways: 1. Amplify or discover additional positive features of the selected alternative 2. Amplify or discover additional problems or weaknesses with the alternatives not chosen 3. Compensate the dissonant decision by recognizing previous consonant behavior

Slide 10: Emotional labor Effort, planning, and control needed to express organizationally desired emotions during interpersonal transactions Display rules — employees required to display behaviors representing specific emotions and to hide observable evidence of other emotions Emotional labor demands are higher in jobs requiring: • Frequent and longer interactions with clients • Variety of emotions (e.g., anger as well as joy) • More intense emotions (e.g., showing delight) Emotional labor causes stress and exhaustion (from emotional tension) when emotions required to display: • Are quite different from actually experienced emotions • Are contrary to one’s self-concept Cultural variations in emotional display norms • Some countries/cultures strongly discourage emotional expression — Relatively

monotonic voice intonation, and avoid physical movement and touching that display emotions expression in several Asian and African countries (Ethiopia, Japan)

• Some countries/cultures encourage open display of one’s true emotions — People

expected to be dramatic and animated in Spain, Cuba, and some Middle Eastern countries

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Chapter 4: Workplace Emotions, Attitudes, and Stress

Slide 11: Strategies for Displaying Expected Emotions Approach #1: Consciously engage in verbal and nonverbal behaviors that represent the expected emotions Surface acting — pretending to be experiencing the expected emotions even though actual emotions are different Surface acting is stressful and difficult • Requires considerable mental effort; psychological separation of self from role • Difficult to replicate facial muscles and body positions when pretending to feel and emotion — observers see evidence that we are faking the emotion Approach #2: Regulate actual emotions — actively change our emotions Deep acting — producing expected emotions — use all five strategies, but reframing the situation and shifting attention are likely the most common 1. Change the situation — move out of or into work settings that affect our emotions ➡ E.g., temporarily leave a work area that makes us feel lethargic.

2. Modify the situation — within the same physical location, adapt conditions or events so

they alter emotions. ➡ E.g., stop working on an aggravating task and move to a more enjoyable task.

3. Suppress or amplify emotions — consciously trying to block out dysfunctional emotions

or to increase the intensity of expected emotions. ➡ E.g., stop thinking about events that bother us.

4. Shift attention — change the focus of our attention. ➡ E.g., engage in work that takes your mind off earlier problems.

5. Reframe the situation — cognitively re-evaluate something so it generates more

appropriate emotions. ➡ E.g., view a failed client presentation as a learning experience with low chance of success.

Slide 12: Emotional Intelligence Model Emotional intelligence — A set of abilities to perceive and express emotion, assimilate emotion in thought, understand and reason with emotion, and regulate emotion in oneself and others Awareness of our own emotions • Able to perceive and understand the meaning of your own emotions • Able to eavesdrop in on your emotional responses to specific situations and to use this awareness as conscious information

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Chapter 4: Workplace Emotions, Attitudes, and Stress

Management of our own emotions • Ability to manage your own emotions • Goes beyond displaying behavior that represents desired emotions — requires deep acting to generate or suppress emotions Awareness of others’ emotions • Ability to perceive and understand emotions of others • Empathy — understanding/sensitivity to feelings, thoughts, and situation of others • Being organizationally aware — e.g., sensing office politics, social networks Management of others’ emotions • Managing other people’s emotions — e.g., consoling, inspiring These four dimensions form a hierarchy — lowest to highest listed above • E.g., need to recognize others’ emotions before regulating others’ emotions

Slide 13: Emotional Intelligence Outcomes and Development Most jobs involve social interaction — and EI is useful in social duties Emotional intelligence outcomes • More effective team members • Perform better in jobs requiring emotional labor • Better leaders • Make better decisions involving others • More positive mindset for creative work EI does not improve performance on tasks with minimal social interaction Developing emotional intelligence • Training, personal coaching, practice, feedback • EI increases with age — maturity

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Chapter 4: Workplace Emotions, Attitudes, and Stress

Slide 14: EVLN: Responses to Dissatisfaction Exit-voice-loyalty-neglect (EVLN) model identifies 4 ways employees respond to dissatisfaction: Exit • Leaving the situation • Quitting, transferring, being absent Voice • Attempt to change the dissatisfying situation • Constructive ideas, complaining, formal grievance, subtle resistance, etc Loyalty • Patiently waiting for the situation to improve Neglect • Passive activities with negative consequences for the organization • For example, reducing work effort/quality, increasing absenteeism Preferred EVLN action depends on personality, past experience, and situation • High-conscientiousness — less neglect, more voice • Low loyalty (low affective commitment) — more quitting, less voice • Quitting less likely when (a) few job opportunities and (b) other employees dependent on them

Slide 15: Job Satisfaction and Performance Happy workers are more productive workers — but only moderate relationship Satisfaction-performance relationship isn’t stronger because: 1. Satisfaction is a general attitude, so a weak predictor of specific behaviors ➡ Several responses to dissatisfaction (EVLN) — quitting, complaining, patiently

waiting, rather than reduced performance (neglect) 2. Limited control over performance ➡ E.g., assembly line controls work speed and some quality whether employee is

happy or not with work 3. Reverse causation (performance causes satisfaction) ➡ Higher performers receive more rewards so are more satisfied than low-performing

employees who receive less rewards ➡ Performance-satisfaction correlation is moderate because good performance is not rewarded very well

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Chapter 4: Workplace Emotions, Attitudes, and Stress

Slide 16: Service Profit Chain Model Employees’ job satisfaction influences customer satisfaction and company profitability: 1. Organizational practices affect employee satisfaction (and commitment) 2. Satisfaction (a) reduces turnover, (b) improves motivation/behavior 3. Low turnover and higher motivation improve service quality 4. Service quality improves customer satisfaction/loyalty, and company profitability

Two reasons why job satisfaction improves customer satisfaction: 1. Employee emotions affect customer emotions.

• Satisfied employees usually have a more positive mood.

• Positive mood causes more natural/frequent display positive emotions.

• Customer emotions more positive when served by staff displaying positive emotions.

• Effect is reciprocal — happier customers make employees feel happier.

2. Experienced employees provide better service.

• Satisfied employees have longer employment/more experience on the job.

• Experienced employees have more skill/knowledge to provide better service.

• Service is more consistent with a longer employment staff.

Slide 17: Organizational Commitment Affective organizational commitment • An individual’s emotional attachment to, involvement in, and identification with an organization • Psychological bond — intrinsically motivated (not motivated by external forces) • Lower absenteeism, less likely to quit, higher motivation, higher organizational citizenship, better customer service • Risks: higher conformity, lower creativity, more motivated to defend firm through illegal activity Continuance commitment • Calculative attachment to the organization • Occur with (a) significant social or economic loss from leaving the company and (b) limited alternative employment opportunities • Outcomes: Lower job performance, less organizational citizenship, more grievances rather than problem solving to resolve conflict

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Chapter 4: Workplace Emotions, Attitudes, and Stress

Normative commitment • A felt obligation or moral duty to the organization • Applies the norm of reciprocity — a felt obligation and social expectation of helping or otherwise giving something of value to someone who has already helped or given something of value to you

Slide 18: Building Affective Commitment Justice and support • Support organizational justice • Support employee well-being Shared values • Employees believe their values are congruent with the organization’s dominant values Trust • Positive expectations one person has toward another person in situations involving risk • Reciprocal effect — employees trust management when they show trust in employees • Job security supports trust

Organizational comprehension • How well employees understand the organization — strategic direction, social dynamics, and physical layout • Difficult to identify with or feel loyal to something that you don’t know very well • Employees need a clear mental model of the organization — announcements, co-worker meetings, learn about history and plans Employee involvement • Psychological ownership and social identity — feel part of company • Involvement demonstrates trust — builds loyalty

Slide 19: What Is Stress?

Adaptive response to a situation that is perceived as challenging or threatening to the person’s well-being — Prepares us to adapt to hostile or noxious environmental conditions Eustress — Some level of stress is necessary — motivates people to achieve goals, change their environments, succeed in challenges Distress — Physiological, psychological, and behavioral deviation from healthy functioning

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Chapter 4: Workplace Emotions, Attitudes, and Stress

Slide 20: General Adaptation Syndrome Model of the stress experience consisting of 3 stages: 1. Alarm reaction • Threat or challenge activates the physiological stress responses • Decreased energy and coping effectiveness 2. Resistance • Activates biochemical, psychological, and behavioral mechanisms — produces more

energy and coping mechanisms to overcome or remove the source of stress • Body reduces resources to the immune system 3. Exhaustion • Usually able to remove the stressor or remove ourselves before exhaustion • Frequent exhaustion increases long-term physiological/psychological damage

Consequences of Distress Physiological • Tension headaches, muscle pain • Cardiovascular disease — heart attacks, strokes • Some forms of cancer Psychological • Job dissatisfaction, moodiness, depression, lower organizational commitment Behavioral • Lower job performance, poor decision making, increased workplace accidents, aggressive behavior

Slide 21: Workplace Stressors Stressors are causes of stress — any environmental condition that places a physical or emotional demand on the person — four most common work-related stressors described 1. Organizational constraints • Lack of resources — equipment, supplies, budget funding, coworker support,

information, etc • Interfere with task performance, indirectly threatens rewards, status, job security • Situational element of MARS model — only element beyond individual’s control — undermines human drive to influence our environment

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Chapter 4: Workplace Emotions, Attitudes, and Stress

2. Interpersonal conflict • Dysfunctional conflict typically caused by structural sources — ambiguous rules, lack

of resources, and conflicting goals • Stress particularly strong when conflicting parties attack each other’s personal attributes (intelligence, experience, etc) rather than arguments presented • Conflict is associated with workplace harassment — workplace bullying, sexual harassment, and other forms of mistreatment by coworkers, managers, or customers 3. Work overload • Working more hours, more intensely than one can cope • Affected by technology (tethered to work). Globalization (24/7 schedule), ideal worker

norm (expecting selves and others to perform beyond regular work hours) 4. Low task control • Lack of control over how and when tasks are performed • Task control as a stressor increases with level of responsibility ➡ E.g., assembly-line workers have low task control but lower stress because of low responsibility; sports coaches lack task control but high responsibility

Slide 22: Individual Differences in Stress People experience less stress and/or negative stress consequences when they have: 1. Better physical health • Regular exercise, healthy lifestyle 2. Better coping strategies • Seeking support from others, reframing stressor in a positive light 3. Personality • Less stress with lower neuroticism (high emotional stability); higher extraversion

(interact with others, degree of positive thinking) 4. Positive self-concept (high self-esteem, self-efficacy, and internal locus of control) • More confident, feel in control, sense of optimism

Slide 23: Managing Work-Related Stress Remove the stressor • Assigning employees to jobs that match their skills/preferences • Reducing workplace noise • Having a complaint system and taking corrective action

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Chapter 4: Workplace Emotions, Attitudes, and Stress

• Giving employees more control over the work process • Work-life integration initiatives (e.g., personal leave benefits, remote work, rules to

separate work from nonwork) Withdraw from the stressor • Permanently — transferred to jobs with better fit • Temporarily — vacations, holidays, sabbaticals, game rooms Change stress perceptions • Improved self-concept, personal goal setting, humor Control stress consequences • Physical exercise, meditation, wellness programs, employee assistance programs (EAPs) Receive social support • Others provide emotional and/or informational support

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Chapter 4: Workplace Emotions, Attitudes, and Stress

STUDENT HANDOUT

CRITICAL-THINKING QUESTIONS 1.

Recall situations where you had to regulate your emotions. For example, think of times when you wanted to feel more serious than you would otherwise, or experience more happiness for someone at a time when events caused your emotions to be less positive. Which of the five emotion regulation strategies did you apply? Why were those strategies chosen? How difficult was it to actually change your emotions?

2. “Emotional intelligence is more important than cognitive intelligence in influencing an individual’s success.”

Do you agree or disagree with this statement? Support your perspective.

3. “Happy employees lead to happy customers.” Explain why this statement tends to be true and identify conditions in which it might not be true.

4. Two college graduates recently joined the same major newspaper as journalists. Both work long hours and have tight deadlines for completing their stories. They are under constant pressure to scout out new leads and be the first to report new controversies. One journalist is increasingly fatigued and despondent and has taken several days of sick leave. The other is getting the work done and seems to enjoy the challenges. Use your knowledge of stress to explain why these two journalists are reacting differently to their jobs.

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Chapter 4: Workplace Emotions, Attitudes, and Stress

CONFIDENTIAL INSTRUCTOR NOTES

SUGGESTED ANSWERS TO CRITICAL-THINKING QUESTIONS 1.

Recall situations where you had to regulate your emotions. For example, think of times when you wanted to feel more serious than you would otherwise, or experience more happiness for someone at a time when events caused your emotions to be less positive. Which of the five emotion regulation strategies did you apply? Why were those strategies chosen? How difficult was it to actually change your emotions?

This question involves reviewing the five emotion regulation strategies, but it also asks for students’ personal experiences in attempting to apply these strategies in various situations and for various emotions.

Change the situation. This is likely a common strategy, whereby people simple move to another physical location that is more aligned with their desired or required emotions. People leave their desk to get re-energized.

Some keep away from office areas where unfriendly coworkers dwell. Employees who work in flexible work spaces (e.g., choose anywhere to work) sometime choose quiet spaces so they can concentrate on the work. One of the issues with this strategy is what emotions the student was trying to change. Also, were those emotions a form of emotional labor (required for the job) or were they emotions the student either believed would help them to work better or would fulfill their fundamental drives/needs (such as visiting coworkers to wash away the emotions associated with lack of social interaction).

Modify the situation. The “situation” can be a task, a topic of discussion, or a physical characteristics of the setting. The book provides examples of the first two types of situation (working on a more enjoyable task, changing the topic of discussion with coworkers). The physical setting can change a person’s emotions as well.

This might include changing the lighting (a warmer desk light and turning off flickering or cool white overhead lights). It might involve introducing plants or family photos into the work area. Again, students should consider what emotions they were attempting to change and whether they were required emotions (emotional labor) or whether they believed the emotions would make them work more productively or would fulfill personal needs better.

Suppress or amplify emotions. This is a conscious process to trying to strengthen or weaken the intensity of emotions the person is feeling. If you dislike a client, you might actively try to stop feeling that dislike. If you don’t feel motivated enough to work quickly, then you might recognize this and consciously think about being more intensively motivated to complete the task. This strategy is often confused with “reframing” described below.

Suppressing and amplifying emotions occurs directly, such as by convincing yourself to work harder or by having an inner conversation to put a distracting emotion (frustration, worry) out of your mind.

Shift attention. This strategy involves changing the focus of our attention. Although this approach may overlap with other forms of emotion regulation (e.g., reframing), it is perhaps best identified by deliberately distracting oneself from conditions that generate undesirable emotions. For instance, students might mention how their frustration or sadness of receiving a low grade earlier that day for an assignment interferes with their ability to study that evening for a forthcoming exam. Some people can distract themselves from the source of the negative emotions by studying the most enjoyable content first, visualizing their success in the exam they are studying for, or moving somewhere that is less likely to trigger memories of the poor assignment result.

Reframe the situation. This strategy involves looking at a situation differently — rather like the glass being half full rather than half empty. Students might mention how they were able to serve a difficult client better by viewing the clients rude behavior as a feature of the client’s personality, not a personal attack on them. Or they might reevaluate a poor grade on an assignment as a learning experience that could have been worse (i.e., the assignment weight was relatively low).

Along with these five emotion regulation strategies, watch out for examples where students say they pretend to show the desired emotion. This “surface acting” falls outside the framework of emotion regulation, but is an approach for displaying desired emotions without regulating the person’s actual emotions. The discussion should consider the problems with faking emotions as well as conditions where it may be necessary.

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Chapter 4: Workplace Emotions, Attitudes, and Stress

2.

“Emotional intelligence is more important than cognitive intelligence in influencing an individual’s success.”

Do you agree or disagree with this statement? Support your perspective.

Many students may argue that to be successful, an individual requires high IQ (cognitive intelligence). Although cognitive intelligence is important, many organizations are recognizing that EI (emotional intelligence) is a critical competency for the performance of most jobs. To effectively work in dynamic, team-oriented environments, employees require the ability to manage, understand, assimilate and express emotions effectively.

At the same time, some popular experts on emotional intelligence may have overstated the importance of this concept. They initially concluded that EI is much more important than cognitive intelligence, but critique from other experts led to more moderate statements today. The relative importance of EI and IQ will continue to be debated, but they are both highly important. A key point as well is that EI and IQ are important in different ways. For instance, EI may be less important than IQ in individual decision making, whereas EQ may be more important than IQ for tasks requiring interpersonal activities.

3.

“Happy employees lead to happy customers.” Explain why this statement tends to be true and identify conditions in which it might not be true.

The book identifies two reasons why happy employees lead to happy customers. One reason is that satisfaction tends to put employees in a more positive mood, and people in a good mood more naturally and frequently display friendliness and positive emotions. These displays of genuinely positive emotions rub off on customers, so they actually feel more positive emotions. The cycles is reciprocal, because happy customers tend to generate more positive emotions back to employees serving those customers.

The second reason is that satisfied employees are less likely to quit their jobs, so customers are served by employees with longer work experience, better knowledge of the work site, and sometimes better knowledge of the customer’s preferences. Indeed, some evidence suggests that customers prefer being served by the same staff (probably because those staff already know what the customer expects and less explanation or “training” by the customer is required).

Although not explicitly discussed in the book, students should be able to think of reasons why this happy employees-happy customers relationship doesn’t always work. One explanation is that some happy employees do not display positive emotions as fully as other happy employees. Some people maintain a dour outward expression and behavior even though they are inwardly happy. Others may display positive emotions to customers, but lack the skills and knowledge to serve those clients well. The result is that customers remain unhappy with poor service even though the server was pleasant. A third factor is the customer’s perceptual and attitudinal characteristics.

Some customers are skeptical or suspicious of employees who have a positive presentation toward them.

Other customers remain dour or impolite to employees no matter how positive the employee’s emotions are displayed during the service encounter.

4.

Two college graduates recently joined the same major newspaper as journalists. Both work long hours and have tight deadlines for completing their stories. They are under constant pressure to scout out new leads and be the first to report new controversies. One journalist is increasingly fatigued and despondent and has taken several days of sick leave. The other is getting the work done and seems to enjoy the challenges. Use your knowledge of stress to explain why these two journalists are reacting differently to their jobs.

This incident describes two journalists with similar stressors experiencing different levels of stress and stress consequences. This illustrates the distinction between stressors and stress. It may also highlight the importance of individual differences in stress.

One possible reason why these two journalists are experiencing different stress levels is that they might perceive the situation differently. The low stress journalist might have higher self-esteem and confidence that he/she can complete the work.

A second explanation might be that the journalists have different threshold levels of resistance to a stressor.

Both are recent graduates and we don’t know if they are a similar age. However, the high stress journalist might have less resistance because he/she has recently experienced other stressors, such as death of a family member.

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Chapter 4: Workplace Emotions, Attitudes, and Stress

Finally, the different stress levels might be explained by the different strategies used to manage the stress. The high stress journalist might be using ineffective coping strategies (or hasn’t been applying stress management practices at all), whereas the low stress journalist is using stress management practices that work well here.

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Chapter 4: Workplace Emotions, Attitudes, and Stress

STUDENT HANDOUT

CASE STUDY: DIANA’S DISAPPOINTMENT: THE PROMOTION STUMBLING BLOCK

By Rosemary Maellaro, University of Dallas Diana Gillen had an uneasy feeling of apprehension as she arrived at the Cobb Street Grille corporate offices. Today she was meeting with her supervisor, Julie Spencer, and regional director, Tom Miner, to learn the outcome of her promotion interview for the district manager position. Diana had been employed by this casual dining restaurant chain for 12 years and had worked her way up from server to general manager. Based on her track record, she was the obvious choice for the promotion; and her friends assured her that the interview process was merely a formality.

Diana was still anxious, though, and feared that the news might not be positive. She knew she was more than qualified for the job, but that didn’t guarantee anything these days.

Nine months ago, when Diana interviewed for the last district manager opening, she thought her selection for the job was inevitable. She was shocked when that didn’t happen. Diana was so upset about not getting promoted then that she initially decided not to apply for the current opening. She eventually changed her mind—after all, the company had just named her Restaurant Manager of the Year and entrusted her with managing its flagship location. Diana thought her chances had to be really good this time.

A multi-unit management position was a desirable move up for any general manager and was a goal to which Diana had aspired since she began working in the industry. When she had not been promoted the last time, Julie, her supervisor, explained that her people skills needed to improve. But Diana knew that explanation had little to do with why she hadn’t gotten the job—the real reason was corporate politics. She heard that the person they hired was some super star from the outside—a district manager from another restaurant company who supposedly had strong multi- unit management experience and a proven track record of developing restaurant managers. Despite what she was told, she was convinced that Tom, her regional manager, had been unduly pressured to hire this person, who had been referred by the CEO. The decision to hire the outsider may have impressed the CEO, but it enraged Diana. With her successful track record as a store manager for the Cobb Street Grille, she was much more capable, in her opinion, of overseeing multiple units than someone who was new to the operation. Besides, district managers had always been promoted internally among the store managers and she was unofficially designated as the next one to move up to a district position. Tom had hired the outside candidate as a political maneuver to put himself in a good light with management, even though it meant overlooking a loyal employee like her in the process. Diana had no patience with people who made business decisions for the wrong reasons. She worked very hard to avoid politics—and it especially irritated her when the political actions of others negatively impacted on her.

Diana was ready to be a district manager nine months ago, and thought she was even more qualified today— provided the decision was based on performance. She ran a tight ship, managing her restaurant completely by the book. She meticulously adhered to policies and procedures and rigorously controlled expenses. Her sales were growing, in spite of new competition in the market, and she received relatively few customer complaints. The only number that was a little out of line was the higher turnover among her staff.

Diana was not too concerned about the increasing number of terminations, however; there was a perfectly logical explanation for this. It was because she had high standards—for herself and her employees. Any employee who delivered less than 110 percent at all times would be better off finding a job somewhere else. Diana didn’t think she should bend the rules for anyone, for whatever reason. A few months ago, for example, she had to fire three otherwise good employees who decided to try a new customer service tactic—a so-called innovation they dreamed up—rather than complying with the established process. As the general manager, it was her responsibility to make sure that the

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Chapter 4: Workplace Emotions, Attitudes, and Stress

restaurant was managed strictly in accordance with the operations manual and she could not allow deviations. This by- the-book approach to managing had served her well for many years. It got her promoted in the past and she was not about to jinx that now. Losing a few employees now and then—particularly those who had difficulty following the rules —was simply the cost of doing business.

During a recent store visit, Julie suggested that Diana might try creating a friendlier work environment because she seemed aloof and interacted with employees somewhat mechanically. Julie even told her that she overheard employees refer to Diana as the “Ice Maiden” behind her back. Diana was surprised that Julie brought this up because her boss rarely criticized her. They had an unspoken agreement: since Diana was so technically competent and always met her financial targets, Julie didn’t need to give her much input. Diana was happy to be left alone to run her restaurant without needless advice.

At any rate, Diana rarely paid attention to what employees said about her. She wasn’t about to let something as childish as a silly name cause her to modify a successful management strategy. What’s more, even though she had recently lost more than the average number of employees due to “personality differences” or “miscommunications” over her directives, her superiors did not seem to mind when she consistently delivered strong bottom line results every month.

As she waited in the conference room for the others, Diana worried that she was not going to get this promotion.

Julie had sounded different in the voicemail message she left to inform her about this meeting, but Diana couldn’t put her finger on exactly what it was. She would be very angry if she was passed over again and wondered what excuse they would have this time. Then her mind wandered to how her employees would respond to her if she did not get the promotion. They all knew how much she wanted the job and she cringed at how embarrassed she would be if she didn’t get it. Her eyes began to mist over at the sheer thought of having to face them if she was not promoted today.

Julie and Tom entered the room then and the meeting was under way. They told Diana, as kindly as they could, that she would not be promoted at this time; one of her colleagues would become the new district manager. She was incredulous. The individual who got promoted had been with the company only three years—and Diana had trained her! She tried to comprehend how this happened, but it did not make sense. Before any further explanation could be offered, she burst into tears and left the room. As she tried in vain to regain her composure, Diana was overcome with crushing disappointment.

Discussion Questions 1. Apply your knowledge of the four emotional intelligence dimensions to discuss the likely reasons why Diana wasn’t offered a promotion.

2. What skills does Diana need to develop to be promotable in the future? What can the company do to support her developmental efforts?

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Chapter 4: Workplace Emotions, Attitudes, and Stress

CONFIDENTIAL INSTRUCTOR NOTES

CS

CASE STUDY: DIANA’S DISAPPOINTMENT: THE PROMOTION STUMBLING BLOCK

These case notes were prepared by Rosemary Maellaro, University of Dallas Graduate School of Management

Case Synopsis Diana Gillen is a general manager of a Cobb Street Grille restaurant who hopes to be promoted to a multi-unit district manager position. She was recently passed over for a similar position because, although she is proficient technically, she lacks interpersonal competence. She believes that she should be promoted based on her tenure and her success in managing single units and is not in tune with the company’s new emphasis on a bigger picture focus and on developing managers. She is not sensitive to the feelings of others and interacts with people in a perfunctory manner; she chooses to keep relationships with her employees at arm’s length. She is also rather inflexible, and openly resists change.

Diana has not acknowledged or taken responsibility for her interpersonal skill deficiencies. Her supervisors sense Diana’s reluctance to address her weaknesses, so they typically steer clear of any development discussions in an effort to avoid uncomfortable situations. Because Diana is unable to accurately assess her skills and competencies in relation to the needs of the organization, she is surprised and confused with the regional director’s decisions to promote outsiders or her more recently hired colleagues.

Suggested Answers to Case Questions 1.

Apply your knowledge of the four emotional intelligence dimensions to discuss the likely reasons why Diana wasn't offered a promotion.

Awareness of own emotions Diana does not recognize or acknowledge her feelings of insecurity and fear about not being promoted. She disregards the fact that her unrefined interpersonal skills are holding her back and does not consider her lack of overall leadership competence when assessing her promotability; i.e., she focuses only on her technical skills.

Diana demonstrates minimal self-confidence by deciding to interview for the current opening only after considering others’ favorable assessments of her abilities (Store Manager of the Year award, managing the flagship restaurant).

Management of own emotions Diana’s extreme disappointments over not being promoted have manifested in rage and uncontrollable tears. She does not know how she will handle not being promoted. She focuses on not being selected and is cynical in her anticipation of the “excuses” that might be offered.

Awareness of others’ emotions By purposely avoiding organizational politics, Diana fails to recognize the shift in the valued competencies for multi-unit managers.

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Chapter 4: Workplace Emotions, Attitudes, and Stress

Management of others’ emotions Rather than attempt to influence employees to change their behavior, Diana simply fires them so as not to have to deal with them. She steadfastly holds onto her old tried and true management methods, unwilling to try different approaches or test new techniques.

2.

What skills does Diana need to develop to be promotable in the future? What can the company do to support her developmental efforts?

Accurate self-assessment. Diana needs to honestly appraise her limitations and strengths. She also needs to be more open to feedback and ask for help in developing the competencies necessary for promotion.

Self-control. Diana would benefit by being able to remain unflappable when confronted by trying situations.

She needs to be aware of the disturbing emotions she experiences and keep her impulses in check so she will not become enraged or cry uncontrollably.

Optimism. Rather than viewing the lack of promotion as a setback, Diana must embrace the opportunity to further develop the competencies necessary for promotion.

Organizational awareness. Diana needs to make an effort to understand the political forces at work in her organization and get in tune with the changes taking place, particularly as they relate to the new competencies that are valued for district managers.

Change catalyst. Diana’s promotability would be enhanced if she was better able to recognize the need for change, challenge the status quo, and champion a new order. She also must find practical ways to overcome barriers to change.

Teamwork and collaboration. It is critical that Diana generate an atmosphere of friendly collegiality, draw others into active, enthusiastic commitment to the collective effort, and build spirit and identity. She must spend time forging and cementing close relationships beyond mere work obligations.

Diana’s supervisor and regional director are obliged to be candid with her about the shift in promotional requirements and thoroughly explain the new competencies necessary to become a district manager. They must be honest with Diana about her need to balance technical expertise with emotionally intelligent leadership skills. They should set specific objectives with Diana to acquire these competencies and systematically give her constructive feedback, despite her reluctance to accept guidance or performance improvement suggestions.

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Chapter 4: Workplace Emotions, Attitudes, and Stress

SA

SELF-ASSESSMENT 4.1: WHAT IS YOUR EMOTIONAL PERSONALITY?

Overview and Instructions Emotions are influenced by the situation, but also by the individual's own personality. In particular, people tend to have a dispositional mood, that is, the level and valence of emotion that they naturally experience due to their personality.

This instrument estimates dispositional mood, that is, the level of emotion that a person naturally experiences as part of their personality. It consists of 20 words representing various emotions that a person might have experienced. For each word presented, students are asked to indicate the extent to which they have felt this way generally across all situations over the past six months.

Feedback for the Dispositional Mood Scale This self-assessment is designed to help students to estimate their dispositional mood, that is, their general emotional tendency based on your personality. The four dispositional mood categories created in this scale are positive energy, relaxation, negative arousal, and tiredness. These four categories are distinguished in two ways: (1) positive affectivity versus negative affectivity and (2) high activation and low activation. Thus, the four subscales are consistent with the affect circumplex model (positive-negative emotion, and high-low intensity emotion). The only difference is that this scale measures emotional personality rather than emotions in a specific setting.

Positive energy People who score high on positive energy have positive affectivity and high activation. Positive affectivity is the tendency to experience positive emotional states. It is very similar to extroversion, a personality trait depicting people who are outgoing, talkative, sociable, and assertive. Positive energy also includes high activation, meaning that people who score high on this scale experience more energizing or motivating positive emotions. Scores on this scale range from 1 to 5. From a sample of hospital employees, the average score was 3.0.

Score

Interpretation

3.8 to 5.0 2.4 to 3.7 1.0 to 2.3

High positive energy Moderate positive energy Low positive energy

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Chapter 4: Workplace Emotions, Attitudes, and Stress

Relaxation People who score high on relaxation have positive affectivity and low activation. Positive affectivity is the tendency to experience positive emotional states. It is very similar to extroversion, a personality trait depicting people who are outgoing, talkative, sociable, and assertive. Relaxation also includes low activation, meaning that people who score high on this scale experience more passive (less energizing) positive emotions. Scores on this scale range from 1 to 5.

From a sample of hospital employees, the average score was 2.6.

Score

Interpretation

3.8 to 5.0 2.4 to 3.7 1.0 to 2.3

High relaxation Moderate relaxation Low relaxation

Negative arousal People who score high on negative arousal have a tendency toward negative affectivity and high activation.

Negative affectivity is the tendency to negative emotions. Negative arousal also includes high activation, meaning that people who score high on this scale experience negative emotions that demand our attention (e.g., anger, upset).

People with negative arousal tend to be more distressed and unhappy because they focus on the negative aspects of life. Scores on this scale range from 1 to 5. From a sample of hospital employees, the average score was 2.1.

Score

Interpretation

3.8 to 5.0 2.4 to 3.7 1.0 to 2.3

High negative arousal Moderate negative arousal Low negative arousal

Tiredness People who score high on tiredness have a tendency toward negative affectivity and low activation. Negative affectivity is the tendency to negative emotions. Tiredness also includes low activation, meaning that people who score high on this scale experience more passive (less demanding) negative emotions. Scores on this scale range from 1 to 5. From a sample of hospital employees, the average score was 2.3.

Score

Interpretation

3.8 to 5.0 2.4 to 3.7 1.0 to 2.3

High tiredness Moderate tiredness Low tiredness

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Chapter 4: Workplace Emotions, Attitudes, and Stress

SA

SELF-ASSESSMENT 4.2: HOW WELL DO YOU RECOGNIZE AND REGULATE EMOTIONS?

Overview and Instructions Emotional intelligence has become an important concept and ability in the workplace. It is a skill that people develop throughout their lives to help them interact better with others, make better decisions, and manage the attitudes and behavior of other people.

Although emotional intelligence is best measured as an ability test, this scale offers you an opportunity to estimate your perceptions and self-awareness of this ability in yourself.

Students are asked to read each of the statements below and select the response that best describes them. Then they use the scoring key in Appendix B of this book to calculate your results. This self-assessment is completed alone so that students rate themselves honestly without concerns of social comparison. However, class discussion will focus on the meaning and dimensions of emotional intelligence, its application in the workplace, and the best ways to measure emotional intelligence.

Feedback for the Emotional Intelligence Self-Assessment Scale This scale measures the four dimensions of emotional intelligence described in this book. The meaning of the four dimensions are as follows: Awareness of own emotions. This is the ability to perceive and understand the meaning of your own emotions.

Management of own emotions. This is the ability to manage your own emotions. It includes generating or suppressing emotions and displaying behaviors that represent desired emotions in a particular situation.

Awareness of others’ emotions. This is the ability to perceive and understand the emotions of other people, including the practices of empathy an awareness of social phenomena such as organizational politics.

Management of others’ emotions. This is the ability to manage other people’s emotions. It includes generating or suppressing emotions in other people, such as reducing their sadness and increasing their motivation.

Scores on the four Emotional Intelligence Self-Assessment dimensions range from 4 to 20. The overall score ranges from 16 to 80.

The table on the next page shows norms from a sample of 235 MBA students. Most of these respondents are from Australia, but about 15 percent are from MBA classes in Singapore. Also, many of the Australian students come from other parts of the world (Asia, Europe, South America, North America). Respondents range from about 25 to over 50 years old, with an average age of approximately 32 years old. Approximately 30 percent are female. Norms vary from one population to another, so the MBA student norms shown here might not be as relevant for people attending some courses.

To illustrate how to read the norms in the table, look at the top 10 percentile for self-awareness. The score shown is 19, indicating that 10 percent of the 235 MBA students in this sample scored 19 or 20 and 90 percent scored below 19 on this dimension. Keep in mind that these results represent self-perceptions. Evaluations from others (such as through 360-degree feedback) may provide a more accurate estimate of emotional intelligence on some (not necessarily all) dimensions.

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Chapter 4: Workplace Emotions, Attitudes, and Stress

Emotional Intelligence Self-Assessment Norms Percentile

Awareness of own emotions

Management of own emotions

Awareness of others’ emotions

Management of others’ emotions

TOTAL

Average Score

16

14.7

14.7

14.8

60.4

Top 10 percentile

19

18

18

18

70

Top 25th percentile

18

17

16

16

66

16

15

15

15

61

15

13

13

13

56

14

11

11

12

51

Median (50

percentile)

Bottom 25th

percentile

Bottom 10 percentile

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Chapter 4: Workplace Emotions, Attitudes, and Stress

SA

SELF-ASSESSMENT 4.3: HOW COMMITTED ARE YOU TO YOUR SCHOOL?

Overview and Instructions Organizational (affective) commitment refers to an individual's emotional attachment to, involvement in, and identification with an organization. It is mostly discussed in this book as an employee's attitude toward the company where he or she works. But affective commitment is also relevant to a student's attitude toward the college or university where he or she is taking courses. This self-assessment adapts a popular organizational commitment instrument so it refers to the person’s commitment as a student to the school where they are attending this program.

Students are asked to read each of the statements and select the response that best fits their personal belief. Class discussion should focus on the meaning of the different types of organizational commitment and how well this scale applies to the commitment of students toward the college or university they are attending.

Feedback for the School Commitment Scale Affective commitment Affective commitment refers to a person’s emotional attachment to, identification with, and involvement in a particular organization. In this scale, the organization is the school where you are attending as a student. Scores on this scale range from 6 to 42. A higher score indicates a higher level of affective commitment.

How does your score compare with others? Ideally, you would compare your score with the collective results of other students in your class, but this might not be possible. Alternatively, the following graph provides a more general estimate of high and low affective commitment based on a sample of Canadian employees.

Score

Interpretation

Above 37

High affective commitment

32-36

Above average

28-31

Average

20-27

Below average

Below 20

Low affective commitment

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Chapter 4: Workplace Emotions, Attitudes, and Stress

Continuance commitment Continuance commitment occurs when employees believe it is in their own personal interest to remain with the organization. People with a high continuance commitment have a strong calculative bond with the organization. In this scale, the organization is the school where you are attending as a student.

How does your score compare with others? Ideally, you would compare your score with the collective results of other students in your class, but this might not be possible. Alternatively, the following graph provides a more general estimate of high and low continuance commitment based on a sample of Canadian employees.

Score

Interpretation

Above 32 26-31 21-25 13-20 Below 13

High continuance commitment Above average Average Below average Low continuance commitment

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Chapter 4: Workplace Emotions, Attitudes, and Stress

SA

SELF-ASSESSMENT 4.4: HOW STRESSED ARE YOU?

Overview and Instructions Stress is an adaptive response to a situation that is perceived as challenging or threatening to the person’s well-being.

It is an increasing concern in today's society.

This self-assessment is designed to help students to estimate their perceived general level of stress. The questions in this scale ask students about their feelings and thoughts during the last month. In each case, students are asked to indicate how often they felt or thought a certain way. As with other instruments, students need to be honest with themselves to for a reasonable estimate of their general level of stress. This instrument has 14 statements.

Feedback for the Perceived Stress Scale The perceived stress scale estimates the extent to which recent events in our life are appraised as stressful. It taps into the degree to which people believe events in their lives are currently unpredictable, uncontrollable, and overloading.

The scale is not restricted to specific situations, so is appropriate for people in a variety of situations (e.g., students, executives, children).

Scores on the perceived stress scale range from 0 to 56. Higher scores indicate that the respondent perceives his/her current life situation as stressful. Based on samples of over 1,000 people (mostly college students in the United States), the average score is around 24 for men and 25 for women.

Score

Interpretation

40 to 56 20 to 39 0 to 19

High perceived stress Moderate perceived stress Low perceived stress

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Chapter 4: Workplace Emotions, Attitudes, and Stress

SA

SELF-ASSESSMENT 4.5: ARE YOU A WORKAHOLIC?

Overview and Instructions Some people are highly involved in work, have an inner compulsion to work at full speed, and yet don't enjoy work.

People with these personal characteristics are called workaholics, and they tend to experience high levels of (dis)stress, which can produce long-term health problems.

The Work Addiction Risk Test estimates the student’s level of workaholism. Workaholics are highly involved in work, feel compelled or driven to work because of inner pressures, and have low in enjoyment at work. They exhibit compulsive behavior and are preoccupied with work, often to the exclusion and detriment of the workaholic’s health, intimate relationships, and participation in child rearing.

Students are asked to read each statement in this instrument and indicate the extent to which each statement is true of their work habits. This instrument has 21 statements.

Feedback for the Work Addiction Risk Test This scale estimates an overall workaholism score as well as scores on the three dimensions of workaholism: compulsive tendencies, need for control, and decision impairment. Scores on all scales range from 0 to 3.

Compulsive tendencies People with high scores on this subscale tend to push their work effort beyond reasonable expectations and impose excessive pressure on their work performance. Scores on this subscale range from 0 to 3.

Score

Interpretation

2.1 to 3.0 1.1 to 2.0 0 to 1.0

Strong compulsive tendencies Some compulsive tendencies Low compulsive tendencies

Need for control People with high scores on this subscale have a high need for perfection and control over the situation. Scores on this subscale range from 0 to 3.

Score

Interpretation

2.1 to 3.0 1.1 to 2.0 0 to 1.0

Strong need for control Some need for control Low need for control

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Chapter 4: Workplace Emotions, Attitudes, and Stress

Decision Impairment People with high scores on this subscale tend to act before fully thinking through the process or implications of their actions. Scores on this subscale range from 0 to 3.

Score

Interpretation

2.1 to 3.0 1.1 to 2.0 0 to 1.0

Strong decision impairment Some decision impairment Low decision impairment

Work Addition Total Score This is the total score on the work addition risk test. People with higher scores are more likely to experience workaholism. Scores on this subscale range from 0 to 3.

Score

Interpretation

2.1 to 3.0 1.1 to 2.0 0 to 1.0

Severe work addiction Moderate work addiction Low work addiction

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Chapter 4: Workplace Emotions, Attitudes, and Stress

SA

SELF-ASSESSMENT 4.6: HOW DO YOU COPE WITH STRESSFUL SITUATIONS?

Overview and Instructions People cope with stress in several ways. The best coping strategy usually depends on the source of stress and other circumstances. However, people also have a natural preference for some types of coping strategies more than others.

This self-assessment is designed to estimate the individual’s preferred styles of coping. Students are asked to read each statement in this instrument and select the response that best indicates how much tend tend to react in that way when faced with a difficult, stressful or upsetting situation.

Feedback for the Stress Coping Preference Scale People cope in various ways with stress and various challenges in life. While the preferred coping strategy depends to some degree on the source of the stress, people also have a natural preference for some types of coping strategies more than others. Coping strategies also change over different stages of one’s life.

The Stress Coping Preference Scale estimates the person’s current preference to use four sets of coping strategies: problem solving, social support, avoidance, and blaming others. These do not represent the full set of ways that people cope with life’s challenges, but they are common tactics. They are identified as helpful or dysfunctional approaches to stress management.

Problem Solving People with high scores on this subscale tend to deal with stress by actively attempting to remove the stressor by changing the situation. This coping strategy is associated with higher resilience and usually improves your ability to manage stress. Scores on this subscale range from 0 to 16. The average score in similar measures of coping is between 8 and 9.

Score

Interpretation

12 to 16 7 to 11 0 to 6

High problem solving coping Moderate problem solving coping Low problem solving coping

Social Support People with high scores on this subscale tend to deal with stress by actively seeking emotional support, information, or guidance from others. This coping strategy is part of the “tend and befriend” response that some research suggests is more common among women than among men. Generally, coping through social support has a beneficial effect and is identified as a favorable approach to stress management. Scores on this subscale range from 0 to 16. The average score in similar measures of coping is slightly less than 8.

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Chapter 4: Workplace Emotions, Attitudes, and Stress

Score

Interpretation

11 to 16 6 to 10 0 to 5

High social support coping Moderate social support coping Low social support coping

Avoidance People with high scores on this subscale tend to deal with stress by cognitively and/or behaviorally acting in ways that prevent the person from coming to terms with and resolving the source of stress. While avoidance may be effective when the problem is short-lived and beyond one’s control, research concludes that this coping strategy is usually an ineffective approach to stress management. In fact, it significantly differentiates people with high and low resilience. Scores on this subscale range from 0 to 16. The average score in similar measures of coping is around 6.

Score

Interpretation

10 to 16 5 to 9 0 to 4

High avoidance coping Moderate avoidance coping Low avoidance coping

Blaming Others People with high scores on this subscale tend to deal with stress by directing their energy to identify and seek justice against those perceived as the source of the stressor. This form of coping may include exhibiting emotions or engaging in behaviors that get back at the alleged perpetrators. Blaming others is generally considered a maladaptive response to stress because it redirects energy away from productive approaches to deal with the stressor. Furthermore, this strategy can potentially alienate others, which reduces opportunities for social support.

Scores on this subscale range from 0 to 16. The average score in similar measures of coping is around 7.

Score

Interpretation

11 to 16 6 to 10 0 to 5

High coping through blaming others Moderate coping through blaming others Low coping through blaming others

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Chapter 5: Employee Motivation

Instructor’s Manual to Accompany

M:Organizational Behavior 5/e

by Steven L. McShane and Mary Ann Von Glinow

Chapter 5: Employee Motivation Prepared by Steven L. McShane, University of Newcastle (Australia)

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Chapter 5: Employee Motivation

5

Foundations of Employee Motivation

LEARNING OBJECTIVES After reading this chapter, students should be able to:

5-1 Define employee motivation and engagement.

5-2 Explain how drives and emotions influence employee motivation.

5-3 Discuss the employee motivation implications of four-drive theory, Maslow’s needs hierarchy, intrinsic and extrinsic motivation, and learned needs theory.

5-4 Discuss the expectancy theory model, including its practical implications.

5-5 Outline organizational behavior modification (OB Mod) and social cognitive theory, and explain their relevance to employee motivation.

5-6 Describe the characteristics of effective goal setting and feedback.

5-7 Explain how equity theory, procedural justice, and interactional justice influence employee motivation. 5-8 List the advantages and disadvantages of job specialization and explain how to improve employee motivation through job design.

CHAPTER GLOSSARY distributive justice — the perception that appropriate decision criteria rules were applied to calculate how various benefits and burdens are distributed drives — hardwired characteristics of the brain that correct deficiencies or maintain an internal equilibrium by producing emotions to energize individuals employee engagement — individual emotional and cognitive motivation, particularly a focused, intense, persistent, and purposive effort toward work-related goals

extrinsic motivation — motivation that occurs when people want to engage in an activity for instrumental reasons, that is, to receive something that is beyond their personal control four-drive theory — a motivation theory based on the innate drives to acquire, bond, comprehend, and defend that incorporates both emotions and rationality goal — a cognitive representation of a desired end state that a person is committed to attain

equity theory — a theory explaining how people develop perceptions of fairness in the distribution and exchange of resources

interactional justice — the perception that appropriate rules have been applied in the way the people involved are treated throughout the decision process

expectancy theory — a motivation theory based on the idea that work effort is directed toward behaviors that people believe will lead to desired outcomes

intrinsic motivation — motivation that occurs when people are fulfilling their needs for competence and autonomy by engaging in the activity itself, rather than from an externally controlled outcome of that activity

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Chapter 5: Employee Motivation

job characteristics model — a job design model that relates the motivational properties of jobs to specific personal and organizational consequences of those properties

procedural justice — the perception that appropriate procedural rules have been applied throughout the decision process

job enlargement — the practice of increasing the number and variety of related tasks assigned to a job

scientific management — the practice of systematically partitioning work into its smallest elements and standardizing tasks to achieve maximum efficiency

job enrichment — the practice of giving employees more responsibility for scheduling, coordinating, and planning their own work

self-reinforcement — reinforcement that occurs when an employee has control over a reinforcer but doesn’t “take” it until completing a self-set goal

job specialization — the result of a division of labor, in which work is subdivided into separate jobs assigned to different people

skill variety — the extent to which employees must use different skills and talents to perform tasks within their jobs

Maslow’s needs hierarchy theory — a motivation theory of needs arranged in a hierarchy, whereby people are motivated to fulfill a higher need as a lower one becomes gratified

social cognitive theory — a theory that explains how learning and motivation occur by observing and modeling others as well as by anticipating the consequences of our behavior

motivation — the forces within a person that affect the direction, intensity, and persistence of effort for voluntary behavior

strengths-based coaching — an approach to coaching and feedback that focuses on building and leveraging the employee’s strengths rather than trying to correct their weaknesses

need for achievement (nAch) — a learned need in which people want to accomplish reasonably challenging goals and desire unambiguous feedback and recognition for their success need for affiliation (nAff) — a learned need in which people seek approval from others, conform to their wishes and expectations, and avoid conflict and confrontation need for power (nPow) — a learned need in which people want to control environment, including people and material resources, to benefit either themselves (personalized power) or others (socialized power) needs — Goal-directed forces that people experience organizational behavior modification — a theory that explains employee behavior in terms of the antecedent conditions and consequences of that behavior

task analyzability — the degree to which job duties allow the application of established procedures and rules to guide decisions and behavior (high analyzability); employee creativity and judgment are necessary to perform jobs with low task analyzability task identity — the degree to which a job requires completion of a whole or an identifiable piece of work task significance — the degree to which a job has a substantial impact on the organization and/or larger society task variability — the degree to which job duties are nonroutine and unpredictable; employees perform diverse tasks from one day to the next because they are faced with unfamiliar and unexpected issues

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Chapter 5: Employee Motivation

CHAPTER SUMMARY BY LEARNING OBJECTIVE 5-1 Define employee motivation and engagement.

Motivation consists of the forces within a person that affect his or her direction, intensity, and persistence of voluntary behavior in the workplace. Employee engagement is defined as an individual’s emotional and cognitive (rational) motivation, particularly a focused, intense, persistent, and purposive effort toward workrelated goals. It is emotional involvement in, commitment to, and satisfaction with the work, as well as a high level of absorption in the work and sense of self-efficacy about performing the work.

5-2 Explain how drives and emotions influence employee motivation.

Drives (also called primary needs) are neural states that energize individuals to correct deficiencies or maintain an internal equilibrium. They generate emotions, which put us in a state of readiness to act. Needs—goal-directed forces that people experience—are shaped by the individual’s self-concept (including personality and values), social norms, and past experience.

5-3 Discuss the employee motivation implications of four-drive theory, Maslow’s needs hierarchy, intrinsic and extrinsic motivation, and learned needs theory.

Four-drive theory states that everyone has four innate drives: acquire, bond, comprehend, and defend. These drives activate emotions that people regulate through social norms, past experience, and personal values. The main recommendation from four-drive theory is to ensure that individual jobs and workplaces provide a balanced opportunity to fulfill the four drives. Maslow’s needs hierarchy theory groups needs into a hierarchy of five levels and states that the lowest needs are initially most important, but higher needs become more important as the lower ones are satisfied. Although very popular, the theory lacks research support, mainly because it wrongly assumes that everyone has the same hierarchy. The emerging evidence suggests that needs hierarchies vary from one person to the next, according to their personal values.

Intrinsic motivation refers to motivation controlled by the individual and experienced from the activity itself, whereas extrinsic motivation occurs when people are motivated to receive something that is beyond their personal control for instrumental reasons. Intrinsic motivation is anchored in the innate drives for competence and autonomy. Some research suggests that extrinsic motivators may reduce existing intrinsic motivation to some extent and under some conditions, but the effect is often minimal. McClelland’s learned needs theory argues that needs can be strengthened through learning. The three needs studied in this respect have been need for achievement, need for power, and need for affiliation.

5-4 Discuss the expectancy theory model, including its practical implications.

Expectancy theory states that work effort is determined by the perception that effort will result in a particular level of performance (E-to-P expectancy), the perception that a specific behavior or performance level will lead to specific outcomes (P-to-O expectancy), and the valences that the person feels for those outcomes. The E-to-P expectancy increases by improving the employee’s ability and confidence to perform the job. The P-to-O expectancy increases by measuring performance accurately, distributing higher rewards to better performers, and showing employees that rewards are performance-based. Outcome valences increase by finding out what employees want and using these resources as rewards.

5-5 Outline organizational behavior modification (OB Mod) and social cognitive theory, and explain their relevance to employee motivation.

Organizational behavior modification takes the behaviorist view that the environment teaches people to alter their behavior so that they maximize positive consequences and minimize adverse consequences. Antecedents are environmental stimuli that provoke (not necessarily cause) behavior. Consequences are events following behavior that influence its future occurrence. Consequences include positive reinforcement, punishment, negative reinforcement, and extinction. The schedules of reinforcement also influence behavior.

Social cognitive theory states that much learning and motivation occur by observing and modeling others, as well as by anticipating the consequences of our behavior. It suggests that people typically infer (rather than only directly Page 5-4 Copyright © 2022 McGraw Hill. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill.

Chapter 5: Employee Motivation

experience) cause-and-effect relationships, anticipate the consequences of their actions, develop self-efficacy in performing behavior, exercise personal control over their behavior, and reflect on their direct experiences. The theory emphasizes self-regulation of individual behavior, including self-reinforcement, which is the tendency of people to reward and punish themselves as a consequence of their actions.

5-6 Describe the characteristics of effective goal setting and feedback.

A goal is a cognitive representation of a desired end state that a person is committed to attain, and goal setting is the process of motivating employees and clarifying their role perceptions by establishing performance objectives.

Goals are more effective when they are SMARTER (specific, measurable, achievable, relevant, time-framed, exciting, and reviewed). Effective feedback is specific, relevant, timely, credible, and sufficiently frequent.

Strengths-based coaching maximizes employees’ potential by focusing on their strengths rather than weaknesses. Strengths-based coaching tends to be effective because people are more receptive to information about their strengths rather than flaws, and because a person’s motivation and ability becomes more stable over time. Employees usually prefer nonsocial feedback sources to learn about their progress toward goal accomplishment.

5-7 Explain how equity theory, procedural justice, and interactional justice influence employee motivation.

Organizational justice exists in several forms, the main three of which are distributive, procedural, and interactional. Distributive justice refers to the perception that appropriate decision criteria (rules) have been applied to calculate how various benefits and burdens are distributed. These rules relate to equality, need, or equity. Equity theory has four elements: outcome/input ratio, comparison other, equity evaluation, and consequences of inequity. The theory also explains what people are motivated to do when they feel inequitably treated.

Procedural justice is the perception that appropriate procedural rules have been applied throughout the decision process. These rules include that the decision maker is unbiased, considers the full complement of accurate information, considers the interests of all groups affected, applies ethical principles, applies decision criteria and procedural rules consistently, allows employees to present their views, and allows appeal of decisions.

Interactional justice is the perception that appropriate rules have been applied in the way employees are treated throughout the decision process. These rules include that employees are treated with respect and politely, that they receive thorough and logical explanations as well as honest and timely information about the decision. Lack of procedural and interactional justice results in negative emotions (ranging from anger to shame) as well as a variety of behaviors that harm the organization (such as lower performance and higher incidence of turnover, aggression, and theft).

5-8 List the advantages and disadvantages of job specialization and explain how to improve employee motivation through job design.

Job specialization subdivides work into separate jobs for different people. This increases work efficiency because employees master the tasks quickly, spend less time changing tasks, require less training, and can be matched more closely with the jobs best suited to their skills. However, job specialization may reduce work motivation; reduce the quality of work output; and increase costs through discontentment pay, absenteeism, and turnover.

The job characteristics model is a template for job redesign that specifies core job dimensions, psychological states, and individual differences. The five core job dimensions are skill variety, task identity, task significance, autonomy, and job feedback. Jobs also vary in their required social interaction (social interaction and social feedback) and information processing characteristics (task variability and task analyzability). Contemporary job design strategies try to motivate employees through job rotation, job enlargement, and job enrichment.

Organizations introduce job rotation to reduce job boredom, develop a more flexible workforce, and reduce the incidence of repetitive strain injuries. Job enlargement involves increasing the number of tasks within the job.

Two ways to enrich jobs are clustering tasks into natural groups and establishing client relationships.

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Chapter 5: Employee Motivation

LECTURE OUTLINE Slide 1: Foundations of Employee Motivation Slide 2: Learning Objectives 5-1

Define employee motivation and engagement.

5-2

Explain how drives and emotions influence employee motivation.

Discuss the employee motivation implications of four-drive theory, Maslow’s needs hierarchy, intrinsic and extrinsic motivation, and learned needs theory.

5-3 5-4

Discuss the expectancy theory model, including its practical implications.

Outline organizational behavior modification (OB Mod) and social cognitive theory, and explain their relevance to employee motivation.

5-5 5-6

Describe the characteristics of effective goal setting and feedback.

Explain how equity theory, procedural justice, and interactional justice influence employee motivation.

5-7

List the advantages and disadvantages of job specialization and explain how to improve employee motivation through job design.

5-8

Slide 3: Employee Motivation and Engagement Motivation defined: The forces within a person that affect the direction, intensity, and persistence of effort for voluntary behavior • Motivated employees are willing to exert a particular level of effort (intensity), for a certain amount of time (persistence), toward a particular goal (direction) Employee engagement defined: Employee’s emotional and cognitive motivation, particularly a focused, intense, persistent, and purposive effort toward work-related goals • Focused, intense, persistent, and purposive effort toward work-related goals • High self-efficacy (i.e., belief that you have the ability, role clarity, and resources to get the job done) • High level of absorption in the work (i.e., intense focus) Employee engagement has a strong effect on employee and work unit performance

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Chapter 5: Employee Motivation

Slide 4: Employee Drives Hardwired characteristics of the brain that correct deficiencies or maintain an internal equilibrium by producing emotions to energize individuals • No agreement on list of drives, but several understood — drive for social interaction, competence, to comprehend our surroundings, to defend ourselves • Drives are innate and universal — exist from birth, everyone has them • Drives produce emotions that energize us to act on our environment — put us in a state of readiness • Drives (and emotions produced by drives) are the prime movers of behavior (our motivation originates from drives)

Slide 5: Employee Needs Goal-directed forces that people experience Motivational forces generated from emotions are channeled toward specific goals Goals formed by self-concept, social norms, and past experience — guide direction of our effort Individual differences in needs — self-concept, social norms, and past experience amplify or suppress drive-based emotions

Slide 6: Four-Drive Theory States that emotions are generated through four drives • Drive to acquire ➡ Drive to seek, take, control, and retain objects and personal experiences ➡ Need for status and recognition; foundation of competition • Drive to bond ➡ Drive to form social relationships and mutual caring commitments with others ➡ Explains why people form social identities (align self-concept with social groups)

• Drive to comprehend ➡ Drive to satisfy our curiosity, to know and understand ourselves and our environment ➡ Related to higher order needs of growth and self-actualization • Drive to defend ➡ Drive to protect ourselves physically and socially; “fight or flight” response; includes defending our relationships and belief systems

Three drives are proactive — they are regularly activated by our perceptions to seek fulfillment — only drive to defend is reactive (triggered by threat) Page 5-7 Copyright © 2022 McGraw Hill. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill.

Chapter 5: Employee Motivation

Slide 7: How Four Drives Motivate 1. Four drives determine which emotions are automatically tagged to incoming information

(emotional markers)

2. Emotions are usually nonconscious, but become conscious experiences when sufficiently

strong or conflict

3. When emotions energize us, our mental skill set transforms this primary motivation into

goal-directed choice and effort • Mental skill set includes social norms, personal values, and experience

Slide 8: Practical Implications of Four Drive Theory Provide a balanced opportunity for employees to fulfill all four drives 1. Best workplaces for employee motivation and well-being help employees fulfill all four drives 2. Keep fulfillment of all four drives in balance — organizations should avoid too much or too little opportunity to fulfill each drive ➡ Four drives counterbalance one another ➡ Drive to bond counterbalances the drive to acquire ➡ Drive to comprehend counterbalances the drive to defend

Slide 9: Maslow’s Needs Hierarchy Theory Most widely known theory of human motivation — physiological, safety, belongingness, esteem, and self-actualization • Two additional categories not in the hierarchy — need to know and need for beauty (beauty includes “beauty, symmetry, and likely simplicity, completion, and order”) • Strongest source of motivation is the lowest unsatisfied need • When lower need is satisfied, next higher need becomes the primary motivator • Highest need (self-actualization) continues to develop —only temporarily satiated Maslow’s model lacks empirical support • Incorrectly claims that everyone has the same needs hierarchy — yet people have different needs hierarchies • People have different hierarchies of values, so needs hierarchy also differs and may change over time

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Chapter 5: Employee Motivation

Maslow’s Contribution to Motivation 1. Holistic perspective • Multiple needs should be studied together because they operate together.

2. Humanistic perspective • Higher-order needs are influenced by human thoughts such as personal values, not

just instinct.

3. Positive perspective • Self-actualization: people are naturally motivated to reach their potential (growth

needs) — earlier research focused on deficiencies (e.g., hunger).

Slide 10: Intrinsic and Extrinsic Motivation Intrinsic motivation — fulfilling needs for competence and autonomy by engaging in the activity itself, rather than from an externally controlled outcome of that activity • Drive for competence — applying skills and observing positive, meaningful outcomes from those talents • Drive for autonomy — motivation is self-initiated rather than controlled from an external source Extrinsic motivation — occurs when people want to engage in an activity for instrumental

reasons — to receive something that is beyond their personal control • Directing effort toward a reward that indirectly fulfills personal needs • Example: motivated to win recognition awards, which indirectly fulfill need for status • Also indirect forms of extrinsic motivation — example: motivated to avoid peer pressure to complete assignment on time Effect of extrinsic motivation on intrinsic motivation • Question whether extrinsic motivators add motivation beyond intrinsic motivators or reduce intrinsic motivation • Research evidence — extrinsic motivators may reduce existing intrinsic motivation to some extent and under some conditions, but the effect is often minimal

Slide 11: Learned Needs Theory Needs are learned (shaped, amplified, suppressed) through self-concept, social norms, and past experience.

• Training can change a person’s need strength through reinforcement and altering their self-concept .

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Chapter 5: Employee Motivation

Three Learned Needs Need for achievement (nAch) • High nAch people want to accomplish reasonably challenging goals through their own effort.

• They desire clear feedback and recognition; prefer working alone; money is a weak motivator.

• Successful entrepreneurs tend to have high achievement need.

Need for affiliation (nAff) • Seek approval of others, conform to their wishes and expectations, and avoid conflict and confrontation.

• High nAff employees are more easily biased by a strong need for approval — therefore, less effective at making difficult decisions about distributing scarce resources.

Need for power (nPow) • Desire to exercise control over others, involvement in team decisions, use persuasion, desire to maintain a leadership position.

• Personalized power — enjoy power for its own sake and use it to advance personal interests.

• Socialized power — desire power as a means to help others.

• Effective leaders — have high need for socialized rather than personalized power.

Slide 12: Expectancy Theory of Motivation Based on the idea that work effort toward is directed toward behaviors that people believe will lead to desired outcomes — explains what people are motivated to do Effort-to-Performance (E-to-P) expectancy • Perceived probability that our effort will result in a particular level of performance • Ranges from 0.0 (no chance) to 1.0 (certainty) Performance-to-Outcome (P-to-O) expectancy • Perceived probability that a performance level will lead to a particular outcome • Ranges from 0.0 (no chance) to 1.0 (certainty) Outcome valences • Anticipated satisfaction/dissatisfaction from receiving an outcome • Positive valence when outcome is consistent with our values and satisfy our needs; negative valance when outcome opposes values and inhibit need fulfillment

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Chapter 5: Employee Motivation

Slide 13: Expectancy Theory in Practice Increasing E-to-P Expectancies • Select people with the required skills and knowledge.

• Provide required training and clarify job requirements.

• Assign simpler or fewer tasks until employees can master them.

• Provide sufficient time and resources.

• Provide examples of similar employees who have successfully performed the task.

• Provide coaching to employees who lack self-efficacy.

Increasing P-to-O Expectancies • Measure job performance accurately.

• Clearly explain the outcomes that will result from successful performance.

• Describe how the employee’s rewards were based on past performance.

• Provide examples of others whose good performance has resulted in higher rewards.

Increasing Outcome Valences • Distribute rewards that employees value.

• Individualize rewards.

• Minimize countervalent outcomes (e.g., peer pressure).

Slide 14: ABCs of Behavior Modification Expectancy theory says motivation is determined by employee beliefs about expected performance and outcomes OB Mod and social cognitive theory explain how people learn those expectancy beliefs (probabilities) Organizational behavior modification (OB Mod) • Explains employee behavior by the antecedent conditions and consequences of that behavior • Focuses on environment, not thoughts

ABCs of OB Mod Central objective of behavior modification is to change behavior (B) by managing its antecedents (A) and consequences (C) Antecedents • Events preceding the behavior

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Chapter 5: Employee Motivation

• Informs employees that a particular action will produce specific consequences –

e.g., sound signaling that an email has arrived Behavior • What people say or do — e.g., checking phone for a new message Consequences • Events following behavior that influences its future occurrence — e.g., see new message with valuable information

Slide 15: Four OB Mod Consequences Positive reinforcement • Occurs when introducing a consequence increases or maintains the frequency or future probability of a specific behavior ➡ Example: receiving praise after completing a project • Preferred consequence for reinforcing desired behaviors Punishment • Occurs when a consequence decreases frequency/probability of a behavior ➡ Example: being demoted or ostracized by our co-workers Extinction • Occurs when the target behavior decreases because no consequence follows it ➡ Example: performance declines when manager stops congratulating employees for their good work Negative reinforcement • Occurs when removing or avoiding a consequence increases or maintains the frequency or future probability of a behavior • Example: manager stops criticizing employee when poor performance improves • Desired consequence for reducing undesirable behaviors

OB Mod Schedules of Reinforcement Continuous reinforcement schedule

• Positive reinforcement after every occurrence of the desired behavior • Best for learning new tasks

Variable ratio schedule • Employee behavior is reinforced after a variable number of times • Makes behavior highly resistant to extinction

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Chapter 5: Employee Motivation

Side 16: Social Cognitive Theory Learning and motivation occurs by observing and modeling others as well as by anticipating the consequences of our behavior Learning behavior consequences • Observing consequences that others experience ➡ E.g. co-worker fired for being rude to a customer

• Anticipating consequences in other situations ➡ Fired coworker incident affects your P-to-O expectancy about being fired if rude to coworkers

Behavior modeling • Observing, imitating, and practicing behavior of others • Increases self-efficacy Self-regulation • People engage in intentional, purposive action • They set their own short- and long-term goals, standards of achievement, plan of action, consider alternatives, and anticipate consequences • Self-reinforcement — reinforce behavior by rewarding/punishing themselves with consequences within their control

Slide 17: Effective Goal-Setting Features Goal — a cognitive representation of a desired end state that a person is committed to attain • clarifying role perceptions and, consequently, the direction of effort • amplify the intensity and persistence of effort — easier to judge energy needed Apply “SMARTER” goals • Specific — what, how, where, when, and with whom the task needs to be accomplished • Measurable — how much, how well, at what cost • Achievable — challenging, yet accepted (maintain high E-to-P expectancy) • Relevant — within employee’s control • Time-framed — due date and when assessed • Exciting — employee commitment, not just compliance • Reviewed — feedback and recognition on goal progress and accomplishment

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Chapter 5: Employee Motivation

Slide 18: Characteristics of Effective Feedback 1. Specific — information refers to identifiable behaviors and (when possible) measurable

outcomes — e.g., “Sales increased by 5 percent this month”

2. Relevant — relates to the behavior and outcomes within employee’s control 3. Timely — available as soon as possible so employees see a clear association between

their actions and consequences

4. Credible — information source should have complete and accurate information, recall

information reliably, be unbiased in communicating and applying the feedback, describe the feedback in a supportive and empathetic manner

5. Sufficiently frequent — information is provided more often for those learning new tasks,

and according to the job cycle’s frequency

Slide 19: Strengths-Based Coaching Maximizing employee potential by focusing on strengths rather than weaknesses Strengths-based coaching process • Employees describe areas of work where they excel or demonstrate potential.

• Coach’s questions guide employee to discover how to leverage this strength.

• Identify situational barriers and strategies to overcome.

Strengths-based approach motivates because: • People are more receptive to information about their strengths, less about their flaws.

• Employee personality becomes stable as a young adult, which limits flexibility in interests, preferences, and abilities.

Slide 20: Sources of Feedback Nonsocial sources — feedback not conveyed directly by people (e.g., electronic displays) Social sources — feedback directly from others (e.g., boss, customers, multisource) • Multisource feedback — a full circle of people around the employee ➡ Potentially more accurate and fairer than from supervisor alone ➡ Potentially expensive, time-consuming, ambiguous, inflated, etc

Preferred feedback source: • Use nonsocial feedback for goal progress and feedback/accomplishment. ➡ Nonsocial more accurate, whereas social sources tend to delay/distort negative feedback ➡ Negative feedback less damaging to self-esteem

• Use social sources for conveying positive feedback ➡ Enhances employee’s self-esteem

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Chapter 5: Employee Motivation

Evaluating Goal Setting and Feedback Goal setting and feedback — generally a highly effective practice for employee motivation and performance Goal setting/feedback limitations: • Focuses employees on a narrow set of measurable performance indicators (i.e., “What gets measured, gets done”) • Difficult goals may motivate unethical behavior to achieve those goals • Difficult goals are stressful, which can undermine overall job performance • Interferes with learning process in new, complex jobs despite being effective in established jobs • Motivates employees to set easy goals when tied to pay (bonus)

Slide 21: Organizational Justice Organizational justice — the perception that appropriate formal or informal rules have been applied to the situation Three most common types of justice: 1. Distributive justice — perception that appropriate decision criteria (rules) have been

applied to calculate how various benefits and burdens are distributed • Decision rules (criteria) — such as effort, need, or membership — determine how much each person should receive • Several distributive justice principles and associated criteria ➡ Equality principle: everyone in the group should receive the same outcomes ➡ Need principle: those with greatest need should receive more outcomes than others ➡ Equity principle: people should receive outcomes in proportion to their contribution

2. Procedural justice — perception that appropriate procedural rules have been applied

throughout the decision process

3. Interactional justice — perception that appropriate rules have been applied in the way

employees are treated throughout the decision process

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Chapter 5: Employee Motivation

Slide 22: Equity Theory Model Outcome/input ratio • Inputs — what employee contributes, e.g., skill, effort, reputation, performance, experience, hours worked • Outcomes — what employee receives, e.g., pay, promotions, recognition, interesting jobs, opportunities to improve skills Comparison other • Person/people against whom we compare our ratio • Not easily identifiable — may be someone in the same job, another job, or another company, or a “generalized” comparison other Equity evaluation • Compare outcome/input ratio with the comparison other • Result: perception of equity, underreward inequity or overreward inequity

Slide 23: Correcting Inequity Tension Inequity tension — occurs when we believe we are underrewarded or overrewarded Motivated to reduce this negative emotion

Equity theory identifies several ways people correct underreward inequity 1. Reduce our inputs — e.g., work more slowly, offer fewer suggestions, engage in less

organizational citizenship behavior

2. Increase our outcomes — e.g., ask for a pay raise, make unauthorized use of company

resources

3. Increase the comparison other’s inputs — e.g., ask the better-paid co-worker to do a

larger share of the work

4. Reduce comparison other’s outcomes — e.g., ensuring the co-worker gets less desirable

jobs or working conditions

5. Change our perceptions/beliefs, i.e., perceptual rather than behavioral — e.g., believe

that the co-worker really is doing more such as working longer hours

6. Change the comparison other — e.g., compare yourself more with a friend who works in

a similar job than the higher-paid co-worker

7. Leave the field — e.g., move to another department, quit

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Chapter 5: Employee Motivation

Slide 24: Procedural Justice Rules Perception that appropriate rules are applied in the procedures used throughout the decision process.

Procedural justice rules: • Decision makers are not biased by self-interest or restrictive doctrines.

• Allocation decisions are based on a full complement of accurate information.

• Decision makers consider the interests of all groups affected by the outcomes.

• Decisions and procedures are compatible with ethical principles.

• Decision criteria/procedures are applied consistently across persons and over time.

• Employees can present their evidence and opinions to decision makers (voice).

• Questionable decisions and procedures can be appealed and overturned.

Slide 25: Interactional Justice Rules Perception that appropriate rules are applied in the way the people involved are treated throughout the decision process Interactional justice rules: • Employees are treated in a polite manner.

• Employees are treated with respect.

• Employees receive thorough and well justified explanations about the decision.

• Employees receive honest, candid, and timely information about the decision.

Consequences of Procedural and Interactional Injustice Victims experience negative emotions Common outcomes: less work effort (and performance), fewer organizational citizenship behaviors, less cooperation with coworkers, increased involvement in union activities, increased turnover Victims retaliate to restore their self-esteem, status, power in the relationship, educate the decision maker to reduce future injustices Increased aggression toward decision maker and those treated more favorably More extreme dysfunctional behaviors — theft, sabotage, violence

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Chapter 5: Employee Motivation

Slide 26: Job Design and Job Specialization Organization's goal — design jobs that can be performed efficiently yet employees are motivated and engaged • Jobs with few tasks and requiring few skills — become efficient quickly, but lack motivation potential • Jobs with many tasks and requiring many skills — can be highly motivating (to a point), but long timer to become efficient Work efficiency through job specialization • The result of a division of labour, in which work is subdivided into separate jobs assigned to different people • Short cycle time — the time required to complete the task before starting over with another item or client Job specialization improves work efficiency because: • Fewer skills and less knowledge to learn

➡ Less training time/costs because fewer tasks to learn

• More frequent practice ➡ Shorter cycle time, so more frequent practice on tasks • Less attention residue from changing tasks ➡ Less cognitive changeover inefficiency (mind lingering on previous task) • Better person–job matching ➡ Jobs have fewer skill requirements, so easier to match jobs with employee abilities

Scientific management • Maximize work efficiency through job specialization and task standardization • Also advocated employee selection, training, goal setting, work incentives • Championed by Frederick Winslow Taylor in early 1900s Problems with job specialization • Low motivation — jobs become tedious, trivial, and socially isolating • Higher absenteeism and turnover • May require higher wages to offset dissatisfying, narrowly defined work • Affects work quality ➡ Higher quality because easier to master the job ➡ Lower quality due to less attentiveness, lower motivation, and difficulty recognizing

problems in work process

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Chapter 5: Employee Motivation

Slide 27: Job Characteristics Model Job characteristics model — a job design model that relates the motivational properties of jobs to specific personal and organizational consequences of those properties Core job characteristics • Skill variety — using different skills/talents to perform tasks ➡ E.g., sales clerks also stock inventory and change store-front displays

• Task identity — completing a whole or identifiable piece of work ➡ E.g., assembling an entire broadband modem rather than just soldering circuitry •

Task significance — job’s perceived effect on firm and/or society ➡ E.g., quality of servicing aircraft engines affects passenger safety

• Autonomy — freedom, independence and discretion in scheduling the work and

determining procedures • Job feedback — direct feedback from job about task performance ➡ E.g., pilots can tell how well they land the plane while performing the task

Critical Psychological States • Felt meaningfulness of the work — believe the work is worthwhile/important • Felt responsibility for work outcomes — feel personally accountable • Knowledge of work results — information on consequences of work effort Individual Difference Moderators • Job dimensions motivate only when employees have skills and knowledge to master job • Model originally also included growth need strength and satisfaction with job context, but mixed support for these contingencies

Slide 28: Social and Information Processing Job Characteristics 1. Social characteristics of the job • Social interaction requirements — the job requires employees to interact with co-

workers, clients, other stakeholders ➡ Task interdependence — social interaction with coworkers ➡ More motivating with higher social interaction • Social feedback — verbal or nonverbal cues from coworkers, clients, etc. ➡ Social feedback might motivate as much as from the task itself 2. Information processing demands of the job • Task variability

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Chapter 5: Employee Motivation

➡ Motivation INCREASES when task variability increases — high information

processing demand because job has non-routine work patterns ➡ Low motivation with low variability because job is repetitive, similar skills used • Task analyzability ➡ Motivation DECREASES when task analyzability increases — less information processing demand when job is analyzable because employees rely on established guidelines.

Slide 29: Frequent Job Rotation and Job Enlargement Frequent job rotation • The practice of moving employees from one job to another, typically one or more times each day Benefits • Less risk of repetitive strain and heavy lifting injuries.

• More multi skilled workforce — employees learn how to perform multiple jobs, gives company more flexibility to fill vacant positions.

• Better knowledge of quality issues — employees develop a clearer picture of that process and ways to improve product quality.

• Higher motivation potential — employees use a wider variety of skills (skill variety) throughout the day.

Job Enlargement • Adding more tasks to an existing job — increases skill variety • Same benefits as frequent job rotation

Slide 30: Job Enrichment Giving employees more responsibility for scheduling, coordinating, and planning their work 1. Natural grouping ➡ Combining interdependent tasks into one job ➡ E.g., video journalist (news story), assembling an entire product, etc

2. Establishing client relationships ➡ Employee has direct responsibility for clients ➡ Employee communicates directly with their clients — no supervisor in between

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Chapter 5: Employee Motivation

STUDENT HANDOUT

CRITICAL-THINKING QUESTIONS 1. Everyone who works as an electronic game developer has extrinsic sources of motivation, and most of them also experience some degree of intrinsic motivation. Considering the dynamics of extrinsic and intrinsic motivation, what should companies in this industry do to ensure that their game developers are highly motivated at work?

2.

Many companies have shifted from traditional annual performance appraisals to frequent, constructive, and future-focused development reviews. Apply expectancy theory to explain why the more frequent feedback and more strengths-based future focus of the new performance review process might motivate employees more than the traditional judgment-oriented, problem-focused, annual performance appraisal process.

3. Use all three components of expectancy theory to explain why some employees are motivated to show up for work during a severe snowstorm whereas others make no effort to leave their home.

4. Most of us have watched pizzas being made while waiting in a pizzeria. What level of job specialization do you usually notice in these operations? Why does this high or low level of specialization exist? If some pizzerias have different levels of specialization than others, identify the contingencies that might explain these differences.

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Chapter 5: Employee Motivation

CONFIDENTIAL INSTRUCTOR NOTES

SUGGESTED ANSWERS TO CRITICALTHINKING QUESTIONS 1.

Four-drive theory recommends that companies must keep fulfillment of the four drives in balance. What is this “balance” and why is it important? Give an example (real or hypothetical) of how a company maintains balanced drive fulfillment. Also describe a company that does not provide this balance, including the consequences of this imbalance on employees’ attitudes and behavior.

Four drive theory identifies four innate drives that create emotions as the foundations of employee motivation.

There are two reasons why the theory recommends that companies support ongoing employee fulfillment of these four drives. First, the theory implies that employee motivation and well-being is highest through fulfillment of all four drives. Supporting fulfillment of one or two drives may undermine the employee’s wellbeing and may lead to suboptimal motivation.

The second reason why companies need to support ongoing employee fulfillment of all four four drives is that these drives exist as opposing pairs. Specifically, the drive to defend contrasts with the drive to comprehend (one is defensive, the other is exploratory). The drive to acquire contrasts with the drive to bond (one is competitive whereas the other is cooperative). Companies need to provide opportunities for employees to fulfill all four drives so the emotions derived from these drives have some degree of balance. Otherwise, the dysfunctions of each drive will not have a counterbalancing drive to minimize those dysfunctions. For instance, if the drive to bond is not supported, the drive to acquire will dominate, which can lead to dysfunctional competitiveness among employees. But if the driver to bond is supported without the drive to acquire, the company may have less employee initiative and, instead nurture a country club culture of employees getting along for its own sake.

How do companies provide this balance? Students should consider applied workplace activities and outcomes that help employees to fulfill each drive. For instance, social interaction and team working support fulfillment of the drive to bond, whereas competitive performance-based promotions and rewards support fulfillment of the drive to acquire. Fulfillment of the drive to comprehend occurs when companies encourage and reward formal occupational learning as well as creativity and productive discovery (such as through a learning orientation culture—discussed later in this book). The counteracting drive to defend is nurtured through protective activities or conditions, such as formal grievance processes and other procedural justice structures.

Student should have a relatively easy time identifying companies that did not provide a balance of drives fulfillment. Hyper-competitive companies often have internal politics problems due to the imprecise nature of performance measurement and reward allocation. Companies that create uncertainty or a legalistic culture of employee rights can amplify the drive to defend. Companies that encourage cooperative behavior and “getting alone” cultural values amplify the drive to bond, which can lead to suboptimal decisions because people are unwilling to engage in constructive debate.

2.

Many companies have shifted from traditional annual performance appraisals to frequent, constructive, and future-focused development reviews. Apply expectancy theory to explain why the more frequent feedback and more strengths-based future focus of the new performance review process might motivate employees more than the traditional judgment-oriented, problemfocused, annual performance appraisal process.

There are several motivational benefits of the emerging developmental performance process compared to traditional (and still widely practiced) performance appraisal systems. Many of these benefits can be explained through expectancy theory. The most obvious of these is that developmental reviews provide more timely feedback, which gives employees more accurate and salient information about whether their effort is resulting desired performance. In other words, better feedback can strengthen—or at least make clearer—the effort-toperformance Page 5-22 Copyright © 2022 McGraw Hill. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill.

Chapter 5: Employee Motivation

expectancy linkage. This is also indirectly explained by OB Mod and social cognitive theory—employees experience more timely and frequent information about the consequences of their behavior, and they receive better information about the consequences of behavior engaged by coworkers than occurs in traditional performance reviews.

Developmental reviews also help managers and other company representatives to better understand what specific employees value. In other words, they have a better opportunity to know the valances of supposedly desired outcomes. Through this information, managers can guide employees to work activities and career paths that will result in more desirable (more positively valent) outcomes. Through developmental feedback, managers can, in some circumstances, and choose alternative outcomes (pay, time off, recognition, etc.) for desired behaviors.

Developmental reviews also enable managers to more quickly and clearly clarify the outcomes that will outcome for employee behavior and performance. These conversations develop in employees more accurate, salient, and clearer performance-to-outcome expectancies regarding key performance goals.

This question also asks about the role of strengths-based feedback/coaching on employee motivation in terms of expectancy theory. By focusing on their strengths, employees have stronger E-to-P expectancies compared to focusing on work activities that they perform poorly and have limited interest or capacity to improve. Strengthsbased coaching also directs employees toward work that is most rewarding to them—in other words, toward outcomes that have higher valence than work actives that are less aligned with their self-concept and competencies.

3.

Use all three components of expectancy theory to explain why some employees are motivated to show up for work during a severe snowstorm whereas others make no effort to leave their home.

E-to-P Expectancy. This is a perception, so two neighbors will develop different perceptions about their expectancy of reaching the workplace safely in the same snow storm.

P-to-O Expectancy. Two people may have different perceptions about the outcomes of attending work. One person may believe that the company doesn’t praise or reward employees for showing up in a snow storm, whereas another person may perceive that the company does reward employees who make this effort.

Valences. Employees value different outcomes of going to work or staying at home in a snow storm. One person might stay at home because he/she doesn’t like the job anyway and this is a good excuse to miss a day of work.

Another employee might trek through a snow storm because he/she thoroughly enjoys work compared to staying at home. In fact, this person might enjoy the challenge of driving in snow storms!

4.

Most of us have watched pizzas being made while waiting in a pizzeria. What level of job specialization do you usually notice in these operations? Why does this high or low level of specialization exist? If some pizzerias have different levels of specialization than others, identify the contingencies that might explain these differences.

The answer to this question partly depends on how pizzas are made in your area. Our nonsystematic observation of pizza-making is that, in busy pizza places, several people are assigned to specific tasks. One person prepares the dough; one or more people fill the orders (puts ingredients on the pizza and places it in the conveyor or fixed oven); someone else unloads, cuts, and boxes the cooked pizzas. The person operating the cash register usually has the pizza unloading task. Other people perform the pizza delivery task.

This relatively high level of specialization occurs because it increases efficiency. Time is saved because employees don’t change tasks. They develop their skills quickly in their assigned task (an important issue where pizza shops rely on students and other temporary part-time staff). This specialization also allows the store to assign people to tasks for which they demonstrate the best skill. For example, some people have better coordination at tossing the pizza dough so it spreads out evenly. Others have good physical strength to cut pizzas.

Students will probably identify different degrees of specialization than we have noted here. Smaller pizza shops may be operated by two people who share most tasks (except delivery). They might both prepare the pizzas as well as load and unload them from the oven.

Technology may also play a role in the division of labor. Conveyor-type ovens (uncooked pizza is placed on one Page 5-23 Copyright © 2022 McGraw Hill. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill.

Chapter 5: Employee Motivation

end and cooked pizza comes out the other end) would allow two people to load and unload the pizzas, respectively. A

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Chapter 5: Employee Motivation

fixed oven (where the pizza is loaded in and pulled out) might work better with one person because he/she keeps track of the cooking time.

Lastly, some students might note that jobs are generally specialized but there is job rotation throughout the shift.

This might occur to minimize boredom and avoid repetitive strain injuries.

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Chapter 5: Employee Motivation

STUDENT HANDOUT

CASE STUDY: STEELFAB CORP.

By Steven L. McShane, University of Newcastle (Australia) Jackie Wong was an enthusiastic employee when she began working in the accounting department at Steelfab Corp. In particular, she prided herself in discovering better ways of handling invoice and requisition flows. The company had plenty of bottlenecks in the flow of electronic documents throughout the organization and Jackie had made several recommendations to her boss, Mr. Johnston, which would improve the process. Mr. Johnston acknowledged these suggestions and even implemented a few, but he didn’t seem to have enough time to either thank her or explain why some suggestions could not be implemented. In fact, Mr. Johnston didn’t say much to any of the other employees in the department about anything they did.

At the end of the first year, Jackie received a 4 percent merit increase based on Mr. Johnston’s evaluation of her performance. This increase was equal to the average merit increase among the 11 people in the accounting department and was above the inflation rate. Still, Jackie was frustrated by the fact that she didn’t know how to improve her chances of a higher merit increase next year. She was also upset by the fact that another new employee, Jim Sandu, received the highest pay increase (7 percent) even though he was not regarded by others in the finance department as a particularly

outstanding performer. According to others who worked with him on some assignments, Jim lacked the skills to perform the job well enough to receive such a high reward. However, some employees thought Jim Sandu had become a favored employee to Mr. Johnston and they had even gone on a fishing trip together.

Jackie’s enthusiasm toward Steelfab fell dramatically during her second year of employment. She still enjoyed the work and made friends with some of her coworkers, but the spirit that had once carried her through the morning rush hour traffic had somehow dwindled. Eventually, Jackie stopped mentioning her productivity improvement ideas. On two occasions during her second year of employment, she took a few days of sick leave to visit friends and family in another state. She had used only two sick days during her first year and these were for a legitimate illness. Even her doctor had to urge Jackie to stay at home on one occasion during the first year when she instead showed up at work. But by the end of the second year, using sick days seemed to “justify” Jackie’s continued employment at Steelfab. Now, as her second annual merit increase approached, Jackie started to seriously scout around for another job.

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Chapter 5: Employee Motivation

CONFIDENTIAL INSTRUCTOR NOTES

CASE STUDY: STEELFAB CORP. These case teaching notes were prepared by Steven L. McShane, University of Newcastle (Australia)

Case Synopsis This case describes Jackie Wong’s first two years of work experience in the accounting department of Steelfab Corp.

Jackie was initially enthusiastic and contributed ideas for improved work flow efficiency, but she received little feedback or support from her boss. Her first year merit increase was average, but was less than she had expected.

Moreover, the highest increase went to an employee who goes fishing with the supervisor and whose performance record is considered by coworkers as deserving the highest increase. By the second year, Jackie had stopped giving new ideas, had begun to take unwarranted sick leave, and was thinking about quitting her job.

NOTE: The student handout EXCLUDES discussion questions. Instructors may provide students with the following questions, provide their own questions for students, or ask students to follow standard case analysis method (symptoms, problems, recommendations).

1.

What symptom(s) in this case suggest that something has gone wrong?

By the end of the second year, Jackie Wong experienced lower motivation and higher job dissatisfaction regarding supervisor and company policies. She had stopped providing productivity improvement ideas. She began making improper use of sick leave and was thinking of leaving the company.

2.

Using any two motivation theories in this chapter, explain why: (a) Jackie Wong is less motivated to provide good ideas to her boss, Mr. Johnson, and (b) Jackie is motivated to take sick days when she isn’t sick.

The two theories that best explain Jackie Wong’s motivation regarding these two issues/behaviors are equity theory and expectancy theory. (a) Equity theory Jackie Wong feels a strong sense of inequity over the merit system. She compares herself to others within the department and, in particular, to another new employee, Jim Sandu. Sandu received the highest merit increase even though his skill and performance levels were generally regarded as lower than Jackie’s. Jackie feels that her lower merit increase is inequitable because Jim’s inputs—particularly his effort and skills—are less than hers. She does not believe that being a good friend of the boss is a valid input. Jackie’s response to this inequity is to reduce her inputs. She stops giving new ideas (although this is also due in part to factors explained by expectancy theory below) and uses paid absenteeism to balance the scales. Eventually, Jackie addresses her feelings of inequity (along with other sources of dissatisfaction here) by looking for work in another organization. (b) Expectancy theory Expectancy theory can be used to explain why Jackie Wong stopped giving new ideas to her boss, Mr. Johnston.

Jackie seemed to be confident (at least initially) that she could work out innovative solutions to paperwork flow problems in the organization (i.e., high E-tο-P expectancy). In other words, she exhibited a high expectancy of the probability that her efforts would lead to high performance. Due to Mr. Johnston’s actions (and inaction), however, Jackie’s belief decreased in the probability that high performance would lead to desired rewards (i.e., decreasing P-

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Chapter 5: Employee Motivation

to-O expectancy). Although some of Jackie’s ideas were implemented, Mr. Johnston did not reward Jackie through praise. It is clear from her actions and statements that Jackie is achievement-oriented and would value praise from her boss. She would also value feedback describing how well her ideas are working, but this information was not freely provided by Mr. Johnston. Finally, although Jackie’s merit increase may have been based partly on the ideas she provided, this connection was not clarified. Moreover, due to equity problems (described above), the merit increase was not strongly valued.

3.

What actions would you recommend to Steelfab so that Jackie Wong’s experience and behavior is less likely to occur in future?

Jackie’s practice of offering suggestions are consistent with organizational goals because companies need any information to improve their effectiveness. Consequently, we find out why Johnston made the merit increase decisions in this way. It may be that he had valid reasons for this merit pay distribution. If so, he should be encouraged or trained to communicate these reasons more clearly to employees in the department.

Johnston does not provide a performance review, yet this should be encouraged to strengthen employees’ P-tο-O expectancy. If the merit decisions were poorly made, the reasons for this should be determined. Johnston may lack the skills to properly evaluate, in which case he should receive rater training. If Johnston is not motivated to reward employees based on valid performance factors, his superior may wish to transfer him to a job where performance evaluation is not required. Or the superior may want to find out why Johnston is not motivated to do this task properly, then realign the reward system so he is motivated to make fair merit decisions.

Johnston’s superior should also find out why Johnston failed to give encouragement and feedback to Jackie Wong on her paperwork flow ideas. Again, if Johnston lacks the interpersonal skills to provide praise and feedback, he should receive proper supervisory training or be moved to a job where these skills are less important. If Johnston seems to lack the motivation to fulfill these supervisory responsibilities, his superior may want to re-examine Johnston’s own reward system so that supervisory coaching is more clearly rewarded.

In the short term, Jackie should be approached to reinforce her importance to the organization and the value of her efforts. She should be made aware of the above-mentioned reviews of the performance appraisal system and have an opportunity to provide input to this process.

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Chapter 5: Employee Motivation

5.1: HOW STRONG ARE SA SELF-ASSESSMENT YOUR GROWTH NEEDS? Overview and Instructions Many human needs are called “deficiency” needs because they become active only when unfilled. However, Abraham Maslow popularized the idea that people also have “growth needs,” which continue to motivate even when temporarily satiated. Growth needs are associated with self-actualization and intrinsic motivation. People vary in their growth need strength, which is evident from the type of work they prefer.

The questions in this instrument give students a chance to say just what it is about a job that is most important to them. For each question, two different kinds of jobs are briefly described. Students are asked to indicate which of the two jobs they personally would prefer if they had to make a choice between them. In answering each question, students should assume that everything else about the jobs is the same. Students should pay attention only to the characteristics actually listed.

Feedback for the Growth Need Strength Scale This well-known scale estimates growth need strength. Growth need strength indicates the strength of a person’s growth needs, including self-esteem, personal achievement, self-actualization. Although organizational behavior scholars now doubt that people have a pre-determined needs hierarchy, it is well established that we do have growth needs.

Scores on the Growth Need Strength Scale range from 12 to 60. Higher scores indicate a higher growth need strength (i.e., stronger growth needs). A total score below 30 indicates a relatively low growth need strength, whereas a score above 42 indicates a relatively high growth need strength.

Score

Interpretation

43-60 30-42 12-29

High growth needs Moderate growth needs Low growth needs

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Chapter 5: Employee Motivation

SA

SELF-ASSESSMENT 5.2: HOW STRONG ARE YOUR LEARNED NEEDS?

Overview and Instructions Everyone has the same innate drives, but these drives produce different need strengths due to each person's socialization and personality. David McClelland particularly examined three learned needs, two of which are measured in this self-assessment.

Feedback for the Personal Needs Scale This instrument measures two of the three “learned needs” studied by David McClelland: achievement striving and need for social approval.

Achievement Striving This scale, formally called “achievement striving,” estimates the extent to which you are motivated to take on and achieve challenging personal goals. It includes a desire to perform better than others and to reach one’s potential.

This scale ranges from 0 to 28. How high or low is your need for achievement? The ideal would be to compare your score with the collective results of other students in your class. Otherwise, the following exhibit offers a rough set of norms for you to compare your score on this scale.

Score

Interpretation

24-28

High level of need for achievement

18-23

Above average level of need for achievement

12-17

Average level of need for achievement

6-11

Below average level of need for achievement

0-5

Low level of need for achievement

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Chapter 5: Employee Motivation

Need for Social Approval The need for social approval scale estimates the extent to which your are motivated to seek favorable evaluation from others. Based on the drive to bond, the need for social approval is a secondary need in that people vary in this need based on their self-concept, values, personality, and possibly socialized social norms. This scale ranges from 0 to 32. How high or low is your need for social approval? The ideal would be to compare your score with the collective results of other students in your class. Otherwise, the following exhibit offers a rough set of norms for you to compare your score on this scale.

Score

Interpretation

28-32

High level of need for social approval

20-27

Above average level of social approval

12-19

Average level of need for social approval

6-11

Below average level of need for social approval

0-5

Low level of need for social approval

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Chapter 5: Employee Motivation

SA

SELF-ASSESSMENT 5.3: WHAT IS YOUR GOAL ORIENTATION?

Overview and Instructions Everyone sets goals for themselves, but people differ in the nature of those goals. This self-assessment estimates your goal orientation. To complete this instrument, read the 12 statements and indicate how accurately each statement describes you.

Feedback for the Personal Needs Scale People have different mindsets about goals, particularly in achievement situations. Some view goals as challenges that assist learning. Others see goals as demonstrations of one’s competence. Still others view goals as threatening one’s image if theirs are not achieved. This goal orientation instrument estimates your level on each of these three orientations: learning goal orientation, performance goal orientation, and avoidance goal orientation.

Learning Goal Orientation People with a learning goal orientation view striving for goals as the way to acquire new skills and knowledge. This orientation views ability as malleable—something that can be developed through effort and persistence (such as trying to achieve challenging goals). Effort is the means through which new competencies are developed.

Score

Interpretation

22 to 28 11 to 21 4 to 10

High learning goal orientation Moderate learning goal orientation Low learning goal orientation

Performance Goal Orientation People with a performance goal orientation view goals as means to demonstrate (rather than develop) their skills and knowledge. They view their ability as fixed, so goals test that ability rather than develop it. People with a performance goal orientation are particularly motivated to seek out goals that they can achieve rather than goals with a high probability of failure.

Score

Interpretation

22 to 28 11 to 21 4 to 10

High performance goal orientation Moderate performance goal orientation Low performance goal orientation

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Chapter 5: Employee Motivation

Avoidance Goal Orientation Avoidance goal orientation is similar to performance goal orientation in that people with this orientation view goals as means to demonstrate (rather than develop) their skills and knowledge. However, an avoidance goal orientation is apparent by the motivation to avoid goals that might produce a negative judgment by others. In other words, people with this orientation pay attention to goals that might cause them to fail, whereas people with a performance goal orientation are motivated to seek out goals that demonstrate their success.

Score

Interpretation

22 to 28 11 to 21 4 to 10

High avoidance goal orientation Moderate avoidance goal orientation Low avoidance goal orientation

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Chapter 5: Employee Motivation

SA

SELF-ASSESSMENT 5.4: HOW SENSITIVE ARE YOU TO INEQUITIES?

Overview and Instructions Correcting feelings of inequity is one of the most powerful motivating forces in the workplace. But people react differently to equitable and inequitable situations based on their equity sensitivity. Equity sensitivity refers to a person’s outcome/input preferences and reaction to various outcome/input ratios when compared to other people.

Students are asked to read each statement in this instrument and indicate the degree to which they personally agree or disagree with that statement. This instrument has 16 statements.

Feedback for the Equity Sensitivity Scale The Equity Sensitivity scale ranges from 16 to 80. People are divided into three categories, depending on their score along this scale. The three categories are: “Entitleds” (16-37 points on the scale) feel more comfortable receiving proportionately more than others. They might accept having the same outcome/input ratio as others, but would prefer receiving more than others performing the same work.

“Equity sensitives” (38-58 points on the scale) fit the standard equity theory model. They want their outcome/input ratio to be equal to the outcome/input ratio of the comparison other. As the ratios become different, equity sensitives feel an uncomfortable tension.

“Benevolents” (59-80 points on the scale) are tolerant of situations where they are underrewarded. They might still prefer equal outcome/input ratios to the comparison other, but don’t mind if others receive more than they do for the same inputs.

Score

Interpretation

59 to 80 38 to 58 16 to 37

Benevolents Equity sensitives Entitleds

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Chapter 6: Decision Making and Creativity

Instructor’s Manual to Accompany

M:Organizational Behavior 5/e

by Steven L. McShane and Mary Ann Von Glinow

Chapter 6: Decision Making and Creativity Prepared by Steven L. McShane, University of Newcastle (Australia)

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Chapter 6: Decision Making and Creativity

6

Decision Making and Creativity

LEARNING OBJECTIVES After reading this chapter, students should be able to:

6-1 Describe the elements of rational choice decision making.

6-2 Explain why people don’t apply rational choice decision making when identifying problems/ opportunities, evaluating/choosing alternatives, and evaluating decision outcomes.

6-3 Discuss the roles of emotions and intuition in decision making.

6-4 Describe employee characteristics, workplace conditions, and specific activities that support creativity. 6-5 Describe the benefits of employee involvement and identify four contingencies that affect the optimal level of employee involvement.

CHAPTER GLOSSARY anchoring and adjustment heuristic — a natural tendency for people to be influenced by an initial anchor point, such that they do not sufficiently move away from that point as new information is provided availability heuristic — a natural tendency to assign higher probabilities to objects or events that are easier to recall from memory, even though ease of recall is also affected by nonprobability factors (e.g., emotional response, recent events) bounded rationality — the view that people are bounded in their decision-making capabilities, including access to limited information, limited information processing, and tendency toward satisficing rather than maximizing when making choices confirmation bias — the processing of screening out information that is contrary to our values and assumptions, and to more readily accept confirming information

decision making — the conscious process of making choices among alternatives with the intention of moving toward some desired state of affairs design thinking — a human-centered, solution-focused creative process that applies both intuition and analytical thinking to clarify problems and generate innovative solutions divergent thinking — reframing a problem in a unique way and generating different approaches to the issue escalation of commitment — the tendency to repeat an apparently bad decision or allocate more resources to a failing course of action implicit favorite — a preferred alternative that the decision maker uses repeatedly as a comparison with other choices intuition — the ability to know when a problem or opportunity exists and to select the best course of action without conscious reasoning

creativity — the development of original ideas that make a socially recognized contribution Page 6-2 Copyright © 2022 McGraw Hill. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill.

Chapter 6: Decision Making and Creativity

learning orientation — a set of collective beliefs and norms that encourage people to question past practices, learn new ideas, experiment putting ideas into practice, and view mistakes as part of the learning process

representativeness heuristic — a natural tendency to evaluate probabilities of events or objects by the degree to which they resemble (are representative of) other events or objects rather than on objective probability information

mental models — knowledge structures that we develop to describe, explain, and predict the world around us

satisficing — selecting an alternative that is satisfactory or “good enough,” rather than the alternative with the highest value (maximization)

prospect theory effect — an innate tendency to feel stronger negative emotion from losing a particular amount than positive emotion from gaining an equal amount rational choice decision making — the process of using pure logic and all available information about all alternatives to choose the alternative with the highest value

scenario planning — a systematic process of thinking about alternative futures and what the organization should do to anticipate and react to those environments self-enhancement — a person’s inherent motivation to have a positive self-concept (and to have others perceive him or her favorably), such as being competent, attractive, lucky, ethical, and important

CHAPTER SUMMARY BY LEARNING OBJECTIVE 7-1 Describe the elements of rational choice decision making.

Decision making is a conscious process of making choices among one or more alternatives with the intention of moving toward some desired state of affairs. Rational choice decision making identifies the best choice by calculating the expected valence of numerous outcomes and the probability of those outcomes. It also follows the logical process of identifying problems and opportunities, choosing the best decision style, developing alternative solutions, choosing the best solution, implementing the selected alternative, and evaluating decision outcomes.

7-2 Explain why people don’t apply rational choice decision making when identifying problems/ opportunities, evaluating/choosing alternatives, and evaluating decision outcomes.

Solution-focused problem identification, decisive leadership, stakeholder framing, perceptual defense, and mental models affect our ability to objectively identify problems and opportunities. We can minimize these challenges by being aware of the human limitations and discussing the situation with colleagues.

Evaluating and choosing alternatives is often challenging because organizational goals are ambiguous or in conflict, human information processing is incomplete and subjective, and people tend to satisfice rather than maximize.

Decision makers also short-circuit the evaluation process when faced with an opportunity rather than a problem. People generally make better choices by systematically evaluating alternatives. Scenario planning can help make future decisions without the pressure and emotions that occur during real emergencies.

Confirmation bias and escalation of commitment make it difficult to accurately evaluate decision outcomes.

Escalation is mainly caused by the self-justification effect, self-enhancement effect, the prospect theory effect, and sunk costs effect. These problems are minimized by separating decision choosers from decision evaluators, establishing a stop-loss point to abandon the project, seeking out factual information as well as feedback from others, and by refocusing the decision maker's mindset away from the past losses.

7-3 Discuss the roles of emotions and intuition in decision making.

Emotions shape our preferences for alternatives and the process we follow to evaluate alternatives. We also listen in on our emotions for guidance when making decisions. This latter activity relates to intuition—the ability to know when a problem or opportunity exists and to select the best course of action without conscious reasoning.

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Chapter 6: Decision Making and Creativity

is both an emotional experience and a rapid, nonconscious, analytic process that involves pattern matching and action scripts.

7-4 Describe employee characteristics, workplace conditions, and specific activities that support creativity.

Creativity is the development of original ideas that make a socially recognized contribution. The four creativity stages are preparation, incubation, illumination, and verification. Incubation assists divergent thinking, which involves reframing the problem in a unique way and generating different approaches to the issue.

Four of the main features of creative people are intelligence, persistence, expertise, and independent imagination. Creativity is also strengthened for everyone when the work environment supports a learning orientation, the job has task significance and autonomy, the organization provides a reasonable level of job security, and project leaders provide appropriate goals, time pressure, and resources. Four types of activities that encourage creativity are redefining the problem, associative play, cross-pollination, and design thinking.

Design thinking is a human- centered, solution-focused creative process that applies both intuition and analytical thinking to clarify problems and generate innovative solutions. Four rules guide this process: human rule, ambiguity rule, re-design rule, and tangible rule.

7-5 Describe the benefits of employee involvement and identify four contingencies that affect the optimal level of employee involvement.

Employee involvement refers to situations in which employees participate in and influence decisions about their jobs, work units, or organization. The level of participation may range from an employee providing specific information to management without knowing the problem or issue, to complete involvement in all phases of the decision process. Employee involvement may lead to higher decision quality and commitment, but several contingencies need to be considered, including the decision structure, source of decision knowledge, decision commitment, and risk of conflict.

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Chapter 6: Decision Making and Creativity

LECTURE OUTLINE Slide 1: Decision Making and Creativity Slide 2: Learning Objectives 6-1 Describe the elements of rational choice decision making.

6-2 Explain why people differ from rational choice decision making when identifying

problems/opportunities, evaluating/choosing alternatives, and evaluating decision outcomes.

6-3 Discuss the roles of emotions and intuition in decision making.

6-4 Describe employee characteristics, workplace conditions, and specific activities that

support creativity.

6-5 Describe the benefits of employee involvement and identify four contingencies that

affect the optimal level of employee involvement.

Slide 3: Rational Choice Decision Making Decision making — the conscious process of making choices among alternatives with the intention of moving toward some desired state of affairs Rational choice decision making • Use pure logic and all available information to choose alternative with highest value • Throughout history, pure rationality has been considered the ideal state of decision making Two key elements of rational choice 1. Rational choice formula calculating the best choice (positive valence) 2. Rational choice systematic decision process

Slide 4: Rational Choice Best Alternative Calculation Determines which alternative has the highest expected value (maximization) • Also embedded in expectancy theory (Chapter 5) and attitude model (Chapter 4) Calculation: expected satisfaction (valence) of each outcome multiplied by the probability that the alternative will provide that outcome, summing the product across all outcomes within each alternative Example of two suppliers (two alternatives) and three outcomes (selection criteria)

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Chapter 6: Decision Making and Creativity

Outcomes (selection criteria) and their valences (expected satisfaction of each outcome) • Provides high-quality product (+9) • Provides on-time delivery (+4) • Offers low prices (+6)

Note: Outcome valences are the same for both suppliers because the decision maker’s belief about the value of something is the same no matter which alternative is being considered

Supplier A probabilities (likelihood of providing each outcome) • High-quality product (0.7) • On-time delivery (0.9) • Low prices (0.8) Supplier B probabilities (likelihood of providing each outcome) • High-quality product (0.9) • On-time delivery (0.6) • Low prices (0.4) Rational choice calculation: valence X probability for each outcome, then products are summed within supplier Supplier A: (0.7 x 9) + (0.9 x 4) + (0.8 x 6) = 14.7 Supplier B: (0.9 x 9) + (0.6 x 4) + (0.4 x 6) = 12.9 Supplier A has the higher expected value NOTE: This example differs from the game theory model in classic economic theory. In classic economic theory, the “outcomes” are alternatives, so the probabilities must add up to 1.0. For example, if there is a 30 percent probability that your company will choose supplier A, then there is necessarily a 70 percent chance that the company will choose supplier B (if those are the only choices). The decision model shown here calculates each alternative’s composite valence from a set of criteria (outcomes) associated with all alternatives.

Slide 5: Rational Choice Decision-Making Process Rational choice decision making assumes this systematic process is followed: 1. Identify problem/opportunity • Problem — gap between “what is” and “what ought to be” (this gap is a “symptom” of

a “problem” that caused that gap) • Opportunity — deviation between current expectations and potentially better situation(s) not previously expected Page 6-6 Copyright © 2022 McGraw Hill. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill.

Chapter 6: Decision Making and Creativity

2. Choose the best decision process • Programmed decisions — standard procedures developed from past decisions • Nonprogrammed decisions — require all steps in the decision model because the

problems are new, complex, or ill-defined 3. Discover or develop possible choices • Search for ready-made solutions first, then develop/modify custom-made solution 4. Choose the choice with the highest value • Alternative with the highest expected satisfaction (see calculation in previous slide) 5. Implement the selected choice • Rational choice assumes implementation occurs without resistance or other problems 6. Evaluate the selected choice • Determines whether gap between “what is” and “what ought to be” has narrowed

Slide 6: Problem Identification Challenges Problems and opportunities are constructed from ambiguous/conflicting information — they are not “given” to us — five problem identification challenges 1. Mental models • Knowledge structures we develop to describe, explain, predict the world around us • Existing mental models blind us from seeing unique problems or opportunities • We tend to form a negative evaluation of things that deviate from the mental model 2. Decisive leadership — leaders valued for their decisiveness, so they define problems or

opportunities without careful assessment

3. Stakeholder framing • Employees, suppliers, customers, other stakeholders “frame” the situation to their

advantage, hoping decision maker will perceive a problem, opportunity, or no issue ➡ E.g., suppliers market their new products as unique opportunities • Decision makers accept stakeholder framing to simplify information overload 4. Perceptual defense • Blocking out bad news as a coping mechanism (fail to see threatening information) 5. Solution-focused problems • The problem identified is a veiled solution — underlying problem has not been

analyzed.

• Solutions have been reinforced by past successes.

• Decision makers are comforted by the closure of having a solution.

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Chapter 6: Decision Making and Creativity

Slide 7: Identifying Problems Effectively • Be aware of the five problem identification biases • Resist temptation of looking decisive when more thoughtful examination of the situation

should occur • Create a norm of “divine discontent” — adopt an aversion to complacency and the status quo — more actively search for problems/opportunities • Discuss the situation with colleagues to discover blind spots and see different perspectives

Slide 8: Choosing Alternatives: Rational Choice Assumptions vs. OB Evidence Bounded rationality (Herb Simon) — people process limited and imperfect information, rarely select the best choice (Note: bounded rationality is the best known theory, but it excludes some aspects of human “imperfect rationality” that other theories discuss and are included here — e.g., implicit favorite, sequential evaluation, heuristic biases) Problems with goals • Rational — goals are clear, compatible, and agreed-upon • OB — goals are ambiguous, conflicting, lack full support Problems with information processing • Rational — people calculate all information about all alternatives and outcomes • OB — people have limited information processing abilities Problems with evaluation timing • Rational — alternatives are evaluated simultaneously • OB — alternatives are evaluated sequentially Problems with evaluation standards • Rational — use absolute standards to evaluate alternatives • OB — evaluate alternatives against an implicit favorite (preferred anchor comparison) Problems with information quality • Rational — choices are made using factual information • OB — choices are made using distorted information Problems with decision objective • Rational — people maximize (i.e., choose alternative with the highest payoff) • OB — people satisfice (i.e., select “good enough” alternative)

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Chapter 6: Decision Making and Creativity

Slide 9: Sequential Evaluation and Implicit Favorite Biases Rational choice approach — assumes we will evaluate all alternatives against one another at the same time using unbiased estimates of valences and outcome probabilities Reality (imperfect rationality) — decision makers evaluate each alternative sequentially against an implicit favorite Implicit favorite • An alternative the decision maker prefers and is the repeated comparison against the other choices • This favorite is “implicit” because decision makers don’t make this comparison consciously (often aren’t even aware of their favoritism) Why decision makers follow a sequential evaluation process using an implicit favorite 1. Alternatives not available at same time — Need to evaluate early available choices against the best choice so far 2. Natural human preference for comparing two choices — they prefer comparing two choices than evaluating many alternatives at the same time — implicit favorite serves as an anchor comparator against which the other choices 3. People are cognitive misers (minimize mental effort) — quickly form a preference (implicit favorite), then mainly seek supporting evidence (confirmation bias) 4. Human need for cognitive consistency and coherence — change beliefs/feelings about alternatives to maintain consistency with implicit favorite preference

Slide 10: Biased Decision Heuristics Rational choice approach — people calculate the alternative with the highest expected satisfaction Reality (imperfect rationality) — people have built-in decision heuristics that bias evaluation of alternatives 1. Anchoring and adjustment heuristic • Initial anchor point influences our perspective — anchors our view of high vs. low —

limited movement away from that point as new information is provided ➡ E.g., high price of an initial contract tender anchors negotiations around that price

2. Availability heuristic • Tendency to estimate the probability of something occurring by how easily we can

recall those events ➡ E.g., we easily remember emotional events (e.g., shark attack) so we overestimate how

often these emotional events occur

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Chapter 6: Decision Making and Creativity

3. Representative heuristic • Tendency to estimate probability of something based on its similarity to known others

than by more precise statistics ➡ E.g., 20 percent of students are in engineering and 80 percent are business majors, yet we

believe one student is in engineering because s/he resembles a typical engineering student

Slide 11: Problems with Maximization Rational choice approach — people are both motivated and able to identify and select the highest value alternative (maximization) Reality (imperfect rationality) — Three phenomena: 1. people satisfice, 2. people simplify the decision calculation, 3. people avoid the decision 1. People engage in satisficing • They choose first “good enough” alternative • Satisficing occurs because: ➡ Information is imperfect, costly, or can’t be found at all when the decision is made ➡ People don’t have the time or cognitive capacity to input/analyze the complex data

2. People oversimplify the decision calculation • They discard alternatives using fewer easily identifiable factors • They use fewer criteria (expected outcomes) 3. People avoid making any decision when too many choices are presented

Evaluating opportunities • Opportunity is a favorable solution, so alternative opportunities are rarely investigated • Decision makers form an emotional attachment to and personalization of the opportunity — makes impersonal analysis of the opportunity difficult

Slide 12: Emotions and Making Choices How emotions affect the evaluation of alternatives 1. Emotions form preferences before conscious cognitive evaluation • Emotional marker process determines our preferences for each alternative before we

consciously evaluate those alternatives.

2. Moods and emotions affect the decision process • Moods and emotions affect how carefully we evaluate alternatives. ➡ E.g., we may pay more attention to details when in a negative mood, tend to skim

over evaluating when in a good mood Page 6-10 Copyright © 2022 McGraw Hill. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill.

Chapter 6: Decision Making and Creativity

3. Emotions serve as information in decisions • We “listen in” on our emotions for guidance when making choices. ➡ E.g., visualize using product, pay attention to resulting emotion

Slide 13: Intuitive Decision Making Intuition — ability to know when a problem or opportunity exists and to select the best course of action without conscious reasoning Intuition is an emotional experience.

• Gut feelings are emotional signals.

• Not all emotional signals are intuition.

Intuition also includes rapid nonconscious analysis • Uses action scripts — programmed decision routines that shorten the decision-making process

Slide 14: Making Choices More Effectively 1. Be more contemplative than decisive for complex problems 2. Use intuition only in combination with logical analysis 3. Revisit decisions later, when in a different mood/emotions 4. Use scenario planning — a disciplined method for imagining possible futures

Slide 15: Decision Evaluation Problems Confirmation bias (postdecisional justification) • Tendency to ignore or underemphasize negative outcomes of the choice they made and overemphasize new information about its positive features • Gives people an excessively optimistic evaluation of their decisions

Escalation of commitment

Tendency to repeat an apparently bad decision or allocate more resources to a failing course of action Four causes of escalation of commitment: 1. Self-justification effect • Decision makers try to convey a positive public image and demonstrate that their

choices will be successful.

• Most common when decision makers: (a) personally identified with project, (b) have staked their reputations on the project’s success, (c) have low self-esteem

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Chapter 6: Decision Making and Creativity

2. Self-enhancement effect • Natural tendency to think we are above average (lucky, competent) • Creates an optimistic interpretation of poor outcomes, and overestimates our

probability of rescuing failing projects • Self-enhancement is mostly nonconscious bias — self-justification is conscious action 3. Prospect theory effect (loss aversion) • We experience stronger negative emotions when losing something of value than

positive emotions when gaining something of equal value.

• Stopping a project is more painful than investing more in it.

4. Sunk costs effect • Sunk costs—the value of resources already invested in the decision • Decision makers motivated to invest more when large resources already invested

(sunk costs) in the project • Problem: future investments should NOT consider size of previous investment in the project, only the expected future gains.

• Forms of sunk costs: (a) past investment in project, (b) time invested, (c) closing costs (penalties associated with shutting down a project) Escalation of commitment isn’t always poor decision making — may be attempt to further understand an ambiguous situation

Slide 16: Improving Decision Evaluation 1. Change the decision maker • Evaluation biases are minimized when those who made the original decision do not evaluate the decision 2. Create a stop-loss — publicly establish a preset level at which the decision is abandoned

or re-evaluated • Problem: complexity makes it difficult to identify point where to abandon project

3. Seek factual and social feedback • Objective information cuts through evaluation biases • Involving others may notice problems sooner than when someone is working alone 4. Change the decision-maker’s mindset — divert attention away from the negative emotions of the project’s losses — focus more on the future (growing the business)

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Chapter 6: Decision Making and Creativity

Slide 17: Creative Process Model Creativity • The development of original ideas that make a socially recognized contribution • Valuable throughout the decision-making process.

1. Preparation • Investigating the problem or opportunity in many ways — learning about the issue 2. Incubation • Period of reflective thought — put the problem aside, maintain low level of awareness • Assists divergent thinking ➡ Reframing problem in a unique way, generating different approaches to the issue ➡ Contrasts with convergent thinking — calculating the conventionally accepted “right

answer” to a logical problem 3. Illumination • The experience of suddenly becoming aware of a unique idea • Begins with “fringe” awareness (barely perceptible) • Short-term memory — easily forgotten, so need to document 4. Verification • Logical evaluation, experimentation, and further creative insight

Slide 18: Characteristics of Creative People Cognitive and practical intelligence • Cognitive intelligence — ability to synthesize/analyze information • Practical intelligence — ability to assess potential usefulness of ideas Persistence • Based on: (a) higher need for achievement, (b) strong motivation from the task itself, and (c) moderate or high degree of self-esteem • Necessary to offset tendency of others to doubt and criticize creative ideas Knowledge and experience • Expertise/subject matter knowledge — but strong knowledge may form strong mental models that reduce divergent thinking Independent imagination • Cluster of personality traits and values • Consists of: (a) high openness to experience (personality), moderately low need for affiliation (drive/motive), higher self-direction and stimulation (values) Page 6-13 Copyright © 2022 McGraw Hill. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill.

Chapter 6: Decision Making and Creativity

Slide 19: Creative Work Environments Learning orientation • A set of beliefs and norms in which people are encouraged to question past practices, learn new ideas, experiment putting ideas into practice, and view mistakes as part of the learning process Enriched jobs • Motivation from the job itself — task significance, autonomy Communication with co-workers • So employees can share ideas and information Sufficient resources, job security • Creativity suffers during times of downsizing and corporate restructuring Supportive leaders and coworkers (usually) • Leaders have an appealing vision of the future, encourage employees to experiment • Coworker support and competition increase creativity — depends on situation • Too much or too little pressure on employees to be creative may be ineffective

Slide 20: Creativity Activities Redefine the problem • Revisit abandoned projects — might be seen in new ways • People unfamiliar with issue explore the problem (fresh eyes) Associative play • Playful activities — unusual variations of traditional games • Challenge to create something new from existing unrelated products (e.g., design a product to clean cutlery from an electric toothbrush and a hair dryer) • Morphological analysis — listing different dimensions of a system and the elements of each dimension and then looking at each combination Cross-pollination • Employees across the firm exchange ideas or are brought into the team.

• It encourages informal social interaction in the organization.

Design thinking (see next slide) • A human-centered, solution-focused creative process that applies both intuition and analytical thinking to clarify problems and generate innovative solutions • Guides employees through the decision-making process using creative thinking, logical analysis, empathy, and intuition

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Chapter 6: Decision Making and Creativity

Slide 21: Design Thinking Four rules of design thinking 1. Human rule • Design thinking is a team activity — requires collaboration and co-creation among several

people so the issue and possible solutions are viewed from several angles.

• Include clients and end users to enable an iterative process of problem identification and solution development.

2. Ambiguity rule • Need sufficient ambiguity in the problem and its potential solutions.

• Refine the problem — do not assume the client’s original problem statement is

accurate Question and refine the stated problem.

• Develop more than one solution to the problem.

3. Re-design rule • Review past solutions to understand how those inventions tried to satisfy human

needs.

• Use foresight tools to imagine better solutions for the future.

4. Tangible rule • Build several low-cost prototypes to test ideas.

• Don't analyze alternatives at a purely conceptual level.

• Tolerate failure; embrace a learning orientation.

Slide 22: Employee Involvement Employees participate in and influence decisions about their jobs, work units, or organization.

Several levels of involvement.

• Low: people individually asked for specific information but the problem is not described.

• Medium low: problem is described, employees are asked for information.

• Medium high: problem is described, employees collectively develop recommendations.

• High: Employees identify problem, discover alternatives, choose the best alternative, and implement their choice.

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Chapter 6: Decision Making and Creativity

Slide 23: Employee Involvement Model Potential benefits (outcomes) of employee involvement 1. Better problem identification • Recognizing problems more quickly and defining them more accurately 2. Synergy produces more/better solutions • Team members create synergy by pooling their knowledge to form new alternatives 3. Better at picking the best choice • Decision viewed from diverse perspectives and a broader range of values 4. Higher decision commitment • Participation creates a sense of ownership and responsibility for decision’s success

Slide 24: Contingencies of employee involvement Decision structure • Problem is new and complex.

• Less involvement for programmed decisions.

Knowledge source • More involvement when employees have relevant knowledge beyond leader’s knowledge.

Decision commitment • Commitment to decision increases with involvement, so some involvement is important if employee would otherwise lack commitment.

Risk of conflict 1. Low involvement if employee goals and norms conflict with the organization’s goals, higher involvement possible if employee goals and norms are compatible with firm’s goals.

2. Moderate or lower involvement is necessary when employees can’t agree on preferred solution — high involvement possible only if consensus is likely.

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Chapter 6: Decision Making and Creativity

STUDENT HANDOUT

CRITICAL-THINKING QUESTIONS

1. A management consultant is hired by a manufacturing firm to determine the best site for its next production facility. The consultant has had several meetings with the company’s senior executives regarding the factors to consider when making the recommendation.

Discuss the decision-making problems that might prevent the consultant from choosing the best site location.

2. Intuition is both an emotional experience and a nonconscious analytic process. One problem, however, is that not all emotions signaling that there is a problem or opportunity represent intuition. Explain how we would know if our “gut feelings” are intuition or not, and if not intuition, suggest what might be causing them.

3. A developer received financial backing for a new business financial center along a derelict section of the waterfront, a few miles from the current downtown area of a large European city. The idea was to build several high-rise structures, attract large tenants to those sites, and have the city extend transportation systems out to the new center. Over the next decade, the developer believed that others would build in the area, thereby attracting the regional or national offices of many financial institutions. Interest from potential tenants was much lower than initially predicted and the city did not build transportation systems as quickly as expected. Still, the builder proceeded with the original plans. Only after financial support was curtailed did the developer reconsider the project. Using your knowledge of escalation of commitment, discuss three possible reasons why the developer was motivated to continue with the project.

4. Two characteristics of creative people are that they have relevant experience and are persistent in their quest. Does this mean that people with the most experience and the highest need for achievement are the most creative? Explain your answer.

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Chapter 6: Decision Making and Creativity

CONFIDENTIAL INSTRUCTOR NOTES

SUGGESTED ANSWERS TO CRITICALTHINKING QUESTIONS 1.

A management consultant is hired by a manufacturing firm to determine the best site for its next production facility. The consultant has had several meetings with the company’s senior executives regarding the factors to consider when making the recommendation. Discuss the decision-making problems that might prevent the consultant from choosing the best site location.

This question directly relates to the section on evaluating and choosing solutions. The consultant is asked to determine the best site location, and this process is subject to the problems presented below. Each problem should include an example relating to this incident.

Problems with Goals. The consultant likely discovered that executives at the manufacturing firm are not fully agreed on the priority of factors to consider when choosing a site. They may have conflicting goals — such as a site that is conveniently located yet low cost. Some of the goals will be ambiguous, such as “convenience.”

Problems with Information Processing. The consultant is subject to the same human limitations as other people. The consultant’s personal biases may cause some information to be screened out or viewed in an unrealistically favorable light. The consultant is unable to evaluate all possible sites (there must be thousands of them!), let alone consider every factor for each site. Finally, the consultant probably compares sites against an implicit favorite, rather than look at all prospective sites simultaneously.

Problems with Maximization. The consultant’s recommendation probably won’t be the absolutely best site. Given the volume of information and the sequential decision process, the recommended site is probably one that is “good enough.”

In other words, the consultant will satisfice.

2.

Intuition is both an emotional experience and a nonconscious analytic process. One problem, however, is that not all emotions signaling that there is a problem or opportunity represent intuition. Explain how we would know if our “gut feelings” are intuition or not, and if not intuition, suggest what might be causing them.

All gut feelings are conscious awareness of emotional experiences. However, not all emotional experiences constitute intuition.

Intuition involves using well established mental models and templates (derived from tacit knowledge we have acquired) to compare what fits or doesn’t fit in an observable situation. The unconscious comparison allows us to anticipate future events. Intuition also relies on action scripts, which are preprogrammed routines for responding to matched or mismatched patterns. These scripts allow us to act without having to consciously evaluate the alternatives.

Gut feelings, on the other hand, are not based on well-grounded templates or mental models. Therefore, gut feelings would be more likely to occur in situations where one has limited experience. The cause of these feelings would be due to some emotional reaction to a given situation.

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Chapter 6: Decision Making and Creativity

3.

A developer received financial backing for a new business financial center along a derelict section of the waterfront, a few miles from the current downtown area of a large European city. The idea was to build several high-rise structures, attract large businesses to those sites, and have the city extend transportation systems out to the new center. Over the next decade, the developer believed that others would build in the area, thereby attracting the regional or national offices of many financial institutions. Interest from potential business tenants was much lower than initially predicted and the city did not build transportation systems as quickly as expected.

Still, the builder proceeded with the original plans. Only after financial support was curtailed did the developer reconsider the project. Using your knowledge of escalation of commitment, discuss three possible reasons why the developer was motivated to continue with the project.

Escalation of commitment occurs when an individual repeats a bad decision or continues to allocate resources to a failing cause of action. This incident is a variation of the Canary Wharf project in London, which nearly put developer Olympia and York into bankruptcy. It is unfair to say that the Canary Wharf event was due to escalation of commitment (we don’t have enough information about the internal decision making), but the incident described here certainly provides a setting for discussion of this topic. There are four main causes of escalation: Self-justification effect. Canceling the development may have suggested that the developer (who originally proposed and championed the project) made a bad decision whereas continuing the development would be vote of confidence towards his/her leadership ability. The developer also may have continued the project if he/she had linked it to the company’s future success. To reverse this position would convey an image of inconsistent leadership.

Self-enhancement effect. The developer likely screened out or neutralized negative information because of a selfperception of being above average. In addition, the project was clearly high risk (redesigning a significant portion of the city), so the developer seems to exhibit self-enhancement in the form of perceiving a higher probability of success in spite of these risks. In other words, decision makers falsely believe that luck is on their side, so they invest more in a losing course of action.

Prospect theory effect. The discomfort associated with losing money on this project may have outweighed the desire for gains. In other words, knowing that stopping the project would mean certain loss, he/she was willing to go to great lengths to avoid this, even it meant a smaller pay off in the end.

Sunk costs effect. Discontinuing the project would almost certainly have high financial costs for the developer, such as past expenditures and canceling contracts. The amount of investment “sunk” into the project would have motivated the developer to continue investing further even if those investment resources would have been more productive elsewhere.

4.

Two characteristics of creative people are that they have relevant experience and are persistent in their quest.

Does this mean that people with the most experience and the highest need for achievement are the most creative? Explain your answer.

The answer is probably “No.” The textbook states that there is a dilemma regarding experience. On the one hand, people need plenty of experience to be familiar with the issues. The literature on creativity suggests that it may take several years of experience before a person has reached creative potential.

The dilemma is that the longer a person is in one field of study, the more he/she develops a mental model that stifles creativity. Some companies prefer people with no experience in an industry so they are more creative. These two points are not exactly contradictory—a person may be new to an industry but has many years of experience in a particular skill or trade. However, the issue does suggest that there is an optimal level of experience before mental models undermine creative potential.

It is less certain whether creativity continues to increase with need for achievement. The textbook explains that need for achievement makes creative people more persistent, which is necessary in the face of short-term failures and doubts from others. Would a very strong need for achievement undermine creative potential? This is a matter for debate. Most likely too much need for achievement will create blind drive which can prevent people from seeing alternative strategies and the obvious inappropriateness of existing routes.

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Chapter 6: Decision Making and Creativity

STUDENT HANDOUT

CLASS EXERCISE: EMPLOYEE INVOLVEMENT INCIDENT Instructions Read the incident below. Then, alone or in teams, decide how much you should involve your subordinates in this decision. Select one of the following levels of involvement: Decide alone. Use your personal knowledge and in- sight to complete the entire decision process without conferring with anyone else.

Receive information from individuals. Ask specific individuals for information. They do not make recommendations and might not even know what the problem is about.

Consult with individuals. Describe the problem to selected individuals and seek both their information and recommendations. The final decision is made by you, and you may or may not take the advice from these others into account.

Consult with the team. You bring together a team of people (all department staff or a representation of them if the department is large), who are told about the problem and provide their ideas and recommendations. You make the final decision, which may or may not reflect the team’s information.

Facilitate the team’s decision. The entire decision- making process is handed over to a team or commit- tee of subordinates. You serve only as a facilitator to guide the decision process and keep everyone on track. The team identifies the problem, discovers alternative solutions, chooses the best alternative, and implements their choice.

What factors led you to decide that this is the optimal level of employee involvement? What problems might occur if less or more involvement occurred in this case (where possible)?

The Social Media Policy Decision The industry initiatives agency is a group of 120 professionals responsible for marketing your state as a good place for companies to operate their business or open new operations. Although you report to the head of the state’s employment and commerce department, your agency is semi-autonomous in its policies and practices from the parent department. One of your highest priorities is to recruit and retain young, welleducated, high-potential employees for this growing agency.

During a recent recruiting drive at universities and polytechnics, some potential applicants candidly stated that the state government seems out of touch with the younger generation, particularly their use of technology. A few observed that your agency’s website doesn’t provide much recruitment information, and they couldn’t find the department’s Facebook or Twitter sites.

These comments led you to think about having a social media policy in the industry initiatives agency, particularly whether or to what degree the agency should allow or possibly even encourage its staff to have work-related Facebook sites, personal blogs, and Twitter sites, and to participate in those sites during work hours. You personally know very little about emerging social

media, though many of your direct reports (functional managers and team leaders) have varying degrees of knowledge about them. A few even have their own personal Facebook sites, and one manager has her own travel blog. Some direct reports are strongly opposed to social media in the workplace, whereas others are likely very supportive. However, you believe that all of their views are in the agency’s best interests.

This social media policy decision would be within your mandate; unlike most governments, neither this state government nor the employment and commerce department has such a policy or restrictions on any policy that is designed by your agency. However, a few specific government departments prohibit Facebook and texting activity during work and, due to concerns about breaches of confidentiality and employer reputation, do not allow employees to mention workrelated matters in any social media. Your decision is to develop a policy specifying whether and, if so, to what degree agency staff should be allowed or encouraged to engage in social network site activity during work hours. © 2013 Steven L. McShane

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Chapter 6: Decision Making and Creativity

CONFIDENTIAL INSTRUCTOR NOTES

CLASS EXERCISE: EMPLOYEE INVOLVEMENT INCIDENT Suggested Answer to The Social Media Policy Decision Situation: Students are placed in the role of head of the provincial government’s industry initiatives agency.

Comments from potential applicants have led you to consider having a social media policy in the agency, particularly to have work- related sites they can access and develop during work hours. Students are asked to determine whether and to what extent employees should be involved in forming a social media policy within the agency.

1.

To what extent should your employees be involved in this decision? Select one of the following levels of involvement: Most teams will likely identify a medium high level of involvement (consult with individuals and/or the entire agency).

2.

What factors led you to choose this alternative rather than the others?

This question can be answered by reviewing the four contingencies of employee involvement discussed in the textbook.

Decision structure: This decision has low structure because there is no existing standard policy in the provincial government or even within the department to which the agency reports. Consequently, some level of involvement will likely to be valuable.

Source of decision knowledge: The scenario reveals that although you are interested and intrigued by the potential of social media, you lack sufficient information relative to the professionals in your agency, particularly younger staff. It is unclear whether you have enough information about social media to ask others for specific information. Generally, some level of involvement is required, possibly at least telling others about the problem (need for a policy).

Decision commitment. It is apparent that some people strongly support (and currently have) social media at work, whereas others are opposed. Involving people in the social policy decision to some degree might increase support for the final decision because at least everyone has had their voice heard on this matter. Therefore, most students would likely suggest that the agency head needs to tell the problem to others and consult as many people as possible (individually, possibly in groups).

Risk of conflict. There are two dimensions of this contingency. First, conflict will almost certainly occur among employees because the scenario describes opposing views. Some actively use social media and support it, whereas others are apparently strongly opposed to the activity in the workplace. As such, the final decision must rest with the agency head (the highest level of involvement is excluded). Regarding the second risk of conflict, it is unclear whether there will be goal compatibility between employees and the agency or provincial government.

However, the first conflict precludes the highest involvement even if employees would decide in the agency’s best interests. Overall, the conflict among employees discourages high involvement, but will support a medium level of involvement involving consultation with individuals and possibly at a group level.

3. What problems might occur if less or more involvement occurred in this case (where possible)?

Due to the risk of conflict among employees, a high degree of involvement (facilitate the team’s decision) would likely result in no decision due to lack of agreement.

A low level of involvement—where the agency heads asks specific employees for information without describing the issue—may be possible, but carries two risks. First, the agency head might not have enough knowledge to know what information to request. Second, there is a risk of lack of employee commitment because the issue is polarized. Giving everyone an opportunity to present their views may increase acceptance of the decision whichever way it goes.

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Chapter 6: Decision Making and Creativity

SA

SELF-ASSESSMENT 6.1: WHAT IS YOUR PREFERRED DECISION-MAKING STYLE?

Overview and Instructions Effective decision making is a critical part of most jobs, particularly in professional and executive positions. But people have different decision-making styles, including how much they rely on facts and logical analysis or emotional responses and gut instinct.

This scale includes statements describing how individuals go about making important decisions. Specifically, it estimates the extent to which students prefer rational and intuitive decision making. Students are asked to indicate whether they agree or disagree with each statement. This instrument has 8 statements.

Feedback for the Decision-Making Style Self-Assessment The decision-making style inventory estimates the extent to which students prefer rational and intuitive decision making. Both the “rational” and “intuitive” decision styles have a maximum score of 20 points and a minimum score of 4 points. Notice that students can have higher or low levels of BOTH decision-making styles. For example, someone might score very high on both rational and intuitive decision making. This is not contradictory. Some people engage in more intense rational and intuitive thinking.

Rational decision style People with high scores on this scale like to make decisions based on facts and logical analysis. They try to avoid or ignore gut instinct when it contradicts objective information.

Score

Interpretation

15 to 20

Strong preference for rational decision making

10 to 14

Moderate preference for rational decision making

4 to 9

Low preference for rational decision making

Intuitive decision style People with high scores on this scale like to make decisions based on their inner feelings or “gut instinct.” They try to avoid rational choices if they are inconsistent with their intuition.

Score

Interpretation

15 to 20

Strong preference for intuitive decision making

10 to 14

Moderate preference for intuitive decision making

4 to 9

Low preference for intuitive decision making

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Chapter 6: Decision Making and Creativity

SA

SELF-ASSESSMENT 6.2: HOW WELL DO YOU ENGAGE IN DIVERGENT THINKING?

Overview and Instructions A key feature of creativity is divergent thinking—reframing the problem in a unique way and generating different approaches to the issue. One way to test divergent thinking is by presenting questions or problems in which the answer requires a different approach or perspective from the usual frame of mind. This self-assessment presents a dozen of these questions.

Feedback for the Divergent Thinking Scale This self-assessment does not provide scores, although students can count the percentage of questions where they wrote in the correct answer. Instead, the results on the student OLC show the answer to each question along with the correct answer and an explanation where needed. The correct answers are also shown on the next page of this manual.

Comments for Instructors This is definitely a fun self-assessment (although perhaps also frustrating to some extent). Some of the questions require creative thinking, whereas students will point out that others require more logical analysis and recollection of basic mathematical principles.

Although this is a self-assessment, I usually present it in class as a team activity. This process is more active and illustrates the potential benefits of teams rather than individuals in solving problems (i.e., the questions are answered faster because someone in the team usually has an answer to some of the question).

Students can discuss some of the creative processes involved in answering these questions. For example, many students get the bucket of water question wrong (number 8) because of their assumption that the second bucket also has water (or, more likely, ice) in it. This sense of closure frames the question and makes it difficult to identify the correct answer.

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Chapter 6: Decision Making and Creativity

Creative Bench Strength Questions and Answers Questions

Answers

1. There is one word in the English language that is always pronounced incorrectly. What is it?

Incorrectly.

2. A man gave one son 10 cents and another son was given 1:45. The man gave away a total of 25 cents.

15 cents. What time is it?

He divided it between two people. Therefore, he gave a quarter to two.

3. A boat has a ladder that has six rungs, each rung is one None, the boat rises with the tide. foot apart. The bottom rung is one foot from the water. The tide rises at 12 inches every 15 minutes. High tide peaks in one hour. When the tide is at it's highest, how many rungs are under water?

4. There is a house with four walls. Each wall faces south.

There is a window in each wall. A bear walks by one of the windows. What color is the bear?

White. If all the walls face south, the house is at the North Pole, and the bear, therefore, is a polar bear.

5. Is half of two plus two equal to two or three?

Three, if you follow the mathematical orders of operation. Division is performed before addition. So, half of two is one. Then add two, and the answer is three.

6. There is a room. The shutters are blowing in. There is broken glass on the floor. There is water on the floor. You find Sloppy dead on the floor. How did sloppy die?

Sloppy is a goldfish. The wind blew the shutters in, which knocked his goldfish-bowl off the table, and it broke, killing him.

7. How much dirt would be in a hole 6 feet deep and 6 feet wide that has been dug with a square edged shovel?

None. No matter how big a hole is, it's still a hole: the absence of dirt. (And those of you who said 36 cubic feet are wrong for another reason, too. You would have needed the length measurement too. So you don't even know how much air is in the hole.)

8. Suppose you are in Juneau, Alaska and drop a bowling ball from a height of three feet into a bucket of water at 45 degrees Fahrenheit. Then, you drop a bowling ball of the same weight, mass, and size from the same height into another bucket at 20 degrees Fahrenheit. Which ball would hit the bottom of the bucket fastest?

The ball in the bucket of 45 degree F water hits the bottom of the bucket last. Did you think that the water in the 20 degree F bucket is frozen? Think again. The question said nothing about that second bucket having anything in it.

Therefore, there is no water (or ice) to slow the ball down.

9. What is the significance of the following: The year is 1978, thirty-four minutes past noon on May 6th.

The time and month/date/year are 12:34, 5/6/78.

10. What can go up a chimney down, but can't go down a chimney up?

An umbrella.

11. If a farmer has 5 haystacks in one field and 4 haystacks One. If he combines all of his haystacks, they in the other field, how many haystacks would he have if he all become one big stack. combined them all in the center field?

12. What is it that goes up and goes down but does not move?

The temperature.

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Chapter 6: Decision Making and Creativity

SA

SELF-ASSESSMENT 6.3: DO YOU HAVE A CREATIVE PERSONALITY?

Overview and Instructions Everyone is creative to some extent, but some people have personality traits and personal values that give them higher creative potential. This instrument estimates the student’s creative potential as a personal characteristic. The scale recognizes that creative people are intelligent, persistent, and possess an inventive thinking style. Creative disposition varies somewhat from one occupational group to the next.

This self-assessment consists of an adjective checklist with 30 words. Students are asked to put a mark in the box beside the words that they think accurately describe them. They MUST NOT mark the boxes for words that do not describe them.

Feedback for the Creative Personality Instrument The table below is based on norms for undergraduate and graduate university students in the United States. Scores range from –12 to +18. People with higher scores have a higher creative personality.

Score

Interpretation

+10 to +18

High creative personality

+1 to +9

Average creative personality

-12 to 0

Low creative personality

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Chapter 7: Team Dynamics

Instructor’s Manual to Accompany

M:Organizational Behavior 5/e

by Steven L. McShane and Mary Ann Von Glinow

Chapter 7: Team Dynamics Prepared by Steven L. McShane, University of Newcastle (Australia)

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Chapter 7: Team Dynamics

7

Team Dynamics

LEARNING OBJECTIVES After reading this chapter, students should be able to:

7-1 Define teams and informal groups, and explain why employees join informal groups. 7-2 Discuss the benefits and limitations of teams.

7-3 Outline the team effectiveness model and discuss how task characteristics, team size, and team composition influence team effectiveness.

7-4 Discuss how the six team processes—team development, norms, roles, cohesion, trust, and mental models—influence team effectiveness.

7-5 Discuss the characteristics and factors required for the success of self-directed teams and remote teams. 7-6 Identify four constraints on team decision making and discuss ways to improve decision making and creativity in teams.

CHAPTER GLOSSARY brainstorming — a freewheeling, face-to-face meeting where team members aren’t allowed to criticize but are encouraged to speak freely, generate as many ideas as possible, and build on the ideas of others brainwriting — a variation of brainstorming whereby participants write (rather than speak about) and share their ideas Brooks’s law — the principle that adding more people to a late software project only makes it later electronic brainstorming — a form of brainwriting that relies on networked digital devices for submitting and sharing creative ideas evaluation apprehension — occurs when individuals are reluctant to mention ideas that seem silly because they believe (often correctly) that others in the decision- making group are silently evaluating them human capital — the knowledge, skills, abilities, creative thinking, and other valued resources that employees bring to the organization

mental models — knowledge structures that we develop to describe, explain, and predict the world around us nominal group technique — a variation of brainwriting consisting of three stages in which participants (1) silently and independently document their ideas, (2) collectively describe these ideas to the other team members without critique, and then (3) silently and independently evaluate the ideas presented norms — the informal rules and shared expectations that groups establish to regulate the behavior of their members process losses — resources (including time and energy) expended toward team development and maintenance rather than the task production blocking — a time constraint in team decision making due to the procedural requirement that only one person may speak at a time

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Chapter 7: Team Dynamics

psychological safety — a shared belief that it is safe to engage in interpersonal risk-taking; specifically, that presenting unusual ideas, constructively disagreeing with the majority, and experimenting with new work behaviors will not result in co-workers posing a threat to their self-concept, status, or career remote teams — teams whose members operate across space, time, and organizational boundaries and are linked through information technologies to achieve organizational tasks role — a set of behaviors that people are expected to repeatedly perform because they hold formal or informal positions in a team and organization self-directed teams (SDTs) — cross-functional work groups that are organized around work processes, complete an entire piece of work requiring several interdependent tasks, and have substantial autonomy over the execution of those tasks social loafing — the problem that occurs when people exert less effort (and usually perform at a lower level) when working in teams than when working alone

social networks — social structures of individuals or social units that are connected to one another through one or more forms of interdependence task interdependence — the extent to which team members must share materials, information, or expertise to perform their jobs team cohesion — the degree of attraction people feel toward the team and their motivation to remain members team efficacy — the collective belief among team members of the team’s capability to successfully complete a task teams — groups of two or more people who interact with and influence one another, are mutually accountable for achieving common goals associated with organizational objectives, and perceive themselves as a social entity within an organization trust — positive expectations one person has toward another person in situations involving risk

CHAPTER SUMMARY BY LEARNING OBJECTIVE 7-1 Define teams and informal groups, and explain why employees join informal groups.

Teams are groups of two or more people who interact and influence one another, are mutually accountable for achieving common goals associated with organizational objectives, and perceive themselves as a social entity within an organization. All teams are groups because they consist of people who are assembled together. Not all groups are teams, however; some groups do not exist to achieve organizational objectives and members of those groups might not be interdependent.

People join informal groups for four reasons: (1) They have an innate drive to bond, (2) individuals have an inherent need to define themselves to some extent by their group affiliations, (3) some personal goals are accomplished better in groups, and (4) individuals are comforted in stressful situations by the mere presence of other people.

7-2 Discuss the benefits and limitations of teams.

Under the right conditions, teams make better decisions, develop better products and services, and create a more motivated workforce than do employees working alone. Teams also coordinate more easily than people working in separate departments. In many situations, employees are more motivated when working in teams than alone.

This occurs because the drive to bond motivates team members to fulfill team goals, employees are monitored by and feel accountable to team members, and each team member creates a moving performance standard for the others.

Two limitations of teams are process losses and social loafing. Process losses are resources expended toward team development and maintenance rather than directly toward task performance. These costs increase with the team’s diversity and with its size and when adding new members to an existing team. Social loafing occurs when people exert less effort (and usually perform at a lower level) in teams than when working alone. It is more likely to occur under several conditions: (1) individual performance is hidden or difficult to distinguish from the performance of other team members; (2) the work is boring or has low task significance; (3) the individual team member has low Page 7-3 Copyright © 2022 McGraw Hill. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill.

Chapter 7: Team Dynamics

conscientiousness, low agreeableness, and low collectivism; and (4) the individual team member has low motivation to help the team achieve its goals, which occurs when the employee doesn’t identify with the team, doesn’t believe others are pulling their weight, and doesn’t believe his or her effort will affect the team’s success.

7-3 Outline the team effectiveness model and discuss how task characteristics, team size, and team composition influence team effectiveness.

Team effectiveness includes the team’s ability to achieve its objectives, fulfill the needs of its members, and maintain its survival. The model of team effectiveness considers the team and organizational environment, team design, and team processes. Three team design elements are task characteristics, team size, and team composition. Teams tend to be better suited for situations in which the work is complex yet tasks are well structured and have high task interdependence. Teams should be large enough to perform the work yet small enough for efficient coordination and meaningful involvement. Effective teams are composed of people who are motivated and able to perform tasks (taskwork) but who are also motivated and able to engage in teamwork— behaviors that support the team’s existence and functioning. Team member diversity has advantages and disadvantages for team performance.

7-4 Discuss how the six team processes — team development, norms, roles, cohesion, trust, and mental models — influence team effectiveness.

Several team processes are embedded in team development. Teams develop through the stages of forming, storming, norming, performing, and eventually adjourning. As teams evolve, they develop norms to regulate and guide member behavior. Norms exist because employees believe these behaviors improve team performance or well-being; because they want predictability and conflict-avoidance in their relations with other team members; and because norms routinize behavior, which improves social order and coordination with minimal cognitive effort.

Team members are assigned or acquire roles—a set of behaviors they are expected to perform. Some roles are assigned in team design; others are informally acquired as a team process. There are numerous team roles, but all generally focus directly either on task performance (taskwork) or on team maintenance (teamwork).

Team cohesion is the degree of attraction people feel toward the team and their motivation to remain members.

Cohesion increases with member similarity, smaller team size, higher degree of interaction, somewhat difficult entry, team success, and external challenges. Cohesion increases team performance when the team has high interdependence and its norms are congruent with organizational goals. Trust refers to positive expectations one person has toward another person in situations involving risk. People trust others on the basis of three foundations: calculus, knowledge, and identification.

Team mental models are cognitive images that team members form about the team’s tasks, relationship dynamics, and knowledge repository. High-performing teams form shared mental models about their collective objectives, values, norms, work style, and interaction in the work process. Complementary mental models are unique to each team member but are compatible with the mental models held by other team members. Team mental models establish effective coordinating routines and generate perceptions of the team’s purpose and performance. They also help team members quickly know where knowledge is located within the team.

7-5 Discuss the characteristics and factors required for the success of self-directed teams and remote teams.

Self-directed teams (SDTs) complete an entire piece of work requiring several interdependent tasks, and they have substantial autonomy over the execution of their tasks. Members of remote teams operate across space, time, and organizational boundaries and are linked through information technologies to achieve organizational tasks.

Remote teams are more effective when their members apply effective teamwork behaviors, have good communication technology skills, are productive without close supervision (i.e., self-management), and have higher emotional intelligence. The team should have plenty of task structure and freedom to choose the preferred communication channels. Remote team members should also meet face-to-face fairly early in the team development process.

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Chapter 7: Team Dynamics

7-6 Identify four constraints on team decision making and discuss ways to improve decision making and creativity in teams.

Team decisions are impeded by time constraints, evaluation apprehension, conformity to peer pressure, and overconfidence. These concerns can be minimized through a shared belief that engaging in interpersonal risktaking will not have adverse consequences (psychological safety), checks and balances that prevent anyone from dominating discussion, a team size that is as small as practicable, and wariness about the team’s overconfidence.

Four structures potentially improve creative decision making in team settings: brainstorming, brainwriting, electronic brainstorming, and nominal group technique.

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Chapter 7: Team Dynamics

LECTURE OUTLINE Slide 1: Team Dynamics Slide 2: Learning Objectives 7-1

Define teams and informal groups, and explain why employees join informal groups.

7-2

Discuss the benefits and limitations of teams.

Outline the team effectiveness model and discuss how task characteristics, team size, and team composition influence team effectiveness.

7-3

Discuss how the six team processes — team development, norms, roles, cohesion, trust, and mental models — influence team effectiveness.

7-4

Discuss the characteristics and factors required for the success of self-directed teams and remote teams.

7-5

Identify four constraints on team decision making and discuss ways to improve decision making and creativity in teams.

7-6

Slide 3: What Are Teams?

1. Groups of two or more people 2. Exist to fulfill a purpose 3. Interdependence and need for collaboration 4. Mutually accountability — members influence each other 5. Perceive themselves to be a team

Slide 4: Types of Teams Permanence • How long the team exists Skill diversity • Degree that team members have different skills and knowledge Authority dispersion • Degree that decision-making responsibility is distributed throughout the team Example: task forces have low permanence, medium/high skill diversity, and medium authority dispersion.

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Chapter 7: Team Dynamics

Slide 5: Informal Groups Groups that exist primarily for the benefit of their members Reasons why informal groups exist: • Innate drive to bond • Social identity • Goal accomplishment • Emotional support Informal groups potentially benefit organizations

Slide 6: Advantages and Challenges of Teams Advantages of teams 1. Make better decisions and develop better products/services 2. Share information and coordinate tasks more effectively 3. Higher employee motivation — three motivating forces • Fulfills drive to bond — motivated to belong, felt obligation to the group • Accountable to the team — team members monitor each other’s performance • Co-workers are moving benchmarks of performance comparison

Challenges of teams 1. Individuals are better than teams for some tasks — when work isn’t complex and one

person possess all necessary abilities.

2. Process losses • Resources expended toward team development/maintenance rather than performance • Takes time for members to resolve disagreements, mutually understand goals, negotiate roles, agree on conduct, etc • Process losses increase with team diversity (more conflicts) and size (more coordination) • Process losses amplified when adding new members — adding people to a late software project makes it later (Brooks’ Law) 3. Social loafing — employees exert less effort in groups than when working alone

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Chapter 7: Team Dynamics

Slide 7: Social Loafing Causes and Remedies Social loafing is more likely to occur: 1. When individual performance is hidden or difficult to distinguish from others ➡ In larger teams ➡ Team has single output (e.g., solve client problem), not separate for each member

(e.g., number of clients served by each team member)

2. When work is not intrinsically motivating (i.e., is boring, has low task significance) 3. Due to individual characteristics ➡ Low conscientiousness ➡ Low agreeableness ➡ Low collectivist values 4. When employees lack motivation to help the team achieve its goals ➡ Employees have low social identity with the team ➡ Employees believe others aren’t pulling their weight (unfair workload) ➡ Employees don’t believe their effort affects team’s success (e.g., in large teams)

Minimizing Social Loafing • Form smaller teams — individual performance more noticeable • Measure individual performance • Specialize tasks — individual effort and performance more noticeable • Increase job enrichment — especially task significance • Increase mindfulness of team obligations — have employees declare their commitment to the team — make employees more aware of social loafing problem • Select motivated, team-oriented employees — high conscientiousness, agreeableness, somewhat collectivist value orientation, strong social identity with the team

Slide 8: Team Effectiveness Model Team effectiveness defined — extent that the group: • Fulfills organization’s purpose (i.e., accomplishes it tasks) • Fulfills needs of individual members • Is able to survive (i.e., members remain together) Elements of team effectiveness model • Organizational and team environment • Team design • Team processes (evolving cognitive and emotional dynamics of the team) • Team outcomes (effectiveness)

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Chapter 7: Team Dynamics

Slide 9: Organizational and Team Environment • Communication systems — facilitate coordination among team members • Organizational leadership — values team diversity and all team members, not stars • Organizational structure — assigns discrete clusters of work activity to teams • Physical space — physical layout makes a difference • Reward systems — at least partly rewarded for team performance

Slide 10: Best Task Characteristics for Teams 1. Complex tasks divisible into specialized roles • Requires skills/knowledge beyond one person, and possible to allocate parts of work to

people with those different skill sets 2. Well-structured tasks — easier to coordinate work among people • Low task variability — same tasks each day • High task analyzability — work is predictable enough for well-established procedures • Well-defined roles help teams perform when tasks have less structure (e.g., surgery) 3. Higher task interdependence • Extent to which team members must share materials, information, or expertise to

perform their jobs • Three levels — pooled, sequential, reciprocal (see next slide) • High interdependence usually better for teams because: ➡ (a) provides better communication/coordination ➡ (b) stronger motivation for team membership

• When team members have different goals (such as serving different clients) but have

high interdependence with others to achieve those unique goals, teamwork might create excessive conflict — reduce interdependence or rely on other coordinating mechanisms (e.g., direct supervision as a buffer or mediator)

Slide 11: Levels of Task Interdependence Pooled interdependence (lowest level) • Sharing a common resource (equipment, budget, etc) Sequential interdependence • Output of one person becomes the direct input for another person (e.g., assembly line) Reciprocal interdependence (highest level)

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Chapter 7: Team Dynamics

• Work output is exchanged back and forth among individuals — interwoven relationship

(e.g., medical team)

Slide 12: Team Size Smaller teams are better because: • Less process loss (better coordination and resolving conflicts) • Feel more engaged in teamwork — more influence, feel more responsible • Faster team development — know each other faster/better, more trust But the team must be large enough to accomplish task

Slide 13: Team Composition Effective team members engage in taskwork and teamwork Taskwork — behaviors that complete the assigned tasks • They have the motivation, ability, and role perceptions (MARS model internal elements) to do their job Teamwork — behaviors that maintain the team’s existence and functioning, support team dynamics Effective team member behaviors (5 Cs): • Cooperating — willing and able to work together (i.e., sharing resources and being flexible to accommodate others) • Coordinating — actively manage the team’s work so it is performed efficiently and harmoniously (i.e., keep the team on track and align work with others) • Communicating — transmit information freely (vs. hoarding), efficiently, and respectfully; listen actively to co-workers • Comforting — help co-workers maintain a positive and healthy psychological state (i.e., show empathy, provide psychological comfort, and build co-worker feelings of confidence and self-worth) • Conflict handling — have skills and motivation to resolve dysfunctional disagreements (i.e., effective diagnostic skills and use various conflict-handling skills effectively)

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Chapter 7: Team Dynamics

Slide 14: Team Composition: Diversity Extent that team members have diverse knowledge, skills, values, mental models, perspectives Advantages of team diversity • View problems/alternatives from different perspectives • Broader knowledge base • Provide a better representation of constituents (e.g., clients, other departments) Disadvantages of team diversity • Take longer to develop a high-performing team • Susceptible to “faultlines” ➡ Split team into subgroups by surface or deep level features ➡ Reduces motivation to communicate and coordinate across faultlines

Slide 15: Team Processes Cognitive and emotional dynamics of the team that continually change with the team’s ongoing evolution and development.

Includes team development, norms, roles, cohesion, trust, mental models.

Team development — heart of team processes — the other team processes are embedded in team development.

Slide 16: Stages of Team Development 1. Forming • Period of testing and orientation • Members defer to the existing authority • Expectations learned, and how members fit into the team 2. Storming • More conflict as members compete for roles • Members try to establish norms 3. Norming • Cohesion develops • Roles established, consensus forms around group objectives • Similar mental models/expectations about how to accomplish goals

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Chapter 7: Team Dynamics

4. Performing • Team becomes more task-oriented • Efficient work coordination, conflict resolution • Highly cooperative, high trust, committed to goals, identify with the team 5. Adjourning • Team is about to disband • Members shift from task to relationship focus

Slide 17: Team Norms Informal rules and shared expectations to regulate member behaviors • Apply only to behavior, not private thoughts or feelings • Begin when the team forms, some norms change over the team’s lifespan Why teams develop norms 1. Members associate these behaviors with team’s performance or member well-being 2. Improve predictability and conflict-avoidance in co-worker relations 3. Routinize behavior with minimal cognitive effort — better coordination and social order Team members abide by norms through: • Enforcement — other members use rewards and punishment • Members conform to norms because their self-concept includes team membership Managing team norms: • Select team members with compatible values and past behavior • State the desired norms when people are assigned to the team • Ongoing coaching of norms to team members • Introduce team-based rewards that counter dysfunctional norms • Disband teams with dysfunctional norms

Slide 18: Team Roles Role: a set of behaviors that people are expected to repeatedly perform because they hold formal or informal positions in a team and organization Roles versus norms • Both establish and reinforce expected patterns of behavior • Roles typically apply to one or a few people; norms typically apply to all members

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Chapter 7: Team Dynamics

Some roles are formally assigned, others are acquired informally • Through positioning and negotiation • Individuals attracted to roles that suit their personality, may be shared but eventually claimed or associated with one or more team members Types of roles • Taskwork roles — assist the team’s performance; e.g., coordinating the team, providing constructive critique, motivating team members in their task performance • Teamwork roles — support team development/dynamics; e.g., providing emotional support, maintaining harmony, creating opportunities for social interaction

Slide 19: Team Cohesion The degree of attraction people feel toward the team and their motivation to remain members Factors that strengthen or speed up team cohesion: 1. High member similarity • Similarity-attraction hypothesis — we bond more quickly and easily with coworkers who

are similar to us — faster/stronger cohesion • Generally takes longer/more difficult for diverse teams to become cohesive, but this depends on the form of diversity 2. Smaller team size • Smaller teams usually more cohesive — easier to agree on goals and coordinate work

activities, each member has more influence on the team 3. Regular/frequent member interaction • Regular interaction increases cohesiveness • More interaction through higher task interdependence 4. Somewhat difficult entry • Cohesion increased when entry to team is restricted — the more elite the team, the

more prestige it confers • Caution: severe initiation can weaken cohesion 5. Higher team success • Successful teams fulfill member needs and goals • Success increases social identity with the team

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Chapter 7: Team Dynamics

• Note: Team success (performance) affects cohesion to some extent, but cohesion has a

much strong effect on team performance (see below) 6. More external competition and challenges • External competition/challenges increase cohesion.

• Cohesion can dissipate if external threats are severe and/or overwhelming.

Slide 20: Team Cohesion and Performance High cohesion teams usually perform better because: • Motivated to maintain membership and achieve team objectives • Share information more frequently • Higher coworker satisfaction • Better social support (minimizes stress) • Resolve conflict more swiftly and effectively Note: Teams with higher cohesion cause better performance, and teams with better performance cause higher cohesion. In real-world established teams, cohesion has a much stronger effect on team performance than the effect of team performance on team cohesion.

Contingencies of cohesion and performance 1. Task interdependence • Cohesion effect on team performance is stronger with high task interdependence • Cohesion motivates cooperation, so less important when people have minimal

interdependence 2. Team norms consistent with organizational objectives • Cohesion motivates conformity to team norms • Cohesion improves team performance when norms are aligned with firm’s goals • Cohesion undermines team performance when norms oppose firms goals

Slide 21: Trust in Teams Positive expectations one person has toward another person or group in situations involving risk

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Chapter 7: Team Dynamics

Three Levels of Trust • Calculus-based trust ➡ Logical calculation that other team members will act appropriately because of

sanctions, i.e., based on deterrence ➡ Lowest potential trust and is easily broken — not enough to sustain a relationship • Knowledge-based trust ➡ Based on the predictability of another team member’s behavior and/or confidence in the person’s competence ➡ More stable because it develops over time • Identification-based trust ➡ Based on mutual understanding and emotional bonds ➡ Potentially the strongest of the three types of trust ➡ Transgressions quickly forgiven because the individual’s self-concept is based partly on team membership

Swift trust • New team members tend to have a moderate or high level — not a low level of trust in

their new co-workers.

• Swift trust is fragile in new relationships because it is based on assumptions rather than experience, i.e., easily broken.

Slide 22: Team Mental Models Mental models — visual or relational images in our mind that we develop to describe, explain, and predict the world around us Two types of team mental models: • Shared mental models — team members hold similar images and expectations about the team’s objectives, shared values, behavior norms, work style, member task involvement • Complementary mental models — each team member’s unique mental model, which is compatible with the unique mental models held by other team members Benefits of shared and complementary team mental models • Improve coordination — more habitual work practices and expectations with others • Generates belief/confidence that the team is a functioning social entity • Helps team members know where knowledge is located within the team — team’s diverse knowledge repository

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Chapter 7: Team Dynamics

Slide 23: Team Building Team building — formal activities that try to accelerate/improve the team development processes Several types of team building to serve the various team development processes 1. Clarify team’s performance goals and build motivation to achieve goals 2. Improve the team’s problem solving skills 3. Clarify and reconstruct each member’s perception of their role and the role expectations of others — related to shared and complementary team mental models 4. Improving interpersonal relations within the team — build trust, strengthen team cohesion Team building activities can be effective under specific conditions: • Need to target specific team problems • Need to be an ongoing process, not a one-shot inoculation • Need to occur on-the-job, not just away from the workplace

Slide 24: Self-Directed Teams Self-directed teams defined — cross-functional groups organized around work processes that complete an entire piece of work requiring several interdependent tasks and have substantial autonomy over the execution of those tasks Two distinct features of SDTs: • They complete an entire piece of work requiring several interdependent tasks • They have substantial autonomy over the execution of their tasks Self-Directed Team Success Factors 1. Responsible for an entire work process — make a product, provide a service 2. High interdependence within the team 3. Low interdependence with other teams 4. Sufficient autonomy to organize and coordinate work 5. Work site and technology support team communication/coordination and job enrichment

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Chapter 7: Team Dynamics

Slide 25: Remote (Virtual or Distributed) Teams Teams whose members operate across space, time, and organizational boundaries and are linked through information technologies to achieve organizational goals Differ from traditional teams in two ways: • One or more members work remotely some of the time rather than always co-located (working in the same physical area) • Due to their lack of colocation, members depend primarily on information technologies rather than face-to-face interaction to communicate and coordinate Team remoteness (virtuality) increases with the: • Geographic dispersion of team members • Percentage of members who work apart • Percentage of time that members work apart Remote teams are more common and possible than ever before because: • Employees perform knowledge-based work rather than physical production • Information technologies make it easier to communicate and coordinate at a distance • Human capital — people are competitive advantage, so firms try to leverage that resource, which are often located geographically far apart Remote team success factors 1. Members apply effective teamwork behaviors (five Cs) and have good communication technology skills, strong self-leadership, and higher emotional intelligence 2. Remote teams have a toolkit of communication technologies/channels and freedom to choose channels that work best for them 3. Remote teams have moderate or higher task structure (e.g., clear operational objectives) 4. Members meet face-to-face especially early in the team development process

Slide 26: Team Decision-Making Constraints Time constraints • Teams take longer than individuals to make decisions • Time to organize/coordinate/maintain relationships • Production blocking — a time constraint in team decision making due to the procedural requirement that only one person may speak at a time

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Chapter 7: Team Dynamics

Evaluation apprehension • Reluctance to mention ideas that seem silly because of belief (often true) that other team members are silently evaluating them • Based on desire for a favorable self-presentation — creative ideas often sound bizarre • Most common when higher status person attends meeting, or members formally evaluate each other Peer pressure to conform • Suppressing dissenting opinions that oppose team norms • Members might punish the violator, persuade him/her that the opinion is incorrect • Conformity is subtle — we question our ideas when team members disagree Overconfidence (inflated team efficacy) • High team efficacy is usually beneficial — set more challenging goals, more motivated to achieve goals • Curvilinear relationship between team efficacy and the team’s performance — too little or too much undermines the team’s effectiveness • Inflated team efficacy has negative outcomes ➡ Less vigilant making decisions ➡ Less constructive debate ➡ Less likely to seek or accept information located outside the team

• Inflated team efficacy caused by: ➡ Collective self-enhancement effect ➡ High team cohesion — mutual reinforcement ➡ External threats/competition — further motivates self-enhancement ➡ Mutually reinforcing beliefs within the team — echo and amplify a common point of view

Slide 27: General Guidelines for Team Decisions 1. Checks and balances ensure that the leader or other members don’t dominate 2. Maintain optimal team size — minimize production blocking and process losses 3. Encourage team confidence, but be wary of overconfidence 4. Team norms should encourage critical thinking 5. Support psychological safety — a shared belief that it is safe to engage in interpersonal

risk-taking; specifically, that presenting unusual ideas, constructively disagreeing with the majority, and experimenting with new work behaviors will not result in coworkers posing a threat to their self-concept, status, or career

6. Introduce team structures that encourage creativity

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Chapter 7: Team Dynamics

Slide 28: Creative Team Structures: Brainstorming Team structure in which participants try to think up as many ideas as possible Four brainstorming rules: 1. Speak freely — describe even the craziest ideas 2. Don’t criticize others or their ideas 3. Provide as many ideas as possible — quality increases with quantity 4. Build on others’ ideas Brainstorming rules potentially increase divergent thinking and minimize evaluation apprehension These benefits require: • Experienced facilitator • Confident employees • Collaborative learning orientation culture that prioritizes psychological safety

Slide 29: Other Creative Team Structures Brainwriting • Minimizes production blocking by removing conversation during idea generation • Individuals write down and distribute their ideas to others, who develop further ideas.

• There is less production blocking than brainstorming.

Electronic Brainstorming • Brainwriting using digital technology • Participants enter their ideas using special digital software • Ideas distributed anonymously to other participants, who are encouraged to piggyback (build on them) • Participants vote electronically on the ideas presented • Face-to-face discussion usually follows • Strengths: reduces production blocking, evaluation apprehension, and conformity problems than brainstorming or brainwriting • Limitations: considered too structured and technology-bound

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Chapter 7: Team Dynamics

Nominal Group Technique • Variation of face-to-face brainwriting, but includes a verbal stage for description of ideas.

• Three-stage process: 1. Individuals silently write and independently document their ideas (possible solutions).

2. Participants collectively describe these ideas to the other team members (usually round-robin format) — no criticism or debate, however clarification of ideas is encouraged.

3. Participants silently and independently evaluate the ideas presented.

• Effectiveness of Nominal Group Technique ➡ Tends to improve quality of ideas generated by the team. ➡ Production blocking and evaluation apprehension still occur.

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Chapter 7: Team Dynamics

STUDENT HANDOUT

CRITICAL-THINKING QUESTIONS 1. You have been put in charge of a cross-functional task force that will develop enhanced Internet banking services for retail customers. The team includes representatives from marketing, information services, customer service, and accounting, all of whom will move to the same location at headquarters for three months. Describe the behaviors you might observe during each stage of the team’s development.

2. You have been assigned to a class project with five other students, none of whom you have met before, and some of whom come from different countries. To what extent would team cohesion improve your team’s performance on this project? What actions would you recommend to build team cohesion among student team members in this situation?

3. You are responsible for convening a major event in which senior officials from several state governments will try to come to an agreement on environmental issues. It is well known that some officials posture so that they appear superior, whereas others are highly motivated to solve the environmental problems that cross adjacent states. What team decision-making problems are likely to be apparent in this government forum, and what actions can you take to minimize these problems?

4. The chief marketing officer of Sawgrass Widgets wants marketing and sales staff to identify new uses for its products. Which of the four team structures for creative decision making would you recommend? Describe and justify this process to Sawgrass’s chief marketing officer.

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Chapter 7: Team Dynamics

CONFIDENTIAL INSTRUCTOR NOTES

SUGGESTED ANSWERS TO CRITICAL THINKING QUESTIONS 1.

You have been put in charge of a cross-functional task force that will develop enhanced Internet banking services for retail customers. The team includes representatives from marketing, information services, customer service, and accounting, all of whom will move to the same location at headquarters for three months. Describe the behaviors you might observe during each stage of the team’s development.

Forming. The group would generally be polite (not pushy) and would defer to existing authority, such as the person who set up this group. Members would ask questions to help them make sense of their new environment.

Storming. Team members assert themselves more clearly as they negotiate for roles and responsibilities. There will be disagreements as people vie for roles and try to influence team norms.

Norming. Team members have the first real sense of cohesion as roles are established and a consensus forms around group objectives. They interact more efficiently and begin the process of understanding and accepting each other.

Performing. Team members focus more fully on task performance. They coordinate their work smoothly, and demonstrate a high level of trust.

Adjourning. Team members shift towards a more relationship orientation in their relationships as the team’s existence comes to an end.

2.

You have been assigned to a class project with five other students, none of whom you have met before, and some of whom come from different countries. To what extent would team cohesion improve your team’s performance on this project? What actions would you recommend to build team cohesion among student team members in this situation?

Team cohesion can potentially have a significantly positive effect on the team’s performance. Indeed, instructors are usually aware of this advantage. Some are reluctant to let students form their own teams because those who have worked together in the past have a cohesiveness advantage over those who form a team with strangers.

Members of cohesive teams spend more time together, share information more frequently, and are more satisfied with each other. They are generally more sensitive to each other's needs and develop better interpersonal relationships, thereby reducing dysfunctional conflict. When conflict does arise, members of high cohesion teams seem to resolve these differences swiftly and effectively. They also provide each other with better social support in stressful situations. Also note that cohesive teams necessarily have a higher level of team development.

Consequently, they work together more efficiently (less process loss) and require less communication to coordinate work activities.

Aside from these benefits, cohesive teams only perform better when their goals and values are aligned with the task. Some highly cohesive student teams perform poorly because they rely on team norms that do not support hard work to achieve a top grade. Instead, they put their energy more into having a good time during the project.

In addition to the above, we know from cross cultural studies that some class members will contribute frequently, whereas others will not. Their reticence is not a lack of trust, nor interest in the project. Perhaps their language skills are not proficient, and their willingness to engage in team cohesion exercises may not be part of their culture. If some culture is not expected to say “no,” then it may be hard to assess their real interest. The first time the group gets together may be an excellent time to discuss what group norms should exist, and how the group should work together going forward.

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Chapter 7: Team Dynamics

3.

You are responsible for convening a major event in which senior officials from several state governments will try to come to an agreement on environmental issues. It is well known that some officials take positions to make themselves appear superior, whereas others are highly motivated to solve the environmental problems that cross adjacent states. What team decisionmaking problems are likely to be apparent in this government forum, and what actions can you take to minimize these problems?

By reviewing the various problems with team decision making, students can identify a few problems in this situation. Here are the main issues that will likely be identified: a) Evaluation apprehension — With posturing and politicking, some officials may be reluctant to present ideas that initially seem silly or unintelligent. b) Pressure to conform — The emotionally-charged nature of this topic, as well as the strong positions held by some participants, may lead to pressure by some delegates to have others conform to the dominant views in the forum. c) Time constraints — As in any meeting, only one person can typically speak at one time, causing others to either forget their ideas while listening, or ignore what others are saying while they think through their own ideas. d) Inflated team efficacy — This is unlikely to be a problem in this situation. There is no evidence that this is a highly cohesive group (just the opposite!), so they won’t reinforce each other’s overconfidence. Also, there aren’t any apparent external threats sufficient to make this group feel bound together and distort their superiority (the differentiation effect discussed in Chapter 3).

4.

The chief marketing officer of Sawgrass Widgets wants marketing and sales staff to identify new uses for its products. Which of the four team structures for creative decision making would you recommend? Describe and justify this process to Sawgrass’s chief marketing officer.

Benefits. Brainstorming is a popular team structure for encouraging creative ideas. Brainstorming encourages divergent thinking while, under specific conditions (e.g., skilled facilitator, experienced employees), minimizing evaluation apprehension and other team dynamics problems. In addition brainstorming can bring benefits beyond the number of ideas produced. Brainstorming participants interact and participate directly, thereby increasing decision acceptance and team cohesiveness. Brainstorming rules tend to keep the team focused on the task. (Further evidence from research, but not mentioned in book: There is also evidence that effective brainstorming sessions provide valuable nonverbal communication that spreads enthusiasm. Team members share feelings of optimism and excitement which may encourage a more creative climate. By involving clients in brainstorming sessions, these positive emotions may produce higher customer satisfaction than if people are working alone.)

Potential limitations. Organizational behavior researchers warn that brainstorming has potential limitations: Brainstorming does not completely remove evaluation apprehension; employees still know that others are silently evaluating the quality of their ideas. Production blocking and related time constraints prevent all ideas from being presented. Another potential limitation is that brainstorming and similar activities limits creative thinking through fixation (conformity effect) — hearing another person’s ideas tends to restrict the variety of ideas that we subsequently think about. In addition, if the objective is to discover as many ideas as possible — rather than to produce the most creative idea possible — then brainstorming teams sometimes perform worse than do individuals working alone.

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Chapter 7: Team Dynamics

STUDENT HANDOUT

CASE STUDY: THE SHIPPING INDUSTRY ACCOUNTING TEAM For the past five years, I have been working at McKay, Sanderson, and Smith Associates, a mid-sized accounting firm in Boston that specializes in commercial accounting and audits. My particular specialty is accounting practices for shipping companies, ranging from small fishing fleets to a couple of the big firms with ships along the East Coast.

About 18 months ago, McKay, Sanderson, and Smith Associates became part of a large merger involving two other accounting firms. These firms have offices in Miami, Seattle, Baton Rouge, and Los Angeles.

Although the other two accounting firms were much larger than McKay, all three firms agreed to avoid centralizing the business around one office in Los Angeles. Instead, the new firm—called Goldberg, Choo, and McKay Associates—would rely on teams across the country to “leverage the synergies of our collective knowledge” (an often-cited statement from the managing partner soon after the merger).

The effect of the merger affected me a year ago when my boss (a senior partner and vice president of the merged firm) announced that I would be working more closely with three people from the other two firms to become the firm’s new shipping industry accounting team. The other “team members” were Elias in Miami, Susan in Seattle, and Brad in Los Angeles. I had met Elias briefly at a meeting in New York City during the merger, but have never met Susan or Brad, although knew that they were shipping accounting professionals at the other firms.

Initially, the shipping “team” activities involved emailing each other about new contracts and prospective clients. Later, we were asked to submit joint monthly reports on accounting statements and issues.

Normally, I submitted my own monthly reports which summarize activities involving my own clients.

Coordinating the monthly report with three other people took much more time, particularly since different accounting documentation procedures across the three firms were still being resolved. It took numerous emails and a few telephone calls to work out a reasonable monthly report style.

During this aggravating process, it became apparent — to me at least — that this “teams” business was costing me more time than it was worth. Moreover, Brad in Los Angeles didn’t have a clue as to how to communicate

with the rest of us. He rarely replied to emails. Instead, he often used the telephone voice mail system, which resulted in numerous irritating episodes of telephone tag.

Brad arrives at work at 9:30 a.m. in Los Angeles (and is often late!), which is early afternoon in Boston. I typically have a flexible work schedule from 7:30 a.m. to 3:30 p.m. so I can chauffeur my kids after school to sports and music lessons. So Brad and I have a window of less than three hours to share information.

The biggest nuisance with the shipping specialist accounting team started two weeks ago when the firm asked the four of us to develop a new strategy for attracting more shipping firm business. This new strategic plan is a messy business. Somehow, we have to share our thoughts on various approaches, agree on a new plan, and write a unified submission to the managing partner. Already, the project is taking most of my time just writing and responding to emails, and talking in conference calls (which none of us did much before the team formed).

Susan and Brad have already had two or three “misunderstandings” via email about their different perspectives on delicate matters in the strategic plan.

The worst of these disagreements required a conference call with all of us to resolve. Except for the most basic matters, it seems that we can’t understand each other, let alone agree on key issues. I have come to the conclusion that I would never want Brad to work in my Boston office (thank goodness, he’s on the other side of the country).

While Elias and I seem to agree on most points, the overall team can’t form a common vision or strategy. I don’t know how Elias, Susan, or Brad feel, but I would be quite happy to work somewhere that did not require any of these long-distance team headaches.

Discussion Questions: 1. What type of team was formed here? Was it necessary, in your opinion?

2. Use the team effectiveness model and related information in this chapter to identify the strengths and weaknesses of this team’s environment, design, and processes.

3. Assuming that these four people must continue to work as a team, recommend ways to improve the team’s effectiveness. © 2004 Steven L. McShane

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Chapter 7: Team Dynamics

CONFIDENTIAL INSTRUCTOR NOTES

CASE STUDY: THE SHIPPING INDUSTRY ACCOUNTING TEAM Case Synopsis This case describes how a team of accountants from several offices across the country must work together as a remote/ virtual team after their respective companies merged into one decentralized organization. The case is written from the perspective of one of the accountants on that team, who explains his/her dislike of working in teams and discusses some of the problems in the assigned team. The case relates to several issues in the effectiveness of remote teams, including the problem of applying ambiguous and complex tasks to these teams, team development without face-to- face communication, and team members who lack motivation and/or ability (technologically and interactively) to work in virtual teams.

Discussion Questions and Suggested Answers 1.

What type of team was formed here? Was it necessary, in your opinion?

The team created in this case was a remote (virtual or distributed) team because it consisted of members who operate across space, time, and organizational boundaries and are linked through information technologies to achieve organizational goals.

Whether it was necessary to form this team requires students to consider a few factors, some of which are not explicit in the case. First, it seems reasonable for an organization to rely on experts in a specialization to put their heads together to form a strategy to improve business in their specialization. Without making too many assumptions, it is difficult to imagine how the firm could develop strategy without the collective involvement of these people.

The key question, therefore, isn’t whether the team should have been formed. The key question is how the team should be structured. The answer to the next question provides some details on this point, but students can suggest in this question that maybe a co-located team would be more effective under these conditions. Specifically, perhaps these people could have been brought together face-to-face for a few days to work through many of the main issues for the strategy.

2. Use the team effectiveness model and related information in this chapter to identify the strengths and weaknesses of this team’s environment, design, and processes.

Students should break down this answer into the various components of the team effectiveness model that relate to this situation: Team Environment: Students can identify a number of team environment factors that make it difficult for this team to operate effectively.

The team relies on email, which seems to lack the qualities (media richness — as we learn in the next chapter) for communicating on the complex and ambiguous issues about corporate strategy. Moreover, given the lack of coordination, it appears that the organizational structure supports individual performance rather than team performance.

This point is reflected in the author’s statements that he/she could just as well work alone on the required tasks.

Students can speculate on the quality of leadership influences here.

Team Tasks: Students should recognize that forming a strategic plan to improve shipping accounting business is a potentially messy affair that the team members do not seem to engage in alone let along together very often. In other words, the task is novel, complex, and ambiguous. This is definitely not ideal for remote teams, particularly those teams that clearly are far from the performing level of team development.

Team Size/Composition: Team size seems to be fine; four people should be able to develop as a remote team relatively well, controlling for

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Chapter 7: Team Dynamics

other factors. However, team composition is clearly a concern here. While everyone on this team seems to have appropriate expertise in accounting for shipping firms, there is a lack of motivation and competencies for remote team dynamics. The author and possible others on the team have little desire to work in a team environment. They have apparently worked alone for some time before the merger.

Students should review this case using the five C’s model of team behaviors.

• Cooperating — Mixed evidence of this, at best. Some cooperation with some members, but the author in particular prefers to work alone. Also note the limited willingness to be flexible.

• Coordinating — Again, limited competencies here. Little evidence that each is sensitive to each other’s circumstance, or attempts to make the team more efficient.

• Communicating — Team members also seem to lack skills in communicating through information technology.

One team member doesn’t use email very well. None of the team members has used conference calling much in the past. Other, potentially more effective communication media have not been mentioned in this case.

• Comforting (psych support) — There is no evidence at all that anyone is being supportive of each other as they work through the trials of team work. Possibly some support between a couple of people, but this is implied rather than stated.

• Conflict resolving — Conflicts are very apparent here, but the case provides no evidence that anyone on the team is working effectively to resolve those conflicts.

Team Processes: One of the glaring problems with the remote team in this case is that the team members have had almost no opportunity or resources to develop as a team. One of the striking characteristics of effective remote teams is that their members have had an opportunity to meet face-to-face at some point (preferably early) in the team’s life cycle. This has not occurred here, except that the author (one of the accountants) has briefly met another team member from another office. The result is that team members do not understand each other, cannot agree on anything other than the most basic issues, and seem to have very low cohesiveness.

3. Assuming that these four people must continue to work as a team, recommend ways to improve the team’s effectiveness.

Students can identify several things to improve the effectiveness of this remote team. They might even begin by questioning the wisdom of relying on a remote team for such an ambiguous and complex problem. A multi-day retreat for these four people and perhaps other senior executives might be wiser and, in the long run, less costly.

One recommendation is for the team members to meet face-to-face to at least begin the strategy plan and to possibly participate in some team building activity. This personal contact may improve team dynamics by moving the team development process further along and build some level of cohesiveness.

Another recommendation is to develop skills in these (and possibly other) employees regarding communicating through information technology as well as working in teams. It is clear that these people need to become better versed in a variety of communication media so they can choose information technology that matches the complexity of this and other tasks.

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Chapter 7: Team Dynamics

SA

SELF-ASSESSMENT 7.1: ARE YOU A TEAM PLAYER?

Overview and Instructions Some people would like to work in teams for almost every aspect of their work, whereas other people would like to keep as far away from teams as possible. Most of us fall somewhere in between.

This self-assessment estimates the extent to which the person completing this instrument is positively predisposed to work in teams. Students are asked to read each statement in this self-assessment and indicate the extent to which they agree or disagree with that statement. This instrument has 10 statements.

Feedback for the Team Player Inventory The Team Player Inventory estimates the extent to which you are positively predisposed to working on teams. The higher your score, the more you enjoy working in teams and believe that teamwork is beneficial. This scale has a range from 10 to 50. the following chart compares your results with a sample of Canadian undergraduate psychology students.

Score

Interpretation

40 to 50

Strong preference for teamwork

21 to 39

Moderate preference for teamwork

10 to 20

Low preference for teamwork

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Chapter 7: Team Dynamics

SA

SELF-ASSESSMENT 7.2: WHAT TEAM ROLES DO YOU PREFER?

Overview and Instructions All teams depend on their members to fill various roles. Some roles are assigned through formal jobs, but many team roles are distributed informally. Informal roles are often claimed by team members whose personality and values are compatible with those roles.

Students are asked to read each of the statements and circle the response that they believe best reflects their position regarding each statement. This scale assesses only a few of the many possible team roles.

Feedback for the Team Roles Preferences Scale NOTE: This instrument calculates preferences on five team roles: encourager, gatekeeper, harmonizer, initiator, and summarizer. These are among the most important roles in teams, but keep in mind that teams have several other roles that are not measured by this scale.

All of the team roles identified in this instrument use the following scoring interpretation.

Score

Interpretation

12 to 5

High preference

8 to 11

Moderate preference

3 to 7

Low preference

Encourager People who score high on this dimension have a strong tendency to praise and support the ideas of other team members, thereby showing warmth and solidarity to the group. The average score in a sample of MBA students is 10.25.

Gatekeeper People who score high on this dimension have a strong tendency to encourage all team members to participate in the discussion. The average score in a sample of MBA students is 10.0.

Harmonizer People who score high on this dimension have a strong tendency to mediate intragroup conflicts and reduce tension.

The average score in a sample of MBA students is 9.85.

Initiator People who score high on this dimension have a strong tendency to identify goals for the meeting, including ways to work on those goals. The average score in a sample of MBA students is 9.79.

Summarizer People who score high on this dimension have a strong tendency to keep track of what was said in the meeting (i.e., act as the team’s memory). The average score in a sample of MBA students is 8.44.

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Chapter 7: Team Dynamics

SA

SELF-ASSESSMENT 7.3: HOW TRUSTING ARE YOU?

Overview and Instructions Some people have a tendency to trust others, even if they have never met them before, whereas others take a long time to develop a comfortable level of trust. This propensity to trust is due to each individual’s personality, values, and socialization experiences.

Students are asked to read each statement in this self-assessment and indicate the extent to which they agree or disagree with that statement. This instrument has eight statements.

Feedback for the Propensity to Trust Scale Trust is a psychological state comprising the intention to accept vulnerability based on positive expectations of the intent or behavior of another person. While trust varies from one situation to the next, some people have a higher or lower propensity to trust. In other words, some people are highly trusting of others, even when first meeting them, whereas others have difficulty trusting anyone, even over a long time. This propensity to trust is due to each individual’s personality, values, and socialization experiences.

This Propensity to Trust Scale estimates a person’s general willingness to trust other people. The actual propensity to trust will vary to some extent with the situation, whereas this scale provides a broad indication of one’s initial level of trust as well as willingness to maintain trust when violations occur.

Scores range from 8 to 48 with higher scores indicating a high propensity to trust. The following graph compares the propensity to trust score to the general population. These norms are estimates based on results of several studies using similar instruments.

Score

Interpretation

36 to 48

High trust

24 to 35

Moderate trust

8 to 23

Low trust

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Chapter 8: Communicating in Teams and Organizations

Instructor’s Manual to Accompany

M:Organizational Behavior 5/e

by Steven L. McShane and Mary Ann Von Glinow

Chapter 8: Communicating in Teams and Organizations Prepared by Steven L. McShane, University of Newcastle (Australia)

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Chapter 8: Communicating in Teams and Organizations

8

Communicating in Teams and Organizations

LEARNING OBJECTIVES After reading this chapter, students should be able to:

8-1 Explain why communication is important in organizations, and discuss four influences on effective communication encoding and decoding.

8-2 Compare and contrast the advantages and disadvantages of digital written communication channels, other verbal communication channels, and nonverbal communication.

8-3 Discuss the relevance of synchronicity, social presence, social acceptance, and media richness when choosing the preferred communication channel.

8-4 Discuss various barriers (noise) to effective communication, including cross-cultural and genderbased differences in communication.

8-5 Explain how to get your message across more effectively, and summarize the elements of active listening.

8-6 Describe effective communication strategies in organizational hierarchies, and review the role and relevance of the organizational grapevine.

CHAPTER GLOSSARY communication — the process by which information is transmitted and understood between two or more people emotional contagion — the nonconscious process of “catching” or sharing another person’s emotions by mimicking that person’s facial expressions and other nonverbal behavior grapevine — an unstructured and informal communication network founded on social relationships rather than organizational charts or job descriptions information overload — a condition in which the volume of information received exceeds the person’s capacity to process it management by wandering around (MBWA) — a communication practice in which executives get out of their offices and learn from others in the organization through face-to-face dialogue

persuasion — using facts, logical arguments, and emotional appeals to change another person’s beliefs and attitudes, usually for the purpose of changing the person’s behavior social media — digital communication channels that enable people to collaborate in the creation and exchange of user-generated content social presence — the extent to which a communication channel creates psychological closeness to others, awareness of their humanness, and appreciation of the interpersonal relationship synchronicity — the extent to which a communication channel requires or allows both sender and receiver to be actively involved in the conversation at the same time (synchronous) or at different times (asynchronous)

media richness — the medium’s data-carrying capacity; that is, the volume and variety of information that can be transmitted during a specific time

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Chapter 8: Communicating in Teams and Organizations

CHAPTER SUMMARY BY LEARNING OBJECTIVE 8-1 Explain why communication is important in organizations, and discuss four influences on effective communication encoding and decoding.

Communication refers to the process by which information is transmitted and understood between two or more people. Communication is important for coordinating work, making decisions, changing others’ behavior, and maintaining employee well-being. The communication process involves forming, encoding, and transmitting the intended message to a receiver, who then decodes the message and provides feedback to the sender. Effective communication occurs when the sender’s thoughts are transmitted to and understood by the intended receiver. The effectiveness of this process depends on whether the sender and receiver have similar codebooks, the sender’s proficiency at encoding that message to the audience, the sender’s and receiver’s motivation and ability to transmit messages through that particular communication channel, and their common mental models of the communication context.

8-2 Compare and contrast the advantages and disadvantages of digital written communication channels, other verbal communication channels, and nonverbal communication.

The two main types of communication channels are verbal and nonverbal. Email still dominates organizational communication, but other forms of digital written communication (chat, text) are becoming more common because they are preferred by younger employees, and recently developed collaborative communication platforms are being adopted in organizations. The main advantages of digital written communication is that it can be written, edited, and transmitted quickly to many people. Most of these channels reduce social and organizational status differences; are asynchronous; and, with search functions, are somewhat efficient filing cabinets.

Digital written communication has a number of disadvantages. It is relatively poor at communicating emotions, tends to reduce politeness and respect, and contributes to information overload. It is also inefficient at communicating in ambiguous, complex, and novel situations.

Organizations have recently been installing digital collaborative platforms, most of which emphasize communication channels that encourage interactive conversations and information sharing rather than oneway communication. They are social media — digital communication channels that enable people to collaborate in the creation and exchange of user-generated content. Social media enable reciprocally interactive content, such that senders and receivers become “users” in a community of shared content. Each type of social media serves a unique combination of functions (e.g., enabling conversations, sharing information, maintaining relationships).

Nonverbal communication includes facial gestures, voice intonation, physical distance, and even silence.

Unlike verbal communication, nonverbal communication is less rule-bound and is mostly automatic and nonconscious. Some nonverbal communication is automatic through a process called emotional contagion.

8-3 Discuss the relevance of synchronicity, social presence, social acceptance, and media richness when choosing the preferred communication channel.

The most appropriate communication medium depends on several factors. Synchronicity refers to the channel’s capacity for the sender and receiver to communicate at the same time (synchronous) or at different times (asynchronous). Synchronous channels are better when the issue is urgent or the topic is complex. Asynchronous channels are better when it is costly for both parties to communicate at the same time or when the receiver should have time to reflect before responding. A channel has high social presence when it creates psychological closeness to the other party and awareness of their humanness. This is valuable when the parties need to empathize or influence each other. Social acceptance refers to how well the communication medium is approved and supported by others. This acceptance depends on organization or societal norms, each party’s preferences and skills with the channel, and the symbolic meaning of a channel. Media richness refers to a channel’s datacarrying capacity.

Nonroutine and ambiguous situations require rich media. However, technology-based lean media may be possible where users can multicommunicate, have high proficiency with that technology, and don’t have social distractions.

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Chapter 8: Communicating in Teams and Organizations

8-4 Discuss various barriers (noise) to effective communication, including cross-cultural and gender- based differences in communication.

Several barriers create noise in the communication process. People misinterpret messages because of misaligned codebooks due to different languages, jargon, and the use of ambiguous phrases. Filtering messages and information overload are two other communication barriers. These problems are often amplified in crosscultural settings, where these problems occur, along with differences in the meaning of nonverbal cues, silence, and conversational overlaps. There are also some communication differences between men and women, such as the tendency for men to exert status and engage in report talk in conversations, whereas women use more rapport talk and are more sensitive to nonverbal cues.

8-5 Explain how to get your message across more effectively, and summarize the elements of active listening.

To get a message across, the sender must learn to empathize with the receiver, repeat the message, choose an appropriate time for the conversation, and be descriptive rather than evaluative. Listening includes sensing, evaluating, and responding. Active listeners support these processes by postponing evaluation, avoiding interruptions, maintaining interest, empathizing, organizing information, showing interest, and clarifying the message.

8-6 Describe effective communication strategies in organizational hierarchies, and review the role and relevance of the organizational grapevine.

Some companies try to encourage communication across the organization through workspace design as well as through Internet-based communication channels. Some executives also meet directly with employees by engaging in management by wandering around (MBWA) and by holding town-hall meetings.

In any organization, employees rely on the grapevine, particularly during times of uncertainty. The grapevine is an unstructured and informal network founded on social relationships rather than organizational charts or job descriptions. Although early research identified several unique features of the grapevine, some of these features may be changing as the Internet plays an increasing role in grapevine communication.

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Chapter 8: Communicating in Teams and Organizations

LECTURE OUTLINE Slide 1: Communicating in Teams and Organizations Slide 2: Learning Objectives 8-1 Explain why communication is important in organizations, and discuss four influences

on effective communication encoding and decoding.

8-2 Compare and contrast the advantages and disadvantages of digital written

communication channels, other verbal communication channels, and nonverbal communication.

8-3 Discuss the relevance of synchronicity, social presence, social acceptance, and media

richness when choosing the preferred communication channel.

8-4 Discuss various barriers (noise) to effective communication, including cross-cultural

and gender-based differences in communication.

8-5 Explain how to get your message across more effectively, and summarize the elements

of active listening.

8-6 Describe effective communication strategies in organizational hierarchies, and review

the role and relevance of the organizational grapevine.

Slide 3: Communication: Definition and Importance Process by which information is transmitted and understood between two or more people.

Effective communication — the receiver accurately deciphers the sender's message.

Importance of Communication 1. Coordinating work activities • Frequent, timely, and accurate communication is the primary means through which employees and work units synchronize their work 2. Better decision making • Communication provides information about the decision context, alternatives available, likely outcomes of those options, and the decision’s actual consequences 3. Changing others’ behavior through influence

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Chapter 8: Communicating in Teams and Organizations

• May be passive — e.g., describing the situation or may be a deliberate attempt to change

someone’s thoughts/actions

4. Support employee well-being • Conveying knowledge that helps employees better manage their work environment • Communication events fulfill the drive to bond; supports self-worth, social identity

Slide 4: Communication Process Model 1. Sender forms and encodes message into words, gestures, voice intonations, and other

symbols or signs.

2. Encoded message is transmitted to the intended receiver through one or more

communication channels (media).

3. Receiver senses the incoming message and decodes it into something meaningful

(ideally, the decoded meaning is what the sender had intended).

4. Sender looks for evidence that the other person received and understood the transmitted

message, e.g., formal or indirect.

Note: Feedback repeats the communication process, i.e., intended feedback is encoded, transmitted, received, decoded from receiver to sender of the original message.

Noise — Psychological, social, structural barriers — distort/obscure intended message

Slide 5: Improving Communication Coding and Decoding Four main factors that influence the effectiveness of the encoding-decoding process: 1. Sender and receiver have similar codebooks • Codebooks — dictionaries of symbols, language, gestures, idioms, and other tools used to convey information • Benefits of similar codebooks ➡ More accurate communication — similar meaning of symbols, etc. ➡ More efficient communication — less need to repeat message indifferent ways 2. Sender has experience encoding the message • More experience with subject matter, particularly to a specific audience — sender learns which words, etc., work best for accuracy and persuasion

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Chapter 8: Communicating in Teams and Organizations

3. Sender and receiver are motivated and able to use the selected communication channel • Both use the communication channel effectively (e.g., text messaging proficiently) • Both enjoy using a channel — increases communication effort 4. Sender and receiver have shared mental models of the communication context • Mutual understanding of communication setting/environment — e.g., nuclear plant technicians have mutual understanding of nuclear plant control room • Requires less communication about context and increases accurate transfer of meaning about communication content

Slide 6: Digital Written Communication Two main types of communication channels • Verbal — uses words and occurs through spoken or written channels • Nonverbal — any part of communication that does not use words

Digital written communication is rapidly evolving in the workplace • Email used significantly more often than any other communication channel — but has fallen

significantly over the past five years (from 75 percent to 56 percent in one study) • Generation Z employees (those younger than mid 20s) — only group that uses LESS email than other channels at work — specifically, they use more online chat/text messaging • Online chat/text messaging is the fastest growing channel (in one study, from six percent to 28 percent over past five years) • Changes due to (a) generational preferences and (b) emerging workplace platforms

Slide 7: Benefits of Digital Written Communication Preferred channels for sending well-defined information for decision making and for coordinating work • Can be written, edited, and transmitted quickly • Can be sent to many people simultaneously • Email and others have search engines — somewhat efficient filing cabinets • Increases upward communication (to people further up the hierarchy) • Potentially reduces status differences between sender and receiver — but some subtle

forms of status differences remain (e.g., speed of response, elite phone signature)

• Potentially reduces stereotyping and prejudice — each person’s visible features are

unknown or less noticeable — but may increase reliance on stereotypes

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Chapter 8: Communicating in Teams and Organizations

Slide 8: Problems with Digital Written Communication Faulty communication of emotions • Digital messages lack the parallel nonverbal communication channel that conveys the

emotional meaning of words (e.g., facial expression) • People are getting better at conveying emotions through other symbols (e.g., emojis, words)

Less politeness and respectfulness • People write digital messages with content they would not say face-to-face — “flaming” • Senders post messages before emotions subside • Written digital channels have low social presence — more impersonal, so less empathy/

sensitivity • Receivers infer a more negative interpretation than was intended

Inefficient for ambiguous, complex, and novel situations • Although fine for well-defined situations, digital messages can be cumbersome in ambiguous,

complex, and novel situations

Contributes to information overload • Messages are created and copied to many people with little effort required

Slide 9: Workplace Communication Through Social Media Digital communication channels that enable people to collaborate in the creation and exchange of user-generated content User-generated content — audience members (users) are partly or completely responsible for creating or amending of the content Channels are “social” because they enable reciprocally interactive content Users contribute feedback, link other content, actively edit the original content Various social media serve diverse functions — presenting individual’s identity; enabling conversations; sharing information; sensing others’ online presence; maintaining relationships; revealing reputation/status

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Chapter 8: Communicating in Teams and Organizations

Slide 10: Nonverbal Communication Includes actions, facial gestures, physical distance and even silence Most information is communicated nonverbally Like a parallel conversation, nonverbal cues signal subtle information to both parties Differs from verbal communication by being: • Less rule-bound than verbal communication — therefore more ambiguous and susceptible to

misinterpretation • Mostly automatic and nonconscious — therefore, some nonverbal communicates the same meaning across cultures, e.g., smiling

Slide 11: Emotional Contagion Nonconscious process of “catching” or sharing another person’s emotions by mimicking that person’s facial expressions and other nonverbal behavior Serves three purposes 1. Provides continuous feedback that we understand and empathize with the sender 2. Improves empathy — better emotional understanding of the other person’s experience 3. Fulfills drive to bond — contagion experience develops relationship (mutual experience)

Slide 12: Choosing Channels: Synchronicity Extent that the channel requires or allows both sender and receiver to be actively involved

in the conversation at the same time (synchronous) or at different times (asynchronous) Face-to-face conversations — almost always synchronous Most digital text communication — usually asynchronous Text messages may be asynchronous, but often synchronous as online chat Synchronous vs asynchronous channel preference depends on (contingency variables): 1. Time urgency (high immediacy) — use synchronous when urgent 2. Complexity of the topic — use synchronous when complex 3. Cost of both parties communicating at the same time — use asynchronous when synchronous

is costly/inconvenient 4. Whether receiver should have time to reflect before responding — use asynchronous when reflection time is helpful

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Chapter 8: Communicating in Teams and Organizations

Slide 13: Choosing Channels: Social Presence Extent that the communication channel creates psychological closeness to others,

awareness of their humanness, and appreciation of the interpersonal relationship Face-to-face — usually highest social awareness Email to large distribution list — usually low social awareness Social presence tends to be higher with: • Synchronous communication — more connected to other person • Message content uses casual language and provides personal information about the sender

Higher social presence channel is preferred when purpose is to: 1. empathize with others.

2. influence others.

Slide 14: Choosing Channels: Social Acceptance Extent that the channel is approved and supported by others (receiver, team, organization, or society) for that purpose Social acceptance of a channel is influenced by: 1. Norms held by others involved in the communication event ➡ E.g., email or text messaging is the norm in some organizations, whereas face-to face

interaction is expected more in other firms/departments 2. Individual preferences for specific communication channels ➡ E.g., some co-workers ignore (or rarely check) voice mail, but quickly respond to text messages or email 3. Symbolic meaning of a channel ➡ Some channels are perceived as more professional than casual ➡ Some channels convey a greater degree of urgency (e.g., phone call vs. email)

Slide 15: Choosing Channels: Media Richness Communication channel’s data-carrying capacity — the volume and variety of information that can be transmitted during a specific time Communication channel has high richness when: • It is able to convey multiple cues, e.g., both verbal and nonverbal information • Allows timely feedback from receiver to sender • Allows the sender to customize the message • Makes use of complex symbols (e.g., words with multiple meanings)

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Chapter 8: Communicating in Teams and Organizations

Slide 16: Media Richness Hierarchy Highest for face-to-face — transmit verbal and nonverbal, get almost immediate feedback from the receiver, quickly adjust message and style, use complex language Lowest for lean media (e.g., financial statements, newsletters, email) Contingencies of media richness: 1. Nonroutine situations — lean media are better in routine situations because the sender and

receiver have common expectations through shared mental models 2. Ambiguous (vs. clear) situations — ambiguity requires rich media — parties must share more information with immediate feedback to resolve multiple and conflicting interpretations

Slide 17: Exceptions to Media Richness Media richness theory doesn’t apply as well to digital communication channels because: 1. Ability to multi-communicate • Might be able to exchange as much information through two or more lean media simultaneously as through one high media richness channel ➡ E.g., text messaging while listening to a discussion at a large meeting 2. Communication proficiency • Proficient users can “push” more information through the channel ➡ More varied with digital than traditional verbal communication channels ➡ E.g., experienced smartphone users can process messages quickly 3. Social presence effects • High media richness channels tend to have more social presence • High social presence sensitizes parties to their relative status and self-presentation, which can distort or divert attention away for the message (more noise) • Therefore, the benefits of high media richness channels may be offset by more social presence distractions

Slide 18: Communication Channels and Persuasion Persuasion — the use of facts, logical arguments, and emotional appeals to change another person’s beliefs and attitudes, usually for the purpose of changing the person’s behavior.

Spoken communication (particularly face-to-face interaction) is more persuasive because: • It is typically accompanied by nonverbal communication, e.g., animated hand gestures can

amplify the emotional tone of the message.

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Chapter 8: Communicating in Teams and Organizations

• It offers the sender high quality immediate feedback whether or not the receiver understands

and accepts the message — sender can adjust more quickly than with written communication.

• It has high social presence — listeners are more motivated to pay attention and consider the sender’s idea.

But written communication can be persuasive when more technical detail is required.

Slide 19: Communication Barriers Imperfect perceptual process • Receivers don’t listen as well as senders assume.

• Our needs and expectations influence what signals get noticed and ignored.

• Senders overestimate how well other people understand the message.

Language problems • Different languages or different meaning to same words • Ambiguous language — causes misunderstandings, but may be appropriate to minimize

emotional responses (e.g., “rightsizing”) • Ambiguous language isn’t always dysfunctional — ambiguous language may reflect the ambiguity of the topic or effort to avoid unwanted emotional responses

Jargon — specialized words and phrases • Designed to improve communication efficiency • Becomes noise when specialized words and phrases are transmitted to people who do not have

the jargon codebook

Filtering • Delete or delay negative information • Using less harsh (less emotive) words so the message sounds more favorable

Information Overload • (see next slide)

Slide 20: Information Overload Information overload occurs whenever the job’s information load exceeds the individual’s capacity to get through it Information processing capacity — the amount of information an employee is able to process in a fixed unit of time

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Chapter 8: Communicating in Teams and Organizations

Information load — the amount of information to be processed per unit of time (information load varies across time within a job) Information overload problem (noise) — information gets overlooked or misinterpreted when people can’t process it fast enough — poorer decisions and higher stress

Managing Information Overload Solution 1: Increase information processing capacity • Learn to read faster • Scan through documents more efficiently • Time management • Remove distractions • Temporarily work longer hours

Solution 2: Reduce information load • Buffering — having incoming information filtered • Omitting — overlooking messages • Summarizing — reading executive summaries

Slide 21: Cross-Cultural Communication Language problems • Parties have limited vocabulary (different codebooks) • Sender’s accent distorts the usual sound of words

Voice intonation • Cultural differences in how loudly, deeply, and quickly people speak • Affects message meaning due to cultural differences in meaning of intonations

Cultural differences in meaning of silence (conversational gaps) • In Japan, silence symbolizes: (a) interpersonal harmony (disagreeing without offending);

(b) respect and thoughtful reflection; (c) empathizing without words • For most in the U.S. and similar cultures, silence conveys disagreement

Cultural differences in meaning of conversational overlaps • In Brazil, France, etc., talking over others symbolize person’s interest/involvement in the

conversation • In Japan, talking over others is considered rude/disrespectful

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Chapter 8: Communicating in Teams and Organizations

Nonverbal differences across cultures • Nonconscious/involuntary nonverbal cues tend to have the same meaning across cultures

(e.g., smiling) • Meaning varies for deliberate gestures (culturally specific)

Slide 22: Gender Communication Differences Men and women differ in their communication styles, although these differences tend to be less frequent or obvious than some sources suggest Men more likely than women to: • Engage in report talk — view interaction as impersonal and efficient information exchange • Give advice directly • Dominant conversation type — view conversations as negotiations of relative status and power • Apologize less often • Less sensitive to nonverbal cues

Women more likely than men to: • Engage in more “rapport talk” — relationship building • Make more use of indirect requests (“Do you think…?”)

• Be more deferential (less focus on their own power) — apologize more often; seek advice

more quickly/often • Be more sensitive to nonverbal cues in face-to-face meetings

Slide 23: Getting Your Message Across 1. Empathize • E.g., being sensitive to words that may be ambiguous or trigger the wrong emotional response 2. Repeat the message • E.g., rephrase the key points a couple of times 3. Use timing effectively • Find a time when the receiver is less likely to be distracted 4. Be descriptive • Focus on the problem not the person • When communicating bad news or criticism

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Chapter 8: Communicating in Teams and Organizations

Slide 24: Active Listening Process and Strategies 1. Sensing • Postpone evaluation — not forming an opinion until the speaker has finished • Avoid interruptions — give speaker chance to finish message • Maintain interest — stay motivated to listen to the speaker 2. Evaluating • Empathize — understand; be sensitive to the speaker’s feelings, thoughts, and situation • Organize information — assign speaker’s ideas to categories 3. Responding • Show interest, e.g., maintain sufficient eye contact and send back signals, e.g., “I see” • Clarify the message — rephrase speaker’s ideas at appropriate breaks, e.g., “So you are saying that….”

Slide 25: Communicating in Hierarchies Workspace design • Redesigning hallways, offices, cubicles, and communal areas • Open-space offices ➡ Increase social interaction among staff (more communication) ➡ Potentially produce more noise, distractions, loss of privacy

• Cloister employees into team spaces — isolate into groups, but encourage happenstance

communication with people outside the team (e.g., common lunch facilities)

Digital-based organizational communication • E-zines – distribute news quickly, but employees skeptical about company-packaged news • Company news increasingly through emerging enterprise collaborative platforms — employee-

written blogs, shared notices, text messages, etc — real-time communication, user feedback • Wikis – collaborative document creation — problems with errors and long-term employee commitment to wiki development

Direct communication with top management • Town hall meetings — Executives brief staff at a large gathering, more personal and credible,

opportunity to answer employee questions • Roundtable forums — small representation of employees — listen to staff opinions on issues • Management by wandering around (MBWA) — regularly chatting casually with employees— less information filtering — Employees might develop better empathy with executives

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Chapter 8: Communicating in Teams and Organizations

Slide 26: Organizational Grapevine Grapevine — an unstructured and informal network founded on social relationships rather than organizational charts or job descriptions Employees rely on the grapevine when they have few other options Early research findings • Transmits information very rapidly in all directions • Follows a cluster chain pattern — a few people actively transmit information to many others • More active in homogeneous groups • Transmits some degree of truth, but also distorts/exaggerates information, removes details

Changes due to social media and other digital trends • Emerging grapevine channels — email, social networking, tweets • Social networks are now global, not local, so grapevine is extended

Grapevine Benefits and Limitations Benefits • Fills in missing information not available through formal channels • Strengthens corporate culture, e.g., communicates stories • Relieves anxiety — most active during times of uncertainty • Associated with drive to bond — drive for social interaction

Limitations • Distorted/exaggerated information might escalate rather than reduce anxiety.

• Employees develop more negative attitudes toward the organization when management is

slower than the grapevine.

What should corporate leaders do with the grapevine?

• Listen to the grapevine as a signal of employee anxiety, then correct the cause of this anxiety.

• Directly inform employees of news before it spreads through the grapevine.

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Chapter 8: Communicating in Teams and Organizations

STUDENT HANDOUT

CRITICAL-THINKING QUESTIONS 1. You have been hired as a consultant to improve communication between engineering and marketing staff in a large high-technology company. Use the communication model and the four ways to improve that process to devise strategies to improve communication effectiveness among employees between these two work units.

2. A consumer goods company holds quarterly meetings involving its three dozen sales managers. These managers are located in several cities and countries, so more than half of them “participate” in the meeting as remote attendees. The one-day meeting has an opening and closing talk by the CEO and vice president of sales, but most of the day consists of open discussion as well as one small-group session on strategic and operations sales issues. Which digital communication channel(s) would likely work best for involving the remote participants in these sessions? You may assume that more than one digital channel can be used throughout the day and, for some channels, more than one channel may be used at the same time. Your answer should refer to the four factors to consider when choosing the best communication channel (synchronicity, social presence, social acceptance, and media richness).

3. Suppose that you are part of a remote team and must persuade other team members on an important matter (such as switching suppliers or altering the project deadline).

Assuming that you cannot visit these people in person, what can you do to maximize your persuasiveness?

4. Under what circumstances should communication messages be somewhat ambiguous?

Under what conditions is ambiguous communication dysfunctional?

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Chapter 8: Communicating in Teams and Organizations

CONFIDENTIAL INSTRUCTOR NOTES

SUGGESTED ANSWERS TO CRITICAL-THINKING QUESTIONS 1.

You have been hired as a consultant to improve communication between engineering and marketing staff in a large high-technology company. Use the communication model and the four ways to improve that process to devise strategies to improve communication effectiveness among employees between these two work units.

The textbook describes four ways to improve communication through coding-decoding. Students can identify various practices to improve communication for each of these general categories: Ensure that both parties have similar “codebooks” – In this scenario, this might occur by having marketing and engineering staff learn basic concepts commonly used by the other profession. Staff in each unit might include people who have double degrees or have spent part of their careers in the other profession, so have acquired the language and meaning of words used by both groups.

Ensure the sender has experience encoding (sending) the message topic – This strategy specifically refers to experience with communicating on the topic rather than just experience with the work context. The main recommendation, therefore, is that the sender has practiced communicating the message. This might occur by having one person speak to many others about important matters (e.g., executive “A” communicates new human resource policies whereas executive “B” keep employee informed about financial matters. By specializing the communication role, each communicator becomes an expert at communicating that narrower band of content to employees throughout the organization. In contrast, if Person “A” is responsible for communicating all company matters to one particular employee group, that communicator would have less knowledge and experience about communicating each topic.

Ensure that sender and receiver are motivated and able to use the communication channel – This category suggests that both engineers and marketing specialists should be familiar with meetings, email, instant messaging, and other channels through which both parties will be communicating. Training and establishing ground rules can also improve communication effectiveness in this regard. For example, before starting a project involving engineers and marketing staff, both groups might receive training in video conference meetings, and they might form rules on when to use this communication channel and what behaviors are required or discouraged when using this communication channel. The group might also figure out which media people prefer to use more than others.

Ensure that both parties have similar mental models about the context of the information – This can be accomplished by having people in both professions gain experience in specific project areas. For example, if one of the company’s work field is laser technology, then both engineering and marketing staff who communicate with each other should have previous experience working on projects in that area. In contrast, communication problems and inefficiencies will increase when either party is new to working on laser technology (either as engineers or marketing specialists).

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Chapter 8: Communicating in Teams and Organizations

2.

A consumer goods company holds quarterly meetings involving its three dozen sales managers. These managers are located in several cities and countries, so more than half of them “participate” in the meeting as remote attendees. The one-day meeting has an opening and closing talk by the CEO and vice-president of sales, but most of the day consists of open discussion as well as one small-group session on strategic and operations sales issues. Which digital communication channel(s) would likely work best for involving the remote participants in these sessions? You may assume that more than one digital channel can be used throughout the day and, for some channels, more than one channel may be used at the same time. Your answer should refer to the four factors to consider when choosing the best communication channel (synchronicity, social presence, social acceptance, and media richness).

To answer this question, students need to delineate the different types of communication activities — specifically, two CEO and VP Sales presentations, one small group session, and most of the time in open discussions involving all 3 dozen people. They also need to consider the four communication channel factors.

CEO and VP Sales presentations: This may be the easiest part of the session to discuss in terms of communication. The conversation seems to be mostly one-way (e.g., from CEO to audience). Most likely, the remote sales managers would use either a one-way video channel or a visual channel (to view presentation slides) along with live audio to listen to the presenter. The people physically attending would use the face-to-face channel. The channel needs to be synchronous because the audience needs to have that information immediately — the presentation presumably lays the foundation and provides information to guide the later sessions. Social presence of the speaker may be important to the extent that the CEO and VP Sales are trying to persuade their audience. But media richness can probably be low because the message is mainly one way. If the speakers value real-time reactions of the audience, higher media richness is necessary, but this may be sufficient with the inperson audience whereas it would be challenging to replicate this effect with 18 people in the remote audience.

This is also a relatively formal communication event, so social acceptance is important.

Small group session: This is also fairly easy to determine the optimal communication channels. The in-person participants would meet face-to-face with live two-way video conferencing technology with the remote participants. The session is a fast-paced, live discussion addressing unknown or ambiguous issues. Therefore, it requires a channel with high media richness, synchronicity, and possibly high social presence for persuasive effects. The video conference channel meets these criteria, as best as any digital channel is able to at this time.

Video conferencing is feasible because the groups have few members — perhaps eight people with half of them participating for a distance. The remote participants can therefore be visible as four quadrants on one screen.

Audio-only communication can be challenging because participants have more difficulty anticipating when to break into the conversion.

Open discussion with all participants: This is the most challenging activity for selecting the best communication channel. In fact, students might suggest that this aspect of the quarterly meeting be reconsidered in favor of small group sessions culminating in a collective gathering of results from the small group discussions.

One problem with a large session is that approximately half of the participants (18 people) would be together inperson trying to provide information and ideas to each other, and trying to persuade the others. This group size alone (not considering the other 18 participating remotely) is very cumbersome (too many people want to talk) and restrictive (few people will be able to provide their viewpoints or persuade others). Face-to-face still works best for the reasons provided in the small group session, but it does not solve the fundamental problem with the large discussion session. The second problem with a large discussion session is that it would be almost impossible with current technology to have all 18 remote participants engage in these sessions using a channel with high media richness, social presence, and synchronicity. Live two-way video conferencing might overwhelm digital bandwidth, and displaying 18 people on screens might simply visualize the excessive size of this discussion group. Even if the session had ways for remote participants to speak, the arrangement may end up being too structured and controlling for spontaneous dialogue. Other digital channel options present other limitations. For example, remote participants might text questions or comments. However, the conversation may have moved on by the time the message is sent, and a conveyor would have to interrupt the fluid in-person discussion to read out the text messages.

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Chapter 8: Communicating in Teams and Organizations

3.

Suppose that you are part of a remote team and must persuade other team members on an important matter (such as switching suppliers or altering the project deadline). Assuming that you cannot visit these people in person, what can you do to maximize your persuasiveness?

The answer to this question relates to the topic of media richness, because persuasion depends on higher media rich communication media. The textbook notes that spoken communication, particularly face-to-face interaction, is more persuasive than emails, websites, and other forms of written communication. If people cannot interact in person, they should attempt face-to-face through video conferencing. Audio conferences have somewhat lower media richness again, but may be persuasive to the extent that voice intonation communication emotionality and more complex information. Students might note that logical explanations assist persuasion, so an online video conference might be followed by written communication.

4.

Under what circumstances should communication messages be somewhat ambiguous?

Under what conditions is ambiguous communication dysfunctional?

Ambiguous messages are dysfunctional when they interfere with the transmission of the intended meaning. The book identifies three situations in which ambiguous language is useful. (a) When the topic is abstract or ambiguous. For example, executives might use metaphors to represent an abstract vision of the company’s future. (b) To avoid or minimize unwanted emotional responses produced by more specific words. For example, executives use phrases such as “rightsizing” and “restructuring” to obscure the underlying message that people will be fired or laid off. (c) When speaking to a diverse or distant audience. Ambiguous language might encompass a broader range of audience members rather than the use of more specific language. Specific language isn’t just about jargon; it also refers to specific words and phrases that have different meanings across audience groups, or is important to some groups but relatively benign to other groups. Ambiguous language circumvents those multiple interpretations to produce a more common message across the entire audience.

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Chapter 8: Communicating in Teams and Organizations

CONFIDENTIAL

INSTRUCTOR

NOTES

TEAM EXERCISE: CROSS-CULTURAL COMMUNICATION

|© 2001,

2011 Steven L. McShane This is an instructor-led variation of the popular cross-cultural communication card game published in the main McShane OB textbook. This exercise is easily applied to large or small classes. (The card game version is difficult to apply to large classes).

Purpose This exercise is designed to develop and test student knowledge of cross-cultural differences in communication and etiquette.

Instructions (for instructor only) Step 1: Copy the 10 questions from the following pages to your presentation software (Powerpoint, Keynote, etc.). Copy one question to each slide and format so students can easily read the question and its five responses. You may either insert an indicator to the correct answer as a second click to each slide, or just verbally indicate the correct answer. Correct answers are provided below.

Step 2: The instructor will introduce the exercise by stating that communication — particularly nonverbal communication — varies across cultures. This exercise gives students the opportunity to learn about cross-cultural communication differences (and some similarities). Ten questions are presented, one at a time. Students are asked by show of hands or through technology (e.g., clickers) which of the five alternatives is correct, in their opinion. The questions refer to communication in specific countries, so the textbook provides a limited amount of information pertaining to the questions in this exercise.

Step 3: The instructor shows the first question and asks students through a show of hands or through technology (e.g., clickers) to indicate what they believe is the correct answer. Students can score themselves if they wish. At the end of the exercise, the instructor can debrief by asking: (1) Why are some questions more difficult (i.e., fewer correct answers) than others?

ANSWER: (a) The cross-cultural practice may be quite different from those in the students’ culture; (b) students might be overly reliant on cross-cultural stereotypes for their answers; or (c) students have less personal experience with some cultures than with others.

(2) What do these cross-cultural practices tell us about communication in general and across cultures?

ANSWER: (a) Some communication practices are universal (everyone does the same thing) because the nonverbal behavior is hard-wired in everyone; (b) some cross-cultural communication behavior reflects cultural norms and values.

ANSWERS 1.

(a) Switzerland

6. (a) Saudi Arabia

2.

(b) showing the bottom of your feet or shoes.

7. (e) Argentina

3.

(b) France

8. (b) Kenya

4. (c) “It’s worthless!”

9. (c) France

5. (a) Bulgaria

10. (e) point with an open hand.

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Chapter 8: Communicating in Teams and Organizations

CONFIDENTIAL

INSTRUCTOR

NOTES

Please copy each question below to a separate slide in your presentation software. Format the question and five answer choices so they are easily readable by the audience. (You may want to place the five answer choices vertically below the question — some here are placed horizontally to save space.)

1. In which of these countries is it least appropriate to use colorful or exaggerated words (e.g., “it was a catastrophe”) to emphasize something important? (a) Switzerland (b) France (c) Brazil (d) Australia (e) Chile 2. When doing business with clients or meeting coworkers in Thailand, which of the following is considered particularly rude or unprofessional: (a) looking directly at other people for more than a second or two. (b) showing the bottom of your feet or shoes. (c) trying to shake hands with coworkers of your same sex. (d) for men, attending a meeting without a tie. (e) asking during the first meeting about types of food they enjoy eating.

3. People (particularly men) from which of these countries tend to shake hands the most? (a) Japan (b) France (c) Scotland (d) Chile (e) Finland 4. While visiting Southern France, the concierge asks you whether the meeting room is satisfactory. You give the OK signal of thumb and fore Oinger touching to make an “O”. To the concierge, this probably means: (a) This is a rude gesture meaning that the concierge is an unmentionable orifice. (b) “How much does it cost?” (c) “It’s worthless!” (d) “It’s OK, just fine, thanks” (e) This gesture has no meaning in Southern France 5. Nodding your head up and down tends to mean “No” in which country? (a) Bulgaria (b) Australia (c) Brazil (d) China (e) Pakistan 6. In which of the following countries are two male business associates most likely to hold hands or be arm-in-arm in public? (a) Saudi Arabia (b) United Kingdom (c) Belgium (d) Tibet (e) Norway 7. In which of these countries do people tend to have the least physical distance between them in line-ups, stand-up conversations, and the like? (a) United States (b) Germany (c) Iceland (d) Malaysia (e) Argentina 8. You are responsible for giving presentations to company employees in several countries about the new product line. In which country should you subdue your excitement more than the other countries listed here? (a) Czech Republic (b) Kenya (c) United States (d) Spain (e) Brazil 9. In which country do people typically give brief and not-so-Oirm (fairly weak) handshakes between men? (a) Germany (b) Russia (c) France (d) China (e) United Kingdom 10. When trying to point to an object, Japanese people tend to: (a) raise their noses in the direction of the object. (b) point with their thumb. (c) point with their index finger (as in the U.S.). (d) point with their right elbow. (e) point with an open hand.

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Chapter 8: Communicating in Teams and Organizations

SA

SELF-ASSESSMENT 8.1: ARE YOU AN ACTIVE LISTENER?

Overview and Instructions Listening is a critical component of communication. But most people put more effort into how well they communicate as a sender than how well they listen as a receiver. Active listening is a skill that can be learned, so the first step is to know which components of active listening require further development.

Students are asked to think back to face-to-face conversations they have had with a co-worker or client in the office, hallway, factory floor, or other setting. Using the scale, they should indicate the extent that each item describes their behavior during those conversations. They are asked to answer each item as truthfully as possible so that they get an accurate estimate of where their active listening skills need improvement.

Feedback for the Active Listening Skills Inventory The textbook describes three main dimensions of active listening: sensing, evaluating, and responding. Together, these three dimensions represent the total active listening score.

Sensing Sensing is the process of receiving signals from the sender and paying attention to them. Active listeners improve sensing in three ways. They postpone evaluation by not forming an opinion until the speaker has finished, avoid interrupting the speaker’s conversation, and remain motivated to listen to the speaker.

Evaluating This dimension of active listening includes understanding the message meaning, evaluating the message, and remembering the message. To improve their evaluation of the conversation, active listeners empathize with the speaker — they try to understand and be sensitive to the speaker’s feelings, thoughts, and situation. Evaluation also improves by organizing the speaker’s ideas during the communication episode.

Responding Responding, the third dimension of active listening, is feedback to the sender, which motivates and directs the speaker’s communication. Active listeners show interest through nonverbal cues (eye contact, nodding, symbiotic facial expression) and by sending back channel signals (e.g., “I see”). They also clarify the message, such as by summarizing or rephrasing the speaker’s ideas at appropriate breaks (“So you’re saying that... ?”).

Scores on the three Active Listening dimensions range from 4 to 20. The overall score ranges from 12 to 60. Norms vary from one group to the next. The following table shows norms from a sample of 100 MBA students in two countries (Australia and Singapore). For example, the top 10 percentile for sensing is 17, indicating that 10 percent of people score 17 or above and 90 percent score below 17 on this dimension. Keep in mind that these scores represent self- perceptions. Evaluations from others (such as through 360-degree feedback) may provide a more accurate estimate of your active listening on one or more dimensions, particularly the responding dimension which is visible to others.

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Chapter 8: Communicating in Teams and Organizations

Active Listening Norms

Percentile (% with scores at or below this number)

Sensing Score

Evaluating Score

Responding Score

Total Score

Average Score

14.5

14.4

16.7

45.6

Top 10 percentile

17

17

19

53

Top 25th percentile

15

16

18

48

Median (50th percentile)

15

14

17

45

Bottom 25th percentile

13

13

16

43

Bottom 10 percentile

11

12

14

39

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Chapter 9: Power and Influence in the Workplace

Instructor’s Manual to Accompany

M:Organizational Behavior 5/e

by Steven L. McShane and Mary Ann Von Glinow

Chapter 9: Power and Influence in the Workplace Prepared by Steven L. McShane, University of Newcastle (Australia)

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Chapter 9: Power and Influence in the Workplace

9

Power and Influence in the Workplace

LEARNING OBJECTIVES After reading this chapter, students should be able to:

9-1 Describe the dependence model of power and the five sources of power in organizations. 9-2 Discuss the four contingencies of power.

9-3 Explain how people and work units gain power through social networks.

9-4 Describe eight types of influence tactics, three consequences of influencing others, and three contingencies to consider when choosing an influence tactic.

9-5 Identify the organizational conditions and personal characteristics associated with organizational politics, as well as ways to minimize organizational politics.

CHAPTER GLOSSARY centrality — a contingency of power pertaining to the degree and nature of interdependence between the power holder and others charisma — a set of self-presentation characteristics and nonverbal communication behaviors (i.e., signaling) that generate interpersonal attraction and referent power over others as well as deference to the charismatic person

inoculation effect — a persuasive communication strategy of warning listeners that others will try to influence them in the future and that they should be wary of the opponent’s arguments legitimate power — an agreement among organizational members that people in certain roles can request certain behaviors of others

coalition — a group that attempts to influence people outside the group by pooling the resources and power of its members

norm of reciprocity — a felt obligation and social expectation of helping or otherwise giving something of value to someone who has already helped or given something to you

countervailing power — the capacity of a person, team or organization to keep a more powerful person or group in the exchange relationship

organizational politics — the use of influence tactics for personal gain at the perceived expense of others and the organization

dark triad — a cluster of three socially undesirable (dark) personality traits: Machiavellianism, narcissism, and psychopathy

persuasion — the use of facts, logical arguments, and emotional appeals to change another person’s beliefs and attitudes, usually for the purpose of changing the person’s behavior

impression management — actively shaping through self-presentation and other means the perceptions and attitudes that others have of us

power — the capacity of a person, team, or organization to influence others

influence — any behavior that attempts to alter someone’s attitudes or behavior

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Chapter 9: Power and Influence in the Workplace

referent power — the capacity to influence others on the basis of an identification with and respect for the power holder social capital — the knowledge, opportunities, and other resources available to members of a social network, along with the mutual support, trust, reciprocity, and coordination that facilitate sharing of those resources

structural hole — an area between two or more dense social network areas that lacks network ties upward appeal — a type of influence in which someone with higher authority or expertise is called upon in reality or symbolically to support the influencer’s position

social networks — social structures of individuals or social units that are connected to each other through one or more forms of interdependence

CHAPTER SUMMARY BY LEARNING OBJECTIVE 9-1 Describe the dependence model of power and the five sources of power in organizations.

Power is the capacity to influence others. It exists when one party perceives that he or she is dependent on the other for something of value. However, the dependent person also must have countervailing power — some power over the dominant party — to maintain the relationship, and the parties must have some level of trust.

There are five power bases. Legitimate power is an agreement among organizational members that people in certain roles can request certain behaviors of others. This power has restrictions represented by the target person’s zone of indifference. It also includes the norm of reciprocity (a feeling of obligation to help someone who has helped you) as well as control over the flow of information to others. Reward power is derived from the ability to control the allocation of rewards valued by others and to remove negative sanctions. Coercive power is the ability to apply punishment. Expert power is the capacity to influence others by possessing knowledge or skills that they value. An important form of expert power is the (perceived) ability to manage uncertainties in the business environment. People have referent power when others identify with them, like them, or otherwise respect them.

9-2 Discuss the four contingencies of power.

Four contingencies determine whether these power bases translate into real power. Individuals and work units are more powerful when they are nonsubstitutable—that is, when there is a lack of alternatives. Employees, work units, and organizations reduce substitutability by controlling tasks, knowledge, and labor; by differentiating themselves from competitors; and by developing a personal brand—a unique combination of knowledge, skills, and experience that are valuable to current or prospective employers.

A second contingency is centrality. Individuals have more power when they have high centrality, which means that many others are quickly affected by the power holder’s actions. The third contingency, visibility, refers to the idea that power increases to the extent that a person’s or work unit’s valued resources are known to others.

Discretion, the fourth contingency of power, refers to the freedom to exercise judgment. Power increases when people have freedom to use their power.

9-3 Explain how people and work units gain power through social networks.

Social networks are social structures of individuals or social units (e.g., departments, organizations) that are connected to each other through one or more forms of interdependence. People receive power in social networks through social capital, which is the knowledge, opportunities, and other resources available to members of a social network, along with the mutual support, trust, reciprocity, and coordination that facilitate sharing of those resources. Three main resources from social networks are information, visibility, and referent power.

Employees gain social capital through their relationship in the social network. Social capital tends to increase with the number of network ties. Strong ties (close-knit relationships) can also increase social capital because these connections offer more resources more quickly. However, having weak ties with people from diverse networks can Page 9-3 Copyright © 2022 McGraw Hill. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill.

Chapter 9: Power and Influence in the Workplace

be more valuable than having strong ties with people in similar networks. Weak ties provide more resources that we do not already possess. Another influence on social capital is the person’s centrality in the network.

Network centrality is determined in several ways, including the extent to which you are located between others in the network (betweenness), how many direct ties you have (degree), and the closeness of these ties. People also gain power by bridging structural holes — linking two or more clusters of people in a network.

9-4 Describe eight types of influence tactics, three consequences of influencing others, and three contingencies to consider when choosing an influence tactic.

Influence refers to any behavior that attempts to alter someone’s attitudes or behavior. The most widely studied influence tactics are silent authority, assertiveness, information control, coalition formation, upward appeal, impression management, persuasion, and exchange. “Soft” influence tactics such as friendly persuasion and subtle ingratiation are more acceptable than “hard” tactics such as upward appeal and assertiveness. However, the most appropriate influence tactic also depends on the influencer’s power base; whether the person being influenced is higher, lower, or at the same level in the organization; and personal, organizational, and cultural values regarding influence behavior.

9-5 Identify the organizational conditions and personal characteristics associated with organizational politics, as well as ways to minimize organizational politics.

Organizational politics refer to the use of influence tactics for personal gain at the perceived expense of others and the organization. It is more common when ambiguous decisions allocate scarce resources and when the organization tolerates or rewards political behavior. Individuals with a high need for personal power and strong Machiavellian values have a higher propensity to use political tactics. Organizational politics can be minimized by providing clear rules for resource allocation, establishing a free flow of information, using education and involvement during organizational change, supporting team norms and a corporate culture that discourage dysfunctional politics, and having leaders who role model organizational citizenship rather than political savvy.

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Chapter 9: Power and Influence in the Workplace

LECTURE OUTLINE Slide 1: Power and Influence in the Workplace Slide 2: Learning Objectives 9-1 Describe the dependence model of power and the five sources of power in

organizations.

9-2 Discuss the four contingencies of power.

9-3 Explain how people and work units gain power through social networks.

9-4 Describe eight types of influence tactics, three consequences of influencing others,

and three contingencies to consider when choosing an influence tactic.

9-5 Identify the organizational conditions and personal characteristics associated with

organizational politics, as well as ways to minimize organizational politics.

Slide 3: The Meaning of Power The capacity of a person, team, or organization to influence others • The potential to change someone’s attitudes or behavior — not the actual attempt to change

others ➡ People may have power they don’t use — may not even know they have power • Based on target’s perception that the power holder controls a valuable resource • Requires some minimal level of trust between the parties • Involves unequal (asymmetric) dependence of one party on another party (see next slide)

Slide 4: Power and Dependence The less powerful party still has some degree of power — called countervailing power: • Countervailing power is the capacity of a person, team, or organization to keep a more powerful

person or group in the exchange relationship.

• Person A dominates the power relationship, but Person B has enough countervailing power to keep Person A in the exchange relationship.

• Power relationships depend on some minimum level of trust.

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Chapter 9: Power and Influence in the Workplace

Slide 5: Model of Power in Organizations Power is derived from five sources • Legitimate • Reward • Coercive • Expert • Referent

The model also identifies four contingencies of power • Effect of sources on power depends on presence of these contingencies

Slide 6: Legitimate Power Agreement that people in certain roles can request behaviors from others • A perceived right or obligation • Originates from job descriptions and informal rules of conduct

Zone of indifference • Domain of behaviors that power holder can ask of others — deference to authority • Larger zone of indifference with level of trust in power holder • Larger zone among followers who value conformity, tradition, high power distance, and in

company’s with a culture that supports deference to management requests

Norm of reciprocity • Felt obligation to help someone who has helped you • Legitimate power because an informal rule of conduct that society expects us to follow

Information control • Form of legitimate power — right to control information that others receive (gatekeeper) • Generates power in two ways 1. Gatekeeper of information (valued resource) creates dependence 2. Selective distribution of information frames how others perceive the situation, which

affects their attitudes and decisions

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Chapter 9: Power and Influence in the Workplace

Slide 7: Expert Power Capacity to influence others by possessing knowledge or skills valued by others — originates from within the person Coping with uncertainty • Individual’s or work unit’s perceived ability to manage uncertainties • Fulfills organization’s need to reduce uncertainty through control or predictability of external

environment

Three types/levels of coping with uncertainty: 1. Prevention — prevent environmental changes from occurring — e.g., finance experts prevent

cash shortages 2. Forecasting — predict environmental changes — e.g., predicting emerging consumer trends 3. Absorption — absorbing or neutralizing the impact of environmental shifts as they occur — e.g., maintenance crews fix equipment breakdowns

Slide 8: Other Sources of Power Reward power — control over the allocation of rewards valued by others and to remove negative sanctions (not just for managers) Coercive power — ability to apply punishment (not just for managers) Referent power • Capacity to influence others through identification with and respect for the power holder • Occurs when others identify with them, like them, or otherwise respect them • Associated with charisma — self-presentation characteristics and nonverbal communication

behaviors (i.e., signaling) that generate interpersonal attraction and referent power over others as well as deference to the charismatic person

Deference to Power • Human tendency to mindlessly follow the guidance of people who are charismatic (i.e.,

have referent power) or claim to have legitimate or expert power ➡ rarely evaluate the appropriateness of the requested behavior ➡ Might not even check power holder’s legitimate authority or expertise

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Chapter 9: Power and Influence in the Workplace

Slide 9: Power Contingency: Nonsubstitutability Four contingencies of power affect whether sources of power facilitate or block the use of power Power increases with nonsubstitutability • Few/no alternative sources of the resource — monopoly power • Few/no substitutes of the resource — e.g., technology substitutes for employees

Increasing nonsubstitutability 1. Control access to the resource — e.g., some professions control and limit access to the

profession and often to the educational programs that train people into that profession 2. Differentiate the resource from alternatives — e.g., consultants use unique labels and features to differentiate their expertise from others with similar expertise

Developing a personal brand • Nonsubstitutability through a unique combination of knowledge, skills, and experience that is

valuable to current or prospective employers

Slide 10: Other Contingencies of Power Centrality • Degree and nature of interdependence with power holder • Higher centrality when (a) many people affected and (b) quickly affected

Visibility • Others aware that you control a valued resource • Increases when visible to others — increase visibility by working in people-oriented jobs • Increases with display of power symbols (e.g., diplomas, photos, special clothing (physician

garb)

Discretion • The freedom to exercise judgment • Rules limit discretion — selective use of rewards and punishment

Slide 11: Consequences of Power Effect of power on power holder depends on type of power Type A: Feeling empowered • Believe they have power over themselves and freedom from being influenced by others • Higher motivation, job satisfaction, organizational commitment, and job performance

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Chapter 9: Power and Influence in the Workplace

• But tends to increase automatic rather than mindful thinking • Tend to have more reliance on stereotypes, less empathy, less accurate perceptions of others

Type B: Power over others • Produces sense of duty/responsibility for people under power holder’s authority • Tend to engage in less stereotyping (more empathy), and are more mindful of how their actions

affect others

Slide 12: Power Through Social Networks Social networks — people connected to each other through forms of interdependence • Many networks held together through common interests, status, expertise, kinship, physical

proximity • People join networks to fulfill drive to bond, social norms (e.g., guanxi), acquire resources/power

Social capital — the knowledge, opportunities, and other resources available to members of a social network, along with the mutual support, trust, reciprocity, and coordination that facilitate sharing of those resources Three types of resources (power) through social networks: 1. Information ➡ Receive valuable knowledge more easily and more quickly from others in the network ➡ Increases individual’s expert power

2. Visibility ➡ Members more easily remember fellow members when opportunities arise

3. Referent power ➡ Network members have common beliefs, identity, trust ➡ Produces more reciprocity — helping each other, favors

Slide 13: Social Network Ties Strong ties: • Close-knit relationships — frequent interaction, share resources, multiple relationships (friend,

co-worker) • Advantage: provide resources more quickly and plentifully • Disadvantage: have similar information/resources to each other and us (high redundancy)

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Chapter 9: Power and Influence in the Workplace

Weak ties: • Acquaintances • Advantage: offer unique resources from others and link to others with low redundancy (good for

career job hunting) • Disadvantage: resources transmitted more slowly, lower visibility

Many ties: • Resources increase with number of ties • Information technology has amplified number of ties possible, but still limited time/energy on

number of ties one can create

Slide 14: Social Network Centrality Person’s importance in the network Three factors in centrality: 1. Betweenness — the extent to which the person is located between others in the network (e.g., gatekeeper who controls the flow of information to and from many people in the network) 2. Degree centrality — number or percentage of connections the person has to others in the network 3. Closeness — higher closeness occurs when a member has a shorter, more direct, and efficient path or connections with others in the network Example: “A” has highest network centrality due to all three factors, “B” has lowest centrality Dark side of social networks — excludes some people from valuable knowledge that they should receive (e.g., female executives in social network of male executives)

Slide 15: Influencing Others Any behavior that attempts to alter another person’s attitudes or behavior • Power in motion — applies one or more power bases, amplified or suppressed by power

contingencies

Influence is an essential activity in organizations • Coordinate with others • Part of leadership definition • Everyone engages in influence

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Chapter 9: Power and Influence in the Workplace

Slide 16: Types of Influence (1 of 3) Silent authority • Influencing behavior through legitimate power without explicitly referring to that power base • Due to requester’s legitimate power as well as the target person’s role expectations • Most common form of influence in high power distance cultures

Assertiveness • Vocal authority — actively applying legitimate and coercive power to influence others • Example: persistently reminding an employee; using threats or sanctions; checking employee’s

work • Workplace bullying — extreme form of assertiveness, uses threats of punishment

Slide 17: Types of Influence (2 of 3) Information control • Explicitly manipulating someone else’s access to information for the purpose of changing their

attitudes and/or behavior • Withholding, filtering, re-arranging information

Coalition formation • Forming a group that attempts to influence others by pooling the resources and power of its

members • Three ways that coalitions influence others: 1. Pools power and resources of many people 2. Symbolizes that issue is legitimate/important — represents broad support 3. Increases member confidence and motivation through social identity and interaction with likeminded people

Upward appeal • Relying symbolically or in reality on higher authority to support our position • Directly — asking authority for a decision, sign of support • Indirectly — Implying senior management support without formally involving them

(e.g., referring to firm’s policies/values/goals)

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Chapter 9: Power and Influence in the Workplace

Slide 18: Types of Influence (3 of 3) Persuasion • Using logical arguments, factual evidence, and emotional appeals to convince people of the

value of a request • Persuader characteristics ➡ Expertise, credibility, neutrality • Message content — more important the persuader when issue is important ➡ Multiple viewpoints, few strong arguments, repeat points, emotional appeals, offer solutions ➡ inoculation effect — warning listeners that others will try to influence them in the future and that they should be wary of the opponent’s arguments • Communication channel ➡ Channels with high media-richness and social presence • Audience ➡ More difficult to persuade those with high self-esteem, intelligence, self-concept tied to opposing view

Impression management • Actively shaping, through self-presentation and other means, the perceptions and attitudes that

others have of us • Self-presentation — crafting or public image to shape perceptions • Personal brand — forming and displaying an accurate impression of that person’s own distinctive, competitive advantage • Ingratiation — attempt to increase liking by or perceived similarity to targeted person

Exchange • Promising benefits or resources in exchange for the target person’s compliant behavior • Exchange is used as influence tactic in: ➡ Negotiation ➡ Norm of reciprocity ➡ Social networks

Slide 19: Consequences of Influence Resistance • People oppose the behavior desired by the influencer • Degrees of resistance ➡ High resistance: refusing/delaying to engage in the behavior

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Chapter 9: Power and Influence in the Workplace

➡ Lower resistance: perform the required duties yet maintaining/stating their opposition

Compliance • Motivated to implement influencer’s request, usually minimal effort • Requires external sources (e.g., rewards) to initiate and maintain the behavior

Commitment • Strongest outcome of influence • Identify with the influencer’s request • Highly motivated without external incentives

Slide 20: Contingencies of Influence “Soft” tactics produce more commitment; “hard” tactics produce more compliance and resistance Appropriate influence tactic depends on: 1. Influencer’s power base ➡ E.g., people with expertise may be successful using persuasion; people with strong legitimate power base may be successful using silent authority 2. Organizational position • Whether person being influenced is higher, lower or at the same level in the organization ➡ E.g., employees may face consequences from being too assertive with their boss 3. Personal, organizational, and cultural values • Assertiveness more commonly used by those with a strong power orientation • Persuasion — more common in a collegial corporate culture • Ingratiation — more common in U.S. than in Hong Kong (maybe due to power distance)

Slide 21: Organizational Politics The use of influence tactics for personal gain at the perceived expense of others and the organization • All organizational politics apply one or more influence tactics • Perpetrator is motivated by self-interest • Action is likely to have an adverse effect on others and the organization • Perceptual component because difficult to know the perpetrator motives or awareness of

consequences

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Chapter 9: Power and Influence in the Workplace

Negative organizational consequences — lower job satisfaction, organizational commitment, organizational citizenship, task performance — higher work-related stress and motivation to quit Can organizational politics be beneficial? Probably NO — “positive politics” literature either avoids the definition or views all influence tactics as “politics,” contrary to public and other research definitions Individual differences in organizational politics • Strong need for personalized power • Dark triad personality traits — Machiavellianism, narcissism, psychopathy

Minimizing organization politics 1. Provide sufficient resources • When resources are scarce, people rely on political tactics to safeguard their resources and maintain the status quo 2. Clarify resource allocation rules • Politics motivated by ambiguous, complex, or absence of decision rules in allocating resources 3. Manage organizational change effectively • Change creates ambiguity and threatens the employee’s power and other valued resources • Apply organizational change strategies described in that chapter 4. Purge political behavior norms and role models • Some reward systems or corporate cultures nurture self-serving behavior • Diagnose and alter systems and role modeling that support self-serving behavior • Support organizational values, such as altruism and focusing on the customer, that oppose political tactics • Leaders need to be role models of organizational citizenship

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Chapter 9: Power and Influence in the Workplace

STUDENT HANDOUT

CRITICAL-THINKING QUESTIONS 1. You have just been hired as a brand manager of toothpaste for a large consumer products company. Your job mainly involves encouraging the advertising and production groups to promote and manufacture your product more effectively. These departments aren’t under your direct authority, though company procedures indicate that they must complete certain tasks requested by brand managers. Describe the sources of power you can use to ensure that the production and advertising departments will help you make and sell toothpaste more effectively.

2. Your personal brand is an important form of power for career success. In what ways can you and other students strengthen their personal brand? What sources and contingencies of power are relevant in building a personal brand?

3. Discuss the eight influence tactics described in this chapter in terms of how they are used by students to influence their college instructors. Which influence tactic is applied most often? Which is applied least often, in your opinion? To what extent is each influence tactic considered legitimate behavior or organizational politics?

4. How does social networking increase a person’s power? What social networking strategies could you initiate now to potentially enhance your future career success?

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Chapter 9: Power and Influence in the Workplace

CONFIDENTIAL INSTRUCTOR NOTES

SUGGESTED ANSWERS TO CRITICAL-THINKING QUESTIONS 1.

You have just been hired as a brand manager of toothpaste for a large consumer products company. Your job mainly involves encouraging the advertising and production groups to promote and manufacture your product more effectively. These departments aren’t under your direct authority, though company procedures indicate that they must complete certain tasks requested by brand managers. Describe the sources of power you can use to ensure that the production and advertising departments will help you make and sell toothpaste more effectively.

As brand manager, you might be able to use most sources of power, depending on the circumstances. Here are some possible explanations.

Legitimate Power. Although you do not have direct authority, you do have some legitimate power through the rules and procedures saying that the advertising and production groups must work with you to sell toothpaste more effectively. If they refuse to cooperate, you have the legitimate right to seek redress from higher authorities.

Reward Power. You probably don’t have direct control over merit increases or other financial rewards for the advertising and production people, but you do have reward power by using praise. In addition, you might indirectly have reward power by making favorable comments about certain employees to more senior line managers who make financial reward decisions for advertising and production staff members.

Coercive Power. You can make life difficult for advertising and production people by constantly nagging them for the promised work, or by criticizing their work. Indirectly, you can report to senior management about the poor performance of some people, which may affect their employment security. Although these forms of coercive power are available, you should be aware that these actions carry risks such as lack of future cooperation from advertising and production people.

Expert Power. You have just been hired, so it is unlikely that the advertising or production people believe you have much expertise. You might develop this source of power in the long term, however, by learning about effective brand management practices and applying impression management tactics to shape their opinion of your expertise. For example, you might gain expert power more quickly by being seen with someone whose expertise is respected.

Referent Power. As a recent hire, it is unlikely that you currently have much, if any, of this power base over advertising and production employees. Furthermore, given your different background, it is difficult to develop referent power with these groups. However, you might find common experiences (schools attended, hobbies) with some people in those departments, or you might develop common experiences by frequently interacting and networking with these people.

2.

Your personal brand is an important form of power for career success. In what ways can you and other students strengthen their personal brand? What sources and contingencies of power are relevant in building a personal brand?

Much of this question asks students to provide practical solutions to the question of how to build a personal brand.

However, some of the structural model of power (power sources and contingencies) are also discussed in this question.

Sources of power in personal brand. Expert power is generally recognized as the main source of power associated with personal brand. An employee’s brand refers to something of value that s/he brings to the work unit and organization. That “something” is almost always a unique skill or knowledge. It may be technical knowledge, a skill

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Chapter 9: Power and Influence in the Workplace

that is difficult to master, or a capacity for creativity and innovation. But expert isn’t everything in personal brand. Brand also incorporates valuable uses of other power bases. For instance, employees might develop a reputation for cheering coworkers and maintaining optimism during difficult situations (reward power). Others form a personal brand that applies their legitimate power judiciously, such as by being a high-involvement manager. Some students might also suggest that a few people have a personal brand around their charisma (referent power).

Contingencies of power. These are also relevant to personal brand. In fact, this chapter mainly describes personal brand in the contingencies of power section, namely under nonsubstitutability. This is because a personal brand should be unique — something the employee possesses that is different from what others possess.

This uniqueness might be a rare skill or knowledge, or to some extent it may be how a less rare competency is framed as unique (not that we’re recommending this strategy). This chapter also refers to visibility as an important contingency of personal brand. After all, no brand has value if it is unknown. Therefore, employees need to make their unique resource known to others in the organization. They may even rely on symbols to anchor their personal brand (in some instances, personal branders wear unique clothing to stand out and perhaps reflect their brand). Some students might suggest that centrality is also important in personal brand.

This may be true, particularly when the centrality is dependent on the person’s unique something they bring to the organization. This talent will be more evident and appreciated when the work unit or organization is heavily dependent on its income form of centrality.

3.

Discuss the eight influence tactics described in this chapter in terms of how they are used by students to influence their college instructors. Which influence tactic is applied most often?

Which is applied least often, in your opinion? To what extent is each influence tactic considered legitimate behavior or organizational politics?

This question presupposes that students do and can influence instructors. Here are some of the ideas and examples that tend to arise with this question, based on the eight types of influence tactics discussed in the chapter: Silent Authority. This is probably the weakest form of influence. One example, however, would occur where a student waits outside an instructor’s office to meet the instructor. If the instructor is meeting with someone else or is on the telephone, s/he probably feels a degree of obligation to meet the waiting student as soon as possible. For example, the instructor might speed up to finish an otherwise leisurely telephone conversation.

Assertiveness. Although a risky strategy, some students assert their concerns and demands for fair treatment after receiving a poor grade. They might urge the instructor to review the paper more carefully, remind the instructor of certain rules or criteria against which the paper should have been judged, and so forth.

Exchange. Students often negotiate with instructors, with varying degrees of success. For example, a student might agree to be the first to give a presentation to class if s/he can submit a paper a few days later than the due date.

Coalition formation. This strategy occurs when the instructor is about to do (or has already done) something that opposes the interests of some students. For example, four students approached the first author several years ago because they were graduating (final) year students yet had received lower grades on a mid-term than many second year students who happened to be attending the same class. The idea was that if four people feel the same inequity, it must be a serious matter.

Upward appeal. Upward appeal isn’t so much about appealing one’s grade in a normal appeal process (although it could fall into this category). Rather, this strategy refers to the threat of approaching a higher authority, or implying that the higher authority already agrees with the student. One example could occur when a student says he casually mentioned his/her concern to the Associate Dean, who generally agreed that the instructor’s actions were unacceptable. Another example could occur where students remind the instructor of the college’s values or principles, which would encourage the instructor to take one action rather than another action. A third example could occur where an upset student suggests that s/he and the instructor take the disagreement to someone higher in the organization to get their opinion.

Ingratiation/Impression management. There are so many forms of this strategy that we cannot list them all here. One example of ingratiation is simple brown-nosing: “Gee, professor, it’s such a privilege to take this class with you. I waited until the semester you are teaching!” More subtle impression management occurs when a student makes it quite clear s/he has submitted reports on time, whereas many others are late. Another student might coincidentally carry a copy of the instructor’s latest book or most recent journal article around where the Page 9-17 Copyright © 2022 McGraw Hill. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill.

Chapter 9: Power and Influence in the Workplace

instructor happens to notice that the student has a copy of it.

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Chapter 9: Power and Influence in the Workplace

Persuasion. Presumably, this is a common strategy used by students. For example, they might point out logical reasons why they should be assigned to a different project team or should have an assignment handed in late without penalty, for example.

Information control. Although this would be a relatively weak or limited strategy for students, it is possible in some circumstances. For example, a student might claim that s/he did most of the work on a project in a situation other team members have not had an opportunity to provide their “facts” to the instructor.

4. How does social networking increase a person’s power? What social networking strategies could you initiate now to potentially enhance your future career success?

Social networking increases an individual’s power in three ways: Information access. You receive more valued information from others because there is trust among networkers to share information. Networks increase the volume as well as the speed of information received.

Visibility. Networks makes you more salient to key decision makers. Your skills come to mind more quickly among network members than if you are not within the network. This visibility increases your potential power because it is a contingency of power.

Referent power. Other network members identify more with you or at least have more respect and trust in you, so they are more motivated to agree to your wishes.

As a student, you could use networking now to enhance your future career success. Students can cultivate social relationships with others who may be in a position to use their skills in the future. For example, by leading a Marketing club in your faculty that invites Marketing professionals to serve as guest speakers you would be gaining valuable contacts that may be able to hire you in the future. Students may also network with faculty and staff in the effort to ensure their skills and talents are recognized. In this way, students may be better positioned to receive valuable personal references that may assist with future job search efforts. Students may also successfully develop and maintain valuable contacts with other students. This network may benefit the individual by providing a source of potential employers and organizational contacts throughout the individual’s career.

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Chapter 9: Power and Influence in the Workplace

STUDENT HANDOUT

CLASS EXERCISE: BINGO NETWORKING

B

I

N

G

O

Speaks any Asian language.

Has visited any library or library web site within the past 7 days.

Has paddled a canoe or kayak within the past 12 months.

Written code with SQL/PHP.

Has the letter “X” or “Z” in their name.

A parent/guardian worked in military for 5 or more years.

Has NOT used a Lives with a dog or Has foreign cell/mobile phone cat and at least currency on them today or yesterday. one other pet. right now.

Has baked a pie or cake within the past year.

Watched half or more of the most recent Superbowl.

Has played a musical instrument to a public audience.

Has NOT drank coffee within the past month.

Waterskied or Travelled to Europe Sent a Twitter scuba dived within within the past 24 “tweet” in the 48 hours before this the past year. months. exercise started.

Has read a mystery/crime novel within the past year.

Ever worked at McDonald’s or similar fast food restaurant chain.

Speaks any nonEnglish European or South American language.

Has their own website and/or weblog (not Facebook).

FREE SPACE!

Has a motorcycle license.

Has ridden a horse Visited a Facebook within the past 5 website within the past 24 hours. years.

Participated in yoga or Pilates within the past 2 months.

RULES 1.

2.

3.

4.

5.

Formally introduce yourself to each person you meet (e.g., say your name, shake hands).

You cannot volunteer information about yourself, only answer speci@ic questions asked (NOT “Which of these boxes apply to you?”).

When someone satis@ies one of the boxes, get that person to initial the box.

You cannot initial any boxes on your own card.

The goal is to get initials along one or more entire rows, columns, or diagonals.

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Chapter 9: Power and Influence in the Workplace

CONFIDENTIAL INSTRUCTOR NOTES

CLASS EXERCISE: BINGO NETWORKING Purpose To improve student networking by practicing how to learn how to meet and quickly acquire information from other people.

Materials Distribute the Bingo card with rules in the student handout sheet to every student. Be sure students have a pen or pencil to initial other students’ Bingo cards. This activity requires sufficient space for small group social interaction.

Instructions This exercise is similar to classic Bingo except the boxes are filled with initials of other people in class who satisfy the condition in that box. For example, only students who have ridden a horse within the past five years can initial the third box under “G.” Before beginning the game, you need to decide how the game should end and how or whether it is won. The classic option is that the game ends when one person calls out “Bingo” (i.e., first person to have initials along a row, column, or diagonal). However, this approach can be too rushed for networking. Alternatively, announce that the game ends after a set time (e.g., 20 minutes) and the winner(s) are those with the most completed rows, columns, and diagonals. A third option is not to have winners at all. Instead, focus on the debriefing topics.

Distribute the Bingo sheets to students and explain the rules to them: 1.

2.

3.

4.

5.

Formally introduce yourself to each person you meet (e.g., say your name, shake hands).

You cannot volunteer information about yourself, only answer speci@ic questions asked (NOT “Which of these boxes apply to you?”).

When someone satis@ies one of the boxes, get that person to initial the box.

You cannot initial any boxes on your own card.

The goal is to get initials along one or more entire rows, columns, or diagonals.

Be sure students understand that their interaction with others should be more like a conversation than an urgent treasure hunt. Although the information should be collected quickly, it should also occur respectfully. This includes ending the conversation politely.

Debriefing Although students will be focused on getting their Bingo cards initialed, the debriefing should focus on the fine art of approaching people and either providing or receiving valuable information from them quickly, yet respectfully. Ask students how they accomplished this and what they would do differently to improve their respectfulness or efficiency at getting information. Discuss the all-important first statement after the person introduces themselves. Also, be sure the consider the interesting dynamic where both parties are seeking different information from each (i.e., they likely have different objectives for the conversation). Finally, consider the delicate task of withdrawing from the conversation. This is likely less of a concern in this activity (where both parties are eager to discover the traits of other people), but there is an element of politely ending the conversation.

Source: Bingo networking is based on a widely discussed activity with no known original source.

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Chapter 9: Power and Influence in the Workplace

SA

SELF-ASSESSMENT 9.1: DO YOU HAVE A GUANXI ORIENTATION?

Overview and Instructions Connections and social networks are important, no matter where you do business around the world. These interpersonal relationships are called guanxi in China, where they are very important due to Confucian values and the unique history of that country.

This instrument estimates guanxi orientation; that is, the extent to which the respondent accepts and applies guanxi values.

Feedback for the Guanxi Orientation Scale The Guanxi Orientation scale estimates the extent to which you apply guanxi values in your business and personal relationships. The guanxi approach to cultivating special relationships includes developing right contacts with the right people, maintaining a network of good relationships, being an “insider,” being reciprocal by returning favors, developing guanxi through gift-giving, and being cooperative. Guanxi is associated with the collectivist values traced back to the Chinese philosopher Confucius.

Scores on the Guanxi Orientation Scale range from 9 to 63 with higher scores indicating a higher tendency to apply guanxi values. Although norms for this scale are very limited, one study reported that the average guanxi orientation score varies from one group to the next. The average score is 41 for a small sample of managers in state-owned and joint venture organizations in China, whereas the average score is 55 among managers in privately-owned enterprises in China. The latter would be considered high guanxi, which we would expect for managers in China. The following graph shows your score against the range of possible scores on this instrument.

Score

Interpretation

49 to 63

High guanxi

36 to 48

Moderate guanxi

9 to 32

Low guanxi

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Chapter 9: Power and Influence in the Workplace

SA

SELF-ASSESSMENT 9.2: WHAT IS YOUR APPROACH TO INFLUENCING COWORKERS?

Overview and Instructions Working with others in organizations is an ongoing process of coordination and cooperation. Part of that dynamic is changing our attitudes and behavior as well as motivating others to change their attitudes and behavior. In other words, everyone engages in influence tactics to get things done. There are many ways to influence other people, some of which work better than others, depending on the situation.

In this self-assessment, students are asked to think about the occasions when a coworker disagreed with them, opposed their preference, or was reluctant to actively support their point of view about something at work. These conflicts might have been about company policy, assignment of job duties, distribution of resources, or any other matter. Students are asked what they did over the past six months to try to get the coworker to support their preference? (Note: Students who have not been in the workforce recently can complete this self-assessment exercise thinking about influencing another student instead of a coworker.)

Feedback for the Coworker Influence Scale Influence refers to any behavior that attempts to alter someone’s attitudes or behavior. There are several types of influence, including the eight measured by this instrument. This instrument assesses preferences for using each type of influence on coworkers and other people at a similar level as the respondent’s position in the organization.

Persuasion: Persuasion refers to using logical and emotional appeals to change others’ attitudes. This is one of the most widely used influence strategies toward others in any position (e.g., co-workers, bosses, subordinates).

Silent authority: The silent application of authority occurs when someone complies with a request because the target person is aware of the requester’s legitimate or expert power. This influence tactic is very subtle, such as making the target person aware of the status or expertise of the person making the request.

Exchange: Exchange involves the promise of benefits or resources in exchange for the target person’s compliance with your request. This tactic also includes reminding the target of past benefits or favors with the expectation that the target will now make up for that debt. Negotiation is also part of the exchange strategy.

Assertiveness: Assertiveness involves actively applying legitimate and coercive power to influence others. This tactic includes demanding that the other person comply with your wishes, showing frustration or impatience with the other person, and using threats of sanctions to force compliance.

Information control: Information control involves explicitly manipulating others’ access to information for the purpose of changing their attitudes and/or behavior. It includes screening out information that might oppose your preference and embellishing or highlighting information that supports your position. According to one survey, more than half of employees believe their co-workers engage in this tactic.

Coalition formation: Coalition formation occurs when a group of people with common interests band together to influence others. It also exists as a perception, such as when you convince someone else that several people are on your side and support your position.

Upward appeal: Upward appeal occurs when you rely on support from people higher up the organizational hierarchy. This support may be real (senior management shows support) or logically argued (you explain how your position is consistent with company policy).

Ingratiation: Ingratiation is a special case of impression management in which you attempt to increase the perception of liking or similarity to another person in the hope that they will become more supportive of your ideas.

Flattering the co-worker, becoming friendlier with the co-worker, helping the co-worker (with expectation of reciprocity), showing support for the co-worker’s ideas, and asking for the co-worker’s advice are all examples of ingratiation.

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Chapter 9: Power and Influence in the Workplace

Scores on the eight Coworker Influence Scale dimensions range from 3 to 15. Higher scores indicate that the person has a higher preference for and use of that particular tactic. Norms vary from one group to the next. The following table shows norms from a sample of 225 MBA students. Most are from Australia, but some completed courses in Singapore and many students originate from other regions (Europe, South America, Asia, North America). The average age is about 31 years old and two-thirds would be male. To read this chart, consider the top 10 percentile for Assertiveness.

The score is 9, indicating that 10 percent of people score 9 or above and 90 percent score below 9 on this dimension.

Keep in mind that these scores represent self-perceptions. Evaluations from others (such as through 360-degree feedback) may provide a more accurate estimate of your preferred influence tactics.

Coworker Influence Scale Norms Percentile

Silent Persuasion authority

Exchange

Assertiveness

Average Score

12.3

9.7

7.4

5.8

Top 10th percentile

15

12

10

9

Top 25th percentile

14

11

9

7

Median (50th percentile)

12

10

8

5

Bottom 25th percentile

11

8

6

4

Bottom 10th percentile

10

7

4

3

Coworker Influence Scale Norms (con’t) Percentile

Information control

Coalition formation

Upward appeal

Ingratiation

Average Score

7.3

8

7.9

8.8

Top 10th percentile

10

11

11

12

Top 25th percentile

9

10

9

11

Median (50th percentile)

7

8

8

9

Bottom 25th percentile

6

6

6

6

Bottom 10th percentile

5

4

5

5

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Chapter 9: Power and Influence in the Workplace

SA

SELF-ASSESSMENT 9.3: HOW POLITICALLY CHARGED IS YOUR SCHOOL?

Overview and Instructions Every organization has some degree of organizational politics. Depending on behavioral norms and organizational culture, employees in some companies actively use influence tactics to get their own way for personal gain. In other workplaces, employees who engage in organizational politics are quickly reminded to avoid these tactics, or are eventually asked to work somewhere else. Students can usually sense the level of organizational politics at the college where they are taking courses.

This self-assessment instrument asks students several questions that estimate their school’s level of organizational politics. These statements refer to the administration of the school, not the classroom. Students are asked to indicate whether they agree or disagree with each statement.

Feedback for the Perceptions of Politics Scale (POPS) The Perceptions of Politics Scale estimates the degree to which you believe the school where you attend classes has a politicized culture. It particularly measures the extent to which people at this school get ahead by avoiding disagreements with school administrators.

Score

Interpretation

36 to 45

Extremely political

27 to 35

Considerably political

18 to 26

Somewhat political

9 to 17

Minimally political

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Chapter 10: Conflict and Negotiation in the Workplace

Instructor’s Manual to Accompany

M:Organizational Behavior 5/e

by Steven L. McShane and Mary Ann Von Glinow

Chapter 10: Conflict and Negotiation in the Workplace Prepared by Steven L. McShane, University of Newcastle (Australia)

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Chapter 10: Conflict and Negotiation in the Workplace

10

Conflict and Negotiation in the Workplace

LEARNING OBJECTIVES After reading this chapter, students should be able to:

10-1 Define conflict and debate its positive and negative consequences in the workplace.

10-2 Distinguish task conflict from relationship conflict and describe three strategies to minimize relationship conflict during task conflict episodes.

10-3 Diagram the conflict process model and describe six structural sources of conflict in organizations. 10-4 Outline the five conflict-handling styles and discuss the circumstances in which each would be most appropriate.

10-5 Apply the six structural approaches to conflict management and describe the three types of thirdparty dispute resolution.

10-6 Discuss activities in the negotiation preparation, process, and setting that improve negotiation effectiveness.

CHAPTER GLOSSARY best alternative to a negotiated agreement (BATNA) — the best outcome you might achieve through some other course of action if you abandon the current negotiation

superordinate goals — goals that the conflicting parties value and whose attainment requires the joint resources and effort of those parties

conflict — the process in which one party perceives that its interests are being opposed or negatively affected by another party

task conflict — a type of conflict in which people focus their discussion around the issue (i.e., the “task”) in which different viewpoints occur while showing respect for people involved in that disagreement

negotiation— the process in which interdependent parties with divergent beliefs or goals attempt to reach agreement on issues that mutually affect them psychological safety — a shared belief that it is safe to engage in interpersonal risk-taking; specifically, that presenting unusual ideas, constructively disagreeing with the majority, and experimenting with new work behaviors will not result in coworkers posing a threat to their self-concept, status, or career relationship conflict — a type of conflict in which people focus their discussion on qualities of the people in the dispute, rather than on the qualities of the ideas presented regarding a task-related issue

third-party conflict resolution — any attempt by a relatively neutral person to help the parties resolve their differences win-lose orientation — the belief that conflicting parties are drawing from a fixed pie, so the more one party receives, the less the other party will receive win-win orientation — the belief that conflicting parties will find a mutually beneficial solution to their disagreement

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Chapter 10: Conflict and Negotiation in the Workplace

CHAPTER SUMMARY BY LEARNING OBJECTIVE 10-1 Define conflict and debate its positive and negative consequences in the workplace.

Conflict is the process in which one party perceives that its interests are being opposed or negatively affected by another party. The earliest view of conflict was that it was dysfunctional for organizations. Even today, we recognize that conflict sometimes or to some degree consumes productive time, increases stress and job dissatisfaction, discourages coordination and resource sharing, undermines customer service, fuels organizational politics, and undermines team cohesion. But conflict can also be beneficial. It is known to motivate more active thinking about problems and possible solutions, encourage more active monitoring of the organization in its environment, and improve team cohesion (where the conflict source is external).

10-2 Distinguish task conflict from relationship conflict and describe three strategies to minimize relationship conflict during task conflict episodes.

Task conflict occurs when people focus their discussion around the issue while showing respect for people with other points of view. Relationship conflict exists when people focus their discussion on qualities of the people in the dispute; that is, they view each other, rather than the issue, as the source of conflict. It is apparent when people attack each other’s credibility, assert their superior status, and display aggression toward the other party. It is difficult to separate task from relationship conflict. However, three strategies or conditions that minimize relationship conflict during constructive debate are emotional intelligence of the participants, team development, and norms that support psychological safety (a shared belief that it is safe to engage in interpersonal risktaking).

10-3 Diagram the conflict process model and describe six structural sources of conflict in organizations.

The conflict process model begins with the six structural sources of conflict: incompatible goals, differentiation (different values and beliefs), interdependence, scarce resources, ambiguous rules, and communication problems.

These sources lead one or more parties to perceive a conflict and to experience conflict emotions. This produces manifest conflict, such as behaviors toward the other side. The conflict process often escalates through a series of episodes.

10-4 Outline the five conflict-handling styles and discuss the circumstances in which each would be most appropriate.

There are five known conflict-handling styles: problem solving, forcing, avoiding, yielding, and compromising.

People who use problem solving have a win-win orientation. Others, particularly forcing, assume a win-lose orientation. In general, people gravitate toward one or two preferred conflict-handling styles that match their personality, personal and cultural values, and past experience.

The best style depends on the situation. Problem solving is best when interests are not perfectly opposing, the parties trust each other, and the issues are complex. Forcing works best when the dispute requires quick action, your position is logically and morally stronger, and the other party would take advantage of a cooperative style.

Avoiding is preferred when the conflict has become emotional, there is strong incentive to maintain harmony, or the cost of resolution outweighs the benefits. Yielding works well when the issue is less important to you, the value or logic of your position is less clear, the parties want to maintain harmony, and the other party has substantially more power. Compromising is preferred when there is a single issue (not complex) with opposing interests, the parties are under time pressure, they want to maintain harmony, and they have equal power.

10-5 Apply the six structural approaches to conflict management and describe the three types of third- party dispute resolution.

Conflict can be managed through six structural strategies. One of these is to increase the parties’ commitment to superordinate goals — goals that the conflicting employees or departments value and whose attainment requires the joint resources and effort of those parties. Another method is to reduce differentiation between the conflicting parties, such as by temporarily assigning employees to other work units, rotating employees across the organization throughout their career, and building a strong organizational culture. A third method is to improve communication and mutual understanding. This can occur by designing workspaces such that diverse groups coincidentally mingle, Page 10-3 Copyright © 2022 McGraw Hill. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill.

Chapter 10: Conflict and Negotiation in the Workplace

engaging in seminars that apply Johari window principles across groups, and using intergroup mirroring interventions. Fourth, conflict can be minimized by reducing interdependence, such as by creating buffers, using integrators, or combining jobs. The final two structural approaches to conflict management involve increasing resources and clarifying rules and procedures.

Third-party conflict resolution is any attempt by a relatively neutral person to help the parties resolve their differences. The three main forms of third-party dispute resolution are mediation, arbitration, and inquisition.

Managers tend to use an inquisition approach, though mediation and arbitration often are more appropriate, depending on the situation.

10-6 Discuss activities in the negotiation preparation, process, and setting that improve negotiation effectiveness.

Negotiation occurs when interdependent parties with divergent beliefs or goals attempt to reach agreement on issues that mutually affect them. Distributive negotiation is most common when the parties have only one item to resolve, such as product price or starting salary. Integrative negotiation is more common when multiple issues are open for discussion. Effective negotiators engage in several preparation activities. These include determining their initial, target, and resistance positions; understanding their needs behind these goals; and knowing their alternatives to the negotiation (BATNA).

During the negotiation process, effective negotiators devote more attention to gathering than giving information. They try to determine the other party’s underlying needs rather than just their stated positions.

They make fewer and smaller concessions, but use concessions strategically to discover the other party’s priorities and to maintain trust. They try to avoid time traps (negotiating under deadlines set by the other side), and they engage in practices to maintain a positive relationship with the other party. Characteristics of the setting —including location, physical setting, and audience characteristics — are also important in successful negotiations.

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Chapter 10: Conflict and Negotiation in the Workplace

LECTURE OUTLINE Slide 1: Conflict and Negotiation in the Workplace Slide 2: Learning Objectives 10-1 Define conflict and debate its positive and negative consequences in the workplace.

10-2 Distinguish task conflict from relationship conflict and describe three strategies to

minimize relationship conflict during task conflict episodes.

10-3 Diagram the conflict process model and describe six structural sources of conflict in

organizations.

10-4 Outline the five conflict-handling styles and discuss the circumstances in which each

would be most appropriate.

10-5 Apply the six structural approaches to conflict management and describe the three

types of third-party dispute resolution.

10-6 Discuss activities in the negotiation preparation, process, and setting that improve

negotiation effectiveness.

Slide 3: Is Conflict Good or Bad? Conflict defined — the process in which one party perceives that its interests are being opposed or negatively affected by another party Negative consequences of conflict: • Lower performance • Higher stress, dissatisfaction, and turnover • Less information sharing and coordination • Increased organizational politics • Wasted resources • Weakened team cohesion (conflict among team members)

Positive consequences of conflict: • Better decision making ➡ Tests logic of arguments ➡ Questions assumptions ➡ Generates creative thinking

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Chapter 10: Conflict and Negotiation in the Workplace

• More responsive to the changing environment • Stronger team cohesion (conflict between the team and outside opponents)

Slide 4: Emerging View: Task Versus Relationship Conflict “Optimal” conflict perspective • Adopted in 1970s when experts recognized that some conflict is beneficial • Idea that some conflict is good; but conflict is bad beyond a particular level

Task versus relationship conflict perspective Emerging view of conflict today — two dominant types of conflict: task conflict and relationship conflict — represent two distinct ways that people approach and interact with one another during disagreements Task (constructive) conflict • Occurs when parties focus on the issue (task), while showing respect for people with other • • • •

points of view Debates quality of the ideas presented (logical, accurate facts, reasonable assumptions) Avoids attention to the competence or power of the participants Likely an upper limit to the intensity of any disagreement, but task conflict has beneficial outcomes All conflicts can adopt a task conflict focus — even “personality clashes” have task-oriented underpinnings

Relationship conflict • Occurs when focusing on (critiquing) the opponent’s experience, intelligence, credibility • Opponents’ ideas/actions are invalidated indirectly through their alleged incompetence, not

directly through debate about the idea’s logic or factual foundation • Relationship conflict also occurs by asserting superior status over the opponent — (e.g., having more experience, higher credentials) than the opponent • Relationship conflict also occurs through abrasive and assertive behavior — demeans and disempowers others in the disagreement

Relationship conflict is dysfunctional because: • Triggers defense mechanisms because it threatens self-concept (self-esteem,

self-enhancement, and self-verification) • Reduces trust because it emphasizes interpersonal differences (undermines any common bonds) • Conflict escalates more easily because parties reduce communication — results in distorted perceptions and increased reliance on stereotypes to reinforce the threat perception

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Chapter 10: Conflict and Negotiation in the Workplace

NOTE: This book adopts the long-standing perspective that task and relationship conflict refer to how the conflict is framed (the focus of attention). Task and relationship conflict are not conflict topics. Almost all workplace conflicts can be viewed from BOTH perspectives.

Slide 5: Minimizing Relationship Conflict during Task Conflict Goal: encourage task conflict and minimize relationship conflict Problem: relationship conflict often develops when engaging in task conflict — task conflict debate potentially threatens self-concept and triggers the drive to defend Three conditions that minimize relationship conflict during task conflict episodes: 1. Emotional intelligence • Employees with higher EI (and associated emotional stability personality) are better at regulating their emotions during debate — less risk of escalation by suppressing feelings of hostility • Able to reframe coworker’s emotional reaction as valuable information about that person’s needs and expectations 2. Team development — less relationship conflict in highly developed teams • Better mutual understanding — team members better at understanding and anticipating other team members — reduces the risk that coworker’s words or actions will be misinterpreted • Higher team cohesion — members have stronger social identity with the team — motivated to minimize relationship conflict because it threatens the team’s stability and the member’s future with that group 3. Team norms support psychological safety • Shared belief that it is safe to engage in interpersonal risk-taking — belief that presenting unusual ideas, constructively disagreeing with the majority, and experimenting with new work behaviors won’t result in coworkers posing a threat to one's self-concept, status, career • Team norms encourage members to respect and value one another, demonstrate interest in one another, be open-minded about and tolerant with coworkers’ opinions, and show positive intentions toward one another

Slide 6: The Conflict Process Sources of conflict • Leads one or both parties to perceive that conflict exists • Become aware that another party’s statements and actions are incompatible with their own goals

Conflict perceptions and emotions • Perceptions usually interact with emotions experienced

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Chapter 10: Conflict and Negotiation in the Workplace

Manifest conflict • Conflict episodes — decisions and behaviors of one party toward the other • Ranges from subtle nonverbal behaviors to aggression; also conflict resolution style

Conflict escalation cycle • Conflict process is a series of episodes that potentially cycle into conflict escalation

Conflict outcomes — may be positive or negative

Slide 7: Structural Sources of Conflict (1 of 2) 1. Incompatible goals • Goals of one person or department seem to interfere with goals of another person or department ➡ E.g., cost efficiency vs. customer service 2. Differentiation • Differences among people and work units regarding their training, values, beliefs, and experiences • Parties may agree on a common goal but have different beliefs about how to achieve that goal • Intergenerational differentiation — due to (a) unique technological advances and other social forces while growing up, and (b) different needs and priorities at each career and life stage • Differentiation in merging companies — organizational and national culture clashes over the “right way” to do things — based on unique experiences/history of each group 3. Interdependence • All conflict is partly caused by interdependence — the extent to which employees must share materials, information, or expertise to perform their jobs • Risk of conflict increases with level of interdependence ➡ Pooled interdependence (lowest) — work units rely on a common resource or authority, e.g., shared administrative support ➡ Sequential interdependence — one person's output is next person's input, e.g., assembly line ➡ Reciprocal interdependence — output is exchanged so employees are highly dependent on each other (e.g., medical team)

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Chapter 10: Conflict and Negotiation in the Workplace

Slide 8: Structural Sources of Conflict (2 of 2) 4. Scarce resources • Scarcity creates competition for a resource — necessarily interferes with the other party’s goals 5. Ambiguous rules • Creates uncertainty — increases risk that others will threaten own goals • Encourages organizational politics — others use influence to gain for their benefit 6. Communication problems • Poorly crafted communication creates and escalates conflict ➡ Conflict generated and amplified by lack of skill or motivation to communicate diplomatically, nonconfrontationally ➡ Conflict generates emotions — increased emotion-laden language and aggressive nonverbal behaviors, which convey conflict to the other party — results in escalation • Lack of communication amplifies conflict ➡ Lack of communication due to lack of opportunity ➡ Lack of communication because conflict reduces motivation to communicate ➡ Lack of communication reduces information accuracy — distorted images and increased stereotyping (including differentiation) to fill in missing information

Slide 9: Interpersonal Conflict Handling Styles Vary in assertiveness (satisfying own interests) and cooperativeness (satisfying other party’s interests) 1. Problem-solving • Win-win orientation — tries to find a mutually beneficial solution • Both collaborate to identify common ground, solutions that satisfy all 2. Forcing • Win-lose orientation — tries to win the conflict at the other’s expense • Relies on “hard” influence tactics (e.g., assertiveness to get own way) • Also includes moderate assertiveness, such as showing support and conviction for an idea 3. Avoiding • Smooth over or evade conflict situations • Although depicted as low concern for self and others, it can also be a necessary short-term conflict handling tactic even when the issue is important to you 4. Yielding • Giving in completely to the other side’s wishes

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Chapter 10: Conflict and Negotiation in the Workplace

• Making unilateral concessions, offering help without reciprocity expected

5. Compromising • Reach a middle ground between the interests of the parties • Matching the other party’s concessions

Slide 10: Conflict Handling Style Contingencies (1 of 3) People have one or two preferred conflict handling styles, but need to know how and when to apply each of them Best conflict handling style depends on the situation

1. Problem solving Preferred style when: • Interests are not perfectly opposing • Parties have trust/openness and time to share information • Issues are complex

Problems — sharing information that the other party might use to their advantage

2. Forcing Preferred style when: • Quick resolution required • Your position objectively has a much stronger logical or moral foundation • Other party would take advantage of cooperation

Problems — highest risk of relationship conflict; may damage long-term relations; reduce future problem solving

Slide 11: Conflict Handling Style Contingencies (2 of 3) 3. Avoiding Preferred style when: • Conflict has become emotionally-charged (relationship conflict) • Parties want to maintain harmony • Cost of resolving conflict outweighs its benefits

Problems — doesn’t usually resolve the conflict; may produce uncertainty and frustration

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Chapter 10: Conflict and Negotiation in the Workplace

4. Yielding Preferred style when: • Issue is much less important to you than to the other party • Value/logic of your position is imperfect/unclear • Parties want to maintain harmony • Other party has much more power

Problems — increases other party’s expectations for future

Slide 12: Conflict Handling Style Contingencies (3 of 3) 5. Compromising Preferred style when: • Single issue conflict with opposing interests • Parties lack time or trust for problem solving • Parties want to maintain harmony • Parties have equal power

Problem — suboptimal solution where mutual gains are possible

Slide 13: Cultural and Gender Differences in Conflict-Handling Styles Preferred conflict handling styles vary across cultures — need to adapt styles to local culture norms and practices Example: High collectivism cultures — prefer avoidance and problem solving styles to maintain harmonious relations — but possibly only within the group, not with those outside the group Gender differences in preferred conflict handling style • Men (management and nonmanagement) use the forcing style more than do women • Female managers use avoiding more than do male managers • Women are slightly more than men likely to use problem solving, compromising, yielding • Different conflict handling preferences occurs partly because women generally try to protect

the relationship more than do men

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Chapter 10: Conflict and Negotiation in the Workplace

Slide 14: Structural Approaches to Conflict Management (1 of 2) 1. Emphasize superordinate goals • Superordinate goals — goals that the conflicting parties value and whose attainment requires

the joint resources and effort of those parties • E.g., emphasize firm’s strategic objectives rather than individual or departmental goals • Reduces goal incompatibility • Reduces differentiation — establishes feelings of a shared social identity

2. Reduce differentiation • Reduce differences that generate conflict • Create common experiences — generates a shared social identity • Ways to reduce differentiation ➡ Meaningful interaction with people in other groups — e.g., temporary assignments —

applies contact hypothesis ➡ Rotate staff to different departments or regions throughout their career — increases identification with overall firm rather than a region or department ➡ Build and maintain a strong organizational culture — shared values/assumptions — stronger sense of community

3. Improve communication and understanding • Conflicting parties are given more opportunities to communicate and understand each other • Doesn’t necessarily reduce differentiation, but may produce clearer awareness of and respect

for one another’s situation • Ways to increase communication and mutual understanding ➡ Rearrange physical or reporting arrangements — increases interaction ➡ Apply type of Johari Window — individuals disclose information about themselves and their self-perceptions to others, give feedback to others about how they are perceived ➡ Intergroup mirroring — each group in the conflict share (1) how the group perceives itself, (2) how it perceives the other group, and (3) how the group believes it is perceived by the other group • Two warnings about communication and understanding interventions (a) use communication and understanding interventions only when differentiation is sufficiently low or after differentiation has been reduced (otherwise, could escalate conflict) (b) collectivist and high power distance cultures — less comfortable with direct communication

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Chapter 10: Conflict and Negotiation in the Workplace

Slide 15: Structural Approaches to Conflict Management (2 of 2) 4. Reduce interdependence • Create buffers — decoupling the relationship (e.g., build up inventories in assembly line vs.

just-in-time inventory system) • Use integrators — i.e., employees (human buffers) who coordinate the activities of differentiated work units toward completion of a common task (e.g., coordinate efforts of several departments to launch a new product) • Combine jobs — reduces task interdependence and is a form of job enrichment (e.g., each person assembles an entire product)

5. Increase resources • Increase the amount of resources available

6. Clarify rules and procedures • Establish rules and procedures (e.g., create a schedule) • Clarifying roles and responsibilities

Slide 16: Types of Third-Party Intervention Any attempt by a relatively neutral person to help conflicting parties resolve their differences Third party interventions — can be classified by their level of control over the process and control over the decision 1. Arbitration • High control over final decision — low control over process • Manager follows previously agreed-upon rules of due process • Final stage of grievances by unionized employees in many countries — also increasingly used in nonunion conflicts 2. Inquisition • Inquisitors determine how to resolve the conflict (high decision control) and choose which information to examine and how to examine it (high process control) • High decision control and high process control 3. Mediation • Mediators have high control over the intervention process, but little to no control over the conflict resolution decision.

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Chapter 10: Conflict and Negotiation in the Workplace

Slide 17: Choosing the Best Third-Party Intervention Strategy Managers prefer inquisitional strategy • Consistent with decision-oriented nature of managerial jobs • Usually the least effective third-party conflict resolution method • Conflicts with procedural justice principles

Mediation potentially offers highest satisfaction with process and outcomes • Gives employees more responsibility for resolving disputes

Use arbitration when mediation fails — has procedural justice due to predetermined rules and processes

Slide 18: Negotiation: Definition and Approaches Interdependent parties with divergent beliefs or goals attempt to reach agreement on issues that mutually affect them • Use discussion to produce a more satisfactory arrangement exchanging or sharing resources

Distributive approach to negotiation • Win-lose orientation • View that one party necessarily loses when the other party gains • Most common when the parties have only one item to resolve

Integrative (mutual gains) approach to negotiation • Win-win orientation • Resources at stake considered expandable rather than fixed if the parties work creatively

together to find a solution • More common when multiple issues are open for discussion — each issue may have different value/importance to each party

Negotiators usually begin with a cautiously integrative approach to negotiations — shift to distributive approach when apparent that parties have similar preferences for a limited number of items Personality also affects a person’s preference for distributive vs integrative negotiations

Slide 19: Develop Goals and Understand Needs Successful negotiators develop goals — what they want to achieve negotiation • Negotiators consider three goal setting positions — see bargaining zone model

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Chapter 10: Conflict and Negotiation in the Workplace

Successful negotiators focus on their own needs • Specific needs can be satisfied by different goals — actively consider various goals that may

achieve their needs

Successful negotiators also anticipate the other party's goals and their underlying needs

Slide 20: Bargaining Zone Model 1. Initial offer point • Your opening offer — best expectation • Potentially anchors discussion at a point closer to own target point • But avoid setting too high — undermines trust and breaks off negotiations 2. Target point • Your realistic goal or expectation for a final agreement • Negotiators with higher and clearer target points obtain better outcomes • But also need to avoid overoptimistic expectations — need to reflect on the facts 3. Resistance point • The point beyond which you will make no further concessions • Resistance point determined by BATNA

Bargaining zone — area of potential overlap with a continuum that parties move along in opposite directions

Slide 21: Know Your BATNA and Power Best alternative to a negotiated agreement (BATNA) • Represents the estimated cost to you of walking away from the relationship • Estimates your power in the negotiation • Having more than one BATNA to a negotiation increases your power • Beware: people tend to overestimate their BATNA

Negotiation power • Depends on the sources and contingencies of power • High expertise, low substitutability, high visibility, etc.

• Sources and contingencies of power also improve BATNA

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Chapter 10: Conflict and Negotiation in the Workplace

Slide 22: Negotiation Process: Gather Information Information is the cornerstone of effective negotiations • Discover the other party’s hidden needs and resistance point • May discover multiple dimensions (rather than one simple distributive situation) — transforms

negotiation to integrative/mutual gains • Identifies complementary needs for win-win solution

Information gathering strategies: • Listen closely to the other party • Receive more details through open-ended and probe questions • Pay attention to nonverbal communication • Test own understanding of the other party by summarizing their statements and asking them

to confirm and clarify • Communicate own inner thoughts/reactions to other party’s proposals

Slide 23: Negotiation Process: Manage Concessions Concessions are necessary for the parties to move toward agreement Concessions are a form of communication • Signal the relative importance of each issue being negotiated • Symbolize each party’s motivation to bargain in good faith

Successful negotiators do the following: • Clearly label each concession as a concession • Accompany each concession with expectation of reciprocity • Offer concessions in installments — people experience more positive emotions from a few

smaller concessions than from one large concession • Be moderately tough/restrictive in giving concessions • Give just enough concessions to communicate sincerity and motivation to resolve the conflict

Slide 24: Negotiation Process: Time and Relationship Manage time • Problem: Negotiators tend to make more concessions as a deadline get closer — poorer

negotiation outcomes • “Exploding offers” — limited time given to accept the offer — puts time pressure on opponent • Escalation of time commitment — more time someone has invested in the negotiation, the more committed they become to ensuring an agreement is reached

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Chapter 10: Conflict and Negotiation in the Workplace

Build the Relationship (trustworthiness) • Trust in negotiation has several functions: ➡ Keeps the parties focused on the issue rather than personalities ➡ Motivates parties to return to the bargaining table when negotiations stall ➡ Encourages the parties to engage in future negotiations ➡ Motivates parties to share information in integrative negotiations • Building trust in negotiations ➡ Discover common backgrounds and interests ➡ Manage first impressions ➡ Signal trustworthiness — e.g., be reliable, keep promises ➡ Demonstrate shared understanding of negotiation process, including norms/expectations ➡ Emotional intelligence — managing displayed emotions, managing other party’s emotions

Slide 25: Negotiation Setting Location • Home turf: familiar with negotiation setting; easier access to resources • Consider a neutral territory • Good negotiators prefer face-to-face, not phone calls

Physical setting • Relationship affected by physical distance, setting formality • Convey win-win orientation by dispersing people around the table

Audience Characteristics • Audience — anyone with a vested interest in the negotiation outcomes • When audience observes ➡ Negotiators tend to be more competitive, less willing to make concessions, more likely to

engage in political tactics

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Chapter 10: Conflict and Negotiation in the Workplace

STUDENT HANDOUT

CRITICAL-THINKING QUESTIONS 1. Distinguish task conflict from relationship conflict, and explain how to maintain some degree of task conflict while minimizing relationship conflict.

2. The chief executive officer of Creative Toys, Inc. read about cooperation in Japanese companies and vowed to bring this same philosophy to the company. The goal is to avoid all conflict, so that employees would work cooperatively and be happier at Creative Toys. Discuss the merits and limitations of the CEO’s policy.

3. Jane has just been appointed as purchasing manager of Tacoma Technologies, Inc. The previous purchasing manager, who recently retired, was known for his “winner-take-all” approach to suppliers. He continually fought for more discounts and was skeptical about any special deals that suppliers would propose. A few suppliers refused to do business with Tacoma Technologies, but senior management was confident that the former purchasing manager’s approach minimized the company’s costs. Jane wants to try a more collaborative approach to working with suppliers. Will her approach work? How should she adopt a more collaborative approach in future negotiations with suppliers?

4. You are a new program manager with responsibility for significant funding and external relations, and because of downsizing issues in your area, you have lost two valuable employees (actually one and a half, because the second person is on half time now; she used to be your manager and was the person under whom you trained). You have been in the new job approximately two weeks; however, you have been in the unit for more than a year and seen how systems are managed, from your manager’s perspective. You now have her job. Out of the blue, a senior person (not in your area) comes to you and says he is taking most of your space (when the company had to let the one and a half people go). He doesn’t ask your permission, nor does he seem the least bit concerned with what your response is. What do you do?

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Chapter 10: Conflict and Negotiation in the Workplace

CONFIDENTIAL INSTRUCTOR NOTES

SUGGESTED ANSWERS TO CRITICALTHINKING QUESTIONS 1. Distinguish task conflict from relationship conflict, and explain how to maintain some degree of task conflict while minimizing relationship conflict.

The distinction between task (constructive) and relationship conflict is ultimately about how the parties approach or focus on their differences. Task conflict focuses on the issue (the task) in which different viewpoints occur. Each party examines the facts, assumptions, and logical arguments that the other party uses to support their position. Throughout, the parties show respect for each other and keep the issue separated from the people involved.

Relationship conflict does the opposite. It occurs when people focus their discussion on the qualities of the participants in the dispute. Rather than challenging the facts or logic of an issue, relationship conflict involves criticizing the abilities or qualifications of those holding competing positions. Essentially, this approach is about seeing the other people as the problem. Relationship conflict also occurs more indirectly when people rely on their allegedly superior status or expertise to defend their position. This approach implies the inferiority of others and does not directly consider the merits of their arguments. Being abrasive or assertive is another form of relationship conflict. The aggressive behavior demeans others in the conversation, which symbolically communicates their inferiority to the aggressor.

Minimizing relationship conflict during task conflict is difficult because people tend to get defensive even if their ideas are challenged respectfully. Experts have identified three conditions that potentially minimize the level of relationship conflict during task conflict episodes: Emotional intelligence. Participants are less likely to resort to personal attacks when they have high emotional intelligence. Such individuals regulate their emotions during debate, and are better able to use the emotions of others as information.

Team development. As teams develop, their members become better at understanding and anticipating one another, which minimizes misinterpretation of each others words. Team development also increases team cohesion. Members of cohesive teams are motivated to minimize relationship conflict because these episodes threaten the team’s stability and the member’s future with that group.

Norms supporting psychological safety. Psychological safety is a shared belief that it is safe to engage in interpersonal risk-taking; specifically, that presenting unusual ideas, constructively disagreeing with the majority, and experimenting with new work behaviors will not result in coworkers posing a threat to their selfconcept, status, or career. These conditions make it easier for team members to openly discuss their differing viewpoints. The norms motivate other members to be open, accepting, and supportive of those views, even if they seem critical.

2.

The chief executive officer of Creative Toys, Inc. read about cooperation in Japanese companies and vowed to bring this same philosophy to the company. The goal is to avoid all conflict, so that employees would work cooperatively and be happier at Creative Toys.

Discuss the merits and limitations of the CEO’s policy.

This question addresses the idea that conflict can be both good and bad for organizations. To effectively manage conflict, organizational leaders must find interventions that alter the level and form of conflict in ways that maximize its benefits and minimize its dysfunctional consequences.

Task conflict is a form of conflict that benefits decision making. This constructive conflict helps people to recognize problems, to identify a variety of solutions, and to better understand the issues involved. Conflict is also a catalyst for change and improved decision making. It occurs when people raise new perspectives of issues and these Page 10-19 Copyright © 2022 McGraw Hill. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill.

Chapter 10: Conflict and Negotiation in the Workplace

emerging views are debated. Under certain conditions, conflict between work teams is beneficial to the extent that it builds commitment to the team.

Of course, not all conflict is beneficial. When managed poorly, conflict encourages organizational politics by motivating people to attack or undermine the activities of their adversaries. This relationship conflict results in frustration, job dissatisfaction, and stress. Unbridled conflict may cause employees to escape from the situation through turnover or absenteeism.

3.

Jane has just been appointed as purchasing manager of Tacoma Technologies, Inc. The previous purchasing manager, who recently retired, was known for his “winner-take-all” approach to suppliers. He continually fought for more discounts and was skeptical about any special deals that suppliers would propose. A few suppliers refused to do business with Tacoma Technologies, but senior management was confident that the former purchasing manager’s approach minimized the company’s costs. Jane wants to try a more collaborative approach to working with suppliers. Will her approach work? How should she adopt a more collaborative approach in future negotiations with suppliers?

The best strategy when entering negotiations is to begin with a cautious win-win orientation. This means that Jane should enter the negotiations with a problem-solving style by sharing information slowly. However, she should carefully watch for evidence that the suppliers are responding with problem-solving behaviors.

If suppliers do not reciprocate with a problem-solving style, then Jane should retreat somewhat from the problemsolving approach, perhaps shifting to more of a compromising style. She should return to a more problem-solving approach later, again being cautious and watching for reciprocal behaviors from suppliers.

4.

You are a new program manager with responsibility for significant funding and external relations, and because of downsizing issues in your area, you have lost two valuable employees (actually one and a half, because the second person is on half time now; she used to be your manager and was the person under whom you trained).

You have been in the new job approximately two weeks; however, you have been in the unit for more than a year and seen how systems are managed, from your manager’s perspective. You now have her job. Out of the blue, a senior person (not in your area) comes to you and says he is taking most of your space (when the company had to let the one and a half people go). He doesn’t ask your permission, nor does he seem the least bit concerned with what your response is. What do you do?

You are in a tricky situation, because a superior from a different area is asserting his right to your area. You have checked around but your boss has not been informed, but the senior management seem to approve. You go to your boss and inform her of the untenable situation. She then begins to “yell” at the senior person, but he shifts blame to several others. The boss then goes to these several others and uses the logic of the sensitivity of the materials, the ongoing criticality of the project to make the point. This whole process has rattled the remaining people in the unit, and you have “mirrored” your boss’s voice, by yelling at them. The result was that everyone in your until felt that you were “forcing” a decision down their throats. In reflecting on the OB course you recently had had, you realized that perhaps a better strategy would be to aim for a win-win one, or something called problem solving. Actually, the boss was using that technique, but you hadn’t realized it at the time, unable to decouple “what someone says” and “why they say it.” Problem solving is a critical step in dealing with real time conflict, and it takes skill and practice to perfect it.

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Chapter 10: Conflict and Negotiation in the Workplace

CONFIDENTIAL INSTRUCTOR NOTES

TEAM EXERCISE: KUMQUAT CONFLICT ROLE PLAY Purpose This exercise is designed to help students understand the dynamics of interpersonal and intergroup conflict as well as the effectiveness of negotiation strategies under specific conditions.

Materials The instructor will distribute roles for Dr. Rexa, Dr. Chan, and a few observers. These roles are provided on the following pages of these teaching notes. Ideally, each negotiation should occur in a private area, away from the other negotiations.

Instructions Preparation. The instructor should make sufficient copies of the role descriptions presented on the following pages. The activity works best when the location has enough space for several concurrent negotiations where the participants will not hear the others. The location should also allow each team to privately discuss their pre-negotiation strategy.

In-Class Instructions. The instructor will divide the class into an even number of small teams (usually four or five students per team, but larger teams are possible to accommodate larger classes). One student will remove himself or herself from the team to be an independent observer of that team and the negotiation (e.g., 10 observers if there are 10 teams). One-half of the teams will take the role of Dr. Rexa and the other half will be Dr. Chan. (NOTE: This exercise may also be conducted using individuals rather than teams, but the process loses the interesting discussion of the pre- negotiations.)

After students have been assigned to a Dr. Rexa team, a Dr. Chan team, or as an observer for one of these teams, the instructor will read the following:

“I am Cathal. I represent the people of the cooperative that grows the world’s only Caismirt Kumquats. We expect to produce 25,000 of these rare fruit this year, which will be harvested next month. We have learned that two companies represented by Dr. Chan and Dr. Rexa are interested in buying our Caismirt Kumquats. Our cooperative has decided to sell this year’s production to the highest bidder.”

(NOTE: “Cathal” is usually pronounced as KA-HILL (the “a” is short as in “cat,” but the “t” is silent). “Caismirt” is pronounced KASH-MIRT.) Members of each team are given ten minutes to learn their role and decide negotiating strategy. After reading their roles and discussing strategy, each Dr. Chan team is matched with a Dr. Rexa team to conduct negotiations. Based on the division of students into roles, each negotiation (two teams) will typically have two observers. Negotiations should take place in a quiet area away from other negotiations. The instructor should set a time limit (e.g., 15 minutes for negotiations.)

At the end of the negotiations, the observers will describe the process and outcomes in their negotiating session. The instructor will then invite other participants to describe their experiences and the implications for conflict management.

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Chapter 10: Conflict and Negotiation in the Workplace

Discussion Issues The Kumquat Conflict Role Play exercise provides a unique situation of nearly perfect win-win bargaining because the Dr. Rexa team only wants the juice whereas the Dr. Chan team only wants the seeds. In effect, both teams can get all they need without significantly interfering with the other party’s needs. Also notice that the two parties differ in their urgency to receive their part of the kumquat — Dr. Rexa’s team needs to process the kumquat juice within weeks after harvest whereas the chemical needed for Dr. Chan’s team retains its quality in properly stored seeds for several months.

The speed of the negotiations depends on the extent that the parties are willing to share information. In practice, students usually assume a win-lose orientation and their negotiation strategies reflect this approach. They try persuasion (which side’s cause is more humanitarian) and power (who can pay more). The integrative possibilities tends to become apparent accidentally as one side says “We need the kumquat seeds because...” The other side often replies, “Oh, we only need the juice!,” and the negotiations turn to the easier task of determining a distribution schedule.

However, I have witnessed several negotiations where the other party will not reveal the complementary nature of the relationship and, instead, will use this information as a power base. For example, if the Dr. Chan team mentions it requires the seeds, the Dr. Rexa team might not acknowledge that it needs the juice. Instead, it will reluctantly “give” the seeds to the Dr Chan team in return for a portion of Dr. Chan’s royalties or a cash payment. As part of the agreement for being so generous, the Dr. Rexa team asks for every other part of the kumquat so that they "may still get some value from the kumquat.” This tactic is very effective for one-time negotiations, but students should be aware of the risks if the parties must negotiate in the future.

One way to start the post-negotiation discussion is to have observers of the successful negotiations explain what happened. Members of the failed negotiations (where the parties maintained a win-lose orientation) are caught completely off-guard by the true situation. The discussion should then turn to preferred negotiation strategies, the value and risks of information sharing, and the use of power in negotiations.

Source: This exercise was developed by Steven L McShane. It is inspired by a similar exercise in D.T. Hall, D.D. Bowen, R.J. Lewicki, and F.S. Hall. Experiences in Management and Organizational Behavior (Chicago: St. Clair Press, 1975). It is also inspired by an incident involving two sisters described in R. Fisher and W. Ury, Getting to Yes: Negotiating Agreement without Giving In, (New York: Penguin, 1981).

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Chapter 10: Conflict and Negotiation in the Workplace

STUDENT

HANDOUT

Role of Dr. Rexa You are Dr. S. A. Rexa, chief engineering scientist on a top secret project at a global private sector business known for its highly sophisticated space and military technology products for the U.S. government and allied countries. The project you lead involves developing a special chemical coating to protect against the effects of gamma rays in outer space and the exosphere (outer atmosphere).

Gamma rays are the shortest wavelength and highest energy form of electromagnetic radiation. They exist throughout the universe, but are blocked by the Earth’s atmosphere. Gamma rays cause cancer and alter human DNA in human beings.

They are also highly disruptive to sensitive equipment, resulting in incorrect sensor readings, short-circuits, and physical failure of those devices. Space and military equipment are currently protected to some extent against the harmful effects of gamma rays through use of specific materials, shielding devices, and other “radiation hardening” techniques. Unfortunately, these techniques have a number of limitations and do not sufficiently prevent gamma radiation damage in several situations.

Your team has recently developed a chemical coating that potentially blocks gamma rays much more effectively than traditional “radiation hardening” techniques. The new coating will have tremendous benefits for the company’s growth and profitability. For example, these coatings will enable autonomously guided military projectiles to travel through the exosphere to their intended target with significantly less risk of gamma ray-induced equipment failure (which could misdirect the payload to civilian locations). The coating may also improve the health and safety of personnel during space journeys. However, your company designs and manufactures electronic equipment, so the coating would be applied in the near term to protect equipment, rather than people, from gamma rays.

Almost all of the ingredients for the new coating mixture are widely available, except for one unique chemical substance that is found only in Caismirt Kumquats. This particular variety of fruit is grown only by a small farm cooperative in another country. The fruit will be harvested next month and the essential chemical must be extracted from the kumquat juice within a few weeks after the fruit has been picked. The cooperative produced 30,000 Caismirt kumquats last year, of which your company acquired from a third party a few hundred to develop and perfect its Gamma ray protection coating formula. Your company will require the juice from this year’s entire production of kumquats (assuming similar output of kumquats as last year) to fulfill its coatings project obligations to clients over the next year.

You have been informed that Dr. Z.W. Chan, who leads a research team at a pharmaceutical firm, also urgently wants to buy these Caismirt Kumquats. The pharmaceutical firm where Dr. Chan works is highly competitive with your company regarding chemical developments. Over the years, your firm and Dr. Chan's have sued each other several times for violations of industrial espionage laws and infringement of patent rights. Litigation on two suits is still in process.

Your company’s clients, including the United States government, are eager to have your firm apply the new coating to its space and exosphere-located military equipment as soon as possible. You have been authorized to approach the cooperative’s representative (whose name is “Cathal”) and purchase this year’s entire production (up to 30,000) of Caismirt Kumquats for as much as USD $10 per kumquat.

You have been told the cooperative will sell its harvest of Caismirt Kumquats to the highest bidder. Before approaching Cathal and the cooperative, you have decided to personally persuade Dr. Chan to give your firm sole access to purchase this year’s Caismirt Kumquat harvest. © Steven L McShane

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Chapter 10: Conflict and Negotiation in the Workplace

STUDENT

HANDOUT

Role of Dr. Chan You are Dr. Z.W. Chan, a research scientist at a pharmaceutical firm specializing in eye diseases. Your research team has developed a unique eye drop product that significantly slows degeneration of the cornea that occurs in a small percentage of the population with a rare gene mutation. People with this genetic mutation have a very high risk of blindness, whereas the regular application of the eye drops your team has developed would reduce total blindness for almost everyone in this group and extend functional eyesight for many throughout their adult life. Surgical transplants and other interventions have had limited success, have much higher risks, and are usually much more expensive.

Research trials with human volunteers have reported no dysfunctional side effects from the new product. Based on the experimental results to date, government agencies in several countries have granted temporary approval for your company to distribute this product over the next 12 months to 5,000 people in the affected group who currently experience rapid corneal degeneration. Patent approval is expected next year, after successful completion of a replication of the earlier studies. The patent will give the pharmaceutical firm where you work much-needed revenue and profits to continue research on cures for other eye diseases.

Almost all of the ingredients for your team’s new eye-saving product are widely available, except for one unique chemical substance that is extracted from the seeds of Caismirt Kumquats. This particular variety of fruit is grown only by a small farm cooperative in another country and will be harvested next month. Fortunately, with proper storage, the essential chemical in the Caismirt Kumquat can be extracted from the seeds several months after the fruit has been picked. Last year, your team acquired from a third party a few hundred of the 30,000 Caismirt Kumquats produced at that time to develop and test the eye drop formula. Your company needs approximately 20,000 Caismirt Kumquats for production and research requirements over the next 12 months.

You have been informed that Dr. S. A. Rexa, chief engineering scientist at an elusive global private sector electronics business, also urgently wants to buy these Caismirt Kumquats. The firm where Dr. Rexa works has been known for developing equipment in military missiles and spy satellites. Rexa’s employer is also highly competitive with your company regarding chemical developments. Over the years, your firm and Dr. Rexa’s have sued each other several times for violations of industrial espionage laws and infringement of patent rights. Litigation on two suits is still in process.

Health agencies and nonprofit organizations representing corneal degeneration sufferers want your firm to quickly expand production and distribution of the eye drops and to complete tests for final approval of the product. The pharmaceutical firm has authorized you to approach the cooperative’s representative (whose name is “Cathal”) and purchase up to 20,000 of this year’s Caismirt Kumquats for as much as USD $4 per kumquat. You have been told the cooperative will sell its harvest of Caismirt Kumquats to the highest bidder. Dr. Rexa communicated with your organization today to meet with you regarding the Caismirt Kumquats. © Steven L McShane

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Chapter 10: Conflict and Negotiation in the Workplace

STUDENT

HANDOUT

Role of Observer Please observe the negotiations of the team to which you are assigned, including the pre-negotiations. You will be a silent observer throughout the negotiation process. After Dr. Rexa and Dr. Chan complete their negotiations, you and the other observer for this negotiation should be prepared to answer the following questions for general class discussion.

In observing, look for the following: 1.

What conflict orientation (win-win, win-lose) did the team adopt before meeting with the other party?

2.

To what extent did the team share information with the other party?

3.

Did the parties trust each other?

4.

When one party disclosed information, to what extent did the other party reciprocate by disclosing information?

5.

Did either party use the information as a power base to secure a better outcome for itself? If so, how?

6.

How was negotiation progress affected by each team’s initial conflict orientation?

© Steven L McShane

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Chapter 10: Conflict and Negotiation in the Workplace

SA

SELF-ASSESSMENT 10.1: WHAT IS YOUR PREFERRED CONFLICT-HANDLING STYLE?

Overview and Instructions There are five main conflict-handling styles that people use in response to conflict situations. We are usually most comfortable using one or two of these styles based on our personality, values, self-concept, and past experience.

Students are asked to read each statement in this self-assessment and indicate how well the statement reflects the way they tend to act in a conflict with someone else.

Feedback for the Conflict Handling Style Self-Assessment This self-assessment estimates the extent to which the person prefers to use each of the five conflict handling styles identified in the conflict management literature: yielding, compromising, forcing, problem solving, and avoiding.

Yielding Yielding involves giving in completely to the other side's wishes, or at least cooperating with little or no attention to your own interests. This style involves making unilateral concessions, unconditional promises, and offering help with no expectation of reciprocal help.

Compromising Compromising involves looking for a position in which your losses are offset by equally valued gains. It involves matching the other party’s concessions, making conditional promises or threats, and actively searching for a middle ground between the interests of the two parties.

Forcing Forcing tries to win the conflict at the other's expense. It includes “ hard” influence tactics, particularly assertiveness, to get one’s own way.

Problem Solving Problem solving tries to find a mutually beneficial solution for both parties. Information sharing is an important feature of this style because both parties need to identify common ground and potential solutions that satisfy both (or all) of them.

Avoiding Avoiding tries to smooth over or avoid conflict situations altogether. It represents a low concern for both self and the other party. In other words, avoiders try to suppress thinking about the conflict.

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Chapter 10: Conflict and Negotiation in the Workplace

Conflict Handling Scale Norms Scores on the five Conflict Handling Scale dimensions range from 4 to 20. Higher scores indicate that the person has a higher preference for and use of that particular conflict handling style. Norms vary from one group to the next. The following table shows norms from a sample of 225 MBA students. Most are from Australia, but some completed courses in Singapore and many of these people originate from other regions (Europe, South America, Asia, North America).

The average age is about 31 years old and two-thirds would be male. To read this chart, consider the top 10 percentile for Yielding. The score is 14, indicating that 10 percent of people score 14 or above and 90 percent score below 14 on this dimension. Keep in mind that these scores represent self-perceptions. Evaluations from others (such as through 360-degree feedback) may provide a more accurate estimate of your preferred conflict handling style.

Percentile

Yielding

Compromising

Avoiding

Forcing

Problem solving

Top 10th percentile

14

16

14

16

19

Top 25th percentile

13

15

12

15

17

Median (50th percentile)

12

13

10

13

16

Bottom 25th percentile

10

12

8

11

15

Bottom 10th percentile

9

10

7

10

13

Average Score

11.4

13.2

10.3

12.9

15.9

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Chapter 11: Leadership in Organizational Settings

Instructor’s Manual to Accompany

M:Organizational Behavior 5/e

by Steven L. McShane and Mary Ann Von Glinow

Chapter 11: Leadership in Organizational Settings Prepared by Steven L. McShane, University of Newcastle (Australia)

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Chapter 11: Leadership in Organizational Settings

11

Leadership in Organizational Settings

LEARNING OBJECTIVES After reading this chapter, students should be able to:

11-1 Define leadership and shared leadership.

11-2 Describe the four elements of transformational leadership and explain why they are important for organizational change.

11-3 Compare managerial leadership with transformational leadership, and describe the features of task- oriented, people-oriented, and servant leadership.

11-4 Discuss the elements of path–goal theory and leadership substitutes theory. 11-5 Describe the two components of the implicit leadership perspective.

11-6 Identify eight personal attributes associated with effective leaders and describe authentic leadership. 11-7 Discuss cultural and gender similarities and differences in leadership.

CHAPTER GLOSSARY authentic leadership — the view that effective leaders need to be aware of, feel comfortable with, and act consistently with their values, personality, and selfconcept

managerial leadership — a leadership perspective stating that effective leaders help employees improve their performance and well-being toward current objectives and practices

implicit leadership theory — a theory stating that people evaluate a leader’s effectiveness in terms of how well that person fits preconceived beliefs about the features and behaviors of effective leaders (leadership prototypes) and that people tend to inflate the influence of leaders on organizational events

path-goal leadership theory — a leadership theory stating that effective leaders choose the most appropriate leadership style(s), depending on the employee and situation, to influence employee expectations about desired results and their positive outcomes

leadership — influencing, motivating, and enabling others to contribute toward the effectiveness and success of the organizations of which they are members

servant leadership — the view that leaders serve followers, rather than vice versa; leaders help employees fulfill their needs and are coaches, stewards, and facilitators of employee development

leadership substitutes theory — a theory identifying conditions that either limit a leader’s ability to influence subordinates or make a particular leadership style unnecessary learning orientation — a set of collective beliefs and norms that encourage people to question past practices, learn new ideas, experiment putting ideas into practice, and view mistakes as part of the learning process

shared leadership — the view that leadership is a role, not a position assigned to one person, such that people within the team and organization lead each other transformational leadership — a leadership perspective that explains how leaders change teams or organizations by creating, communicating, and modeling a vision for the organization or work unit and inspiring employees to strive for that vision

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Chapter 11: Leadership in Organizational Settings

CHAPTER SUMMARY BY LEARNING OBJECTIVE 11-1 Define leadership and shared leadership.

Leadership is defined as the ability to influence, motivate, and enable others to contribute to the effectiveness and success of the organizations of which they are members. Leaders use influence to motivate followers and arrange the work environment so they do the job more effectively. Shared leadership views leadership as a role rather than a formal position, so employees throughout the organization act informally as leaders as the occasion arises. These situations include serving as champions for specific ideas or changes, as well as filling leadership roles where it is needed.

11-2 Describe the four elements of transformational leadership and explain why they are important for organizational change.

Transformational leadership begins with a strategic vision, which is a positive representation of a future state that energizes and unifies employees. A vision is values-based, a distant goal, abstract, and meaningful to employees. Transformational leaders effectively communicate the vision by framing it around values; showing sincerity and passion toward the vision; and using symbols, metaphors, and other vehicles that create richer meaning for the vision. Transformational leaders model the vision (walk the talk) and encourage employees to experiment with new behaviors and practices that are potentially more consistent with the visionary future state.

They also build employee commitment to the vision through the preceding activities, as well as by celebrating milestones to the vision. Transformational leaders are not necessarily charismatic, and charismatic leaders do not necessarily apply transformational leadership behaviors.

11-3 Compare managerial leadership with transformational leadership and describe the features of task-oriented, people-oriented, and servant leadership.

Managerial leadership includes the daily activities that support and guide the performance and well-being of individual employees and the work unit to achieve current objectives and practices. Transformational and managerial leadership are dependent on each other, but they differ in their assumptions of stability versus change and their micro versus macro focus.

Task-oriented behaviors include assigning employees to specific tasks, clarifying their work duties and procedures, ensuring they follow company rules, and pushing them to reach their performance capacity. People-oriented behaviors include showing mutual trust and respect for subordinates, demonstrating a genuine concern for their needs, and having a desire to look out for their welfare.

Servant leadership defines leadership as serving others to support their need fulfillment and personal development and growth. Servant leaders have a natural desire or “calling” to serve others. They maintain a relationship with others that is humble, egalitarian, and accepting. Servant leaders also anchor their decisions and actions in ethical principles and practices.

11-4 Discuss the elements of path-goal theory and leadership substitutes theory.

The path-goal theory of leadership takes the view that effective managerial leadership involves diagnosing the situation and using the most appropriate style for it. The core model identifies four leadership styles — directive, supportive, participative, and achievement-oriented — and several contingencies related to the characteristics of the employee and of the situation. Leadership substitutes theory identifies contingencies that either limit the leader’s ability to influence subordinates or make a particular leadership style unnecessary.

11-5 Describe the two components of the implicit leadership perspective.

According to the implicit leadership perspective, people have leadership prototypes, which they use to evaluate the leader’s effectiveness. Furthermore, people form a romance of leadership; they want to believe that leaders make a difference, so they engage in fundamental attribution error and other perceptual distortions to support their belief that leaders have an impact.

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Chapter 11: Leadership in Organizational Settings

11-6 Identify eight personal attributes associated with effective leaders and describe authentic leadership.

The personal attributes perspective identifies the characteristics of effective leaders. Recent writing suggests that leaders have specific personality characteristics, positive self-concept, drive, integrity, leadership motivation, knowledge of the business, cognitive and practical intelligence, and emotional intelligence. Authentic leadership refers to how well leaders are aware of, feel comfortable with, and act consistently with their self-concept.

Authentic leadership consists mainly of two parts: self-awareness and engaging in behavior that is consistent with one’s self-concept.

11-7 Discuss cultural and gender similarities and differences in leadership.

Cultural values influence the leader’s personal values, which in turn influence his or her leadership practices.

Women generally do not differ from men in the degree of people-oriented or task-oriented leadership. However, female leaders more often adopt a participative style. Research also suggests that people evaluate female leaders on the basis of gender stereotypes, which may result in higher or lower ratings.

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Chapter 11: Leadership in Organizational Settings

LECTURE OUTLINE Slide 1: Leadership in Organizational Settings Slide 2: Learning Objectives 11-1 Define leadership and shared leadership.

11-2 Describe the four elements of transformational leadership and explain why they are

important for organizational change.

11-3 Compare managerial leadership with transformational leadership, and describe the

features of task-oriented, people-oriented, and servant leadership.

11-4 Discuss the elements of path-goal theory and leadership substitutes theory.

11-5 Describe the two components of the implicit leadership perspective.

11-6 Identify eight personal attributes associated with effective leaders and describe

authentic leadership.

11-7 Discuss cultural and gender similarities and differences in leadership.

Slide 3: Leadership Defined The ability to influence, motivate, and enable others to contribute toward the effectiveness of the organizations of which they are members • Leaders motivate others through persuasion and other influence tactics • Leaders are enablers — They configure the work environment to make it easier for employees

to achieve organizational objectives

Slide 4: Shared Leadership The view that leadership is a role, not a position assigned to one person, such that people within the team and organization lead each other • Employees lead each other as the occasion arises ➡ E.g., champion new ideas and technologies

Shared leadership flourishes where: • Formal leaders are willing to delegate power • Collaborative (not competitive) culture — employees support each other • Employees develop skills to influence each other

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Chapter 11: Leadership in Organizational Settings

Slide 5: Perspectives of Leadership Chapter is organized around four main perspectives of leadership: 1. Transformational — views effective leaders as agents of change 2. Managerial — helping employees improve performance and well-being toward current

objectives/practices 3. Implicit leadership — perceptual perspective of leadership 4. Leader attributes — personal characteristics that support an individual’s leadership potential

Slide 6: Transformational Leadership Model Four elements: • Develop and communicate a strategic vision • Model the vision • Encourage experimentation • Build a commitment to the vision

Slide 7: Features of a Strategic Vision Vision is a positive image or model of the future that energizes and unifies employees.

Features of an effective vision • Describes an aspirational future with a higher purpose ➡ Linked to personal values ➡ Fulfills needs of multiple stakeholders ➡ Motivates employees

• Challenging objective — requires substantial change (e.g., new work practices, beliefs) • Abstract future state: ➡ (a) Future hasn’t yet been experienced, so can’t detail what it looks like ➡ (b) Enables vision to remain stable over time, yet sufficiently flexible for external

environment changes • Unifying ideal ➡ A superordinate objective — bonds employees together ➡ Aligned with personal and organization’s values — supports organizational identification

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Chapter 11: Leadership in Organizational Settings

Slide 8: Transformational Leadership Elements (1 of 2) 1. Develop/Communicate the vision • Communicate through symbols, metaphors, stories, etc ➡ Borrow images from other experiences to create meaning ➡ Generates strong emotions about the vision • Frame the vision — guide or construct the listener’s mental model of the situation • Leaders communicate with humility, sincerity, passion — shows personal belief and optimism 2. Model the vision • Enact the vision — “walk the talk,” leading by example • Symbolize and demonstrate the vision through significant events and routine daily activities • Importance of modeling the vision ➡ Legitimizes and demonstrates what the vision looks like in practice ➡ Words-action consistency builds employee trust in the leader

Slide 9: Transformational Leadership Elements (2 of 2) 3. Encourage experimentation — necessary for change • Encourage questioning current practices • Encourage discovering/trying out new practices (learning orientation) 4. Build commitment to the vision • Strengthened through earlier elements ➡ Communicating the vision — builds enthusiasm ➡ Modeling the vision — builds trust and understanding ➡ Encourage experimentation — builds ownership through involvement • Higher commitment also through rewards, recognition, celebrations

Slide 10: Transformational Leadership and Charisma Some models claim charisma is an essential part of transformational leadership, but emerging view is that charismatic leadership is distinct from transformational leadership • Charismatic leadership may have the opposite to the effects of transformational leadership • Charisma is a personal trait that provides referent power over followers — Transformational

leadership is a set of behaviors that engage followers • Charismatic leadership motivates followers through leader’s referent power (produces dependent followers) — Transformational leadership motivates followers through persuasion and trust (empowers followers)

Risk that leaders become intoxicated by their charisma — focuses them on self-interest more than common good

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Chapter 11: Leadership in Organizational Settings

Slide 11: Evaluating Transformational Leadership Transformational leaders make a difference • Higher employee satisfaction, org commitment, performance, org citizenship, better and more

creative decisions

Transformational leadership limitations: 1. Circular logic • Shouldn’t define and measure transformational leadership by its effects on employees 2. Mixed models of transformational leadership • Some models mix leader behaviors with personal characteristics — Problem: cause

(characteristics) and effect (behaviors) in same concept 3. Universal theory • Unclear whether transformational leadership is more beneficial in some situations than others • Need to recognize differences across cultures — e.g., specific elements may be more appropriate in North America

Slide 12: Managerial Leadership Daily activities that support and guide the performance and well-being of individual employees and the work unit to support current objectives and practices Managerial leadership versus transformational leadership • Managerial leadership assumes stable goals and environment (transformational assumes

dynamic) ➡ “Doing things right” vs. “Doing the right things” • Managerial leadership is micro-focused (transformational is more macro-focused) ➡ Focuses on specific performance and well-being; transformational focuses more on unit/ collective shift to a new situation

Transformational and managerial leadership are interdependent • Depend on each other to create effective workplace • Transformational needs managerial to translate the abstract vision into more specific

operational behaviors and practices • Managerial depends on transformational to set the right direction

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Chapter 11: Leadership in Organizational Settings

Slide 13: Task Versus People Leadership Styles Earliest investigations of managerial leadership identified two distinct styles (clusters of behavior) Task-oriented behaviors: • Assign employees to specific tasks, clarify responsibilities • Set goals and deadlines, provide feedback • Establish work procedures, plan future work

People-oriented behaviors: • Concern for employee needs • Make workplace pleasant • Recognize employee contributions • Listen to employees’ opinions and ideas

Both styles necessary, but different effects • Task-oriented: higher job performance • People-oriented: higher satisfaction with leader, lower turnover

Slide 14: Servant Leadership The view that leaders serve followers, rather than vice versa; leaders help employees fulfill their needs and are coaches, stewards, and facilitators of employee development Characteristics of being selfless, egalitarian, humble, nurturing, empathetic, ethical coaches Three main features of servant leaders: 1. A natural desire or “calling” to serve others — for that purpose alone 2. Humble, egalitarian, accepting relations with followers — leading is not about power/status 3. Anchor decisions/actions in ethical principles and practices

Slide 15: Path-Goal Leadership Contingency model of managerial leadership • Best leadership style depends on employee/situation

Leaders use various styles to influence employee expectations (path) to achieve results (goals) and satisfaction (outcome valences) • Clarify the link between employee behaviors and outcomes (P-to-O expectancies) • Influence the valence of those outcomes • Provide a work environment to facilitate goal accomplishment

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Chapter 11: Leadership in Organizational Settings

Path-Goal Leadership Styles 1. Directive — same as task-oriented leadership • Clarify performance goals, means to reach goals, performance standards 2. Supportive — same as people-oriented leadership • Friendly, approachable, makes work pleasant, shows respect/concern 3. Participative — employee involvement in decisions • Leader consults with employees, asks for suggestions, applies ideas 4. Achievement-oriented — encourage peak performance • Sets challenging goals, continuous improvement, shows high confidence • Applies goal setting, positive self-fulfilling prophecy

Slide 16: Path-Goal Leadership Model Effectiveness of the four styles depends on employee and environmental contingencies Leadership effectiveness: • Employee motivation and satisfaction • Acceptance of the leader

Slide 17: Path-Goal Leadership Contingencies 1. Skill and experience • Low skills and experience — use directive and supportive • Skilled/experienced — avoid directive leadership 2. Locus of control • Internal — prefer participative and achievement-oriented leadership • External — more satisfied with directive and supportive leadership 3. Task structure • Nonroutine — directive style to minimize ambiguity; participative style to allow more discretion • Routine — avoid directive style; supportive leadership if work is tedious and has lack of control 4. Team dynamics • Low cohesion — use supportive style • Dysfunctional norms — use directive style to counteract • High cohesion with performance-oriented norms substitute for most leader interventions

Evaluating Path-Goal Leadership Model • Received more research support that other contingency leadership models • A few contingencies haven’t been researched much or at all • Theory assumes leaders easily change managerial styles — but leaders may prefer one style

and have difficulty applying styles that differ from their personality and values

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Chapter 11: Leadership in Organizational Settings

Slide 18: Leadership Substitutes Contingencies that limit a leader’s influence or make a particular leadership style unnecessary Examples: • Training and experience replace task-oriented leadership • Cohesive team replaces supportive leadership • Self-leadership replaces task-oriented and achievement-oriented leadership

Research evidence: • A few substitutes replace the need for task or people-oriented leadership, but others do not • Leadership substitutes do not completely replace leaders in these situations

Slide 19: Implicit Leadership Perspective Leadership also involves followers’ perceptions of the characteristics and attributions of people in formal leadership positions 1. Leadership prototypes • Prototypes: preconceived beliefs about characteristics of effective leaders • Positive evaluation when leader’s features and behaviors are similar to effective leader

prototypes • Reason: leader effectiveness emerges over long time, but people need to quickly trust person’s qualities as a leader 2. Romance of leadership effect • Followers tend to distort perception of leader’s influence • Reason 1: Simpler explanation — leader ability vs. many complex reasons • Reason 2: Need for situational control — employees feel better believing that leaders make a difference so they look for this evidence

Slide 20: Personal Attributes of Effective Leaders (1 of 2) Specific skills, knowledge, aptitudes, and other personal characteristics that contribute to person’s effectiveness or potential as a leader Personality • Most Big Five personality dimensions predict effective leadership, but strongest are: ➡ High extroversion — comfortable having an influential role ➡ Conscientiousness — set higher goals for themselves (and others) and are more motivated

to pursue those goals

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Chapter 11: Leadership in Organizational Settings

Self-concept • Complex, internally consistent, clear self-view as a leader • Positive self-evaluation — high self-esteem, self-efficacy, internal locus of control • View themselves as both transformational and managerial

Leadership motivation • Motivated to lead others • Strong need for socialized power — seek power to accomplish organizational objectives

Drive • Moderately high need for achievement — inner motivation • Related to high conscientiousness, extraversion, and self-evaluation • Drive inspires inquisitiveness, an action orientation, and measured boldness

Slide 21: Attributes of Effective Leaders (2 of 2) Integrity • Truthfulness and consistency of words and actions • Judge dilemmas using sound values • Related to honesty and ethical conduct

Knowledge of the business • Understand the organization’s environment in which they operate • Understand how the organization internally works effectively

Cognitive and Practical Intelligence • Above average cognitive ability — process large volumes of information • Superior ability to analyze complex alternatives and opportunities • Practical intelligence — understand relevance and application of ideas in real-world

Emotional Intelligence • Able to recognize and regulate emotions in themselves and in other people ➡ E.g., can tell when conversations have the intended emotional effect on employees

Slide 22: Authentic Leadership Effective leaders are aware of, feel comfortable with, and act consistently with their values, personality, and self-concept • Know yourself (self-awareness) ➡ Engage in self-reflection ➡ Receive feedback from trusted sources ➡ Understand inner purpose that emerges from a life story (critical life event)

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Chapter 11: Leadership in Organizational Settings

• Be yourself (don’t pretend to be someone else) ➡ Great leaders develop their own style — move into jobs where that style fits (although still

adapting behavior to the situation) ➡ Self-discipline by applying and remaining anchored to their values ➡ Maintain a strong, positive self-evaluation

Slide 23: Leader Attributes Perspective Limitations 1. Assumes a universal list of traits • Assumes the same personal attributes and are equally important for all leaders • Leadership too complex for a universal list 2. Different combinations of attributes may be equally successful 3. Views leadership as within the person • But leadership is relational — people are effective leaders because of their favorable relationships with followers 4. Link between attributes and effective leadership is muddied by implicit leadership • Some attributes (e.g., self-confidence) fit the effective leader prototype • Followers assign nonobservable traits (e.g., self-confidence) to successful leaders 5. Attributes indicate only leadership potential, not leadership performance

Slide 24: Cultural and Gender Issues in Leadership Societal cultural values and practices: • Shape leader’s values/norms — also shapes expectations of followers • Shape followers’ expectations (prototype) of effective leaders • Influence decisions and actions — an executive who acts inconsistently with cultural

expectations is more likely to be perceived as ineffective

Gender Issues in Leadership • Male and female leaders have similar task- and people-oriented leadership — because real-

world jobs require similar behavior from male and female job incumbents • Women adopt a participative leadership more readily than male leaders ➡ Possibly more egalitarian upbringing ➡ Somewhat better interpersonal skills ➡ Gender expectation stereotypes • Women are evaluated negatively when they try to apply the full range of leadership styles (e.g., directive and autocratic), yet tend to perform better on emerging leadership (coaching, teamwork, etc.).

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Chapter 11: Leadership in Organizational Settings

STUDENT HANDOUT

1.

Why is it important for top executives to value and support shared leadership?

2.

This chapter distinguished charismatic leadership from transformational leadership. Yet charisma is identified by most employees and managers as a characteristic of effective leaders. Why is charisma commonly related to leadership? In your opinion, are the best leaders charismatic? Why or why not?

3.

Identify a current political leader (e.g., president, governor, mayor) and his or her recent accomplishments. Now, using the implicit leadership perspective, think of ways that these accomplishments of the leader may be overstated. In other words, explain why they may be due to factors other than the leader.

4.

How do you think emotional intelligence, cognitive and practical intelligence influence authentic leadership?

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Chapter 11: Leadership in Organizational Settings

CONFIDENTIAL INSTRUCTOR NOTES

SUGGESTED ANSWERS TO CRITICALTHINKING QUESTIONS 1.

Why is it important for top executives to value and support shared leadership?

Emerging views of leadership support the idea that leadership needs to be developed at all levels of an organization. In a recent study, only eight percent of executives in large firms indicated their organizations had enough leadership. Effective leaders are responsible and their success may be determined, by their ability to teach and empower employees to take leadership roles. In increasingly dynamic, team-based organizations, an organization’s competitive success may be determined by employees’ ability to understand the business environment and take action consistent with organizational goals. Characteristics associated with leadership such as selfconfidence, emotional intelligence, integrity are increasingly being used by organizations to select employees for positions at all levels within an organization (not just management and executive positions).

2.

This chapter distinguished charismatic leadership from transformational leadership. Yet charisma is identified by most employees and managers as a characteristic of effective leaders. Why is charisma commonly related to leadership? In your opinion, are the best leaders charismatic? Why or why not?

This is an open-ended question that will encourage students to question their notions of leadership. Instructors may find it useful to begin the discussion by having students brainstorm to define what is meant by the term charisma. The next question would be: Is a leader who is viewed as charismatic to some also viewed as charismatic to others as well?

One does not have to be charismatic to be a successful leader. Nonetheless, being viewed as charismatic is an advantage in securing the support of followers. There have been suggestions made that charismatic leaders produce dependent followers, whereas transformational leaders produce followers who are more empowered and therefore less dependent on the leader.

3.

Identify a current political leader (e.g., president, governor, mayor) and his or her recent accomplishments. Now, using the implicit leadership perspective, think of ways that these accomplishments of the leader may be overstated. In other words, explain why they may be due to factors other than the leader.

Generally, students should be able to take a successful political leader and use the three elements of the romance perspective to explain how this leader may be less responsible for success than we imagine. The three perceptual processes that affect the way that people view leaders and the effects of leaders on their environments are as follows: Attributing leadership. When observing others, we tend to attribute events more to the person than the situation because we are less sensitive to situational influences. Leaders reinforce this perceptual bias by taking more credit than they deserve for favorable events.

Stereotyping leadership. Employee expectations and stereotypes regarding characteristics of effective leaders influence their evaluation of leaders. It’s usually difficult to objectively evaluate a leader’s long-term effectiveness, so people tend to evaluate leaders by whether they act like leaders, that is, whether their behaviors conform to the leadership stereotype.

Romance of leadership. In Western society, people want to believe that leaders make a difference because it simplifies their explanation of organizational events. It also maintains their illusion of control because they want to believe that life events are generated from people rather than from uncontrollable natural forces.

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Chapter 11: Leadership in Organizational Settings

4.

How do you think emotional intelligence, cognitive, and practical intelligence influence authentic leadership?

Leadership is about influencing, motivating and enabling others to contribute towards effectiveness of organizations, while authentic leadership refers to how well leaders are aware of, feel comfortable with, and act consistently with their self-concept. Emotional intelligence helps leaders to perceive and express emotion, assimilate emotion in thought, understand and reason with emotion and regulate emotion in themselves and others. Since emotions influence human decision making, the ability to understand and express emotions is likely to allow the leader to be herself/himself and also to allow others to see the leader as being authentic. Cognitive and practical intelligence project the competence and combined with emotional intelligence will demonstrate authentic leadership.

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Chapter 11: Leadership in Organizational Settings

CLASS EXERCISE: WORLD CAFÉ ON LEADERSHIP Instructions Step 1: The class is organized around three, six, or nine tables, depending on class size. Classes up to about 36 students can have three large tables. Classes with up to about 72 students would have six tables, and larger classes would have nine tables. Tables should be sufficiently apart (may be in different breakout rooms) for comfortable conversation among people at each table.

Step 2: Each table is permanently assigned one of the three world café topics listed below. If the class has six or nine tables, then two or three tables would have the same topic.

Step 3: Students are randomly organized into three, six, or nine groups (equal to the number of tables), and initially assigned to one of the tables. One student in each group volunteers to be the “scribe” for that table. She or he will remain at that table throughout the world café exercise. The scribe will document the main ideas discussed at that table and will later facilitate debriefing of that world café topic with the entire class.

Step 4: Groups are given a fixed time (usually 10-20 minutes) to discuss their particular topic. At the end of that time, each group moves to another table assigned one of the other two topics. The scribe remains at the first table and documents discussion of the arriving second group. Although the scribe can encourage discussion, she or he should allow each group to talk freely even if the conversation repeats what the previous group discussed.

Step 5: After a fixed time, groups move for a third time to a table with the third topic. Again, scribes remain at their original tables and document discussion of the arriving third group.

Step 6: After the third round of discussion, the class reconvenes and scribes are asked to briefly summarize the key discussion points from their table. Scribes should invite a few students to repeat ideas they mentioned at the table.

Table 1: Transformational leadership

Table 2: Managerial leadership

Table 3: Charismatic leadership

1. What do leaders do to transform (change) organizations?

1. How does “managing” differ

1. What is “charisma” in leaders? What does it look like?

2. What personal characteristics of leaders assist their transformational leadership?

3. In what situations, if any, would transformational leadership be dysfunctional?

from “leading”? What do good “managers” do differently from “leaders”?

2. What personal characteristics

of leaders assist their managerial leadership?

3. In what situations, if any, would

2. To what extent are effective leaders charismatic leaders?

3. Under what conditions or in what ways, if any, is charisma dysfunctional in leadership?

managerial leadership be dysfunctional?

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Chapter 11: Leadership in Organizational Settings

SA

SELF-ASSESSMENT 11.1: WHAT ARE YOUR TRANSFORMATIONAL LEADERSHIP TENDENCIES?

Overview and Instructions Transformational leadership is about leading change toward a better future. This popular leadership perspective includes several dimensions, representing specific sets of behaviors.

This self-assessment estimates the student’s transformational leadership. Students are asked to read the 12 statements and indicate how accurately each statement describes them most of the time. These statements refer to leadership in organizational settings. However, students may think about these statements in terms of how they lead others in project teams and other social settings. Also, remember that people engage in leadership even when they do not hold formal leadership positions.

Feedback for the Transformational Leadership Self-Assessment This book applies a behavioral definition of transformational leadership. It is the practice of creating (or championing), communicating, and modeling (enacting) a vision for the organization or work unit, and inspiring employees to creatively strive for that vision. This self-assessment estimates the student’s level on four dimensions of transformational leadership as well as the total composite score.

The following table applies to each of the four transformational leadership subscales.

Score

Interpretation

11 to 15

High

7 to 10

Moderate

3 to 6

Low

Leadership Vision This dimension indicates the extent to which you lead with an appealing vision of a desirable future state. People with high scores believe they have a sense of visionary direction for the work unit.

Leadership Communication This dimension indicates the extent to which you communicate the team’s goals in a way that is positive and motivating to others.

Leadership Enactment This transformational leadership dimension indicates the extent to which you act as a role model and engage in behavior that is consistent with your vision for the work unit (i.e., you walk the talk).

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Chapter 11: Leadership in Organizational Settings

Leadership Intellectual Stimulation This dimension indicates the extent to which you encourage staff to think about better ways of doing things through creativity, questioning assumptions, and thinking from different perspectives about how to solve problems.

Transformational Leadership Total The total transformational leadership score sums the results of each transformational leadership dimension. There is some debate about whether transformational leadership has other dimensions, but the four dimensions assessed here represent most or all of the transformational leader construct in various models.

Transformational leadership total score

Interpretation

43 to 60

High overall transformational leadership

25 to 42

Moderate overall transformational leadership

15 to 24

Low overall transformational leadership

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Chapter 11: Leadership in Organizational Settings

SA

SELF-ASSESSMENT 11.2: WHAT IS YOUR PREFERRED MANAGERIAL LEADERSHIP STYLE?

Overview and Instructions Managerial leadership refers to behaviors that improve employee performance and well-being in the current situation.

These objectives require a variety of managerial leadership styles in different situations.

This self-assessment estimates the person’s tendency to engage in some of these managerial leadership styles.

Students read the 12 statements and indicate how accurately each statement describes them most of the time. These statements refer to leadership in organizational settings. However, students may think about these statements in terms of how they lead others in project teams and other social settings. Also, remember that people engage in leadership even when they do not hold formal leadership positions.

Feedback for the Managerial Leadership Self-Assessment Managerial leadership refers to behaviors that help employees to become more proficient and satisfied in the current situation. Path-goal theory and most other contingency leadership theories refer to managerial leadership because they focus on leader behaviors that improve employee performance and well-being. This self-assessment specifically measures three managerial leadership styles: task-oriented, people-oriented, and achievement-oriented leadership.

The following table applies to each of the three managerial leadership subscales. Effective managerial leadership involves selective use of these and other styles contingent on the situation. Therefore, these subscale scores do not combine to form an overall managerial leadership score.

Score

Interpretation

15 to 20

High

9 to 14

Moderate

4 to 8

Low

Task-Oriented Leadership This leadership style (also called directive leadership) consists of behaviors that clarify performance goals, the means to reach those goals, and the standards against which performance will be judged. It also includes judicious use of rewards and disciplinary actions.

People-Oriented Leadership In this managerial leadership style (also known as supportive leadership), the leader’s behaviors provide psychological support for subordinates. The leader is friendly and approachable, makes the work more pleasant, and shows concern for employee needs.

Achievement-Oriented Leadership This leadership style emphasizes behaviors that encourage employees to reach their peak performance. The leader sets challenging goals, expects employees to perform at their highest level, continuously seeks improvement in employee performance, and shows a high degree of confidence that employees will assume responsibility and accomplish challenging goals.

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Chapter 11: Leadership in Organizational Settings

SA

SELF-ASSESSMENT 11.3: DO LEADERS MAKE A DIFFERENCE?

Overview and Instructions People have different views about the extent to which leaders influence the organization’s success. Those with a high romance of leadership attribute the causes of organizational events much more to its leaders and much less to the economy, competition, and other factors beyond the leader’s short-term control.

Students are asked to read each statement in this self-assessment and check the box that best indicates their personal belief about that statement. After completing this assessment, the class can discuss the relevance and level of implicit leadership theory.

Feedback for the Romance of Leadership Self-Assessment Romance of leadership is a phenomenon in which followers (and possibly other stakeholders) want to believe that leaders make a difference in the organization’s success. People with a high romance of leadership score attribute the causes of organizational events much more to its leaders and much less to the economy, competition, and other factors beyond the leader’s short-term control.

Romance of Leadership Scale Norms The romance of leadership scale ranges from 10 to 50, with higher scores indicating that the person has a higher belief that leaders make a difference in the organization’s success. The following norms are derived from a large sample of European employees with an average age in the mid 30s and work experience averaging about 15 years.

However, these norms should be viewed with caution because the romance of leadership scale is a recent development and norms for any instrument can vary from one group to the next.

Romance of leadership score

Interpretation

38 to 50

Above average romance of leadership

27 to 37

Average romance of leadership

10 to 26

Below average romance of leadership

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Chapter 12: Designing Organizational Structures

Instructor’s Manual to Accompany

M:Organizational Behavior 5/e

by Steven L. McShane and Mary Ann Von Glinow

Chapter 12: Designing Organizational Structures Prepared by Steven L. McShane, University of Newcastle (Australia)

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Chapter 12: Designing Organizational Structures

12

Designing Organizational Structures

LEARNING OBJECTIVES After reading this chapter, students should be able to:

12-1 Describe three types of coordination in organizational structures.

12-2 Discuss the role and effects of span of control, centralization, and formalization and relate these elements to organic and mechanistic organizational structures.

12-3 Identify and evaluate five types of departmentalization.

12-4 Explain how the external environment, organizational size, technology, and strategy are relevant when designing an organizational structure.

CHAPTER GLOSSARY centralization — the degree to which formal decisionmaking authority is held by a small group of people, typically those at the top of the organizational hierarchy

organic structure — an organizational structure with a wide span of control, low formalization, and decentralized decision making

divisional structure — an organizational structure in which employees are organized around geographic areas, outputs (products or services), or clients

organizational strategy — the way the organization positions itself in its setting in relation to its stakeholders, given the organization's resources, capabilities, and mission

formalization — the degree to which organizations standardize behavior through rules, procedures, formal training, and related mechanisms functional structure — an organizational structure in which employees are organized around specific knowledge or other resources matrix structure — an organizational structure that overlays two structures (such as a geographic divisional and a functional structure) in order to leverage the benefits of both

organizational structure — the division of labor as well as the patterns of coordination, communication, workflow, and formal power that direct organizational activities span of control — the number of people directly reporting to the next level in the hierarchy team-based structure — an organizational structure built around self-directed teams that complete an entire piece of work

mechanistic structure — an organizational structure with a narrow span of control and a high degree of formalization and centralization

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Chapter 12: Designing Organizational Structures

CHAPTER SUMMARY BY LEARNING OBJECTIVE 12-1 Describe three types of coordination in organizational structures.

Organizational structure is the division of labor as well as the patterns of coordination, communication, workflow, and formal power that direct organizational activities. All organizational structures divide labor into distinct tasks and coordinate that labor to accomplish common goals. The primary means of coordination are informal communication, formal hierarchy, and standardization.

12-2 Discuss the role and effects of span of control, centralization, and formalization and relate these elements to organic and mechanistic organizational structures.

The four basic elements of organizational structure are span of control, centralization, formalization, and departmentalization. The optimal span of control — the number of people directly reporting to the next level in the hierarchy — depends on what coordinating mechanisms are present other than formal hierarchy, whether employees perform routine tasks, and how much interdependence there is among employees within the department.

Centralization occurs when formal decision authority is held by a small group of people, typically senior executives. Many companies decentralize as they become larger and more complex, but some sections of the company may remain centralized while other sections decentralize. Formalization is the degree to which organizations standardize behavior through rules, procedures, formal training, and related mechanisms.

Companies become more formalized as they get older and larger. Formalization tends to reduce organizational flexibility, organizational learning, creativity, and job satisfaction.

Span of control, centralization, and formalization cluster into mechanistic and organic structures.

Mechanistic structures are characterized by a narrow span of control and a high degree of formalization and centralization. Companies with an organic structure have the opposite characteristics.

12-3 Identify and evaluate five types of departmentalization.

Departmentalization specifies how employees and their activities are grouped together. It establishes the chain of command, focuses people around common mental models, and encourages coordination through informal communication among people and subunits. A simple structure employs few people, has minimal hierarchy, and typically offers one distinct product or service. A functional structure organizes employees around specific knowledge or other resources. This structure fosters greater specialization and improves direct supervision, but it weakens the focus on serving clients or developing products.

A divisional structure groups employees around geographic areas, clients, or outputs. This structure accommodates growth and focuses employee attention on products or customers rather than tasks. However, this structure also duplicates resources and creates silos of knowledge. Team-based structures are very flat, with low formalization, and organize self-directed teams around work processes rather than functional specialties.

The matrix structure combines two structures to leverage the benefits of both types. However, this approach requires more coordination than functional or pure divisional structures, may dilute accountability, and increases conflict.

12-4 Explain how the external environment, organizational size, technology, and strategy are relevant when designing an organizational structure.

The best organizational structure depends on whether the environment is dynamic or stable, complex or simple, diverse or integrated, and hostile or munificent. Another contingency is the organization’s size. Larger organizations need to become more decentralized and more formalized. The work unit’s technology — including variability of work and analyzability of problems — influences whether it should adopt an organic or mechanistic structure. These contingencies influence but do not necessarily determine structure. Instead, corporate leaders formulate and implement strategies that shape both the characteristics of these contingencies and the organization’s resulting structure.

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Chapter 12: Designing Organizational Structures

LECTURE OUTLINE Slide 1: Designing Organizational Structures Slide 2: Learning Objectives 12-1 Describe three types of coordination in organizational structures.

12-2 Discuss the role and effects of span of control, centralization, and formalization, and

relate these elements to organic and mechanistic organizational structures.

12-3 Identify and evaluate five types of departmentalization.

12-4 Explain how the external environment, organizational size, technology, and strategy

are relevant when designing an organizational structure.

Slide 3: Organizational Structure Defined Division of labor and patterns of coordination, communication, workflow, and formal power that direct organizational activities • More than just an organizational chart • Relates to job design, team dynamics, power relationships, etc.

Slide 4: Division of Labor and Coordination Division of labor results in job specialization • Work subdivided into separate jobs, assigned to different people • Improves work efficiency — master tasks faster, less changeover lost time, lower training costs,

easier person-job matching

Coordination of work • Value of dividing labor is limited to ability to coordinate that work • Coordinating work can be costly, which also limits work division

Every organization uses one or more of three coordinating mechanisms • Informal communication • Formal hierarchy • Standardization

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Chapter 12: Designing Organizational Structures

Slide 5: Coordination through Informal Communication All organizations use informal communication to coordinate work • Sharing information, forming common mental models • Vital in nonroutine and ambiguous situations — media rich channels

Easiest in small firms, but increasingly possible in large firms due to digital technologies Larger organizations also apply special forms of informal communication coordination: 1. Liaison roles — employees who are expected to communicate and share information with co-

workers in other work units 2. Integrator roles — employees responsible for coordinating a work process by encouraging others to share information — e.g., brand managers 3. Temporary teams — cross-functional project team from various departments — e.g., concurrent engineering teams

Slide 6: Other Coordinating Mechanisms Formal hierarchy • Direct supervision — the chain of command • Assigns formal (legitimate) power to people who direct work processes and allocate resources • Necessary in larger firms, but has problems: (a) Reduces firm’s agility in complex/novel situations (b) Creates costly bureaucracy (c) Conflicts with employee autonomy and involvement

Standardization • Creating routine patterns of behavior or output • Three forms of standardization 1. Standardized processes — job descriptions and procedures 2. Standardized outputs — clear goals and outputs (e.g., sales targets) 3. Standardized skills — extensive training for precise role behaviors

Slide 7: Elements of Organizational Structure Four basic elements of organizational structure 1. Span of control — the number of people directly reporting to the next level 2. Centralization — the degree to which formal decision authority is held by a small group of people, typically those at the top of the organizational hierarchy (centralization) or is dispersed throughout the organization (decentralization)

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Chapter 12: Designing Organizational Structures

3. Formalization — the degree to which organizations standardize behavior through rules,

procedures, formal training, and related mechanisms 4. Departmentalization — specifies how employees and their activities are grouped together (organizational chart)

Slide 8: Span of Control Number of people directly reporting to the next level Narrow span of control — few people report directly to a manager Wider span of control is possible when: 1. Other coordinating mechanisms are present ➡ E.g., self-directed teams coordinate through informal communication and specialized

knowledge (standardization)

2. Tasks are routine ➡ Require less direction/advice from supervisors 3. Low employee interdependence ➡ Less interpersonal conflict and clearer roles/responsibilities, so less supervisor intervention needed

Slide 9: Tall versus Flat Structures Span of control is interconnected with organizational size (number of employees) and number of layers in the hierarchy As companies grow, they: (a) build a taller hierarchy and/or (b) widen the span of control

Problems with tall hierarchies • Executives receive lower-quality and less timely information — info is filtered, distorted • Higher overhead costs — more managers per employee • Undermines employee empowerment/engagement — hierarchies draw power away from front

line jobs

Problems with flattening the hierarchy too much • Fewer managers to effectively coach employees, resolve conflicts, make operational decisions • More difficult to develop managerial skills — fewer positions and steps to develop managers • Management promotions are riskier in flatter hierarchies — bigger steps in responsibility • Less time for managers to translate corporate strategy into coherent daily operations

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Chapter 12: Designing Organizational Structures

Slide 10: Centralization and Decentralization Centralization/decentralization • The degree to which formal decision authority is held by a small group of people, usually at the

top of the hierarchy (centralization) or is dispersed throughout the firm (decentralization) • Firms decentralize as they get larger and older

Centralization/decentralization varies in different parts of the organization • E.g., sales decentralized, IT centralized

Slide 11: Formalization The degree to which organizations standardize behavior through rules, procedures, formal training, and related mechanisms Formalization increases with organization’s: • Age — more experience enables more standardized practices • Size — require standardization to supplement other forms of coordination • Regulations — external requirements for standardization

Problems with formalization • Less organizational flexibility — employees follow prescribed behaviors even when the situation

calls for a customized response • Undermines creativity — discourages from deviating from work flow or rules • Less work efficiency — work rules become convoluted • Increases job dissatisfaction and work stress • Rules/procedures become the focus of attention rather than stakeholder needs

Slide 12: Mechanistic versus Organic Structures Mechanistic structure • Narrow span of control — more supervision of staff • High centralization — limited decision making at lower levels • High formalization — many rules and procedures, rigidly defined jobs

Organic structure • Wide span of control — less supervision, more employees per manager • Decentralized decision making — more employee autonomy • Low formalization — few rules/procedures (i.e., less coordination through standardized

processes)

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Chapter 12: Designing Organizational Structures

• Works better when employees have well-developed roles and expertise (i.e., standardization

through skills)

Mechanistic structures better in stable environments — easier to establish routine behaviors Organic structures better: • In rapidly changing (dynamic) environments — more flexible and responsive to these changes • For high-performance workplaces — emphasize information sharing and employee

empowerment • When employees have well-developed roles and expertise

Slide 13: Departmentalization and Simple Structure Specifies how employees and their activities are grouped together — reflected in organizational chart Three functions of departmentalization: 1. Establishes chain of command (supervision structure) 2. Creates common mental models, measures of performance 3. Encourages staff to coordinate through informal communication — members typically work near

each other

Simple Structure • Employ only a few people and typically offer only one distinct product or service • Minimal hierarchy — employees usually report to the owners • Roles are broadly defined — insufficient economies of scale for specialized jobs • Centralized structure — owners provide direct supervision to coordinate tasks • Coordination also through informal communication — no organizational structure “walls” between

employees

Slide 14: Functional Structure Organizes employees around specific knowledge or resources (marketing, production) Typically centralized — to coordinate diverse activities Most firms have functional structure at some level of the hierarchy or at some time in their history

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Chapter 12: Designing Organizational Structures

Slide 15: Evaluating Functional Structures Benefits • Economies of scale — specialized pools of talent • Supports employee identity with the specialization or profession • Direct supervision is easier — employees have common issues

Limitations • Emphasizes skills/professional needs more than company’s product, service, client needs • Higher dysfunctional conflict across units • Poorer coordination across functions — requires more controls

Slide 16: Divisional Structure Organizes employees around geographic areas, outputs (products or services), or clients Different forms of divisional structure • Geographic — organizes employees around distinct regions • Product — organizes employees around distinct outputs • Client — organizes employees around specific customer groups

Best type of divisional structure depends on main environmental diversity or uncertainty • E.g., product structure if company sells several types of products • E.g., geographic structure if clients needs vary across regions

Geographic divisional structures becoming less common because: • Less need for local representation — clients can purchase online and communicate with

businesses from anywhere • Reduced geographic variation — consumer preferences are converging around the world • More global clients who demand one global point of purchase

Slide 17: Evaluating Divisional Structures Benefits • Building block structure – accommodates growth • Outcome focused — focuses employee attention on products/customers, not own skills

Limitations • Duplication, inefficient use of resources — not pooled • Creates silos of knowledge — expertise isolated across divisions

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Chapter 12: Designing Organizational Structures

• Complex environments make it difficult to identify best type of divisional structure, so some

firms change structures frequently (e.g., from region to product) — results in shifting executive power, which produces departures and frustration

Slide 18: Team-Based Structure Built around self-directed work teams, organized around work processes Typically an organic structure • Wide span of control — teams operate with minimal supervision • Decentralized — team makes day-to-day decisions • Low formalization — teams use more communication, less strict procedures

Usually found within divisionalized structure, but some firms are completely team-based structures (e.g., Morning Star Company, Valve, W.L. Gore & Associates)

Slide 19: Evaluating the Team-Based Structure Benefits • Flexible and responsive in turbulent environments • Lower administrative costs — less formal hierarchy • Better communication and cooperation across traditional organizational boundaries — results in

quicker and more informed decision making

Limitations • Costly interpersonal skill training • Takes longer to coordinate during team development (compared to coordinating work through

formal hierarchy) • Role ambiguity increases employee stress • Team leader issues — less power, ambiguous roles and careers • Duplication of resources across teams, potential competition

Slide 20: Matrix Structure Matrix structure overlays two structures to leverage the benefits of both Large organization matrix structures • Typically geographic on one dimension and product, client, or function on second dimension • Example: Shiseido’s matrix structure intersects five product groups with six regions • Example: Randon S.A.’s matrix structure overlays product with functional structure

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Chapter 12: Designing Organizational Structures

• In these (large organization) matrix structures managers at only one level reporting to two

bosses (e.g. Randon’s Brake parts purchasing manager reports to brakes business executives as well as to head of company’s purchasing function)

Project-based matrix structures • Most employees assigned permanently to a functional unit (engineering, design, marketing)

but located temporarily in a specific project unit (Game #1, Game #2, etc.)

Slide 21: Evaluating Matrix Structures Benefits • Uses resources/expertise effectively — good for fluctuating workloads • Potentially better communication, project flexibility, innovation • Focuses employees on serving clients or creating products • Supports knowledge sharing within specialty across groups • Solution when two divisions deserve equal importance

Limitations • More conflict among managers who share power — different priorities • Two bosses dilute accountability — may contribute to corporate ethical misconduct • Employees experience more dysfunctional conflict and stress

Slide 22: External Environment and Structure (1 of 2) Preferred structure depends on external environment contingencies 1. Dynamic vs. stable environments • Dynamic environment ➡ High rate of change, novel situations, lack of identifiable patterns ➡ Use organic structures (e.g., team-based) with experienced employees • Stable environment ➡ Regular cycles of activity, steady environmental changes (i.e., predictable change) ➡ Use mechanistic structures — more efficient/profitable in predictable environments 2. Complex vs. simple environments • Simple environment — few things to monitor/manage • Complex environment — many elements (stakeholders, etc.) to monitor/manage • Decentralize in complex environments — better decisions

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Chapter 12: Designing Organizational Structures

Slide 23: External Environment and Structure (2 of 2) 3. Diverse vs. integrated environments • Diverse environment — variety of products/services, clients, and/or regions • Integrated environment — only one client, product, and geographic area • Diverse environments call for: ➡ A divisional structure aligned with that diversity ➡ More decentralization — more adaptable, responsive 4. Hostile vs. munificent environments • Hostile environments ➡ Resource scarcity, more competition ➡ Tend to be dynamic environments — lack predictability • Munificent environments — plenty of resources and product demand • Hostile environments better with organic structures — more adaptable to change, complexity • Centralization occurs in extremely hostile environments, but could lead to worse decisions because top management has less information

Slide 24: Effects of Organizational Size As organizations grow (more employees), they: 1. Increase division of labor (job specialization) 2. Increase coordination through standardization and formal hierarchy 3. Become more decentralized — push decision making down hierarchy

Slide 25: Technology and Structure Technology refers to mechanisms or processes by which an organization turns out its product or service Two contingencies: (see job design in Chapter 5) • Task variability — how predictable the job duties are from one day to the next ➡ Low variability when work is highly routine and predictable

• Task analyzability — how much does the work follow known procedures and rules ➡

High task analyzability when employees have well-defined guidelines

Use organic structure when task have high variability and low analyzability • E.g., research setting — unique situations with little opportunity for repetition

Use mechanistic structure when task have low variability and high analyzability • E.g., assembly work — tasks are routine, highly predictable, well-established procedures

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Chapter 12: Designing Organizational Structures

Slide 26: Organizational Strategy Strategy: the way the organization positions itself in its environment in relation to its stakeholders, given the organization’s resources, capabilities, and mission Structure follows strategy • Strategy points to the environments in which the organization will operate • Leaders decide which structure to apply — results from conscious human decisions

Innovation strategy • Providing unique products or attracting clients who want customization — more organic

structure is preferred

Cost leadership strategy (low-cost strategy) • Maximize productivity to offer competitive pricing — mechanistic structure is preferred

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Chapter 12: Designing Organizational Structures

STUDENT HANDOUT

CRITICAL-THINKING QUESTIONS 1.

Administrative theorists concluded many decades ago that the most effective organizations have a narrow span of control. Yet today’s top-performing manufacturing firms have a wide span of control. Why is this possible? Under what circumstances, if any, should manufacturing firms have a narrow span of control?

2.

Leaders of large organizations struggle to identify the best level and types of centralization and decentralization. What should companies consider when determining the degree of decentralization?

3.

Diversified Technologies Inc. (DTI), makes four types of products, each type to be sold to different types of clients. For example, one product is sold exclusively to automobile repair shops, whereas another is used mainly in hospitals. Expectations within each client group are surprisingly similar throughout the world. The company has separate marketing, product design, and manufacturing facilities in Asia, North America, Europe, and South America because, until recently, each jurisdiction had unique regulations governing the production and sales of these products. However, several governments have begun the process of deregulating the products that DTI designs and manufactures, and trade agreements have opened several markets to foreign-made products. Which form of departmentalization might be best for DTI if deregulation and trade agreements occur?

4.

Suppose you have been hired as a consultant to diagnose the environmental characteristics of your college or university. How would you describe the school’s external environment? Is the school’s existing structure appropriate for this environment?

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Chapter 12: Designing Organizational Structures

CONFIDENTIAL INSTRUCTOR NOTES

SUGGESTED ANSWERS TO CRITICALTHINKING QUESTIONS 1.

Administrative theorists concluded many decades ago that the most effective organizations have a narrow span of control. Yet today’s top-performing manufacturing firms have a wide span of control. Why is this possible? Under what circumstances, if any, should manufacturing firms have a narrow span of control?

There are at least two reasons why many organizations are moving toward flatter organizational structures with a wider span of control. First, flatter structures require less overhead — there are fewer middle managers and more people directly involved in the production of goods and/or services. Second, flatter structures are consistent with the trend toward greater autonomy and employee involvement. Managers necessarily have a wide span of control in flatter structures, and they are unable to engage in close supervision. Instead, employees (and work teams) are given more freedom to make decisions without management review.

A narrow span or control would be most appropriate with a workforce that is low skilled and made up of workers with a high power distance. In such cases, the close supervision and control would be less likely to be viewed as a lack of trust among workers.

2.

Leaders of large organizations struggle to identify the best level and types of centralization and decentralization. What should companies consider when determining the degree of decentralization?

As organizations grow they tend to diversify. Moreover, as the environments within which they operate become more complex, it is necessary for organizations to decentralize. The complexity is such that the burden on senior executives who must process all the accompanying decisions becomes overwhelming. The best way to deal with this is by dispersing decision-making authority (decentralize).

The contingencies that organizations should considered when deciding the extent of decentralization are: External environment. Decentralized structures are better suited for complex rather than simple environments. On the other hand, it is best to temporarily centralize when operating in a hostile environment.

Organizational size. When the organization grows larger, with more specialized jobs, more elaborate coordinating mechanisms, and greater formalization it is better to decentralize its structure.

Technology. In cases where the technology used requires many exceptions to standard procedures (high variety), and it is difficult to standardize the transformation of inputs to outputs (low analyzability), it is recommended that organizations should rely on decentralized decision making.

Organizational strategy. All of the above contingencies and their relationship to one another are mediated by the organization’s overall strategy. For example, Johnson & Johnson’s decentralized divisional structure was selected because it fits the company’s strategic approach to developing and delivering a diverse array of health-related products around the world.

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Chapter 12: Designing Organizational Structures

3.

Diversified Technologies, Inc. (DTI), makes four types of products, each type to be sold to different types of clients.

For example, one product is sold exclusively to automobile repair shops, whereas another is used mainly in hospitals. Expectations within each client group are surprisingly similar throughout the world. The company has separate marketing, product design, and manufacturing facilities in Asia, North America, Europe, and South America because, until recently, each jurisdiction had unique regulations governing the production and sales of these products. However, several governments have begun the process of deregulating the products that DTI designs and manufactures, and trade agreements have opened several markets to foreign- made products.

Which form of departmentalization might be best for DTI if deregulation and trade agreements occur?

In this incident, the organization probably adopts primarily a product-based or client-based divisionalized structure with some functional departments (e.g., finance, legal). The company is sufficiently large and complex that a simple or functional structure is inappropriate. In particular, DTI manufactures several products to different clients globally. A matrix structure is unnecessary because production is not project based and there is not enough complexity across more than one dimension (e.g., functional skills with clients).

The product or client form of divisional structure is recommended because either represents the greatest type of differentiation. Geographic divisionalization is not needed because “customer expectations and needs are surprisingly similar throughout the world.”

The decision whether to adopt a client or product form of divisional structure depends on whether production or clients are more complex. From the information presented, either form can be applied because they are identical. Each type of product is sold to a specific client.

Finally, if the production and sales processes are capable of further innovation, the company might have a team- based structure within its production and/or sales subunits. This means that employees would be divided into work teams around specific work processes, such as manufacturing or selling a particular type of product.

4.

Suppose you have been hired as a consultant to diagnose the environmental characteristics of your college or university. How would you describe the school’s external environment? Is the school’s existing structure appropriate for this environment?

This discussion question should raise some interesting ideas about the college’s environment. Students should carefully consider the four environmental elements, then assess whether the environment calls for more of a mechanistic or organic structure.

Many people discover that different parts of an organization face different environments. For example, an online learning center would face a dynamic and hostile environment because of the rapid pace of technology and number of competitors. Here are some details about the four environments.

Dynamic environments have a high rate of change, leading to novel situations, so organic structures tend to be best because employees are more flexible. For example, network and cluster structures seem to be most effective in dynamic environments. In contrast, a more mechanistic structure (high use of standardization) is best in stable environments in order to achieve efficiency.

Complex environments have more elements to consider, such as more stakeholders. Decentralized structures are therefore better suited to complex environments because they allow people closest to the environmental information to make the main decisions.

Diverse environments have greater variety of products or services, clients, and/or jurisdictions. A divisionalized form aligned with the diversity is the best structure for diverse environments. For example, companies with many distinct products in a single area would be best with a product-based divisional form.

Hostile environments have a scarcity of inputs and competition in the distribution of outputs. They are usually dynamic environments because access to resources and demand for outputs are less predictable. Organic structures are most appropriate in hostile environments in order to maintain flexibility. In extremely hostile environments, the organization may need to temporarily centralize. This is because crisis situations call for quick decisions and direct supervision is the fastest form of coordination.

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Chapter 12: Designing Organizational Structures

STUDENT HANDOUT

CASE STUDY: MERRITT’S BAKERY In 1979, Larry and Bobbie Merritt bought The Cake Box, a small business located in a tiny 450-foot store in Tulsa, Oklahoma. The couple were the only employees. “I would make cakes and (wife) Bobbie would come in and decorate them,” Larry recalls. Bobbie Merritt was already skilled in decorating cakes, whereas baking was a new occupation for Larry Merritt, who previously worked as a discount store manager. So, Larry spent hours pouring over baking books in the local library and testing recipes through trial-and-error experimentation. “I threw away a lot of ingredients that first year,” he recalls.

Sales were initially slow. Then, a doughnut shop around the corner was put up for sale and its owner made it possible for the Merritts to buy that business. They moved to the larger location and changed the company’s name to Merritt’s Bakery to reflect the broader variety of products sold. The Merritts hired their first two employees, who performed front store sales and service. Over the next decade, Merritt’s Bakery’s physical space doubled and its revenues increased 13-fold.

The company employed 20 people by the time it made its next move.

In 1993, Merritt’s Bakery moved to a 6,000-foot location across the street. The business became so popular that customers were lining up down the street to buy its freshbaked goods. “That looks like success to a lot of people, but that was failure,” says Bobbie Merritt. The problem was that the couple didn’t want to delegate production to employees, but they couldn’t produce their baked goods or decorate their carefully crafted cakes fast enough to keep up with demand.

“We felt like failures because we had to work those 20 hours (per day),” she reflects.

At some point, the Merritts realized that they had to become business owners and managers rather than bakers.

They devised a plan to grow the business and drew up an organizational structure that formalized roles and responsibilities. When a second Merritt’s Bakery store opened across town in 2001, each store was assigned a manager, a person in charge of baking production, another in charge of cake decorating and pastries, and someone responsible for sales. A third store opened a few years later. Larry worked on maintaining quality by training bakery staff at each store.

“Because it is so difficult to find qualified bakers nowadays, I want to spend more time teaching and developing our products,” he said at the time.

Christian Merritt, one of Larry and Bobbie’s sons, joined the business in 2000 and now runs the business. An engineer by training with experience in the telecommunications industry, Christian soon developed flow charts that describe precise procedures for most work activities, ranging from simple store-front tasks (cashiering) to unusual events such as

a power outage. These documents standardized work activities to maintain quality with less reliance on direct supervision.

Christian also introduced computer systems to pool information across stores about how much inventory exists, which products are selling quickly, and how much demand exists for Merritt’s famous custom cakes. The information improved decision making about production, staffing, and purchasing without having to directly contact or manage each store as closely.

In late 2007, Merritt’s Bakery’s opened a dedicated production center near the original store and moved all production staff into the building, affectionately called “the Fort.” The centralized production facility reduced costs by removing duplication of staff and equipment, provided more consistent quality, and allowed the stores to have more front store space for customers.

Merritt’s Bakery also refined its training programs, from the initial orientation session to a series for modules on specific skills. For example, front store staff complete a series of clinics that add up to 20 hours of training. The company also introduced special selection processes so people with the right personality and skills are hired into these jobs.

Employees at Merritt’s production facility receive decorator training through a graduated program over a longer time.

One or two managers at the production site closely coach up to five new hires.

Today, Merritt’s Bakery employs more than 80 people, including production managers, store managers, and a marketing director. Two-thirds of the business is in the creation of cakes for birthdays, weddings, and other events, but the company also has three busy and popular stores across Tulsa. “We're just now getting the pieces in place to start to treat Merritt's Bakery like a business, with a lot of parts that we manage from a distance,” says Christian Merritt. “We're present but detached; we have our hands in a lot of things, but it's in managing stores instead of operating them.”

Discussion Questions 1. How have the division and coordination of labor evolved at Merritt’s Bakery from its beginnings to today?

2. Describe how span of control, centralization, and formalization have changed at Merritt’s Bakery over the years. Is the company’s organizational structure today more mechanistic or organic? Are these three organizational structure elements well-suited to the company in their current form? Why or why not?

3. What form of departmentalization currently exists at Merritt’s Bakery? Would you recommend this form of departmentalization to this company? Why or why not?

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Chapter 12: Designing Organizational Structures

CONFIDENTIAL INSTRUCTOR NOTES

CASE STUDY: MERRITT’S BAKERY Case Synopsis This case study describes the growth and evolution of Merritt’s Bakery, a small business in Tulsa, Oklahoma. The company began with its two founders and one small store, then expanded with employees performing front-of-store activities. The case identifies a turning point where the owners had to delegate production work to employees due to growing workload. The company expanded to a few stores, which called for further changes in the organizational structure. Finally, the owners’ son took over a key management role, which included the introduction of new activities in the organizational structure.

Suggested Answers to Discussion Questions 1.

How have the division and coordination of labor evolved at Merritt’s Bakery from its beginnings to today?

Merritt’s Bakery is an excellent “true story” case study of the evolution of an organization’s structure over the years, particularly its division of labor and changing coordinating mechanisms.

Division of Labor The case identifies a few turning points in the division of labor. The company begins with just the two owners. Even so, they divided labor based on their expertise — Larry made the cakes and Bobbie decorated them (because she had previous experience in this delicate work). Next, after their first expansion, the owners hired two employees to perform front of store sales and service. As the business expanded further, more employee were hired. No information about further division of labor at this stage, possibly all employees performed both cashier and service work as integrated tasks.

When Merritt’s Bakery moved to its large 6,000-foot location, the lack of division of labor took its toll. The owners had difficulty keeping up with production, so they stepped back from their production roles and created formalized positions in production for employees. The emerging division of labor is described when Merritt’s opened a second store. “Each store was assigned a manager, a person in charge of baking production, another in charge of cake decorating and pastries, and someone responsible for sales.” Administrative roles also developed, including Larry’s increasing role as a trainer and more recently a marketing director.

More division of labor occurred when production was moved to a separate location rather than within each store. There would be a supervisor of production and likely people to perform inventory and delivery activities.

Coordinating Mechanisms Informal communication would have been the dominant coordinating mechanism when Merritt’s Bakery began and possibly throughout its early years. Informal communication would also be important as other coordinating mechanisms developed because Merritt’s store operated with a small number of staff, proximate work locations, and frequent coordination is required.

Standardization of skills is identified as an increasing coordinating mechanisms as Larry placed more emphasis on training staff in each store to perform the baking consistently and to a high standard. As stated by Larry Merritt, “Because it is so difficult to find qualified bakers nowadays, I want to spend more time teaching and developing our products.” In fact, training became a strong coordination mechanism throughout the company. It has an orientation program, modules for front-of-store staff, coaching with production staff, and so forth.

The Merritt’s Bakery case also refers to the increasing emphasis on coordination through standardization of processes. Specifically, Christian Merritt introduced flowcharts that guide employees through most aspects of their job duties without the need for direct supervision. The case does not discuss standardization through output,

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Chapter 12: Designing Organizational Structures

although it likely existed in the form of production goals (e.g. time to serve customers, time to complete a cake decoration).

Finally, there is also some degree of coordination through hierarchy. Each store employed a store manager. The production center had supervisors who worked closely with staff. Larry (and likely Bobbie) also supervised employees throughout their leadership in this organization.

2.

Describe how span of control, centralization, and formalization have changed at Merritt’s Bakery over the years. Is the company’s organizational structure today more mechanistic or organic? Are these three organizational structure elements well-suited to the company in their current form? Why or why not?

Span of Control The main information here is that the owners had increased span of control of front-of-store staff over the years. No mention of employing any supervisors even when there were 20 employees (not all on the job at the same time, though).

As the company opened more stores, each operation had its own manager, which would have a set span of control.

Again, we don’t have the numbers. However, the case mentions that one or two managers at the production site coach up to five new hires, indicating that their span of control would be much higher than this (i.e., each manager also supervises experienced staff). We don’t know the exact span of control, but generally it seems that this company’s span suits its work activity. The exception might be if there are too many or too few supervisors in the production unit.

Centralization This case is an excellent illustration of increasing decentralization as companies grow. In fact, a turning point in the company occurred when the owners realized that they could no longer perform the production work alone, so they “delegated” (decentralized) that work and responsibility to others. When a second and third store opened, Merritt’s Bakery further decentralized operations. The owners no longer directly supervised all employees. There is also some indication of centralization when the production center opened. This might be considered centralization because these functions were now performed more closely to the owners rather than through the store managers. The production center had supervisors, but it seems that Larry, Bobbie, or both were also directly involved in leading the production group. Overall, the degree of decentralization seems to fit the nature of this business.

Formalization Again, Merritt’s Bakery is a wonderful case study on the evolution of formalization as companies grow. There were likely some procedures and rules established by the time the company opened its first large (6,000-foot) store, but we don’t have those details. However, we do know that Merritt’s Bakery introduced precise flow charts when Christian Merritt joined the business. These represent distinct forms of formalization that fit nicely into the mechanistic structure required for this type of work.

3. What form of departmentalization currently exists at Merritt’s Bakery? Would you recommend this form of departmentalization to this company? Why or why not?

Merritt’s Bakery today has a functional organizational structure to the extent that employees are organized either into specific production positions or store activity positions. The store structure might be viewed by some students as a geographic structure, which it is to some extent. However, some front-of-store staff might rotate around different stores and all of them might report to the head of operations rather than just to the store manager. Also, the “geographic” dimension is not differentiating, unlike divisional geographic structures which are distinct from each other (e.g., Northeast U.S. vs. Southwest U.S. divisions) and might have different services or products to suit each region’s variations. It is somewhat difficult to evaluate the store structure due to lack of information. Students can focus on the wisdom of separating the production activities form the stores. Generally, this makes sense for efficiency and skill development purposes, particularly since (a) high quality is a competitive advantage for the company and (b) the product can be delivered quickly to the stores (i.e., located near each other).

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Chapter 12: Designing Organizational Structures

SA

SELF-ASSESSMENT 12.1: WHICH ORGANIZATIONAL STRUCTURE DO YOU PREFER?

Overview and Instructions Personal values influence how comfortable we are working in different organizational structures. Some people prefer an organization with clearly defined rules or no rules at all. Others prefer a firm where almost any employee can make important decisions, or where important decisions are screened by senior executives. This self-assessment is designed to help students estimate the type of organizational structure in which they would prefer to work based on their personal needs and values.

Students are asked to read each statement in this self-assessment and indicate how well the statement reflects the type of organization in which they would prefer to work. This instrument has 15 statements.

Feedback for the Preferred Organizational Structure Instrument This self-assessment estimates the extent to which students prefer a mechanistic or organic structure, as well as the three dimensions of a mechanistic structure: tall hierarchy, formalization, and centralization. The tables reflect norms based on a sample of more than 200 MBA students. Cultural, occupational, and age differences might make the norms less relevant to students in some classes.

Tall hierarchy People with high scores on this dimension prefer to work in organizations with several levels of hierarchy and a narrow span of control (few employees per supervisor). Scores on this subscale range from 0 to 15. The average score among a sample of MBA students was 7.8.

Score

Interpretation

11 to 15

Strong preference for tall hierarchy

6 to 10

Average preference for tall hierarchy

0 to 5

Low preference for tall hierarchy

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Chapter 12: Designing Organizational Structures

Formalization People with high scores on this dimension prefer to work in organizations where jobs are clearly defined with limited discretion. Scores on this subscale range from 0 to 15. The average score among a sample of MBA students was 9.4.

Score

Interpretation

12 to 15

Strong preference for formalization

9 to 11

Average preference for formalization

0 to 8

Low preference for formalization

Centralization People with high scores on this dimension prefer to work in organizations where decision making occurs mainly among top management rather than spread out to lower level staff. Scores on this subscale range from 0 to 15. The average score among a sample of MBA students was 7.7.

Score

Interpretation

10 to 15

Strong preference for centralization

7 to 9

Average preference for centralization

0 to 6

Low preference for centralization

Mechanistic Structure Preference (Total Score) People with high scores on this overall score prefer to work in mechanistic organizations, whereas those with low scores prefer to work in organic organizational structures. Mechanistic structures are characterized by a narrow span of control and high degree of formalization and centralization. Organic structures have a wide span of control, little formalization, and decentralized decision making. Scores on this subscale range from 0 to 45. The average score among a sample of MBA students was 24.9.

Score

Interpretation

30 to 45

Strong preference for mechanistic structure

22 to 29

Average preference for mechanistic structure

0 to 21

Low preference for mechanistic structure

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Chapter 12: Designing Organizational Structures

SA

SELF-ASSESSMENT 12.2: DOES YOUR JOB REQUIRE AN ORGANIC OR MECHANISTIC STRUCTURE?

Overview and Instructions Different jobs require different types of organizational structures. For some jobs, employees work better in an organic structure. In other jobs, a mechanistic structure helps incumbents perform their work better. This self-assessment helps students to estimate the preferred organizational structure for the job in which they currently or have recently worked.

Students without recent work experience can think about these statements in terms of their “job” as a student. Students are asked to indicate the extent to which their job has the characteristic described in each statement.

Feedback for the Task Variability and Task Analyzability Self-Assessment One of the contingencies of organizational design is “technology,” which refers to the mechanisms or processes by which an organization turns out its product or service. These mechanisms or processes relate to two types of task characteristics, namely task analyzability and task variability. Your scores for both scales are shown below. Students locate both scores on the diagram (next page and online) to estimate the preferred organizational structure. There is no “total” score because task analyzability and task variability are separate concepts. Both scales range from 5 (low) to 25 (high). The midpoint is 15.

Task Analyzability Task analyzability refers to how much the job allows incumbents to apply existing procedures or computational algorithms to resolve issues that arise. Jobs with high task analyzability have more established information cues that reveal cause-effect relationships among variables in that work environment. They have a ready-made procedures or guidelines for most decisions and actions. In contrast, low task analyzability exists in jobs where the work does not lend itself to systematic calculation or procedural determination of the best course of action. Consequently, these jobs require job incumbents with expertise and sufficient discretion to address the work challenges.

Task Variability This job characteristic refers to the number of exceptions to standard procedure that tend to occur. In work processes with low variability, jobs are routine and repetitive. Employees perform similar tasks using similar skills in the same way every day. In contrast, task variability is high where job duties are unpredictable from one day to the next. Job incumbents frequently confront unfamiliar and unexpected issues, and that variety requires more diverse work activities and correspondingly multiple skills (i.e., skill variety).

Using Task Variability and Task Analyzability to Determine the Preferred Organizational Structure The diagram on the next page determines which organizational structure is better for the type of work the student performs.

Both scales range from 5 (low) to 25 (high). The midpoint is 15.

If the job has high task analyzability and low task variability, then a mechanistic organizational structure would be more appropriate. In other words, the job operates better where there is a narrow span of control (closer supervision), centralized decision making (less discretion), and high formalization (plenty of rules and procedures). If the job has low task analyzability and high task variability, then an organic organizational structure would be better. This structure includes a wide span of control (minimal supervision), decentralized decision making (more discretion), and low formalization (few rules and procedures).

If scores are high-high or low-low, then an organic structure is preferred, but the structure should have more formalization and centralization than in a purely organic structure. If one or both scores are toward the middle of the range, then students need to infer the structure from the two quadrants. For instance, a moderate level of task analyzability and low level of task variability would call for something closer to a mechanistic than organic structure.

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Chapter 12: Designing Organizational Structures

USING TASK VARIABILITY AND TASK ANALYZABILITY TO DETERMINE THE PREFERRED ORGANIZATIONAL STRUCTURE

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Chapter 13: Organizational Culture

Instructor’s Manual to Accompany

M:Organizational Behavior 5/e

by Steven L. McShane and Mary Ann Von Glinow

Chapter 13: Organizational Culture Prepared by Steven L. McShane, University of Newcastle (Australia)

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Chapter 13: Organizational Culture

13

Organizational Culture

LEARNING OBJECTIVES After reading this chapter, students should be able to: 13-1 Describe the elements of organizational culture and discuss the importance of

organizational subcultures.

13-2 Describe four categories of artifacts through which corporate culture is deciphered.

13-3 Discuss the importance of organizational culture and the conditions under which

organizational culture strength improves organizational performance.

13-4 Compare and contrast four strategies for merging organizational cultures.

13-5 Discuss five strategies for changing and strengthening an organization’s culture, including

the application of attraction-selection-attrition theory.

13-6 Describe the organizational socialization process and identify strategies to improve that process.

CHAPTER GLOSSARY adaptive culture — an organizational culture in which employees are receptive to change, including the ongoing alignment of the organization to its environment and continuous improvement of internal processes artifacts — the observable symbols and signs of an organization’s culture attraction-selection-attrition (ASA) theory — a theory stating that organizations have a natural tendency to attract, select, and retain people with values and personality characteristics consistent with the organization’s character, resulting in a more homogeneous organization and a stronger culture

ceremonies — planned displays of organizational culture, conducted specifically for the benefit of an audience learning orientation — a set of collective beliefs and norms that encourage people to question past practices, learn new ideas, experiment putting ideas into practice, and view mistakes as part of the learning process organizational culture — the values and assumptions shared within an organization organizational socialization — the process by which individuals learn the values, expected behaviors, and social knowledge necessary to assume their roles in the organization

bicultural audit — a process of diagnosing cultural relations between the companies and determining the extent to which cultural clashes will likely occur

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Chapter 13: Organizational Culture

realistic job preview (RJP) — a method of improving organizational socialization in which job applicants are given a balance of positive and negative information about the job and work context

rituals — the programmed routines of daily organizational life that dramatize the organization's culture

reality shock — the stress that results when employees perceive discrepancies between their preemployment expectations and on-the-job reality

CHAPTER SUMMARY BY LEARNING OBJECTIVE 13-1 Describe the elements of organizational culture and discuss the importance of

organizational subcultures.

Organizational culture consists of the values and assumptions shared within an organization. Shared assumptions are nonconscious, taken-for-granted perceptions or beliefs that have worked so well in the past that they are considered the correct way to think and act toward problems and opportunities. Values are stable, evaluative beliefs that guide our preferences for outcomes or courses of action in a variety of situations.

Organizations differ in their cultural content, that is, the relative ordering of values. There are several classifications of organizational culture, but they tend to oversimplify the wide variety of cultures and completely ignore the underlying assumptions of culture. Organizations have subcultures as well as the dominant culture.

Subcultures maintain the organization’s standards of performance and ethical behavior. They are also the source of emerging values that replace misaligned core values.

13-2 Describe four categories of artifacts through which corporate culture is deciphered.

Artifacts are the observable symbols and signs of an organization’s culture. Four broad categories of artifacts include organizational stories and legends, rituals and ceremonies, language, and physical structures and symbols. Understanding an organization’s culture requires the assessment of many artifacts because they are subtle and often ambiguous.

13-3 Discuss the importance of organizational culture and the conditions under which

organizational culture strength improves organizational performance.

Organizational culture has three main functions: a form of social control, the “social glue” that bonds people together, and a way to help employees make sense of the workplace. Companies with strong cultures generally perform better than those with weak cultures, but only when the cultural content is appropriate for the organization’s environment. Also, the culture should not be so strong that it drives out dissenting values, which may form emerging values for the future. Organizations should have adaptive cultures in which employees support ongoing change in the organization and their own roles.

13-4 Compare and contrast five strategies for merging organizational cultures.

Organizational culture clashes are common in mergers and acquisitions. This problem can be minimized by performing a bicultural audit to diagnose the compatibility of the organizational cultures. The four main strategies for merging different corporate cultures are integration, deculturation, assimilation, and separation.

13-5 Discuss five strategies for changing and strengthening an organization’s culture, including

the application of attraction-selection-attrition theory.

An organization’s culture begins with its founders and leaders because they use personal values to transform the organization. The founder’s activities are later retold as organizational stories. Companies also introduce artifacts as mechanisms to maintain or change the culture. A related strategy is to introduce rewards and recognition practices that are consistent with the desired cultural values. A fourth method to change and strengthen an organization’s culture is to support workforce stability and communication. Stability is necessary because culture exists in employees. Communication activities improve sharing of the culture. Finally, companies strengthen and Page 13-3 Copyright © 2022 McGraw Hill. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill.

Chapter 13: Organizational Culture

change their culture by attracting and selecting applicants with personal values that fit the company’s culture, by encouraging those with misaligned values to leave the company (attrition), and by engaging in organizational socialization — the process by which individuals learn the values, expected behaviors, and social knowledge necessary to assume their roles in the organization.

13-6 Describe the organizational socialization process and identify strategies to improve that process.

Organizational socialization is the process by which individuals learn the values, expected behaviors, and social knowledge necessary to assume their roles in the organization. It is a process of both learning and adjustment.

Employees typically pass through three socialization stages: preemployment, encounter, and role management.

To manage the socialization process, organizations should introduce realistic job previews (RJPs) and recognize the value of socialization agents in the process. These RJPs give job applicants a realistic balance of positive and negative information about the job and work context. Socialization agents provide information and social support during the socialization process.

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Chapter 13: Organizational Culture

LECTURE OUTLINE Slide 1: Organizational Culture Slide 2: Learning Objectives 13-1 Describe the elements of organizational culture and discuss the importance of

organizational subcultures.

13-2 Describe four categories of artifacts through which corporate culture is deciphered.

13-3 Discuss the importance of organizational culture and the conditions under which

organizational culture strength improves organizational performance.

13-4 Compare and contrast four strategies for merging organizational cultures.

13-5 Describe five strategies for changing and strengthening an organization’s culture,

including the application of attraction-selection-attrition theory.

13-6 Describe the organizational socialization process and identify strategies to improve

that process.

Slide 3: Organizational Culture Defined The values and assumptions shared within an organization Defines what is important and unimportant and directs everyone in the organization toward the “right way” of doing things Company’s DNA — invisible to the eye, yet a powerful template that shapes employee behavior in the workplace

Slide 4: Elements of Organizational Culture Shared values Shared values — values that people have in common — near top of values hierarchy Values — stable, evaluative beliefs that guide our preferences for outcomes or courses of action in a variety of situations

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Chapter 13: Organizational Culture

Espoused versus enacted values • Espoused values — values the company wants others to believe guide its decisions and

actions, or hope will eventually guide employee behavior ➡ Usually socially desirable — present a positive public image ➡ Employees’ personal values are diverse, so might conflict with firm’s espoused values • Enacted values — values put into practice — they actually guide and influence employee decisions and behavior • Organizational culture is defined by enacted (not espoused) values — values put into practice

Shared assumptions • Nonconscious, taken-for-granted perceptions, ideal prototypes of behavior • Only apparent by observing employees, analyzing their decisions • Some say shared assumptions are the essence of organizational culture

Slide 5: Content of Organizational Culture Cultural content is the relative ordering of shared values Problems with organizational culture models and surveys: 1. Oversimplify the many and diverse cultural values — reduce to a few, not representative of

the full set of possible cultures 2. Ignores shared assumptions — part of culture but more difficult to measure 3. Incorrectly assumes company cultures are clear and unified (therefore easy to decipher)

An organization’s culture is blurry/fuzzy: • Consists of diverse subcultures (fragmentation) • Values exist within individuals, not work units

Slide 6: Organizational Culture Profile One of many models identifying content of organizational culture This model identifies seven corporate cultural dimensions: Innovation, Stability, Respect for people, Outcome orientation, Attention to detail, Team orientation, Aggressiveness Three problems with most organizational culture content models (see previous slide)

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Chapter 13: Organizational Culture

Slide 7: Organizational Subcultures Dominant culture • Values and assumptions shared most consistently and widely by the organization’s members

Subcultures • Located throughout the organization • May support, oppose, or not affect the dominant culture • Countercultures — subcultures that oppose aspects of the dominant culture • Some firms have subcultures without a dominant culture

Two functions of countercultures: 1. Surveillance and critical review of the dominant culture and maintain standards of ethical

behavior 2. Source of emerging values that may eventually become dominant

Slide 8: Organizational Culture Artifacts Observable symbols and signs of culture • Maintain and transmit organization’s culture • Four broad categories — organizational stories/legends, rituals/ceremonies, organizational

language, physical structures/symbols

Need many artifacts to accurately decipher a company’s culture

Slide 9: Artifacts: Stories and Legends Social prescriptions of desired (or dysfunctional) behavior Realistic human side to expectations and performance standards Stories and legends are most effective when they: • Describe real people • Are assumed to be true • Are known by employees throughout the organization • Are prescriptive — advise people what to do or not to do

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Chapter 13: Organizational Culture

Slide 10: Artifacts: Language, Rituals, Ceremonies Language • How employees address each other/outsiders, express emotions, describe stakeholders, etc • Leaders use language to anchor or change culture (e.g., “put the moose on the table”).

• Language differentiates subcultures (each uses unique language)

Rituals • Programmed routines of daily organizational life — how meetings are conducted, how visitors

are greeted, time employees take for lunch

Ceremonies (more formal than rituals) • Planned activities conducted for an audience — award ceremonies, celebrating product launch

Slide 11: Artifacts: Physical Structures and Symbols Building structure — may shape and reflect culture Office design — e.g., furniture, office size, wall hangings Example: Physical space design • Collaborative and creative cultures — space design is informal and enables spontaneous group

discussion (culture values teamwork and flexibility) • Controlling and competitive cultures — more structural office arrangements and more space for individual work than teamwork (culture values individualism, efficiency)

NOTE: This slide shows the Marine Building in Vancouver, Canada. The Art Deco masterpiece is shown as a reflection (and contrast) against a nearby modern building. The smaller wide photo is a frieze inside the Marine Building.

Slide 12: Organizational Culture Strength Culture strength — how widely and deeply employees hold the company’s dominant values and assumptions In strong cultures: • Most employees understand and embrace the company’s dominant values • Values/assumptions are institutionalized through well-established artifacts — entrenches

culture • Culture is long lasting — often traced back to founder(s)

Three functions of strong cultures to improve effectiveness: 1. Control system — automatic pilot or compass — guides employee decisions and behavior 2. Social glue — bonds people together (fulfills need for social identity) 3. Sense-making — helps employees understand what is expected of them — role clarity

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Chapter 13: Organizational Culture

Slide 13: Organizational Culture and Effectiveness Strong cultures have three functions that potentially benefit organizations Actual effect of culture strength on organizational effectiveness is only modestly positive Reason: Effect of culture strength on effectiveness depends on three contingencies: • Environment fit • Moderate culture strength • Adaptive culture

Slide 14: Contingencies of Culture Strength 1. Culture content is aligned with the external environment • Ensuring the organization’s culture content (dominant values and assumptions) fits the external

environment • A misaligned strong culture motivates decisions and behaviors that may undermine the organization’s connection with its stakeholders

2. Culture strength is not the level of a cult • Very strong cultures (i.e., corporate “cults”) are less effective than moderately strong cultures • Two problems with corporate cults ➡ Lock people into mental models — can blind them to new opportunities, unique problems ➡ Suppress subculture dissenting values

• Goal: create a strong culture that allows subcultural diversity — supports benefits of

subcultures (see earlier slide)

3. Culture Is an Adaptive Culture • External focus; recognize need for continuous change • Employees adopt an open systems perspective — take responsibility for the organization’s

performance and alignment with the external environment • Support continuous improvement of internal work processes — role flexibility (versus “not my job” mindset) • Learning orientation — welcome new learning opportunities, actively experiment with new ideas and practices, view reasonable mistakes as a natural part of the learning process, continuously question past practices

An organization’s culture influences the ethical conduct of its employees.

• Good behavior is driven by ethical values, and ethical values become embedded in an

organization’s culture • Improve ethical conduct by changing and strengthening the organization’s culture around more socially desirable values

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Chapter 13: Organizational Culture

Slide 15: Merging Cultures: Bicultural Audit Bicultural audit is part of due diligence in mergers • Minimizes risk of cultural collision by diagnosing companies before merger

Three steps in bicultural audit: 1. Identify cultural differences between the merging companies 2. Analyze bicultural audit data to determine which differences will result in conflict and which cultural values provide common ground 3. Identify strategies and prepare action plans to bridge the two organization’s cultures

Slide 16: Merging Organizational Cultures 1. Assimilation (rare) • Acquired company employees willingly embrace acquiring firm’s culture • Occurs when acquired company’s culture is weak or dysfunctional and acquiring company’s culture is strong and successful • Culture clash is rare — employees are looking for alternative 2. Deculturation • Acquiring firm imposes its culture and business practices • Necessary when acquired firm’s culture doesn’t work • Employees in acquired firm tend to resist the cultural change 3. Integration • Combine both/all cultures into a new composite culture that preserves the best features of both cultures • Slow and potentially risky — many forces preserving the existing cultures • Best when firms have relatively weak cultures, cultural values overlap, or employees are motivated to adopt a new set of dominant values 4. Separation • Merged firms keep their own corporate cultures and practices, i.e., remain distinct entities • Best when merging firms are in unrelated industries or different countries

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Chapter 13: Organizational Culture

Slide 17: Changing, Strengthening Organizational Culture (1 of 3) Changing an organization’s culture is a considerable challenge Five strategies for changing/strengthening org cultures: 1. Model desired culture through the actions of founders and leaders 2. Align artifacts with the desired culture 3. Introduce culturally-consistent rewards and recognition 4. Support workforce stability and communication 5. Use attraction, selection, and socialization for cultural fit

Slide 18: Changing, Strengthening Organizational Culture (2 of 3) 1. Model desired culture through the actions of founders and leaders • Founder’s personality, values, habits, critical events often establish firm’s values/assumptions ➡ Founder is often an inspiring visionary — role model for culture ➡ Stories/legends about the founder later reinforce the culture ➡ Subsequent leaders need to actively guide, reinforce, and sometimes alter firm’s culture • Transformational leaders can reshape culture using organizational change practices • Associated with both transformational leadership and authentic leadership 2. Align artifacts with the desired culture • Artifacts keep the culture in place or help shift the culture • Artifacts are systems and structures — critical for organizational change

Slide 19: Changing, Strengthening Organizational Culture (3 of 3) 3. Introduce culturally-consistent rewards and recognition • Powerful artifacts that strengthen or reshape an organization’s culture 4. Support workforce stability and communication • Need a stable workforce (low turnover) for a strong organizational culture because: ➡ Culture exists mostly in employee minds, not documented ➡ It takes time for culture to be understood and translated into behavior • Strong culture depends on frequent, open communication — share language, stories, rituals, other artifacts 5. Use attraction, selection, and socialization for cultural fit • ASA theory — firms attract (A) and select (S) people who already embrace the cultural values, and attrition (A) occurs with people who don’t fit the culture • Includes organizational socialization Page 13-11 Copyright © 2022 McGraw Hill. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill.

Chapter 13: Organizational Culture

Slide 20: Attraction–Selection–Attrition Theory Organizations have a natural tendency to attract, select, and retain people with values and personality characteristics consistent with the organization’s character.

• Results in a more homogeneous organization and a stronger culture

A-S-A increases culture strength through: • Attraction — applicants self-select — don’t apply to firms with incompatible values • Selection — firms choose applicants whose values fit the company’s culture • Attrition — employees quit or are forced out when their values oppose company values

Slide 21: Organizational Socialization The process by which individuals learn the values, expected behaviors, and social knowledge necessary to assume their roles in the organization Learning Process • Effective socialization supports newcomers’ organizational comprehension — developing a

cognitive map of the social, strategic, and cultural dynamics of the organization • Learn about performance expectations, power dynamics, corporate culture, company history, and jargon • Also need to form successful and satisfying relationships with other people in order to “learn the ropes”

Adjustment Process • Newcomers need to adapt to their new work setting • Develop new work roles — reconfigure their social identity • Adopt new team norms and practice new behaviors • Newcomers with diverse work experience adjust better

Slide 22: Stages of Organizational Socialization Stage 1: Pre-employment Socialization • All learning and adjustment before first day of work • Applicants and employers receive imperfect information about each other due to conflicts: 1. Employer’s motivation to attract applicants conflicts with applicant’s need for complete and

accurate information about the job and workplace — employers embellish information, hide negative information, etc., about the job and workplace 2. Applicant’s motivation to receive job offers conflicts with employer’s need for complete and accurate information about applicants — applicants hide negative information about themselves, act out of character, etc.

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Chapter 13: Organizational Culture

3. Employers are motivated to attract applicants, which conflicts with their need for complete

and accurate information about applicants — employers reluctant to ask information or use some selection tests that may scare away some applicants 4. Applicants are motivated to attract employers, which conflicts with their need for complete and accurate information about the job and workplace — applicant reluctant to ask information (e.g., salaries, promotions) that might look unfavorable to employers

Stage 2: Encounter • Begins first day in new work environment • Newcomers test how pre-employment expectations fit reality • Reality shock — stress from perceived discrepancies between pre-employment expectations

and on-the-job reality • Unmet expectations versus unrealistic expectations — both produce reality shock, but “unmet” attributes fault to employer, “unrealistic” expectations attributes fault to applicant (self)

Stage 3: Role Management • Most active as employees transition from newcomers to insiders • Strengthen relationships with co-workers and supervisors • New role behaviors, attitudes, values consistent with new position and organization • Resolve conflicts between work and nonwork activities

Slide 23: Improving Organizational Socialization Realistic job preview (RJP) • Balance of positive/negative information about job and work context • Helps applicants estimate their fit with the job and organization • Scares away some applicants; reduces turnover, higher job performance; less reality shock

Socialization agents • Socialization occurs mainly through socialization agents • Supervisors — provide technical information, performance feedback, buffering them from

excessive demands, help them form social ties with co-workers • Co-workers — easily accessible, answer questions, serve as role models, being flexible and tolerant with new hires

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Chapter 13: Organizational Culture

STUDENT HANDOUT

CRITICAL-THINKING QUESTIONS 1. All members of the executive team at Claybuild, a national manufacturer of bricks and related building materials, strongly believe that quality control and efficiency are the two cornerstones of the company’s future success. Every Claybuild executive meeting begins by discussing ways to improve product quality and operate more efficiently in the manufacturing process, distribution system, and administrative processes. The company’s website proudly describes its dedication to quality and efficiency. The CEO has given speeches to several retail client events on Claybuild’s quality–efficiency culture. However, an industry expert suggests that quality and efficiency represent Claybuild’s espoused culture, but not so much its enacted culture. What does the industry expert mean by this, and what evidence might suggest that his or her opinion is correct?

2. Some people suggest that the most effective organizations have the strongest cultures.

What do we mean by the “strength” of organizational culture, and what possible problems are there with a strong organizational culture?

3. “Organizations are more likely to succeed when they have an adaptive culture.” What can an organization do to foster an adaptive culture?

4. Suppose you are asked by senior officers of a city government to identify ways to reinforce a new culture of teamwork and collaboration. The senior executive group clearly supports these values, but it wants everyone in the organization to embrace them. Identify four types of activities that would strengthen these cultural values

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Chapter 13: Organizational Culture

CONFIDENTIAL INSTRUCTOR NOTES

SUGGESTED ANSWERS TO CRITICALTHINKING QUESTIONS 1.

All members of the executive team at Claybuild, a national manufacturer of bricks and related building materials, strongly believe that quality control and efficiency are the two cornerstones of the company’s future success. Every Claybuild executive meeting begins by discussing ways to improve product quality and operate more efficiently in the manufacturing process, distribution system, and administrative processes. The company’s website proudly describes its dedication to quality and efficiency. The CEO has given speeches to several retail client events on Claybuild’s quality–efficiency culture. However, an industry expert suggests that quality and efficiency represent Claybuild’s espoused culture, but not so much its enacted culture. What does the industry expert mean by this, and what evidence might suggest that his or her opinion is correct?

Espoused values are values that corporate leaders hope will eventually become the organization’s culture, or at least the values they want others to believe guide the organization’s decisions and actions. In this incident, Claybuild’s leaders and the company’s website claim that the company’s actually culture emphasizes quality and efficiency, but the industry expert suggests that these values are not enacted values. Values are enacted when they actually guide and influence decisions and behavior. They are values put into practice. In other words, the industry expert suggests that employee behavior is not actually guided by the values (or assumptions) of quality and efficiency.

It is possible that Claybuild’s leaders have embraced the values of quality and efficiency. The ritual of beginning each executive meeting with ways to improve quality and efficiency may be an artifact of the executive subculture.

The industry executive may have come to his/her conclusions in several ways. First, the actual behavior of employees might imply a lack of emphasis on quality and/or efficiency. For example, the expert might have noticed inefficient work activities that are not as apparent in competitor organizations. Second, the expert may have observed artifacts that contradict these values. For instance, the language employees use might reveal their distain for quality or efficiency, or some of their daily rituals and routines may symbolize inefficiency or a poor orientation to quality. The expert may have come to his/her conclusions from casually interviewing employees across the organization. For instance, he/she may have witnessed employee cynicism regarding the executive emphasis on quality and efficiency.

2.

Some people suggest that the most effective organizations have the strongest cultures. What do we mean by the “strength” of organizational culture, and what possible problems are there with a strong organizational culture?

Cultural strength refers to how many employees in the organization accept the dominant values; how strongly, deeply, and intensely they believe in these values; and how long these values have dominated in the organization. Strong cultures are long-lasting, dispersed across subunits, deeply internalized by employees, and institutionalized through well-established artifacts.

Although potentially beneficial, strong cultures also create three potential problems. First, strong culture increases organizational effectiveness only when the cultural content is appropriate for the organization’s environment. If the cultural values are incompatible with the environment, then the organization is misaligned and will be less effective.

A second problem is that a company’s culture might be so strong that employees blindly focus on the mental model shaped by that culture. They have difficulty seeing different perspectives of problems and, consequently, might not make appropriate decisions.

A third problem with strong cultures is that they discourage people from holding or expressing dissenting values. In the long term, this prevents organizations from nurturing new cultural values that might emerge as dominant values as the environment changes.

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Chapter 13: Organizational Culture

3.

“Organizations are more likely to succeed when they have an adaptive culture.” What can an organization do to foster an adaptive culture?

An adaptive culture exists when employees focus on the changing needs of customers and other stakeholders and support initiatives to keep pace with these changes. Organizations are more likely to succeed when they have an adaptive culture. Based on the textbook’s description of an adaptive culture, here are ways to foster such a culture: Encourage an external focus. Organizations foster an adaptive culture by adopting an external focus — creating a common mental model that the organization’s success depends on monitoring and supporting external stakeholders and by continuously adapting to their changing needs and expectations.

Create a sense of ownership. Encourage employees to assume responsibility for achieving organizational goals and performance expectations. They take responsibility for the organization’s performance and alignment with the external environment. This might occur by giving employees more autonomy, responsibility, and accountability.

Pay attention to organizational processes. Help employees to be continuously mindful of the need for continuous improvement of internal processes (e.g., productivity, customer service) to serve external stakeholders.

Support a learning orientation culture. Support employees’ efforts to engage in action-oriented discovery. Welcome learning opportunities and view reasonable mistakes as part of the learning process.

3. Suppose you are asked by senior officers of a city government to identify ways to reinforce a new culture of teamwork and collaboration. The senior executive group clearly supports these values, but it wants everyone in the organization to embrace them. Identify four types of activities that would strengthen these cultural values.

The textbook identifies four ways to strengthen organizational culture: Actions of founders and leaders. Transformational leaders strengthen organizational culture by communicating and enacting their vision of the future. Cultural values are particularly reinforced when leaders behave in ways that are consistent with the vision.

Aligning artifacts. Ceremonies, language, routine behaviors, stories, and physical workspace not only symbolize the organization’s culture; they also reinforce and maintain that culture. To support a culture of teamwork and collaboration, for example, the city might refer to employees as “team members,” engage in events that emphasize teamwork and cooperation, and rearrange the workplace in a way that encourages teamwork.

Introducing culturally consistent rewards. Reward systems strengthen corporate culture when they are consistent with cultural values. A team-oriented city might introduce more team-based rewards, for example.

Selecting and socializing employees. The city should consider hiring people whose values are consistent with teamwork and collaboration. Then, new staff should receive a formal socialization process to reinforce these values.

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Chapter 13: Organizational Culture

STUDENT HANDOUT

CASE STUDY: HILLTON’S TRANSFORMATION Twenty years ago, Hillton was a small city (about 70,000 residents) that served as an outer suburb to a large metropolitan city. Hillton treated city employees like family and gave them a great deal of autonomy in their work.

Everyone in the organization (including the two labor unions representing employees) implicitly agreed that the leaders and supervisors of the organization should rise through the ranks based on their experience. Few people were ever hired from the outside into middle or senior positions. The rule of employment at Hillton was to learn the job skills, maintain a reasonably good work record, and wait your turn for promotion.

Hillton has grown rapidly since the mid-1960s. As the population grew, so did the municipality’s workforce, to keep pace with the increasing demand for municipal services. This meant that employees were promoted fairly quickly and were almost assured lifetime employment.

Until recently, Hillton had never laid off any employee.

The organization’s culture could be described as one of entitlement and comfort. Neither the elected city councilors nor the city manager bothered departmental managers about their work. There were few cost controls, because the rapid growth placed more emphasis on keeping up with the population expansion. The public became somewhat more critical of the city’s poor service, including road construction at inconvenient times and the apparent lack of respect some employees showed toward taxpayers.

During these expansion years, Hillton put most of its money into “outside” (also called “hard”) municipal services. These included road building, utility construction and maintenance, fire and police protection, recreational facilities, and land use control.

This emphasis occurred because an expanding population demanded more of these services, and most of Hillton’s senior people came from the outside services group. For example, Hillton’s city manager for many years was a road development engineer. The “inside” workers (taxation, community services, etc.) tended to have less seniority, and their departments were given less priority.

As commuter and road systems developed, Hillton attracted more upwardly mobile professionals into the community. Some infrastructure demands continued, but now these suburban dwellers wanted more of the “soft” services, such as libraries, social activities, and community services. They also began complaining about the way the municipality was being run. The

population had more than tripled between the 1960s and 1990s, and it was increasingly apparent that the organization needed more corporate planning, information systems, organization development, and cost control systems. In various ways, residents voiced their concerns that the municipality was not providing the quality of management that they would expect from a city of its size.

In 1996, a new mayor and council replaced most of the previous incumbents, mainly on the platform of improving the municipality’s management structure.

The new council gave the city manager, along with two other senior managers, an early retirement buyout package. Rather than promoting from the lower ranks, council decided to fill all three positions with qualified candidates from large municipal corporations in the region. The following year, several long-term managers left Hillton, and at least half of those positions were filled by people from outside the organization.

In less than two years, Hillton had eight senior or departmental managers hired from other municipalities who played a key role in changing the organization’s value system. These eight managers became known (often with negative connotations) as the “professionals.” They worked closely with one another to change the way middle- and lower-level managers had operated for many years. They brought in a new computer system and emphasized cost controls where managers previously had complete autonomy.

Promotions were increasingly based more on merit than seniority.

The “professionals” frequently announced in meetings and newsletters that municipal employees must provide superlative customer service and that Hillton would become one of the most customer-friendly places for citizens and those who do business with the municipality.

To this end, these managers were quick to support the public’s increasing demand for more “soft” services, including expanded library services and recreational activities. And when population growth recently flattened out for a few years, the city manager and other professionals gained council support to lay off a few of the outside workers due to lack of demand for hard services.

One of the most significant changes was that the “outside” departments no longer held dominant positions in city management. Most of the

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Chapter 13: Organizational Culture

“professional” managers had worked exclusively in administrative and related inside jobs. Two had Master’s of Business Administration degrees. This led to some tension between the professional managers and the older outside managers.

Even before the layoffs, managers of outside departments resisted the changes more than others. These managers complained that their employees with the highest seniority were turned down for promotions. They argued for more budget and warned that infrastructure problems would cause liability problems.

Informally, these outside managers were supported by the labor union representing outside workers. The union leaders tried to bargain for more job guarantees, whereas the union representing inside workers focused more on improving wages and benefits. Leaders of the outside union made several statements in the local media that the city had “lost its heart” and that the public would suffer from the actions of the new professionals.

Discussion Questions 1.

Contrast Hillton’s earlier corporate culture with the emerging set of cultural values.

2.

Considering the difficulty in changing organizational culture, why does Hillton’s management seem to have been successful in this transformation?

3.

Identify two other strategies that the city might consider to reinforce the new set of corporate values.

Copyright © 2000 Steven L. McShane. This case is a slightly fictionalized account of actual events.

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Chapter 13: Organizational Culture

CONFIDENTIAL INSTRUCTOR NOTES

CASE STUDY: HILLTON’S TRANSFORMATION Case Synopsis This case describes organizational changes over twenty years in the municipality of Hillton (not its real name). As a community of 70,000 residents, Hillton’s rule of employment was that employees should learn the job skills, maintain a reasonably good work record, and wait their turn for promotion. The organization’s culture could be described as one of entitlement and comfort. The community grew rapidly as an outer suburb of a large Midwest metropolitan area, so there were few cost or employment controls and senior people came mainly from outside departments (e.g., road building). But as the city expanded and more professionals moved into the area, increased pressure was placed on “soft” services and customer service. In the mid-1990s, a new mayor and city council was elected. Over the next two years, the city manager and several senior managers were replaced with qualified candidates from large municipal corporations elsewhere. The new executives, known as the “professionals,” dramatically changed municipal practices and values (e.g., customer service, performance-based employment). They experienced resistance from workers in outside departments, who no longer had coworkers in senior positions.

What Actually Happened: This case is adapted from actual events in a suburban municipality along the west coast of North America. The community has continued to grow (after the temporary slow down) and has developed a very professional approach to municipality management. It has become a center for trade and home to a large upwardly- mobile population with diverse cultural backgrounds. Although some degree of entitlement value still exists among employees, it is mostly overshadowed by the need for good customer service.

Note: Since writing this case, other municipal leaders have commented to the author about similar experiences, either about the dichotomy between inside and outside workers or about the entitlement culture that they faced when joining the organization. In other words, the inside-outside conflict as well as the customer-focused culture issue are not unique to Hillton.

Suggested Answers to Case Questions 1.

Contrast Hillton’s earlier corporate culture with the emerging set of cultural values.

During the early years, Hillton’s corporate culture was described as one of entitlement and comfort. The rewards and promotion system reinforce seniority and city employees faced few controls from elected officials. There was little emphasis on customer service.

In contrast, Hillton’s emerging corporate culture — which was introduced by the new group of city managers — places more emphasis on performance and customer service. The value of entitlement has weakened significantly, as noted by the layoffs and decreased importance of seniority in promotions. Accountability also seems to be a value or belief that has gained importance.

2.

Considering the difficulty in changing organizational culture, why does Hillton’s management seem to be reasonably successful at this transformation?

One of the main reasons why Hillton’s corporate culture has changed relatively easily is that there has been a complete overhaul among the senior management as well as elected officials. This enabled the new group to send a common signal to employees regarding the emerging set of corporate values. They were consistent in their leadership behaviors. Moreover, they seem to have altered the reward system (promotions) to be more consistent with the new set of cultural values.

A second reason why the cultural transformation occurred was that there was external pressure to change. The community was no longer growing quickly and people living in the community had developed a different set of

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Chapter 13: Organizational Culture

needs from the municipality. Moreover, there were complains about poor services. It is likely that employees increasingly realized that the old corporate culture was now misaligned with the external environment.

3.

Identify two other strategies that the city might consider to entrench the new set of corporate values.

The textbook identifies four strategies for strengthening an organization’s culture. Two of these — role of leaders and introducing culturally-consistent rewards — have been applied by city managers. Students may therefore identify any two of the following three strategies: One strategy for maintaining and strengthening the new corporate culture is to carefully select and socialize new hires.

The municipality should test the customer service orientation and respect for accountability among people who apply for positions. Employee orientation and training programs could be introduced to further reinforce the emerging belief system.

Another strategy is to introduce other artifacts that support the new culture. These might range from customerfocused symbols throughout buildings and special ceremonies and everyday rituals that might remind employees of the customer orientation.

Other Issues to Consider This case raises other organizational behavior topics that instructors may want to discuss in class. One of these is the process of organizational change. Another topic is organizational power, influence, and politics. For example, students should consider the influence tactics used by outsiders to retain their control.

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Chapter 13: Organizational Culture

SA

SELF-ASSESSMENT 13.1: WHICH CORPORATE CULTURE DO YOU PREFER?

Overview and Instructions An organization’s culture may be very appealing to some people and much less so to others. After all, each of us has a hierarchy of personal values, and that hierarchy may be compatible or incompatible with the company’s shared values.

This corporate culture preferences scale estimates the extent to which students prefer each of four corporate cultures.

These corporate cultures may be found in many organizations, but they represent only four of many possible organizational cultures. Students should also keep in mind none of these subscales is inherently good or bad. Each is effective in different situations.

Students are asked read each pair of the statements in the Corporate Culture Preference Scale and circle the statement that describes the organization they would prefer to work in. Class discussion will focus on the importance of matching job applicants to the organization’s dominant values.

Feedback for the Corporate Culture Preference Scale This self-assessment estimates the extent to which students prefer each of four corporate cultures. Each subscale has a potential score ranging from 0 to 6 points. Higher scores indicate that students have a stronger preference for organizations with that type of culture. The tables provide norms based on a sample of more than 200 MBA students.

Control Culture This culture values the role of senior executives to lead the organization. Its goal is to keep everyone aligned and under control. Scores on this subscale range from 0 to 6. The average score among a sample of MBA students was 1.1.

Score

Interpretation

3 to 6

Strong preference

.6 to 2

Average preference

0 to .5

Low preference

Performance Culture This culture values individual and organizational performance and strives for effectiveness and efficiency. Scores on this subscale range from 0 to 6. The average score among a sample of MBA students was 2.9.

Score

Interpretation

5 to 6

Strong preference

3 to 4

Average preference

0 to 2

Low preference

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Chapter 13: Organizational Culture

Relationship Culture This culture values nurturing and well-being. It considers open communication, fairness, teamwork, and sharing a vital part of organizational life. Scores on this subscale range from 0 to 6. The average score among a sample of MBA students was 3.9.

Score

Interpretation

5 to 6

Strong preference

3.6 to 4.9

Average preference

0 to 3.5

Low preference

Responsive Culture This culture values its ability to keep in tune with the external environment, including being competitive and realizing new opportunities. Scores on this subscale range from 0 to 6. The average score among a sample of MBA students was 4.1.

Score

Interpretation

5 to 6

Strong preference

3.6 to 4.9

Average preference

0 to 3.5

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Chapter 14: Organizational Change

Instructor’s Manual to Accompany

M:Organizational Behavior 5/e

by Steven L. McShane and Mary Ann Von Glinow

Chapter 14: Organizational Change Prepared by Steven L. McShane, University of Newcastle (Australia)

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Chapter 14: Organizational Change

14

Organizational Change

LEARNING OBJECTIVES After reading this chapter, students should be able to:

14-1 Describe the elements of Lewin’s force field analysis model.

14-2 Discuss the reasons why people resist organizational change and how change agents should view this resistance.

14-3 Outline six strategies for minimizing resistance to change, and debate ways to effectively create an urgency to change.

14-4 Discuss how leadership, coalitions, social networks, and pilot projects assist organizational change.

14-5 Describe and compare action research and appreciative inquiry as formal approaches to organizational change.

14-6 Discuss two cross-cultural and three ethical issues in organizational change.

CHAPTER GLOSSARY action research — a problem-focused change process that combines action orientation (changing attitudes and behavior) and research orientation (testing theory through data collection and analysis) appreciative inquiry — an organizational change strategy that directs the group’s attention away from its own problems and focuses participants on the group’s potential and positive elements force field analysis — Kurt Lewin’s model of systemwide change that helps change agents diagnose the forces that drive and restrain proposed organizational change

positive organizational behavior — a perspective of organizational behavior that focuses on building positive qualities and traits within individuals or institutions as opposed to focusing on what is wrong with them refreezing — the latter part of the change process in which systems and conditions are introduced that reinforce and maintain the desired behaviors unfreezing — the first part of the change process whereby the change agent produces disequilibrium between the driving and restraining forces

CHAPTER SUMMARY BY LEARNING OBJECTIVE 14-1 Describe the elements of Lewin’s force field analysis model.

Lewin’s force field analysis model states that all systems have driving and restraining forces. Change occurs through the process of unfreezing, changing, and refreezing. Unfreezing produces disequilibrium between the driving and restraining forces. Refreezing realigns the organization’s systems and structures with the desired behaviors.

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Chapter 14: Organizational Change

14-2 Discuss the reasons why people resist organizational change and how change agents should view this resistance.

Restraining forces are manifested as employee resistance to change. The main reasons people resist change are the negative valence of change, fear of the unknown, the not-invented-here syndrome, breaking routines, incongruent team dynamics, and incongruent organizational systems. Resistance to change should be viewed as a resource, not an inherent obstacle to change. Change agents need to view resistance as task conflict rather than relationship conflict. Resistance is a signal that the change agent has not sufficiently strengthened employee readiness for change. It is also a form of voice, so discussion potentially improves procedural justice.

14-3 Outline six strategies for minimizing resistance to change, and debate ways to effectively create an urgency to change.

Organizational change requires employees to have an urgency for change. This typically occurs by informing them about driving forces in the external environment. Urgency to change also develops by putting employees in direct contact with customers. Leaders often need to create an urgency to change before the external pressures are felt, and this can occur through a vision of a more appealing future.

Resistance to change may be minimized by keeping employees informed about what to expect from the change effort (communicating), teaching employees valuable skills for the desired future (learning), involving them in the change process, helping employees cope with the stress of change, negotiating trade-offs with those who will clearly lose from the change effort, and using coercion (sparingly and as a last resort)..

14-4 Discuss how leadership, coalitions, social networks, and pilot projects assist organizational change.

Every successful change requires transformational leaders with a clear, well-articulated vision of the desired future state. They also need the assistance of several people (a guiding coalition) who are located throughout the organization. In addition, change occurs more informally through social networks. Viral change operates through social networks using influencers.

Many organizational change initiatives begin with a pilot project. The success of the pilot project is then diffused to other parts of the organization. This occurs by applying the MARS model, including motivating employees to adopt the pilot project’s methods, training people to know how to adopt these practices, helping to clarify how the pilot can be applied to different areas, and providing time and resources to support this diffusion.

14-5 Describe and compare action research and appreciative inquiry as formal approaches to organizational change.

Action research is a highly participative, open systems approach to change management that combines an action orientation (changing attitudes and behavior) with research orientation (testing theory). It is a databased, problem-oriented process that diagnoses the need for change, introduces the intervention, and then evaluates and stabilizes the desired changes.

Appreciative inquiry embraces the positive organizational behavior principle by focusing participants on the positive and possible. This approach to change also applies the constructionist, simultaneity, poetic, and anticipatory principles. The four stages of appreciative inquiry include discovery, dreaming, designing, and delivering.

14-6 Discuss two cross-cultural and three ethical issues in organizational change.

One significant concern is that organizational change theories developed with a Western cultural orientation potentially conflict with cultural values in some other countries. Also, organizational change practices can raise one or more ethical concerns, including increasing management’s power over employees, threatening individual privacy rights, and undermining individual self-esteem.

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Chapter 14: Organizational Change

LECTURE OUTLINE Slide 1: Organizational Change Slide 2: Learning Objectives 14-1 Describe the elements of Lewin’s force field analysis model.

14-2 Discuss the reasons why people resist organizational change and how change agents

should view this resistance.

14-3 Outline six strategies for minimizing resistance to change, and debate ways to

effectively create an urgency to change.

14-4 Discuss how leadership, coalitions, social networks, and pilot projects assist

organizational change.

14-5 Describe and compare action research and appreciative inquiry as formal approaches

to organizational change.

14-6 Discuss two cross-cultural and three ethical issues in organizational change.

Slide 3: Driving and Restraining Forces Organizations operate as open systems that need to keep pace with ongoing changes in their external environment Force field analysis model — Hhighly respected model of change developed by social psychologist Kurt Lewin Driving forces • Push organizations toward change • Includes external forces (e.g., new competitors, technologies) • Leader’s vision inspires employees to strive for higher standards

Restraining forces • Resistance to change –— block the change process • Try to maintain the status quo

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Chapter 14: Organizational Change

Slide 4: Force Field Analysis Model Effective change occurs by unfreezing the current situation, moving to a desired condition, and then refreezing the system so it remains in the desired state Unfreezing • Producing disequilibrium between the driving and restraining forces

Stability • When driving and restraining forces are roughly in equilibrium (i.e., approximately equal

strength in opposite directions)

Refreezing • Introducing systems and conditions that reinforce and maintain the desired behaviors • Support and reinforce the new role patterns and prevent the organization from slipping back

into the old ways

Slide 5: Understanding Resistance to Change Many forms of resistance — complaints, overt work stoppages, passive noncompliance • Subtle resistance is much more common than overt resistance — more difficult to address

because not as obvious

Change agents tend to view resistance as relationship conflict — i.e., they describe people who resist as unreasonable, dysfunctional, and irrational (personal characteristics) Effective change agents view resistance as task conflict and a form of voice Resistance as task conflict — resistance signals that (a) employees not sufficiently ready for change or (b) the change strategy should be revised • Lack urgency to change, lack acceptance of the specific change initiative • Lack confidence to change, believe change will make them worse off

Resistance as a form of voice • Redirect resistance into constructive conversations • May improve procedural justice and serve as a motivational force • Encourages better decisions through employee involvement — may increase employee

motivation and commitment to the change

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Chapter 14: Organizational Change

Slide 6: Why People Resist Change (1 of 2) 1. Negative valence of change • Employees estimate a negative negative valence outcome of change — employees imperfectly apply the rational choice decision model (same as expectancy theory model) • Resistance when more negative than positive outcomes expected • Employees consider organizational and societal consequences, not just personal outcomes 2. Fear of the unknown • Uncertainty has two negative effects on change perceptions ➡ People assume the worst (i.e., assume negative rather than positive valence of outcomes) ➡ People perceive lack of control — also has negative valence 3. Not-invented-here-syndrome • Staff oppose the change to prove their ideas were better • Most common among employees who are usually responsible for that expertise or initiative • Successful change initiated by others threatens employee self-esteem

Slide 7: Why People Resist Change (2 of 2) 4. Breaking routines • People are creatures of habit — they resist changes to routines and habits • Requires time/effort to learn new routines and role patterns 5. Incongruent team dynamics • Existing team norms contrary to the desired change 6. Incongruent organizational systems • Old systems/structures reinforce status quo — revert to past attitudes and behavior • Include rewards, information systems, patterns of authority, career paths, selection criteria

Slide 8: Unfreezing, Changing, and Refreezing Force field analysis model — effective change occurs by unfreezing the current situation, moving to a desired condition, and then refreezing the system so it remains in this desired state Unfreezing — driving forces are stronger than restraining forces (disequilibrium)

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Chapter 14: Organizational Change

Three strategies for unfreezing 1. Increase driving forces (e.g., describe external forces, management issues threats) • Strategy rarely works alone because employees respond with increase in restraining forces 2. Weaken/remove restraining forces • Strategy rarely works alone — facilitates but doesn’t motivate change 3. Increase driving forces AND reduce/remove restraining forces (preferred strategy)

Slide 9: Creating an Urgency for Change Inform employees about driving forces — competitors, changing consumer trends, changing government regulations — most difficult to change when organization is doing well • Make employees aware of external forces, explain their seriousness — but leaders often buffer

employees from the external environment, so employees underestimate the driving forces • Put executives and employees in direct contact with customers — dissatisfied customers are important and the human element energizes employees to change behaviors

Create urgency for change without external drivers • Requires persuasive influence — employees visualize future competitive threats and

environmental shifts • Use positive vision of future (makes current situation less appealing) rather than threats

Slide 10: Reducing the Restraining Forces (1 of 3) 1. Communication • Highest priority and first strategy for change • Main benefits ➡ Generates an urgency to change ➡ Reduces fear of unknown • Problems — time-consuming and potentially costly 2. Learning • Main benefits: ➡ Provides new knowledge/skills to perform well in new situation ➡ Strengthens change self-efficacy, more confident means more commitment to change • Problems — time-consuming and potentially costly

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Chapter 14: Organizational Change

Slide 11: Reducing the Restraining Forces (2 of 3) 3. Employee involvement • Employees participate in change process –— often essential • Main benefits: ➡ More personal responsibility/ownership — increases commitment to change ➡ Minimizes not-invented-here syndrome — participate in the change idea ➡ Reduces fear of unknown ➡ Better decisions about the change initiative • Problems — time-consuming, potential conflict 4. Stress Management • When communication, learning, and involvement are not enough to minimize stress –— to help employees cope with change • Main benefits: ➡ Removes some negative valence of change ➡ Less fear of unknown ➡ Less wasted energy, so more motivation to support the change process • Problems — time-consuming, expensive, doesn’t help everyone

Slide 12: Reducing the Restraining Forces (3 of 3) 5. Negotiation • Applies negotiation as the main influence tactic to gain employee compliance with change • May be necessary for those who clearly lose out form the change people (negative valence outcomes) and won’t otherwise support change • Problems — expensive; gains compliance, not commitment 6. Coercion • Least desirable strategy, but may be necessary when all other strategies fail • Assertive influence tactics — persistently reminders, frequent monitoring • Executive dismissals — remove outdated mental models and routines • Problems — reduces trust, may create subtle resistance, more politics to protect their own job security

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Chapter 14: Organizational Change

Slide 13: Refreezing the Desired Conditions Systems and structures hold (refreeze) the desired changes — otherwise people tend to revert to past behaviors Refreezing realigns systems, structures, team dynamics to support the desired change • Alter rewards to reinforce new behaviors • Change career paths • Revise information systems — feedback mechanisms relate to desired objectives — “what gets

measured, gets done”

Slide 14: Transformational Leadership and Change Transformational leaders are change agents • Champion vision of desired future • Communicate the vision meaningfully • Act consistently with the vision • Encourage employee experimentation

Strategic visions and change • Provides a sense of direction • Identifies critical success factors to evaluate change • Emotional foundation for change — links employee values to the change • Minimizes employee fear of the unknown — provides an image of the future • Clarifies role perceptions — better understanding of what employees need to learn

Slide 15: Coalitions, Social Networks, and Viral Change Change agents need a guiding coalition • Group with strong commitment to the change • Ideally a diagonal swath across the firm — representing various functions and levels • Informal influence leaders — respected (referent power)

Social networks and viral change • People connected to each other through interdependence • Viral change through principles of word-of-mouth and viral marketing • Potential for change informally through social networks • Informal influence leaders have trust and referent power — more persuasive than

communication through formal channels • Members learn from each other, particularly from influence leaders — behavior observation

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Chapter 14: Organizational Change

Slide 16: Pilot Projects and Diffusion of Change Successful change initiatives usually begin as pilot projects — pilot projects offer greater flexibility, less risk Effective diffusion of pilot project applies the MARS model 1. Motivation • Employees see success of pilot project • Reward people in the pilot project for changing their previous work practices • Apply practices that minimize resistance to change 2. Ability • Give employees the opportunity to interact with and learn from those in the pilot project • Disperse employees in the original pilot to other work units as role models and knowledge

sources 3. Clear role perceptions • Help employees understand how the practices in a pilot project apply to them (even in completely different areas) 4. Supportive situational factors • Provide resources and time necessary to adopt the practices demonstrated in the pilot project

Slide 17: Action Research Approach Meaningful change combines action orientation (changing attitudes/behavior) and research orientation (testing theory) Action orientation • Diagnose current problems • Apply interventions that resolve those problems

Research orientation • Research study approach • Data-driven, problem-oriented process • Collect data to diagnose problems • Data helps to systematically evaluate how well the intervention works

Action research adopts an open systems view • Organizations have many interdependent parts • Change agents need to anticipate intended and unintended consequences of interventions

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Chapter 14: Organizational Change

Slide 18: Action Research Process 1. Form client-consultant relationship • Assumes change agent originates outside the system • Client readiness — client’s motivation, open to meaningful change, possess abilities to complete change process 2. Diagnose need for change • Organizational diagnosis — gathering and analyzing data about an ongoing system (e.g., interviews and surveys) • Includes employee involvement — agree on change methods, schedule, expected standards of successful change 3. Introduce intervention • Applies one or more actions (e.g., managing conflict, team building, changing corporate culture) • Incremental change vs. rapid change — small steps or massive overhaul 4. Evaluate and stabilize change • Evaluating intervention effectiveness against the standards established in the diagnostic stage • Problems — outcomes aren’t apparent for a long time, or might be difficult to separate effects from other factors • Refreeze conditions to stabilize change 5. Disengage consultant’s services

Slide 19: Appreciative Inquiry Approach Frames change around positive and possible future, rather than traditional problem-focus • Build on strengths rather than focus on problems • Frame future possibilities, not problems — Ffocus on more hopeful future by looking at what is

possible • Reality has constructive value for future development

Appreciative Inquiry Principles 1. Positive principle – focus on positive events and potential 2. Constructionist principle – Reality is shaped by the questions asked 3. Simultaneity principle – Change begins when change agent gathers information 4. Poetic principle – we can choose how to perceive, frame, and describe the future (glass half full) 5. Anticipatory principle – Desirable vision motivates positive change

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Chapter 14: Organizational Change

Slide 20: Four-D Model of Appreciative Inquiry 1. Discovery • Discovering positive elements of the observed event/organization (e.g., documenting positive

customer experience) 2. Dreaming • Envisioning what might be possible in an ideal organization • Participants feel safer revealing their hopes and aspirations then discussing their own organization or predicament 3. Designing • Dialogue in which participants listen with receptivity to each other’s models and assumptions — create a common image of what should be 4. Delivering • Participants establish specific objectives and direction for their own organization based on their “should be” model

Appreciative inquiry effectiveness — Sseveral successful change stories from this approach, but not always successful • Participants need to avoid problem-oriented mindset (blame game) • Not yet clear what conditions are best for appreciative inquiry (i.e., contingencies not yet

known)

Slide 21: Cross-Cultural, Ethical Concerns with Change Cross-Cultural Concerns 1. Assumption that change occurs in a linear sequence — typical view in North America, whereas

other cultures may have more of a cyclical mental model of change 2. Assumption that change is necessarily punctuated with tension and overt conflict — even taskoriented isn’t consistent with some cultures

Ethical Concerns 1. Privacy rights of individuals — may not want to share personal information and emotions

required by action research 2. Management power — required (vs. voluntary) employee participation 3. Individuals’ self-esteem may be undermined — unfreezing requires employees to disconfirm beliefs, task competence

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Chapter 14: Organizational Change

STUDENT HANDOUT

CRITICAL- THINKING QUESTIONS 1. Use Lewin’s force field analysis to describe the dynamics of organizational change at your college/university or place where you currently work. The chapter’s opening story about Ford’s transformation provides some information, but think about other forces for and against change beyond the information provided in this vignette.

2. Senior management of a large multinational corporation is planning to restructure the organization. Currently, the organization is decentralized around geographic areas so that the executive responsible for each area has considerable autonomy over manufacturing and sales. The new structure will transfer power to the executives responsible for different product groups; the executives responsible for each geographic area will no longer be responsible for manufacturing in their area but will retain control over sales activities. Describe two types of resistance senior management might encounter from this organizational change.

3. Web Circuits is a Malaysian-based custom manufacturer for high-technology companies. Senior management wants to introduce lean management practices to reduce production costs and remain competitive. A consultant has recommended that the company start with a pilot project in one department and, when successful, diffuse these practices to other areas of the organization. Discuss the advantages of this recommendation and identify three ways (other than the pilot project's success) to make diffusion of the change effort more successful.

4. Suppose that you are vice-president of branch services at the Bank of East Lansing.

You notice that several branches have consistently low customer service ratings even though there are no apparent differences in resources or staff characteristics. Describe an appreciative inquiry process in one of these branches that might help to overcome these problems.

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Chapter 14: Organizational Change

CONFIDENTIAL INSTRUCTOR NOTES

SUGGESTED ANSWERS TO CRITICALTHINKING QUESTIONS 1.

Use Lewin’s force field analysis to describe the dynamics of organizational change at your college/university or place where you currently work. The chapter’s opening story about Ford’s transformation provides some information, but think about other forces for and against change beyond the information provided in this vignette.

This open-ended question will get students thinking about the dynamics of the external environment for car industry manufacturing firms. There are too many to list here, but some of the top factors might include cost competitiveness, changing consumer expectations and tastes, and changing government regulations (e.g., fuel efficiency). Students should not only identify these and other potential forces for change, but also forces that restrain organizational change.

2.

Senior management of a large multinational corporation is planning to restructure the organization. Currently, the organization is decentralized around geographic areas so that the executive responsible for each area has considerable autonomy over manufacturing and sales.

The new structure will transfer power to the executives responsible for different product groups; the executives responsible for each geographic area will no longer be responsible for manufacturing in their area but will retain control over sales activities. Describe two types of resistance senior management might encounter from this organizational change.

The answer to this question should include direct costs as one type of resistance to change among the geographic executives. They will lose status, power, and responsibility from the change effort. The other type of resistance to change might be incongruent organizational systems, incongruent team dynamics, or breaking routines. Unless the company has taken specific steps to alter organizational systems, these systems might still support the decentralized organizational structure. For example, communication patterns and physical structures might still be configured around the geographic rather than product structure.

Regarding team dynamics, departmental norms might support the geographic executive. For example, employees might have developed a “we-they” attitude toward product leaders in headquarters. Although the restructuring placed regional product groups under product executives, these antagonistic norms may continue.

Finally, some students might argue that resistance will occur because employees will be breaking routines. For instance, geographic executives and their employees may have formed habits regarding relations between sales and production units. Now that production units are no longer under the executives’ control, these habits must be altered and perhaps sales practices changed to fit the new reporting structure.

3.

Web Circuits is a Malaysian-based custom manufacturer for high-technology companies. Senior management wants to introduce lean management practices to reduce production costs and remain competitive. A consultant has recommended that the company start with a pilot project in one department and, when successful, diffuse these practices to other areas of the organization. Discuss the advantages of this recommendation, and identify three ways (other than the pilot project’s success) to make diffusion of the change effort more successful.

A pilot project is usually an effective change management strategy. It is more flexible and less risky than centralized organization wide programs. There are several ways to make diffusion of the change effort more successful. Several strategies are described in the textbook around the four elements of the MARS model. Here is a summary of these recommendations: Motivation: Ensure that employees see that the pilot project is successful and that people in the pilot project receive recognition and rewards for changing their previous work practices. Supervisors need to actively support and

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Chapter 14: Organizational Change

reinforce the desired behaviors. They also need to remove sources of resistance that act as counter-motivators to diffusion of change.

Ability: employees must have the ability –— the required skills and knowledge — to adopt the practices introduced in the pilot project. Also, people adopt ideas more readily when they have an opportunity to interact and learn from others who have already applied the new practices.

Role Perceptions: Employees need to understand how the practices in a pilot project apply to them even though in a completely different functional area. This requires guidance that is neither to specific, because it might not seem relevant to other areas of the organization, nor too abstract.

Situational Factors: Employees require supportive situational factors, including the resources and time necessary to adopt the practices demonstrated in the pilot project.

4.

Suppose that you are vice president of branch services at the Bank of East Lansing. You notice that several branches have consistently low customer service ratings, even though there are no apparent differences in resources or staff characteristics. Describe an appreciative inquiry process in one of these branches that might help overcome this problem.

Appreciative inquiry reframes relationships around the positive and the possible. The bank branches should look at another branch that has been successful. This increases open dialogue by redirecting attention away from internal problems. If branch rivalries are a problem, then each branch might compare itself with a successful operation in another organization or industry.

There are four main stages to appreciative inquiry. The process begins with the discovery stage, whereby the participants identify the positive elements of the observed organization. As they discuss their findings, participants shift into the dreaming stage by considering what might be possible in an ideal organization.

The third stage of appreciative inquiry is known as designing, in which participants listen with selfless receptivity to each other’s models and assumptions, and eventually form a collective model for thinking within the team.

Throughout this stage, team members shift the focus back to their own organization and eventually enter the delivering stage. This is the phase in which participants begin discussing their own organization again. They establish specific objectives and direction for their own organization based on their model of what should be.

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Chapter 14: Organizational Change

STUDENT HANDOUT

TEAM EXERCISE: STRATEGIC CHANGE INCIDENTS Instructions 1. The instructor will place students into teams, and each team will be assigned one of the scenarios presented below.

2. Each team will diagnose its assigned scenario to determine the most appropriate set of change management practices. Where appropriate, these practices should (a) create an urgency to change, (b) minimize resistance to change, and (c) refreeze the situation to support the change initiative. Each of these scenarios is based on real events.

3. Each team will present and defend its change management strategy. Class discussion regarding the appropriateness and feasibility of each strategy will occur after all teams assigned the same scenario have presented. The instructor will then describe what the organizations actually did in these situations.

Scenario 1: Greener Telco The board of directors at a large telecommunications company wants its executives to make the organization more environmentally friendly by encouraging employees to reduce waste in the workplace.

Government and other stakeholders expect the company to take this action and be publicly successful.

Consequently, the chief executive officer wants to significantly reduce paper usage, refuse, and other waste throughout the company’s many widespread offices. Unfortunately, a survey indicates that employees do not value environmental objectives and do not know how to “reduce, reuse, recycle.” As the executive responsible for this change, you have been asked to develop a strategy that might bring about meaningful behavioral change toward this environmental goal. What would you do?

Scenario 2: Go Forward Airline A major airline had experienced a decade of rough turbulence, including two bouts of bankruptcy protection, 10 chief executive officers, and morale so low that employees had ripped off company logos from their uniforms out of embarrassment. Service was terrible, and the airplanes rarely arrived or left the terminal on time. This was costing the airline significant amounts of money in passenger layovers. Managers were paralyzed by anxiety, and many had been with the firm so long that they didn’t know how to set strategic goals that worked. One-fifth of all flights were losing money, and the company overall was near financial collapse (just three months to defaulting on payroll obligations). The newly hired CEO and you must get employees to quickly improve operational efficiency and customer service. What actions would you take to bring about these changes in time?

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Chapter 14: Organizational Change

CONFIDENTIAL

INSTRUCTOR

NOTES

TEAM EXERCISE: STRATEGIC CHANGE INCIDENTS Comments for Instructors I have used this exercise several times in MBA classes and executive development programs, with consistently good results.

The activity should also work well with undergraduate university and college classes because it is straightforward and applies concepts from the textbook.

The activity is made more interesting by the fact that these scenarios involve REAL COMPANIES, so the instructor can advise students that their strategies will be compared with what the companies actually did. The PowerPoint file for this chapter includes a summary of these scenarios, including the actions taken by the two real organizations. (These PowerPoint slides appear after the slides for the chapter content.)

Scenario 1: Greener Telco The Board of Directors at a large telecommunications company want its executives to make the organization more environmentally friendly by encouraging employees to reduce waste in the workplace. There are also expectations by government and other stakeholders for the company to take this action and be publicly successful. Consequently, the chief executive officer wants to significantly reduce the use of paper, refuse, and other waste throughout the company’s many widespread offices. Unfortunately, a survey indicates that employees do not value environmental objectives and do not know how to “reduce, reuse, recycle.” As V-P Administration, you have been asked to develop a strategy that might bring about meaningful behavioral change toward these environmental goals. What would you do?

What Actually Happened: This incident describes the “Zero Waste” program several years ago at Bell Canada. Bell Canada is the largest telephone company in that country. Although the intervention occurred 15 years ago, it is a timeless incident for discussion because it applies to behavior change that might occur in any organization and would involve employees at all levels. Bell Canada invoked change by applying several strategies to minimize resistance to change. Here are the steps the telephone company took to bring about Zero waste: Communication: Employees attended information sessions and saw banners at the front entrance about the beginning of “Zero Waste.”. A task force of employee representatives kept everyone informed about developments leading up to the first day of zero waste.

Training. Employees were shown how to reduce paper waste by using both sides of paper, using scrap paper as memo pads, re-using office envelopes, and relying more on email and voice mail than written memos. In the cafeteria, they learned to separate leftover food and deposit it into the appropriate compost bin. The company also installed a special telephone hotline to answer questions about recycling. Bell Canada employees also received feedback about their progress toward the waste reduction goal. The task force weighed the garbage twice each week and publicly displayed these results on charts. The garbage was occasionally “‘audited”’ for incorrect behaviors, such as throwing apple cores in the paper recycling bin. Offending employees were politely encouraged to use the compost bin instead.

Employee involvement. Bell Canada deliberately selected the more popular employees in each department to serve on a special task force to develop the Zero Waste program. These employees quickly became champions as they took ownership of the program. They were also conduits of information and enthusiasm back to the departments where they worked.

Coercion. The Zero Waste program created barriers to wasteful behavior. Paper towels were replaced with electric hand dryers in the washrooms. Styrofoam cups were replaced with reusable mugs at each employee’s desk. Metal garbage cans at each workstation were replaced with plastic recycling bins. Employees were left with tiny reusable bags to carry nonrecyclables to specially marked bins located elsewhere in the building.

Along with these strategies, Bell Canada began the program as a pilot project in one of its largest buildings. That pilot project reduced waste by 98 percent -- — from nearly 1,000 pounds of waste each day to less than 25 pounds of waste each day. The company subsequently applied similar change management principles to improve energy conservation.

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Chapter 14: Organizational Change

CONFIDENTIAL

INSTRUCTOR

NOTES

Some students might correctly suggest that the change process is essentially applying the MARS model to alter individual behavior. Bell Canada motivated employees, changed their role perceptions, and improved their ability through training to reduce waste. Perhaps most important, Bell Canada changed the environment so that situational factors made it more difficult to engage in wasteful behavior.

References: J. Mills, “Bell Sets Example with ‘Zero Waste’ Program,” Montreal Gazette, (February 14, 1993), p. C3; C. Mahood, “Bell Zeros in on Waste,” Globe & Mail, (May 4, 1992), pp. B1, B2; “Bell Canada,” Inside Guide, (January 1993), pp. 46-48; D. Hogarth, “Firms Reap Green Harvest,” Financial Post, (June 15-17, 1991), p. 18.

Scenario 2: Go Forward Airline A major airline had experienced a decade of rough turbulence, including two bouts of bankruptcy protection, 10 chief executive officers, and morale so low that employees had ripped off company logos from their uniforms out of embarrassment.

Service was terrible and the airplanes rarely arrived or left the terminal on time. This was costing the airline significant amounts of money in passenger lay-overs. Managers were paralyzed by anxiety and many had been with the firm so long that they didn’t know how to set strategic goals that worked. One-fifth of all flights were losing money and the company overall was near financial collapse (just three months to defaulting on payroll obligations).

The newly-hired CEO and you must get employees to quickly improve operational efficiency and customer service. What actions would you take to bring about these changes in time?

What Actually Happened: Scenario #2 describes the troubles that Continental Airlines experienced during the 1980s and early 1990s. The airline was the results of seven merged airlines and had been managed badly over the previous decade.

Continental went into bankruptcy twice and was almost out of cash when Gordon Bethune and Greg Brenneman were hired as chairman and president, respectively. The company was continually losing money and its continuous costcutting only made matters worse by destroying customer service and employee loyalty. Continental executives Gordon Bethune and Greg Brenneman applied the following change management strategy: Communication. Bethune and Brenneman constantly communicated their “Go Forward” strategic plan to save the airline. Go Forward covered four cornerstones: market, financial, product, and people. Bethune and Brenneman also worked alongside baggage staff and other employees, discussing their go forward plan while performing the front-line work. The company also posted news of the change process on bulletin boards, in weekly voice mails from Bethune, and in monthly open house meetings with employees.

Training. There were no apparent training programs to change Continental airlines. Bethune and Brenneman argued that employees already knew their jobs, but lacked the opportunity and strategy to put their skills and knowledge to use.

However, Continental introduced new goals (such as on-time departures) and used Department of Transportation monthly measures as feedback on how well the company performed on these performance metrics.

Employee Involvement. Bethune and Brenneman collected the “Thou Shalt not” manual –— the guidebook on what employees are not allowed to do –— and publicly burned them in the parking lot. Then Bethune and Brenneman told employees to make customer service happen.

Coercion. Fifty-one of the 60 executives were replaced within a couple of months. Bethune and Brenneman stated that it is difficult for people who get a company into a mess to get them out. Moreover, the executives who made these mistakes for so long would not be trusted by employees to lead them into the future.

Along with these strategies, Continental introduced rewards that aligned employees with the company’s new strategic goals. Rather than reduce costs, Continental was going to improve service. Thus, employees were each paid $65 for each month that Continental placed in the top five airlines for on-time service, according to the Department of Transportation. In change management, rewards relate to introducing systems and structures to “refreeze” the desired conditions. Bethune and Brenneman also brought about rapid change by hiring senior executives (replacing those fired) with competencies and values that were more aligned with the Go Forward plan.

References: G. Brenneman, “Right Away and All at Once: How We Saved Continental,” Harvard Business Review, September-October 1998, pp. 162-79; T. Kennedy, “Confidence returns with Continental’'s strong comeback,” Minneapolis Star Tribune, February 1, 1998, p. 1A.

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Chapter 14: Organizational Change

SA

SELF-ASSESSMENT 14.1: ARE YOU READY FOR CHANGE?

Overview and Instructions People seldom accept change quickly or easily. They have good reasons for opposing change or don't understand the urgency for change, particularly where it requires them to alter their own behavior.

This self-assessment asks students to consider a specific change that they are currently experiencing. This change might be at work, at school, or in some other sphere of their life. With this specific change event in mind, students indicate the extent to which they agree or disagree with each of the statements presented. This survey has 15 statements.

Feedback for the Change Readiness Self-Assessment Most of us experience some concerns and problems when faced with change. We might not see the value of the change. We might believe the change will make us personally worse off. Or the change might bring anxiety because we don’t know its long-term consequences for us.

This self-assessment estimates readiness for change on six dimensions, each representing a different type of resistance or motivation to change. The table below provides generic norms for each subscale. A higher score means the student experiences more of the concept described. Note that higher scores on the first five dimensions indicate more resistance to change (less readiness for change) whereas a higher score on “Urgency for Change” indicates less resistance to change (higher readiness for change). There is no overall score because each dimension represents a different type of resistance or motivation to change.

Score

Interpretation

14 to 18

High score

8 to13

Moderate score

3 to 7

Low score

Direct Costs (Negative Valence of Change) This scale indicates the extent that you believe the change will personally bring you more costs than benefits. These costs might be financial or psychological (e.g., well-being).

Fear of the Unknown This scale estimates how much you resist the change due to fear of the unknown. All change includes some degree of uncertainty. This uncertainty increases the degree of risk, which is a cost to those affected by the change.

Breaking Routines This scale estimates how much you resist the change because it requires you to abandon routines and learn new behaviors. People typically resist initiatives that force them out of their comfort zones and require them to invest time and energy in learning new role patterns.

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Chapter 14: Organizational Change

Incongruent team Dynamics This scale estimates how much you resist the change because it is incongruent with team norms or expectations. A high score indicates that team member oppose he change or what it stands for.

Incongruent Organizational Systems This scale estimates how much you resist the change because it is incongruent with systems and structures that guide your work behavior. These structural impediments to change may include rewards, information, reporting arrangements, and power structures, among others.

Urgency for Change This scale estimates the extent that you believe the change is valuable, beneficial, and important for the organization. A low score indicates that you believe the change is dysfunctional or trivial for the company.

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Chapter 14: Organizational Change

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SELF-ASSESSMENT 14.2: ARE YOU TOLERANT OF CHANGE?

Overview and Instructions Some people eagerly seek out novelty and new experiences. Others are keen to maintain the status quo and predictability. No matter how much communication, involvement, and other change management strategies are applied, people in the latter category continue to resist because they have little tolerance of change.

This self-assessment provides an estimate of how tolerant people are of change. Students are asked to read each of the statements and select the response that best fits their personal belief. Class discussion should focus on the meaning of tolerance of change, how this scale might be applied in organizations, and the limitations of measuring tolerance of change in work settings.

Feedback for the Tolerance of Change Scale This measurement instrument is formally known as the “tolerance of ambiguity” scale. The original scale, developed 50 years ago, has since been revised and adapted. The instrument presented here is an adaptation of these revised instruments. People with a high tolerance for ambiguity are comfortable with uncertainty and new situations. These are characteristics of the hyperfast changes occurring in many organizations today. This instrument ranges from 10 to 70, with higher scores indicating a higher tolerance for change (i.e., higher tolerance for ambiguity). The table below indicates the range of scores for high, medium, and low tolerance for change. These norms are estimates from recent studies using some or all of these items.

Tolerance for Change Score

Interpretation

50-70

High tolerance for change

30-49

Moderate level of tolerance for change

10-29

Low tolerance for change (prefer stable work environments)

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