INSTRUCTOR’S MANUAL Michael Halinski Ryerson University Essentials of Organizational Behaviour Thi

INSTRUCTOR’S MANUAL Michael Halinski Ryerson University

Essentials of Organizational Behaviour Third Canadian Edition Stephen P. Robbins San Diego State University Timothy A. Judge University of Notre Dame Katherine E. Breward University of Winnipeg

Contents Chapter 1

What Is Organizational Behaviour?

1-1

Chapter 2

Organizational Culture

2-1

Chapter 3

Diversity in Organizations

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Chapter 4

Attitudes, Emotions, Moods, and Stress Management

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Chapter 5

Personality and Values

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Chapter 6

Perception and Individual Decision Making

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Chapter 7

Motivation

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Chapter 8

Foundations of Group Behaviour

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Chapter 9

Understanding Work Teams

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Chapter 10

Communication

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Chapter 11

Leadership

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Chapter 12

Power and Politics

12-1

Chapter 13

Conflict and Negotiation

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Chapter 14

Organizational Change

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Chapter 1 What Is Organizational Behaviour?

Chapter 1 What Is Organizational Behaviour?

Chapter Overview This chapter introduces the concept of organizational behaviour. The focus of the text is that coupling individual understanding of behaviour gained through experience with that gained through systematic OB analysis will help managers become more effective.

Many of the important challenges being faced by today’s managers are described, as are the three levels of OB study. The outline of the text is described in relation to these three levels.

Chapter Objectives After studying this chapter, the student should be able to: 1.1 Define organizational behaviour (OB) and discuss why the interpersonal skills learned through its study are important.

1.2 Assess the importance of using a scientific approach to OB. 1.3 Identify the major behavioural science disciplines that contribute to OB. 1.4 Explain why few absolutes apply to OB. 1.5 Describe the challenges and opportunities managers face when applying OB concepts in their workplaces.

1.6 Compare the three levels of analysis in this text’s OB model.

Suggested Lecture Outline

I. ORGANIZATIONAL BEHAVIOUR AND THE IMPORTANCE OF INTERPERSONAL SKILLS A. Until the late 1980s, business school curricula emphasized the technical aspects of

management, focusing on economics, accounting, finance, and quantitative techniques.

1. Course work in human behaviour and people skills received relatively less attention.

2. During the past three decades, however, business faculty have come to realize the role that understanding human behaviour plays in determining a manager’s effectiveness, and required courses on people skills have been added to many curricula.

B. Developing managers’ interpersonal skills also helps organizations attract and keep high-performing employees.

1. Regardless of labour market conditions, outstanding employees are always in short supply.

2. Companies known as good places to work have a big advantage.

3. A recent survey of hundreds of workplaces, and over 200,000 respondents, showed the social relationships among co-workers and supervisors were strongly related to overall job satisfaction.

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a. Positive social relationships also were associated with lower stress at work and lower intentions to quit. b. Having managers with good interpersonal skills is likely to make the workplace more pleasant, which in turn makes it easier to hire and keep qualified people. c. Creating a pleasant workplace also appears to make good economic sense.

Companies with reputations as good places to work have been found to generate superior financial performance.

4. We have come to understand that in today’s competitive and demanding workplace, managers can’t succeed on their technical skills alone. a. They also have to have good people skills. b. This resource has been written to help both managers and potential managers develop those people skills.

C. We’ve made the case for the importance of people skills. But neither this resource nor the discipline on which it is based is called “people skills.”

D. The term that is widely used to describe the discipline is organizational behaviour.

1. Organizational Behaviour (OB) studies the influence that individuals, groups, and structure have on behaviour within organizations. The chief goal of OB is to apply that knowledge toward improving an organization’s effectiveness.

2. OB studies three determinants of behaviour in organizations: a. individuals b. groups c. structure 3. OB applies the knowledge gained from this study to make organizations work more effectively.

4. This text will focus on: a. motivation b. leader behaviour and power c. interpersonal communication d. group structure and processes e. attitude development and perception f. change processes g. conflict and negotiation h. work design

II. COMPLEMENTING INTUITION WITH SYSTEMATIC STUDY A. People develop intuitive understandings of the behaviours of other people through

experience. This experiential, common sense method of “reading” human behaviour can often lead to erroneous predictions.

B. You can improve your predictive ability by taking the systematic approach to the study of human behaviour.

C. The fundamental assumption of the systematic approach is that human behaviour is not random. There are fundamental consistencies that underlie the behaviour of all individuals, and these fundamental consistencies can be identified and then modified to reflect individual differences.

1. Scientific study of behaviour means: examining relationships, attempting to attribute causes and effects, and basing our conclusions on scientific evidence – that is, on data gathered under controlled conditions and measured and interpreted in a reasonably rigorous manner.

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2. Evidence-based Management (EBM): This complementary approach to systematic study involves basing managerial decisions on the best available scientific evidence. Managers must become more scientific about how they think about managerial problems and not rely on instinct.

3. Intuition: your “gut feelings” about “what makes others tick.” This natural ability to guess how people will react is most accurate when coupled with systematic thinking and evidence-based management.

D. Our goal is to teach you how to use the scientific study of OB to enhance your intuitive understanding of behaviour and improve your accuracy in explaining and predicting behaviour in the workplace.

E. Big data now makes effective decision making and managing human resources easier. Managers use big data to define objectives, develop theories of causality, and test the theories to determine which employee activities are relevant to the objectives.

III. DISCIPLINES THAT CONTRIBUTE TO THE OB FIELD A. Organizational behaviour is an applied behavioural science built on contributions

from a number of behavioural disciplines, mainly psychology, social psychology, sociology, anthropology, and increasingly, political science and neuroscience.

1. Psychology’s contributions have been mainly at the individual or micro level of analysis, while the other disciplines have contributed to our understanding of macro concepts such as group processes and organization.

2. Exhibit 1-1 is an overview of the major contributions to the study of organizational behaviour.

B. Psychology: seeks to measure, explain, and sometimes change behaviour of humans and other animals.

1. Those who have contributed and continue to add to the knowledge of OB are: a. learning theorists b. personality theorists c. counselling psychologists d. industrial and organizational psychologists.

1) Early industrial/organizational psychologists studied the problems of fatigue, boredom, and other working conditions that could impede efficient work performance.

2) More recently, their contributions have expanded to include learning, perception, personality, emotions, training, leadership effectiveness, needs and motivational forces, job satisfaction, decision-making processes, performance appraisals, attitude measurement, employeeselection techniques, work design, and job stress.

C. Social psychology: generally considered a branch of psychology; blends concepts from both psychology and sociology to focus on peoples’ influence on one another.

1. One major study area is change—how to implement it and how to reduce barriers to its acceptance.

2. Social psychologists also contribute to measuring, understanding, and changing attitudes; identifying communication patterns; and building trust.

3. Finally, they have made important contributions to our study of group behaviour, power, and conflict.

D. Sociology: studies people in relation to their social environment or culture.

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1. While psychology focuses on the individual, sociology studies people in relation to their social environment or culture. a. Sociologists have contributed to OB through their study of group behaviour in organizations, particularly formal and complex organizations. b. Perhaps most importantly, sociologists have studied organizational culture, formal organization theory and structure, organizational technology, communications, power, and conflict.

E. Anthropology: the study of societies to learn about human beings and their activities.

1. Anthropologists’ work on cultures and environments has helped us understand differences in fundamental values, attitudes, and behaviour between people in different countries and within different organizations.

2. Much of our current understanding of organizational culture, organizational environments, and differences among national cultures is a result of the work of anthropologists or those using their methods.

3. As anthropology as a discipline emerged out of a colonial mindset and tradition that viewed non-Western societies as ‘primitive’, many of the insights provided by anthropological studies maintain similar biases that over-estimate the value of Western business practices.

F. Political Science: Political science is the study of systems of government but also political behaviours and activities. As such, it provides insight into the distribution of power and resources, and how those distribution decisions are influenced.

G. Neuroscience: Neuroscience is the study of the structure and function of the nervous system and brain. Neuroscientists have recently begun contributing to OB by studying topics such as the impact of hormone levels on risk-taking in business contexts, the influence of pheromones on team behaviours, and the underlying cognitive structures and neural processes that contribute to inadvertent prejudice and associated skill discounting and underutilization of workers.

IV. A BRIEF HISTORY OF OB A. Organizational behaviour as a distinct discipline started when scientific approaches

to management began to indicate that behavioural considerations were important predictors of productivity. The famous Hawthorne studies were conducted between 1924 and 1932 at Hawthorne Electrical Company. The scientists involved were trying to discover the optimal temperature, lighting levels, and work pace to maximize productivity. Instead, they discovered that being observed and having people pay attention to the efforts of workers increased productivity regardless of temperature, lighting, etc. This helped launch an entire area of study devoted to motivation and teams.

B. In the 1950s, the Carnegie School headquartered at Carnegie Mellon University was influential in directing attention to the integration of decision analysis, management science, and psychology. This resulted in the development of important concepts such as bounded rationality.

C. The 1960s and 1970s saw many developments in organizational behaviour, with important discoveries being made in the areas of motivation, team behaviour, and leadership.

D. The 1980s and 1990s saw more focus on organizational culture and organizational change.

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E. More recently, research inspired by the anthropological approach has focused on, among other things, situational models of leadership.

V. THERE ARE FEW ABSOLUTES IN OB A. Laws in the physical sciences—chemistry, astronomy, physics—are consistent and

apply in a wide range of situations.

1. They allow scientists to generalize about the pull of gravity or to be confident about sending astronauts into space to repair satellites.

2. Human beings are complex, and few, if any, simple and universal principles explain organizational behaviour. a. Because we are not alike, our ability to make simple, accurate, and sweeping generalizations is limited. b. Two people often act very differently in the same situation, and the same person’s behaviour changes in different situations. c. Not everyone is motivated by money, and people may behave differently at a religious service than they do at a party.

B. That doesn’t mean that we can’t offer reasonably accurate explanations of human behaviour or make valid predictions. It does mean that OB concepts must reflect situational, or contingency, conditions.

1. We can say x leads to y, but only under conditions specified in z—the contingency variables 2. The science of OB was developed by applying general concepts to a particular situation, person, or group.

3. For example, OB scholars would avoid stating that everyone likes complex and challenging work (the general concept), because not everyone wants a challenging job. a. Some people prefer routine to varied, or simple over complex. b. A job attractive to one person may not be to another; its appeal is contingent upon the person who holds it.

C. As you proceed through this resource, you’ll encounter a wealth of research-based theories about how people behave in organizations.

1. But don’t expect to find a lot of straightforward cause-and-effect relationships.

There aren’t many!

2. Organizational behaviour theories mirror the subject matter with which they deal, and people are complex and complicated.

VI. CHALLENGES AND OPPORTUNITIES FOR OB A. Understanding organizational behaviour has never been more important for

managers.

B. Take a quick look at the dramatic changes in organizations.

1. The typical employee is getting older.

2. The workforce is becoming increasingly diverse; corporate downsizing and the heavy use of temporary workers are severing the bonds of loyalty that tied many employees to their employers.

3. Global competition requires employees to become more flexible and cope with rapid change.

4. As a result of these changes and others such as the rising use of technology, employment options have adapted to include new opportunities for workers. Exhibit 1-2 details some of the options.

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C. Responding to Economic Pressures.

1. In 2020, the Canadian economy experienced significant uncertainty. The global coronavirus pandemic abruptly changed consumer spending habits and forced entire industries to take a break from commercial activities. The apprehension this created rippled throughout the Canadian economy, particularly in the tourism, hospitality, manufacturing, and agricultural sectors. Only slightly earlier, major energy-related projects were encountering massive public resistance, forcing some companies out of projects entirely. New real estate regulations in Ontario and British Columbia fundamentally shifted those markets, particularly for foreign investors. When things like this happen, managers are on the front lines with employees who fear being fired, who are asked to make do with less, and who worry about their futures.

2. The difference between good and bad management can be the difference between profit and loss, or ultimately, between survival and failure.

3. Managing employees well when times are good can be just as hard, if not harder, than when times are bad.

4. But the OB approaches sometimes differ. In good times, understanding how to reward, satisfy, and retain employees is at a premium. In bad times, issues like stress, decision making, and coping come to the fore.

D. Dramatic Increases in Remote Work.

1. The 2020 global pandemic had an extremely rapid and unprecedented impact on how people work, which had resulted in many office employees and knowledge workers starting to work virtually at home.

2. Remote work creates efficiencies. a. Reduced stress from reduced commuting. b. Many workers have fewer distractions at home.

3. Remote work creates challenges. a. There can be process uncertainty working from home. b. Asynchoronous forms of communication are not optimal for communicating about challenging problems. c. Issues surrounding trust can magnify when individual contributions are less visible.

4. The manager’s job in an organization where employees work virtually is different than in an organization where employees work on-site. Motivating and leading people and making collaborative decisions online require techniques and skills that are different from those required when individuals are physically present at a single location.

E. Responding to Globalization. There are many challenges faced by managers that can benefit by the use of OB concepts, including: 1. Increased foreign assignments. Managers increasingly find themselves working overseas dealing with a workforce that may hold different needs, aspirations, and attitudes.

2. Working with people from different cultures. Even if the manager stays in the domestic environment, the workers that the manager deals with may come from different cultures and backgrounds. Motivational techniques and managerial styles may have to be modified to remain effective.

3. Overseeing movement of jobs to countries with low-cost labour. Outsourcing tasks and jobs to low-labour-cost countries may make economic sense, but such decisions are not without local ramifications.

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a. Managers must be able to deal with unions, government, and the public, who see outsourcing as a threat to their livelihood. b. Balancing the needs of the company with the needs of the community is at the heart of a firm’s concerns over social responsibility.

4. Adapting to differing cultural and regulatory norms. a. Managers need to know the cultural norms of the workforce in each of the countries in which they do business. b. Managers also need to consider local and country regulations. Violating these can have implications for operations in the country and also for political relations between countries. c. Managers also need to be cognizant of differences in regulations for competitors in the country; many times, the laws will give national companies significant financial advantages over foreign subsidiaries.

F. Managing Workforce Diversity.

1. One of the most important challenges for organizations is workforce diversity. a. Whereas globalization focuses on differences among people from different countries, workforce diversity addresses differences among people within given countries.

2. Workforce diversity acknowledges a workforce of women; men and transgendered persons; many racial and ethnic groups; individuals with a variety of physical or psychological abilities; and people who differ in age and sexual orientation. a. Managing this diversity is a global concern.

3. Though we have more to say about workforce diversity in a later chapter, suffice it to say here that it presents great opportunities and poses challenging questions for managers and employees in all countries.

G. Improving Customer Service. The majority of the workforce in developed nations works in service jobs.

1. These jobs require substantial interaction with the organization’s customers: poor service experiences can lead to organizational failure.

2. Managers must create customer-responsive cultures whose employees are: a. Friendly and courteous b. Accessible c. Knowledgeable d. Prompt in responding to customer needs e. Willing to do what is necessary to please the customer H. Improving People Skills.

1. As you proceed through the chapters of this resource, we’ll present relevant concepts and theories that can help you explain and predict the behaviour of people at work.

2. In addition, you’ll gain insights into specific people skills that you can use on the job.

3. For instance, you’ll learn ways to design motivating jobs, techniques for improving your management and communication skills, and how to create more effective teams.

I. Enhancing Employee Well-Being at Work 1. The typical employee in the 1970s or 1980s showed up at a specified workplace Monday through Friday and worked for clearly defined 8- or 9-hour chunks of time.

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a. That’s no longer true for a large segment of today’s workforce as even the definition of the workplace has been expanded to include anywhere a laptop or smartphone can go. Even if employees work from home or from half a continent away, managers need to consider well-being at work. b. One of the biggest challenges to maintaining employee well-being is that organizations are asking employees to put in longer hours, either in the office or online.

1) Employees are increasingly complaining that the line between work and non-work time has become blurred, creating personal conflicts and stress. c. Second, employee well-being is challenged by heavy outside commitments.

1) Millions of single-parent households and employees with dependent parents have even more significant challenges in balancing work and family responsibilities.

2. Recent studies suggest employees want jobs that give them flexibility in their work schedules so they can better manage work–life conflicts. a. Organizations that don’t help their people achieve work–life balance will find it increasingly difficult to attract and retain the most capable and motivated employees. b. As you’ll see in later chapters, the field of OB offers a number of suggestions to guide managers in designing workplaces and jobs that can help employees reduce such conflicts.

J. Creating a Positive Work Environment.

1. A real growth area in OB research is positive organizational scholarship (also called positive organizational behaviour), which studies how organizations develop human strengths, foster vitality and resilience, and unlock potential. a. Researchers in this area say that too much of OB research and management practice has been targeted toward identifying what’s wrong with organizations and their employees. In response, they try to study what’s good about them. b. Some key independent variables in positive OB research are engagement, hope, optimism, and resilience in the face of strain.

2. Positive organizational scholars have studied a concept called “reflected bestself” – asking employees to think about when they were at their “personal best” in order to understand how to exploit their strengths.

3. Although positive organizational scholarship does not deny the value of the negative, it does challenge researchers to look at OB through a new lens and it pushes organizations to exploit employees’ strengths rather than dwell on their limitations.

K. Improving Ethical Behaviour.

1. In an organizational world characterized by cutbacks, expectations of increasing productivity, and tough competition, it’s not surprising many employees feel pressured to cut corners, break rules, and engage in other questionable practices.

2. Increasingly they face ethical dilemmas and ethical choices in which they are required to identify right and wrong conduct. a. What constitutes good ethical behaviour has never been clearly defined, and, in recent years, the line differentiating right from wrong has blurred. b. Employees see people all around them engaging in unethical practices—

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elected officials pad expense accounts or take bribes; corporate executives inflate profits so they can cash in lucrative stock options; and university administrators look the other way when winning coaches encourage scholarship athletes to take easy courses.

1) When caught, these people give excuses such as “Everyone does it” or “You have to seize every advantage nowadays.”

2) Determining the ethically correct way to behave is especially difficult in a global economy because different cultures have different perspectives on certain ethical issues.

3) Fair treatment of employees in an economic downturn varies considerably across cultures, for instance.

3. Today’s manager must create an ethically healthy climate for his or her employees, where they can do their work productively with minimal ambiguity about what right and wrong behaviours are. a. Companies that promote a strong ethical mission, encourage employees to behave with integrity, and provide strong ethical leadership can influence employee decisions to behave ethically. b. In upcoming chapters, we’ll discuss the actions managers can take to create an ethically healthy climate and help employees sort through ethically ambiguous situations.

VII. COMING ATTRACTIONS: DEVELOPING AN OB MODEL This resource will follow the three levels of OB analysis, building from the individual to the organizational perspectives. Each level builds upon the levels before it. See Exhibit 1-3.

A. Three Levels of Analysis. OB can be examined at three levels, each with its own unique perspective.

1. Individual level. Examines foundations of individual behaviour: personality, values, perception, decision making, motivation, emotions, and moods (Chapters 2–8).

2. Group level. Group behaviour is more than the sum of the behaviours of the individuals within it; additionally, individuals act differently when in groups.

The next section of the text (Chapters 9-14) explores group behaviour by providing basic group concepts and examining what makes teams effective: communication, leadership, power, politics, conflict, and negotiation.

3. Organization system level. Organizational behaviour, while composed of both individual and group behaviours, is more than the sum of its parts. Chapters 1517 describe how an organization’s structure and culture affects individual behaviour. The text finishes with change practices in organizational settings.

VIII. SUMMARY AND IMPLICATIONS FOR MANAGERS A. Managers need to develop their interpersonal, or people, skills to be effective in

their jobs.

1. Organizational behaviour (OB) investigates the impact that individuals, groups, and structure have on behaviour within an organization, and it applies that knowledge to make organizations work more effectively.

B. Here are a few specific implications for managers:

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1. Use scientifically validated information about human behaviour to help improve your interpersonal skills in the workplace. This will increase your leadership potential.

2. Use metrics and situational variables rather than hunches to explain cause-andeffect relationships.

3. Improve your technical and conceptual skills through training and staying current with organizational trends like big data.

4. Organizational behaviour can improve your employees’ work quality and productivity by showing you how to empower your employees, design and implement change programs, improve customer service, and address the worklife balance conflict.

5. Use caution when applying OB research in international contexts; some of the underlying cultural norms and expectations may vary, altering results.

6. Recognize that human behaviour in the workplace is influenced by factors at three different levels: individual, group, and organizational. Paying attention to relevant factors at all three levels rather than focusing on just one can improve management effectiveness.

Mini Case Discussion Questions Case 1: Managing Group Behaviour without Formal Power 1. Part A: What insights might Chiamara gain about group functioning by looking at individual levels of analysis? (Remember to consider what she might be able to learn about herself and the impact of her own behaviours!)

At an individual level of analysis, Chiamara would look at the impact of each group member’s communication style, personality, attitudes, and motivation on group functioning. She would consider issues such as perceptual (attribution) errors and reflect on how those issues may interfere with effective team work. She would also use scientific evidence to better understand how to correct and address things like stereotyping and cross-cultural communication barriers. Examining her teammates as well as her own personality, behaviours, and motivations may help Chiamara to better understand the otherwise puzzling responses that others have to her during group interactions. For example, she states that she wants to own a business so that she can run things “her way.” What does this attitude suggest for how she interacts with others and critiques their ideas? She cannot control the behaviour of others but she can control her own and she can leverage influence. Perhaps she needs to be especially mindful to allow others to express their opinion, for example. That one change, in and of itself, might improve her group experience.

Part B: Which of the disciplines that contribute to OB help us to better understand individual behaviour? Justify your answer.

Psychology and neuroscience both focus more on individual cognitive processes; as such, they provide the most insight at individual levels of analysis. Other disciplines, such as sociology and anthropology, generally focus more on group and organizational levels of analysis, although there can be significant overlap between disciplines.

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2. What insights might Chiamara gain about group functioning at the group level?

Be specific about how organizational behaviour insights at this level of analysis can improve group functioning.

At the group level of analysis, Chiamara would consider how the group functioned as a whole rather than focusing on individual behaviours within that group. The two levels of analysis do overlap on occasion, for example, when assessing the impact of extreme personalities on group dynamics. She may consider issues including how the group is structured, motivated, and how decisions are ultimately made (consensus or a vote, for example). Chiamara may also assess how the particular mix of people influences ability to voice. Is she, for example, the only immigrant in her group, or the only woman? If so, does that affect how the rest of the group collectively responds to her ideas? Chiamara would then assess how these factors influenced group functioning and effectiveness.

3. Is the organizational level of analysis relevant to this case? Why or why not?

Explain your answer.

The organizational level of analysis is relevant to this case because it would assess how the university’s broader culture and policies influence group functioning. A university that awards its scholarships purely on GPA, for instance, should expect group work to generate more conflict than universities that award scholarships based on a mix of community involvement, demonstrated leadership, and GPA. That is because, in the first scenario, the potential negative impact associated with a single poor grade is heightened, increasing tensions when a student fears having their marks negatively impacted by group work. There are many other examples of organizational policies, practices, and culture influencing student experiences.

Case 2: Surviving COVID Through Kindness: The Diversity Food Services Story 1. How do each of the sub-disciplines that contribute to OB help us to understand and interpret this mini case? For example neuroscience could help us predict perceptions and attributions made about actions such as laying off some workers since it deals with how we process fear, risk, and perceptions of threat. What do the other sub-disciplines offer?

Psychology and Sociology provide different lenses to analyze this case. From a Psychology perspective, it appears that individuals responded positively to the pandemic-enduced change. For example, while workers were distressed from losing their employment, they were able to cope with these losses due to the support provided by their employer. These supports provided them with additional resources to navigate the pandemic. From a Sociology perspective, it may be found that group dynamics played a role as community partners stepped up to support Diversity Foods. For example, increased community support was found through purchasing product from their new grocery store or ordering from their new catering business.

2. One of the reasons there are few absolutes in OB relates to the relevance of contingency variables – situational factors that change the effectiveness of a given response. (For example a reward, such as free tickets to a sporting event, may motivate someone or not depending on contingencies such as whether they believe the assigned task is achievable and whether they like attending sporting

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events.) What contingency variables impacted Diversity Foods’ ability to respond to the COVID crisis and what does that teach us about best practices managing other organizations?

The social justice mandate was a critical factor in allowing Diversity Foods to adapt to its environmental changes and pivot its service offering. The social justice mandate forced Diversity Foods to develop relationships with local partners, such as farmers, benefits providers, and service agencies. The long-term relationships established through this social justice mandate motivated the partners of Diversity Foods to step up throughout the pandemic, such as by sending food hampers to families or helping laid off workers fill out employment insurance paperwork, when Diversity Foods needed help the most.

What does this example teach us about best practices managing other organizations?

This case illustrates the importance of developing and maintaining long-term relationships with partners. You don’t know when you’ll need them; but when you do, you are in a better position to adapt to environmental changes when you have them.

3. Use the OB Model to describe the inputs and processes that led to the outcome of “organizational survival” for Diversity Food Services.

There are several inputs that should be considered with Diveristy Food Services. At the individual level, the workers were marginalized members of the community. At the organizational level, the culture of the organization was very community focused, such as having community development goals. These inputs allowed Diveristy Foods to embed themselves in the community and foster long-term relationships with key partners that later helped them survive.

The key processes that took place during this case involve at the group and organizational level. At the group level, leadership made key decisions which allowed Diversity Foods to pivot its offering, and retain many employees despite going through a pandemic. At the organizational level, they changed their practices from simply offering food to students to opening up a grocery store and catering business. These processes and specific process changes allowed Diversity Foods to mitigate the negative impact of the pandemic on its overall business.

Exercises 1. Self-analysis. What do you hope to gain from the study of OB? How well do you think you currently understand human behaviour in organizations? Have you ever been surprised by the actions or reactions of another person? Why? Describe what actually happened and what you were expecting to happen. What do you think may have caused the difference?

2. Web Crawling. Using an Internet search engine of your choice, find an article in either the popular press or a professional journal that relates to OB. Describe the key points of the article and detail how OB was used or should have been used in the situation.

3. Current Event. In a small group (four or fewer people per group), discuss a current event that was influenced by, or could have been positively influenced by, a clear understanding of OB. Prepare a ten-minute group presentation that concisely describes

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the current event and what the team believes to be the impact of OB. Discuss the team’s results with the class.

4. Three-Minute Elevator Introduction. Have students introduce themselves by giving their name and any other information you deem appropriate, and by offering one short one- to three-minute story about an experience they had with an organization. Give students several minutes to think about their story. Keep time, and stop students who go too long. Tell them to imagine that they are new employees introducing themselves to co-workers met in an elevator.

5. Experiences with Managers. Divide the class into groups of three and have them discuss their experiences with managers. They may discuss items such as their last performance appraisal, a job interview, or a customer service issue. Use this as a starting point to discuss the importance of "people" in an organizational context.

6. Where Do You Want to Work? Lead a class discussion on what makes good organizations and what makes bad organizations. Create two lists on the board (good and bad) and write the ideas as the students brainstorm them. Once the class has given 10-20 answers on each list, stop them, and start grouping their responses into relevant key ideas. Point out how these key ideas are the primary topics of OB studies.

7. Learn from Experience. If you have older adult students, have them share their experiences regarding how the workplace used to look. Examine such issues as the demographic make-up of the organization, and the attitudes of workers toward management. Emphasize how new the field of OB is, based upon these anecdotes.

8. Analyzing Your Organization (Cumulative Project). This is an on-going activity that will help the student better understand his or her organization, or, if the student is not currently working, the organization for which he or she would like to work. This cumulative “hands-on” project will build on the concepts of each chapter. The point of the exercise is to take the OB theories and concepts and apply them to real organizations.

There are many ways you can use this project. For example, it could serve as homework to be turned in each week, or a project to be built upon each week and turned in at the end of the class as a term paper/project. You could also use the exercise as a class discussion item, selecting students to do short discussion starter presentations several times per term. Still another use is to have them summarize their findings in small groups, and have each group report a summary to the class.

Most of these activities will involve interviewing someone who has knowledge of the topic. While interviewing someone in the subject organization is preferable, you may wish to allow students to interview outside experts to gain a greater understanding of the concepts.

Use the questions provided after each chapter of the Instructor’s Manual as a guideline, but be sure to adapt them to the student’s needs. It is desirable for students to obtain written approval from their manager or supervisor early on in the process. Because OB deals with potentially sensitive issues, it is best if the students detail the project to the relevant parties early on in the process. You may choose to have the written approval as part of the first deliverables in this project.

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Chapter 1 What Is Organizational Behaviour?

Suggested Assignments 1. Have the students discuss your course syllabus, including a description of the project, with their supervisor (or the person who will be their primary contact in cases where the student is not working for the organization to be studied in Analyzing Your Organization, No. 8 above). Submit the written approval.

2. Have the students briefly describe their chosen organization, discussing what goods or services are produced, how many employees it has, what the structure looks like, and a general overview of how the organization of study is managed. Ensure students include their relationship to the organization (they are employees, job seekers, or simply interested parties).

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Organizational Culture

Chapter 2

Chapter Overview This chapter examines organizational culture: the effects culture has on members within the organization; how members learn the culture; and how it can be changed.

Chapter Objectives After studying this chapter, the student should be able to: 2.1 Describe the common characteristics of organizational culture.

2.2 Compare the functional and dysfunctional effects of organizational culture on people and the organization.

2.3 Identify the factors that create and sustain an organization’s culture.

2.4 Explain how culture is transmitted to employees.

2.5 Demonstrate how an ethical cultures and cultures of innovation can be encouraged and fostered.

2.6 Describe both positive and toxic organizational cultures.

2.7 Assess how national culture can affect the way organizational culture is interpreted.

Suggested Lecture Outline

I. INTRODUCTION A. In Chapter 5, we found that individuals have relatively enduring and stable traits that help predict their attitudes and behaviours.

B. Organizations also have personalities, which are referred to as “cultures.”

Organizational cultures govern how that organization’s members behave

II. WHAT IS ORGANIZATIONAL CULTURE? A. Diversity in the Canadian Context: Multiculturalism as a Guiding Principle and

Formal Policy B. Organizational Culture.

1. A system of shared meaning held by members that distinguishes the organization from other organizations.

2. This is a shared medium that consists of a set of seven key characteristics of the organization values. a. These characteristics are measured on a continuum from low to high and provide a composite picture of an organization's culture. b. This becomes the basis for the feelings of shared understanding that members have about the organization, how things are done in it, and the way members are supposed to behave. c. They are: 1) Innovation and Risk Taking. The degree to which employees are encouraged to be innovative and take risks.

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2) Attention to Detail. The degree to which employees are expected to exhibit precision, analysis, and attention to detail.

3) Outcome Orientation. The degree to which management focuses on results or outcomes rather than on the techniques and processes used to achieve those outcomes.

4) People Orientation. The degree to which management decisions take into consideration the effect of outcomes on people within the organization.

5) Team Orientation. The degree to which work activities are organized around teams rather than individuals.

6) Conflict tolerance/Aggressiveness. The degree to which aggressive and competitive behaviours are viewed favorably combined with the degree to which employees are encouraged to address conflicts openly and directly.

7) Stability. The degree to which organizational activities emphasize maintaining the status quo in contrast to growth.

8) Control. The degree to which formal rules, policies, and direct supervision are used to oversee employees.

C. Culture Is a Descriptive Term.

1. Organizational culture describes how employees perceive the characteristics of an organization’s culture, not whether or not they like those characteristics. It is a descriptive term.

2. Job satisfaction seeks to measure affective responses to the work environment: it is concerned with how employees feel about the organization. It is an evaluative term.

D. Do Organizations Have Uniform Cultures?

1. Culture is a system of shared meaning; therefore, individuals of dissimilar backgrounds or at varying levels in the organization should describe the organization's culture in similar terms despite their differences. a. This doesn't mean, however, that an organization's culture is completely uniform.

2. Dominant Culture. a. This is the overall organizational culture as expressed by the core values held by the majority of the organization's members. b. When people are asked to portray an organization's culture, they normally describe the dominant culture: a macro view that gives an organization its distinct personality.

3. Subcultures. a. These subsets of the overall culture tend to develop in larger organizations to reflect the common problems, situations, or experiences that are unique to members of certain departments or geographical areas. b. The subculture retains the core values of the dominant culture but adds to, or modifies, them to reflect their own distinct situation.

E. Strong versus Weak Cultures.

1. Strong cultures have a greater impact on employee behaviour and are more directly related to reduced turnover.

2. Strong Culture. a. This exists when an organization's core values are both intensely held and widely shared.

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b. The greater the number of members who accept the core values and the greater their commitment to these values, the stronger the culture is. c. A strong culture creates an internal climate of high behavioural control and builds cohesiveness, loyalty, and organizational commitment, which, in turn, reduces turnover.

3. Weak Culture. a. In this case, the organization's core values are not widely held or intensely felt. b. These cultures have far less impact on member behaviour.

F. Culture versus Formalization.

1. Since strong organizational culture increases behavioural consistency, strong culture can act as a substitute for formalization.

2. Strong culture achieves the same ends as formalization, but without the need for written documentation.

3. Thus, they are two means to the same ends: predictability, orderliness, and consistency.

III. WHAT DO CULTURES DO? A. The Functions of Culture.

1. Overall, culture benefits organizations by increasing organizational commitment and the consistency of employee behaviour.

2. It also aids employees by reducing ambiguity.

3. There are five basic functions of culture that help achieve these benefits: a. Defines Boundaries. Culture creates distinctions between one organization and another. b. Identity. Culture conveys a sense of identity for its members. c. Commitment. Culture generates commitment to something that is larger than one's own self-interest. d. Social Stability. Culture is the social glue that helps hold the organization together by providing appropriate standards for socially acceptable employee behaviour. e. Control Mechanism. Culture serves as a sense-making and control mechanism that guides and shapes the attitudes and behaviour of employees.

4. Today’s trend toward decentralized organizations makes culture more important than ever, but ironically it also makes establishing a strong culture more difficult. a. When formal authority and control systems are reduced, culture’s shared meaning points everyone in the same direction. b. However, employees organized in teams may show greater allegiance to their team and its values than to the values of the organization as a whole.

5. In virtual organizations, the lack of frequent face-to-face contact makes establishing a common set of norms very difficult. Strong leadership that communicates frequently about common goals and priorities is especially important in innovative organizations.

6. Individual–organization “fit”—that is, whether the applicant’s or employee’s attitudes and behaviour are compatible with the culture—strongly influences who gets a job offer, a favourable performance review, or a promotion. a. It’s no coincidence that Disney theme park employees appear almost universally attractive, clean, and wholesome with bright smiles.

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b. The company selects employees who will maintain that image. c. On the job, a strong culture, supported by formal rules and regulations, ensures they will act in a relatively uniform and predictable way.

B. Culture Creates Climate.

1. If you’ve worked with someone whose positive attitude inspired you to do your best, or with a lackluster team that drained your motivation, you’ve experienced the effects of climate.

2. Organizational climate refers to the shared perceptions organizational members have about their organization and work environment.

3. This aspect of culture is like team spirit at the organizational level. a. When everyone has the same general feelings about what’s important or how well things are working, the effect of these attitudes will be more than the sum of the individual parts. b. The same appears true for organizations.

1) One meta-analysis found that across dozens of different samples, psychological climate was strongly related to individuals’ level of job satisfaction, involvement, commitment, and motivation.

2) A positive overall workplace climate has been linked to higher customer satisfaction and financial performance as well.

4. Dozens of dimensions of climate have been studied, including safety, justice, diversity, and customer service, to name a few. a. A person who encounters a positive climate for performance will think about doing a good job more often and will believe others support his or her success. b. Someone who encounters a positive climate for diversity will feel more comfortable collaborating with co-workers regardless of their demographic background.

5. Climate also influences the habits people adopt. a. If the climate for safety is positive, everyone wears safety gear and follows safety procedures even if individually they wouldn’t normally think very often about being safe.

C. Culture as a Liability.

1. Culture enhances organizational commitment and increases the consistency of employee behaviour.

2. From an employee’s standpoint, culture is valuable because it spells out how things are done and what’s important.

3. But we shouldn’t ignore the potentially dysfunctional aspects of culture, especially a strong one, on an organization’s effectiveness. a. Institutionalization.

1) When an organization undergoes institutionalization and becomes institutionalized—that is, it is valued for itself and not for the goods or services it produces—it takes on a life of its own, apart from its founders or members.

2) It doesn’t go out of business even if its original goals are no longer relevant.

3) Acceptable modes of behaviour become largely self-evident to members, and although this isn’t entirely negative, it does mean behaviours and habits that should be questioned and analyzed become taken for granted, which can stifle innovation and make maintaining the organization’s culture an end in itself.

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b. Barriers to change.

1) Culture is a liability when the shared values are not in agreement with those that further the organization’s effectiveness.

2) This is most likely when an organization’s environment is undergoing rapid change and its entrenched culture may no longer be appropriate.

3) Consistency of behaviour, an asset in a stable environment, may then burden the organization and make it difficult to respond to changes. c. Barriers to diversity.

1) Hiring new employees who differ from the majority in race, age, gender, disability, or other characteristics creates a paradox.

2) Management wants to demonstrate support for the differences these employees bring to the workplace, but newcomers who wish to fit in must accept the organization’s core cultural values.

3) Because diverse behaviours and unique strengths are likely to diminish as people attempt to assimilate, strong cultures can become liabilities when they effectively eliminate these advantages.

4) A strong culture that condones prejudice, supports bias, or becomes insensitive to people who are different can even undermine formal corporate diversity policies. d. Barriers to acquisitions and mergers.

1) Historically, when management looked at acquisition or merger decisions, the key factors were financial advantage and product synergy.

2) In recent years, cultural compatibility has become the primary concern.

3) All things being equal, whether the acquisition actually works seems to have more to do with how well the two organizations’ cultures match up.

4) The primary cause of failure is conflicting organizational cultures.

IV. CREATING AND SUSTAINING CULTURE A. How a Culture Begins.

1. The ultimate source of an organization's culture is its founder(s). Founders have a vision of what the organization should be and they are unconstrained by previous customs or ideologies.

2. The new organization's small size facilitates the founder’s imposition of his or her vision on all organizational members. Founders create culture in three ways: a. Employee Selection. Founders hire and keep only those employees who think and feel the same way the founders do. b. Socialization. Founders indoctrinate and socialize their employees toward the founders’ way of thinking and feeling. c. Modelling.

1) The founder acts as a role model and encourages employees to identify with him or her and to internalize the founder’s beliefs, values, and assumptions.

2) Any organizational success is attributed to the founder’s vision, attitudes, and behaviour.

3) In a sense, the organization becomes an extension of the founder’s personality.

B. Keeping a Culture Alive.

1. Once a culture exists, practices within the organization serve to maintain it by giving employees a similar set of experiences.

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2. These practices include the selection process, performance evaluation criteria, training and development activities, and promotional procedures: those who support the culture are rewarded and those who do not are penalized.

3. Selection. a. The selection process needs to identify and hire employees with relevant knowledge, skills, and abilities; one of the more critical facets of this process is ensuring that those selected have values that are consistent with those of the organization. b. Employees whose values and beliefs are misaligned with those of the organization tend to not be hired, or self-select out of the applicant pool, thereby protecting the existing organizational culture.

4. Top Management. a. The verbal messages and actions of top management establish norms of behaviour throughout the organization. b. These norms include the desirability of risk taking, level of employee empowerment, appropriate attire, and outlining successful career paths.

5. Socialization. a. New employees must adapt to the organizational culture in a process called socialization. b. While socialization continues throughout an employee's career, the initial socialization is the most critical. c. There are three stages in this initial socialization shown in Exhibit 16-1. The success of this socialization will affect employee productivity, commitment, and turnover.

1) Prearrival stage. a) This encompasses all the learning that occurs before a new member joins the organization. b) Each individual arrives with his or her own unique set of values, attitudes, and expectations both surrounding the work and the organization. c) That knowledge, plus how proactive their personality is, are the two critical predictors of how well the new employees will adjust to the new culture. d) The perception of being able to “fit in” is critical in the hiring process.

2) Encounter stage. a) This is when the new employee sees what the organization is really like and confronts the possibility that expectations and reality may diverge. b) If the employee's expectations prove to be reasonably accurate, the encounter stage merely provides a reaffirmation of the perceptions gained earlier. c) But when expectations and reality differ, new employees must undergo socialization that will detach them from their previous assumptions and replace them with another set the organization deems desirable. d) At the extreme, a new member may become disillusioned with the actualities of the job and resign: an indication of the failure of the selection process. e) The greater the number of friendship ties a newcomer has in the organization, the more likely he or she is to be committed.

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3) Metamorphosis stage. a) In this final stage, relatively long-lasting changes take place as the employee has adjusted to the work itself and internalized the work group’s values and norms. b) The more management relies on socialization programs that are formal, collective, fixed, serial, and emphasize divestiture, the greater the likelihood that the newcomer’s differences and perspectives will be stripped away and replaced by standardized and predictable behaviours. c) Successful metamorphosis should have a positive effect on new employee productivity, organizational commitment, and turnover, as the employee has internalized the norms of the organization and their work group. See Exhibit 16-2.

(1) Bringing about desired metamorphosis.

(2) Formal versus Informal. Formal programs segregate the employees from ongoing work and differentiate them in some way as a newcomer. Informal programs simply put the new employee to work.

(3) Individual versus Collective. Socialization can occur on an individual or group basis.

(4) Fixed versus Variable refers to the time scheduled when newcomers make the transition from outsider to insider. A fixed schedule establishes standardized stages of transition, such as probationary periods. Variable schedules give no advance notice of transition timetables.

(5) Serial versus Random. Serial programs use role models to train and encourage the newcomer, such as in apprenticeship programs. In random programs, role models are deliberately withheld and employees must learn to figure things out on their own.

(6) Investiture versus Divestiture. Investiture socialization assumes and confirms that newcomers have the necessary qualities and qualifications for success. Divestiture programs try to strip away certain characteristics of the recruits to reshape them into the proper role.

C. Summary: How Cultures Form.

1. Exhibit 16-3 provides a simple model of how an organization's culture is established and sustained.

2. The original culture is derived from the founder's philosophy, which in turn strongly influences the criteria used in hiring.

3. The actions of top management set the general climate of what is acceptable behaviour.

4. How well employees are socialized will depend on management’s selection of socialization method and the closeness of the new employees’ values to those of the organization.

V. HOW EMPLOYEES LEARN CULTURE A. Culture is transmitted to employees in a number of forms: stories, rituals, material symbols, and language.

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B. Stories.

1. Stories typically revolve around key events such as rule breaking, unlikely successes, workforce reductions, reactions to past mistakes, and methods of organizational coping that involve the organization's founders or other key personnel.

2. These stories anchor the present in the past and provide explanations and legitimacy for current practices.

C. Rituals.

1. These are repetitive sequences of activities that express and reinforce the key values of the organization. They highlight what goals are most important: which people are important and which are not.

D. Symbols.

1. Material symbols such as the size of offices, the elegance of furnishings, perquisites, awards and trophies, and the attire worn, all convey to employees who is important, the degree of egalitarianism desired by top management, and the kinds of appropriate behaviour.

E. Language.

1. Specialized languages, acronyms, or jargon serve as a means to identify and segregate members of a culture or subculture.

2. Once assimilated, the specialized language acts as a common denominator that unites members of a given culture or subculture.

VI. CREATING ETHICAL AND INNOVATIVE ORGANIZATIONAL CULTURES. A. Ethical cultures.

1. The organizational culture most likely to shape high ethical standards among its members is one that’s high in risk tolerance, low to moderate in aggressiveness, and focused on means as well as outcomes.

2. This type of culture also takes a long-term perspective and balances the rights of multiple stakeholders, including the communities in which the business operates, its employees, and its stockholders.

3. Managers are supported for taking risks and innovating, discouraged from engaging in unbridled competition, and guided to pay attention not just to what goals are achieved but also to how.

4. If the culture is strong and supports high ethical standards, it should have a very powerful and positive influence on employee behaviour.

5. Principles for managers that encourage development of an ethical culture include: a. Be a Visible Role Model.

1) When senior management is seen as taking the ethical highroad, it provides a positive behavioural guideline for all employees. b. Communicate Ethical Expectations.

1) The creation and use of an organizational code of ethics helps reduce ethical ambiguities and enforce the organization's primary values. c. Provide Ethical Training.

1) Training acts to reinforce the organization’s standards of conduct, clarifies ethical practices, and addresses possible ethical dilemmas. d. Visibly Reward Ethical Acts and Punish Unethical Ones.

1) Performance appraisals must include how decisions made measure up against the organization’s code of conduct.

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2) Review the means taken to achieve goals as well as the ends themselves.

3) Visibly reward those who act ethically. Just as important, unethical acts should be conspicuously punished. e. Provide Protective Mechanisms.

1) Organizations must create formal mechanisms that allow employees to discuss ethical dilemmas or report unethical behaviour without fear of reprimand (such as ethical counsellors, ombudsmen, or ethical officers) to facilitate the change to an ethical culture.

6. Setting a positive ethical climate has to start at the top of the organization. a. A study of 195 managers demonstrated that when top management emphasizes strong ethical values, supervisors are more likely to practice ethical leadership. b. This positive ethical attitude transfers down to line employees, who show lower levels of deviant behaviour and higher levels of cooperation and assistance. c. The general ethical behaviour and attitudes of other members of the department matter too for shaping individual ethical behaviour. d. Finally, employees whose ethical values are similar to those of their department are more likely to be promoted, so we can think of ethical culture as flowing from the bottom up as well.

B. Innovative cultures.

1. Although there is no guaranteed formula, certain characteristics surface repeatedly when researchers study innovative organizations. a. Innovation is a new idea applied to initiating or improving a product, process, or service.

2. Sources of innovation a. Organic structures positively influence innovation b. Long tenure in management is associated with innovation c. Innovation is nurtured when there are slack resources d. Interunit communication is high in innovative organizations

VII. POSITIVE AND TOXIC ORGANIZATIONAL CULTURE A. A positive organizational culture is one that emphasizes building on employee

strengths, rewards more than it punishes, and emphasizes individual vitality and growth.

B. Building on Employee Strengths 1. Although a positive organizational culture does not ignore problems, it does emphasize showing workers how they can capitalize on their strengths.

C. Rewarding More Than Punishing, and the Value of the “Small” Stuff 1. Although most organizations are sufficiently focused on extrinsic rewards such as pay and promotions, they often forget about the power of smaller (and cheaper) rewards such as praise.

2. Part of creating a positive organizational culture is “catching employees doing something right.”

3. Many managers withhold praise either because they’re afraid employees will coast or because they think praise is not valued.

4. Because employees generally don’t ask for praise, managers usually don’t realize the costs of failing to do it.

D. Emphasizing Vitality and Growth

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1. A positive organizational culture recognizes the difference between a job and a career.

2. It supports not only what the employee contributes to organizational effectiveness, but also how the organization can make the employee more effective—personally and professionally.

E. Limits of Positive Culture 1. Is a positive culture a panacea? Though companies have embraced aspects of a positive organizational culture, it is a new enough idea for us to be uncertain about how and when it works best.

2. Not all cultures value being positive as much as Canadian culture does, and, even within Canadian culture, there surely are limits to how far we should go to preserve a positive culture.

3. For example, Admiral, a British insurance company, has established a Ministry of Fun in its call centres to organize such events as poem writings, foosball, conker (a British game involving chestnuts) competitions, and fancy dress days.

4. When does the pursuit of a positive culture start to seem coercive or even Orwellian?

5. As Stephen Fineman (2006) notes, “Promoting a social orthodoxy of positiveness focuses on a particular constellation of desirable states and traits but, in so doing, can stigmatize those who fail to fit the template.”

6. Our point is that there may be benefits to establishing a positive culture, but an organization also needs to be careful to be objective and not pursue it past the point of effectiveness.

F. Toxic cultures 1. A toxic organizational culture is characterized by in-fighting, drama, and excessive political machinations to the point of creating unhappy and anxious employees, unnecessarily stressful work interactions, and diminished productivity. a. Leader characteristics: Since founders and leaders often set the tone for an organization’s culture having a destructive, toxic, or bullying leader can have a negative trickle-down effect on the entire organization. b. Environmental conditions: Instability and uncertainty can heighten toxicity, especially when there is a perceived threat. c. Cultural/structural characteristics: Certain types of organizational cultures are more likely to develop in toxic directions, although not all cultures with these characteristics will be problematic.

1) Companies that are outcome rather than process oriented may inadvertently encourage ethical compromises to achieve desired goals.

2) Companies that are not people oriented and that focus narrowly on task completion and short-term financial results tend to have more problems.

3) Cultures focused on individual achievements rather than team goals may develop communication styles and norms that are less empathetic and more combative.

VIII. GLOBAL IMPLICATIONS A. Organizational cultures are so powerful they often transcend national boundaries.

1. But that doesn’t mean organizations should, or could, be blissfully ignorant of local culture.

2. Organizational cultures often reflect national culture.

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B. The elements of national culture that seemed to influence organizational culture the

most included whether the culture emphasizes equity or hierarchy (power distance) and whether it generally prioritized people or tasks (this is related to Hofstede’s concept of masculinity/femininity).

C. As we can see in Exhibit 16-4, Trompenaars identified the four types of organizational cultures most likely to emerge on the basis of these two dimensions.

Incubator cultures, common in places like India, Israel, and Silicon Valley, emphasize fulfillment; guided missile cultures, common in places like Canada and Ireland, emphasize project completion; family cultures emphasize power relationships and are common in places like Pakistan and China; and Eiffel tower cultures emphasize rules, roles, and formal procedure and are common in places like France and Germany. Each type fosters different expectations for communication style, motivation techniques, promotion paths, and other important workplace behaviours.

D. One of the primary things Canadian managers can do is to be culturally sensitive.

1. Some ways in which Canadian managers can be culturally sensitive include talking in a low tone of voice, speaking slowly, listening more, and avoiding discussions of religion and politics.

E. The management of ethical behaviour is one area where national culture can rub up against corporate culture.

F. Canadian managers endorse the supremacy of anonymous market forces and implicitly or explicitly view profit maximization as a moral obligation for business organizations.

1. This worldview sees bribery, nepotism, and favouring personal contacts as highly unethical.

2. Any action that deviates from profit maximization may indicate that inappropriate or corrupt behaviour may be occurring.

3. In contrast, managers in developing economies are more likely to see ethical decisions as embedded in a social environment.

4. That means doing special favours for family and friends is not only appropriate but may even be an ethical responsibility.

G. Managers in many nations also view capitalism skeptically and believe the interests of workers should be put on a par with the interests of shareholders.

IX. SUMMARY A. Employees form an overall subjective perception of the organization based on

factors such as degree of risk tolerance, team emphasis, and support of people.

1. This overall perception becomes, in effect, the organization’s culture or personality and affects employee performance and satisfaction, with stronger cultures having greater impact.

B. Cultures are sustained and transmitted through both formal and informal socialization. The role of informal socialization is such that subcultures can develop within organizations.

C. It is possible to foster ethical, positive, and safety-minded cultures if those cultures are properly modelled and reinforced.

D. National culture will influence organizational culture preferences and expectations.

This can be a source of confusion in a globalized work setting.

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X. IMPLICATIONS FOR MANAGERS A. Realize that an organization’s culture is relatively fixed in the short term.

1. To effect change, involve top management and strategize a long-term plan.

B. Hire individuals whose values align with those of the organization; these employees

will tend to remain committed and satisfied. Not surprisingly, “misfits” have considerably higher turnover rates.

C. Understand that employees’ performance and socialization depend to a considerable degree on their knowing what to do and not do.

1. Train your employees well and keep them informed of changes to their job roles.

D. As a manager, you can shape the culture of your work environment, sometimes as much as it shapes you.

1. All managers can especially do their part to create an ethical culture.

E. Be aware that your company’s organizational culture may not be transportable to other countries.

1. Understand the cultural relevance of your organization’s norms before introducing new plans or initiatives overseas.

XI. KEEP IN MIND A. Organizational culture develops over time and reflects deeply held values to which employees are strongly committed.

B. Ethical and positive organizational cultures can be created—methods differ.

C. National culture influences organizational culture.

Mini Case Discussion Questions Case 1: Developing and Maintaining a Safety Culture 1. Why have Sanjay and Sophia failed to foster a safety culture in their workplace?

What specifically acts to undermine that change?

There are several things undermining the safety culture in this organization. The CEO does not model proper behaviours himself. The supervisors do not enforce basic safety rules. There is a team-based incentive plan that creates pressure causing people to rush, compromise safety, and come to work while ill. Production quotas seem aggressive, stressing out employees and further exacerbating this problem.

2. Will their new strategy (putting up posters) work? If yes, why? If no, why not?

Posters are unlikely to do anything because workers know about the safety rules; they are simply choosing to ignore them. Posters do not address the issues of inappropriate behaviour modelling, a stressful work pace, and incentive plan-induced peer pressure.

3. What would they have to do to institute meaningful change in the safety culture at this organization?

Supervisors and managers would have to model and reinforce proper behaviour themselves. The incentive plan may need to be changed to lessen peer pressure and reduce motivation to work while ill. Workers need to buy in to the idea that a safety culture benefits them directly physically, socially, and financially. Having workers

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participate directly in improving the safety culture can foster that buy-in. Creating new team-based bonuses based on a clean safety record can redirect peer pressure in more positive ways but may also inhibit accident reporting so caution is needed. It may be better to institute regular safety audits with small individual rewards for compliance with proper safety processes.

Case 2: Organizational Culture at the RCMP 1. Why is this such a strong culture? What aspects of its founding and early history would have helped support the development of a strong culture?

In a strong culture, the organization’s core values are both intensely held and widely shared. Members of the RCMP have an intensely held value system that has dated approximately 150 years. The values grew out of a need to defend European settlements as far back as the 1870s. These values are consistent with a para-military force and a hyper-masculine ideal of toughness, strength, and dominance.

These values have been reinforced over the years through the consistent communication of these values. For example, RCMP members regularly perform ‘cavalry drills’ and celebrate the Musical Ride performance. They have also established an informal slogan: “always get their man”. This slogan encourages a focus on end results rather than process and highlights again the inherent “toughness” of members of the force, who are expected to persist through any obstacles to reach their goal.

The more members who accept the core values and the greater their commitment, the stronger the culture and the greater its influence on member behaviour.

The relative homogeneity among community members combined with familiarity and shared values makes many of these organizations an excellent example of strong organizational cultures 2. What aspects or characteristics of this organizational culture have contributed to the RCMP’s difficulty in addressing behavioural issues within the force?

Remember to consult the definition of organizational culture (the 8 characteristics) and the liabilities of culture when answering.

There are several organizational culture characteristics that have contributed to difficulty in addressing behavioral issues within the force.

Outcome Orientation refers to the degree to which management focuses on results or outcomes rather than on the techniques and processes used to achieve those outcomes.

The RCMP largely believe that the ends justify the means. For example, their informal slogan is “always get their man”.

Team Orientation refers to the degree to which work activities are organized around teams rather than individuals. Since much of the RCMP work is team based, many of the values will be shared and reinforced through team dynamics.

Conflict tolerance/Aggressiveness refers to the degree to which aggressive and competitive behaviours are viewed favorably combined with the degree to which employees are encouraged to address conflicts openly and directly. Key components of the RCMP value system is based on hyper-masculinity, which implies aggressiveness through toughness and dominance.

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Control refers to the degree to which formal rules, policies, and direct supervision are used to oversee employees. The RCMP is highly hierarchical. This hierarchy provides a lot of control at the top of the organization, and limits the potential for bottom up changes.

Exercises 1. Self-analysis. How consumer-responsive are you? Using the key variables mentioned in the chapter, assess your personality and your organization’s culture. Write up your findings and give specific examples of what you believe can be done to increase your consumer responsiveness in this organization.

2. Web Crawling. Using your favourite search engine, search on the term “creating ethical organizations” or “positive organizational culture.” Find four articles related to the topic of your choice and write up a brief synopsis that explains how managers can create such an organization. Compare your findings to the suggestions given by the authors in your text.

3. Teamwork. Slogan Analysis: break the class into teams; each team is tasked with creating a list of 12 slogans (or sayings) they have seen or heard that describe an organization’s culture (e.g., “Quality Is Job 1” for Ford, “Have It Your Way” at Burger King, or “It wasn’t invented here!”). Clearly write each of these slogans on a large Postit® note (one slogan per note sheet). When all groups are completed, collect the Postits® and randomly stick them on the wall or whiteboard. Gather the class in front of the notes and give them a few moments to read over the cards and then provide the following guidance: As a group, you have one minute to organize these notes into columns of like organizational cultural variables. No talking is allowed. Everyone and anyone can move the notes from one column to another: no one is in charge. Use your own individual beliefs as to where a card belongs.

Give them one minute to organize the cards. Ensure they do not speak. If two people keep moving a single card back and forth between two columns, create a second card with the same slogan and stick one copy of the card under each column. When the minute is up, give them 15 seconds to silently look over their arrangement. Then give them 15 seconds more for any final changes. Have them return to their seats. Move column by column through the arrangement and lead a discussion over what organizational cultural variable each column represents. Seek and point out any commonalities with the slogans and the cultural variables mentioned in the text.

4. Analyzing Your Organization (Cumulative Project). Have the students meet with some of the “old-timers” in their organization. Have them discuss the various stories that shaped the organization’s culture throughout the years. You might ask them what the founder was like, and what his or her values and belief system were or are. Relate these findings to the current organizational culture. Is it the same? If not, what has changed over the years, and why? Relate this to any existing materials, symbols, or special language that defines the current culture of the organization.

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Suggested Assignment Divide the class into groups of three to five students each. Ask each group to go to http://www.slideshare.net and search for Hora Tjitra’s presentation on developing intercultural competence.

Ask each group to place themselves into the role of Personnel Manager for a medium-sized multinational company. The company plans to expand into Viet Nam. Several managers from various foreign locations—United States, Mexico, Canada, and France—will be transferred to the new location to oversee development and operations until such time as a cadre of Vietnamese managers can be trained and educated about company policies and culture traits to assume operational leadership. Have the student groups prepare a training plan for the expatriate managers to prepare them for the rigors of the transfer.

1. Are some expatriate managers more likely to acclimatize to the new assignment than others?

2. Is there an estimate of the time and effort it will take for each of the expatriate managers to acclimatize to the new location? Are some more likely to acclimatize faster than others based on their country cultures?

3. Which may be more effective? a. The plan to acclimatize our expatriate managers for managing in Viet Nam b. A plan to hire management personnel in Viet Nam and bring them to the Canadian operations for acclimatizing to the organizational culture to apply in their culture of country.

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Chapter 3 Diversity in Organizations Chapter Overview This chapter examines individual characteristics, including age, gender, race, ethnicity, and abilities, and how they influence employee performance; how managers can increase their awareness of these characteristics, and better manage a diverse workforce.

Chapter Objectives After studying this chapter, the student should be able to: 3.1 a Describe the demographic characteristics of the Canadian labour force.

3.1 b Explain the relevance of the Multiculturalism Act and other equity-focused legislation to Canadian diversity practices.

3.1 c Assess the business benefits and management challenges associated with a diverse workforce.

3.2 Identify the key biographical characteristics that are prone to workplace stereotyping and describe how intersectionality influences the lived experiences of workers with these characteristics.

3.3 a Evaluate how stereotyping and workplace discrimination undermine equity goals.

3.3 b Develop a personal action plan to reduce non-conscious bias and discrimination.

3.4 Recommend best practices for managing diversity effectively within the organization.

Suggested Lecture Outline

I. INTRODUCTION A. In this chapter, we look at how organizations work to maximize the potential

contributions of a diverse workforce. We also show how demographic characteristics such as ethnicity and individual differences in the form of ability affect employee performance and satisfaction.

II. DIVERSITY A. Diversity in the Canadian Context: Multiculturalism as a Guiding Principle and

Formal Policy 1. The 1971 Multiculturalism Policy of Canada confirmed the rights of Indigenous Peoples and the formal status of Canada’s two official languages, English and French.

2. In 1988, this policy was supplemented by the Multiculturalism Act, which aimed to be even more inclusive. Some of the changes introduced in the Act include: (1) formal statements of support for the maintenance of languages other than Canada’s two official languages, (2) mandating programs and practices that enhance community participation for all citizens, (3) mandating programs and

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practices that enhance understanding and respect for diversity, and (4) requiring the collection of statistical data measuring the outcomes of these initiatives.

3. Multiculturalism as a policy ensures that all citizens can maintain their identities, acknowledge and celebrate their ancestry, and still have a sense of belonging in Canada. As a result, it encourages harmony and cross-cultural understanding and supports efforts to integrate all citizens and enable them to take an active part in Canada’s social, cultural, economic, and political affairs.

B. Demographic Characteristics of the Canadian Workforce 1. In the past, OB textbooks noted that rapid change was occurring as the predominantly white, male managerial workforce gave way to a genderbalanced, multiethnic one. Today, that change is well under way and progress continues, although things are certainly not fully equal yet.

2. The substantial progress so far is increasingly reflected in the makeup of managerial and professional jobs. For example, between 1976 and 2018 the employment rate among women in Canada rose from 41.9 to 57.9 percent while at the same time the employment rate for men fell from 72.7 to 65.4 percent.

3. Gender-based employment discrimination has not been completely eliminated, as we can see in the gender-gap table of Exhibit 3-1.

4. While other groups continue to experience labour market disadvantages, their employment rates indicate ongoing improvement to diversity levels in the workplace. People with disabilities, for example, had a 46.4 percent labour force participation rate in 2001. That increased to 53.6 percent by 2012.

5. Labour force surveys conducted in 2011 found that recent immigrants had a labour force participation rate of 82.9 percent, while immigrants who had been in Canada more than five years and domestic-born Canadians had rates of approximately 87 percent.

6. Workers over the age of 65 represent an increasingly large portion of the workforce as well, 18.1 percent of them reporting as employed in 2018.

C. Levels of Diversity 1. Demographics mostly reflect surface level diversity, not thoughts and feelings, and can lead employees to perceive one another through stereotypes and assumptions.

2. However, evidence has shown that as people get to know one another, they become less concerned about demographic differences if they see themselves as sharing more important characteristics, such as personality and values, that represent deep-level diversity. a. Individual differences in personality and culture shape preferences for rewards, communication styles, reactions to leaders, negotiation styles, and many other aspects of behaviour in organizations.

III. HOW DO EMPLOYEES DIFFER? BIOGRAPHICAL CHARACTERISTICS A. Diversity is a broad term, and the phrase workplace diversity can refer to any

characteristic that makes people different from one another.

1. Biographical characteristics such as age, gender, ethnicity, disability, and immigration status are some of the most obvious ways employees differ.

B. Age 1. The relationship between age and job performance is likely to be an issue of increasing importance during the next decade for many reasons.

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a. The workforce is aging. b. The graph shown as Exhibit 3-2 demonstrates the reasons for this: it shows the ratio of working-age persons (aged 15 to 64) for each person aged 65 and over. This ratio is an indicator of the changes occurring to the age structure of the Canadian population, and it shows us that our population is aging. c. The impact of this population profile is not entirely certain, as Canadian human rights legislation has, for all intents and purposes, outlawed mandatory retirement because it amounts to age discrimination. d. Employers express mixed feelings about the older worker.

They see a number of positive qualities older workers bring to their jobs, such as experience, judgment, a strong work ethic, and commitment to quality. But older workers are also perceived as lacking flexibility and resisting new technology.

2. What effect does age actually have on turnover, absenteeism, productivity, and satisfaction? a. The older you get, the less likely you are to quit your job. b. In general, older employees have lower rates of avoidable absence than do younger employees. However, they have equal rates of unavoidable absence such as sickness absences. c. Reviews of the research find that age and job task performance are unrelated and that older workers are more likely to engage in citizenship behaviour. d. The evidence is mixed regarding age and job satisfaction. Satisfaction tends to continually increase among professionals as they age, whereas it falls among nonprofessionals during middle age and then rises again in the later years.

C. Gender 1. Few issues initiate more debates, misconceptions, and unsupported opinions on gender-based differences.

2. The best place to begin to consider this is with the recognition that few, if any, important differences between men, women, and transgendered people affect job performance. a. There are no consistent male-female differences in problem-solving ability, analytical skills, competitive drive, motivation, sociability, or learning ability.

3. Unfortunately, sex roles still affect our perceptions. a. Once on the job, men and women may be offered a similar number of developmental experiences, but females are less likely to be assigned challenging positions by men, assignments that may help them achieve higher organizational positions. b. Women who succeed in traditionally male domains are perceived as less likeable, more hostile, and less desirable as supervisors. c. Research has shown that workers who experience the worst form of overt discrimination, sexual harassment, have higher levels of psychological stress, and that these feelings in turn are related to lower levels of organizational commitment and job satisfaction, and higher intentions to leave. d. Research continues to underline that although the reasons for employee turnover are complex, sex discrimination is detrimental to organizational

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performance particularly for intellectual positions, for managerial employees, in the United States, and in medium-size firms.

4. Again, it is worth asking what the implications of sex discrimination are for individuals. a. The evidence suggests that combatting sex discrimination may be associated with better performance for the organization as a whole.

D. Sexual Orientation and Gender Identity 1. In 2012 a researcher at Harvard University conducted an interesting field experiment. Fictitious but realistic résumés were sent applying for 1,700 actual entry-level job openings. The applications were identical, except that half mentioned the applicant’s involvement in gay organizations during college and half did not.

2. The experiment found that, while much has changed, the full acceptance and accommodation of gay, lesbian, bisexual, and transgender employees remains a work in progress.

3. Federal law prohibits discrimination against employees based on sexual orientation. This protection extends to all aspects of employment, including the provision of benefits to same-sex partners and common-law partners.

4. Ensuring a positive, respectful workplace and robust set of benefits for everyone is critical to retaining employees and helping them develop to their fullest potential.

E. Race, Ethnicity, and Immigration Status 1. Race is a controversial issue. a. We define race as the biological heritage people use to identify themselves; ethnicity is the additional set of cultural characteristics that often overlaps with race.

2. Race and ethnicity have been studied as they relate to outcomes such as hiring decisions, performance evaluations, pay, and experiences of workplace discrimination. We can summarize a few points. a. In employment settings, individuals tend to slightly favour colleagues of their own race in performance evaluations, promotion decisions, and pay raises, although such differences are not found consistently, especially when highly structured methods of decision making reduce the opportunity for discrimination. b. While many racial and ethnic groups experience labour market challenges in Canada, Indigenous Peoples have experienced some of the most negative outcomes. In 2012 the general unemployment rate across Canada was 7.2 percent, while for Indigenous Peoples it was 14.8 percent. When employed, Indigenous Peoples also tend to earn less than other Canadians, even when education and geographical location are taken into account. c. Recently, fewer and fewer family-class immigrants have been permitted in Canada, as can be seen in Exhibit 3-4. Both family-class and economic-class migrants do not in any way put a burden on Canadian taxpayers; rather, they bring money into the country.

Recently arrived immigrants often experience skill discounting and discrimination when attempting to enter the Canadian labour market. The degree to which this is experienced is influenced by a concept known as intersectionality, which the United Nations defines as an “attempt to capture the consequences of the interaction between two or more forms of

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subordination and address the manner in which systems create inequalities that structure the relative position of persons.” d. Labour market statistics from 20011 indicate that, in Canada, the immigrant unemployment rate (those in the country for 10 years or longer) was 7.1 percent compared to 5.5 percent for domestic-born workers. e. We can thus conclude that discrimination based on any non-job-related traits is ungrounded and destructive to individuals and organizations. How do we move beyond discrimination? The answer is in understanding one another’s viewpoint. f. Evidence suggests that some people find interacting with other racial groups uncomfortable unless there are clear behavioural scripts to guide them; therefore, creating diverse work groups focused on mutual goals might be helpful, along with developing a positive diversity climate.

F. Cultural Identity 1. We have seen that people define themselves in terms of race and ethnicity. Many people, both immigrants and domestic-born, also carry a strong cultural identity as well. This link with the culture of their ancestry or youth lasts a lifetime, no matter where the individual may live in the world. People choose their cultural identity, and they also choose how closely they observe the norms of that culture. Cultural norms influence the workplace, sometimes resulting in clashes.

Organizations must adapt. a. Thanks to global integration and changing labour markets, today’s global companies would do well to understand and respect the cultural identities of their employees, both as groups and as individuals. b. A company that violates local cultural norms will find that resistance among employees is strong, even if that resistance is not always overt. c. A company seeking to be sensitive to the cultural identities of its employees should look beyond accommodating its majority groups and instead create as much of an individualized approach to practices and norms as possible.

Often, managers can provide the bridge of workplace flexibility to meet both organizational goals and individual needs.

G. Religion 1. The Canadian Charter of Rights and Freedoms and the Human Rights Act prohibit employers from discriminating against employees on the basis of their religion. Other countries have similar regulations, but many do not and those that do, do not always enforce them effectively.

2. Perhaps the greatest religious diversity issue in Canada today revolves around Islam. Across the world, Islam is one of the most popular religions. Yet there is evidence that people are discriminated against for their Islamic faith in the Canadian job market. a. Quebec’s Bill 21, signed into law in June 2019, attempts to institutionalize this marginalization by prohibiting public employees such as teachers, lawyers, and others from wearing any religious symbols, including the hijab and, for Sikhs, turbans. This Bill is being actively fought in court by the Canadian Civil Liberties Association in cooperation with other human rights groups.

3. Faith can be an employment issue wherever religious beliefs prohibit or encourage certain behaviours.

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a. Simple steps can often be taken to overcome these issues, such as having rooms available for daily prayers or installing ventilation systems to manage smoke from First Nations smudging ceremonies.

H. Ability and Disability 1. Workers with disabilities have traditionally experienced many challenges and barriers in the labour force. People with physical or mental disabilities are more likely to be unemployed or underemployed, they are more likely to experience turnover, work part-time hours, be in entry level jobs, and experience job insecurity.

2. A sociopolitical model has become part of the human rights paradigm in Canadian legal thinking on disability. This change in perceptions of disability was part of a larger rights-based movement that included calls for greater government oversight and enforcement of basic human rights. Disablement, it maintains, is not a deviation from an individual bodily norm so much as a naturally occurring and enduring feature in every society.

3. As perspectives on disability have evolved, numerous political resources have been devoted to maximizing rates of labour force participation and the provision of employer-sponsored accommodations among workers with disabilities as one component of reaching equity goals.

4. Exceptions to the “duty to accommodate” under human rights and equity legislation include situations in which doing so creates undue hardship or when bona fide occupational requirements (BFOR)are unable to be fulfilled, which means that the position cannot be modified without creating genuine safety risk. a. It is worth noting that the criteria related to “creating morale problems with other employees” has not actually been supported in courts of law since the 1990 decision.

5. Refusal of accommodation should be an extraordinary circumstance. Providing accommodations benefits not only the individual and the employer, but also signals to other workers that the organizational culture is inclusive and supports diverse needs.

6. People with disabilities are much more likely to be stereotyped in ways that negatively impact long-term employment prospects, often being unfairly perceived as less capable or even infantile.

7. In sum, the treatment of the disabled workforce has long been problematic, but the recognition of the talents and abilities of disabled individuals has made a difference, reducing workplace discrimination.

I. Ability 1. We’ve so far covered surface characteristics unlikely, on their own, to directly relate to job performance. Now we turn to deep-level abilities that are closely related to job performance.

2. Contrary to what we were taught in grade school, we weren’t all created equal in our abilities. Most people are to the left or the right of the median on some normally distributed ability curve.

3. From management’s standpoint, the issue is not whether people differ in terms of their abilities. They clearly do. The issue is using the knowledge that people differ to increase the likelihood an employee will perform her job well.

4. What does ability mean? As we use the term, ability is an individual’s current capacity to perform the various tasks in a job. Overall abilities are essentially made up of two sets of factors: intellectual and physical.

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IV. INTELLECTUAL ABILITIES A. Ability is an individual’s current capacity to perform the various tasks in a job.

Overall abilities are made up of two sets of factors: intellectual and physical.

B. Intellectual Abilities

1. Intellectual abilities are abilities needed to perform mental activities – thinking, reasoning, and problem solving.

2. Most societies place a high value on intelligence, and for good reason.

3. Smart people generally earn more money and attain higher levels of education.

4. They are also more likely to emerge as leaders of groups.

5. As shown in Exhibit 3-6, the seven most frequently cited dimensions making up intellectual abilities are number aptitude, verbal comprehension, perceptual speed, inductive reasoning, deductive reasoning, spatial visualization, and memory.

Intellectual dimensions are positively-related, so if you score high on verbal comprehension, for example, you’re more likely to also score high on spatial visualization.

The correlations aren’t perfect, meaning people do have specific abilities that predict important work-related outcomes when considered individually.

However, they are high enough that researchers also recognize a general factor of intelligence, general mental ability (GMA).

Evidence strongly supports the idea that the structures and measures of intellectual abilities generalize across cultures.

6. Jobs differ in the demands they place on intellectual abilities. a. The more complex a job in terms of information-processing demands, the more general intelligence and verbal abilities will be necessary to perform successfully. b. Where employee behaviour is highly routine and there are few or no opportunities to exercise discretion, a high IQ is not as important to performing as well.

7. Interestingly, while intelligence is a big help in performing a job well, it doesn’t make people happier or more satisfied with their jobs.

V. PHYSICAL ABILITIES A. Though the changing nature of work suggests intellectual abilities are increasingly

important for many jobs, physical abilities have been and will remain valuable.

1. Research on hundreds of jobs has identified nine basic abilities (see Exhibit 3-7) needed in the performance of physical tasks. Individuals differ in the extent to which they have each of these abilities.

2. Disabilities in the Context of Job Specifications a. The importance of ability obviously creates problems when we attempt to formulate workplace policies that recognize diversity in terms of disability status. b. As we have noted, recognizing that individuals have different abilities that can be taken into account when making hiring decisions is not problematic. c. However, it is discriminatory to make blanket assumptions about people on the basis of a disability.

3. Discrimination

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a. Although diversity does present many opportunities for organizations, effective diversity management also means working to eliminate unfair discrimination.

1) To discriminate is to note a difference between things, which in itself isn’t necessarily bad.

2) Noticing one employee is more qualified for making hiring decisions, and noticing another is taking on leadership responsibilities exceptionally well is necessary for making promotion decisions. a) Usually when we talk about discrimination, though, we mean allowing our behaviour to be influenced by stereotypes about groups of people. Rather than looking at individual characteristics, unfair discrimination assumes everyone in a group is the same.

3) As Exhibit 3-8 shows, discrimination can occur in many ways, and its effects can be just as varied depending on the organizational context and the personal biases of its members. a) Some forms, like exclusion or incivility, are especially hard to root out because they are difficult to observe and may occur simply because the actor isn’t aware of the effects of his or her actions.

4) Whether intentional or not, discrimination can lead to serious negative consequences for employers, including reduced productivity and citizenship behaviour, negative conflicts, and increased turnover.

5) Unfair discrimination also leaves qualified job candidates out of initial hiring and promotions. a) Even if an employment discrimination lawsuit is never filed, a strong business case can be made for aggressively working to eliminate unfair discrimination.

6) Discrimination is one of the primary factors that prevent diversity, whether the discrimination is deliberate or non-conscious. a) Recognizing diversity opportunities can lead to an effective diversity management program and ultimately to a better organization.

7) Having privilege means that you are not actively stymied by systemic barriers based on group membership. For example being able to attend high school in your home community is a form of privilege that is not enjoyed by many Indigenous teens living in small reserves, they have to travel alone to larger urban centers for an education.

VI. IMPLEMENTING PERSONAL ANTI-BIAS TECHNIQUES A. There are several ways to reduce personal anti-bias techniques.

1. First, it is important to acknowledge that you have cognitive biases.

2. Second, learn more about other groups and interact with people from them more frequently 3. Third, learn more about other groups and interact with people from them more frequently

VII. IMPLEMENTING ORGANIZATIONAL DIVERSITY MANAGEMENT STRATEGIES A. Diversity management makes everyone more aware of and sensitive to the needs and differences of others.

1. Diversity is much more likely to be successful when we see it as everyone’s business than if we believe it helps only certain groups of employees.

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B. Diversity Program Basics

1. Despite this laudable goal diversity programming is sometimes perceived as a burden, inconvenience, or “just” political correctness.

2. Canadian approaches to diversity management focus on process rather than outcomes.

3. Organizational leaders should examine their workforce to determine whether target groups have been underutilized.

C. Attracting, Selecting, Developing, and Retaining Diverse Employees 1. One method of enhancing workforce diversity is to target recruiting messages to specific demographic groups underrepresented in the workforce. a. This means placing advertisements in publications geared toward specific demographic groups; recruiting at colleges, universities, and other institutions with significant numbers of underrepresented minorities, and forming partnerships with associations like the Society of Women Engineers or the Justicia Project.

1) The selection process is one of the most important places to apply diversity efforts. a) Managers who hire need to value fairness and objectivity in selecting employees and focus on the productive potential of new recruits. b) Fortunately, ensuring that hiring is bias-free does appear to work.

Where managers use a well-defined protocol for assessing applicant talent and the organization clearly prioritizes nondiscrimination policies, qualifications become far more important in determining who gets hired than demographic characteristics.

2) Organizations that do not discourage discriminatory behaviour are more likely to see problems. b. Complementary diversity interventions that have been proven effective include having formal support groups, such as a workplace LGBTQI group or an Indigenous employees’ network.

1) These groups not only provide direct support, they also act as a signal of an employer’s intention to support diversity.

D. Reconcilitation and Diversity Programming 1. Employers operating in Canada have an additional diversity-related responsibility: reconciliation with Indigenous peoples. a. Reconciliation is a means to address that harm, enable healing, and move on to better and more respectful Nation to Nation relationships.

E. Diversity in Groups 1. In some cases, diversity in traits can hurt team performance, whereas in others it can facilitate it. a. Whether diverse or homogenous teams are more effective depends on the characteristic of interest.

1) Demographic diversity (in gender, race, and ethnicity) does not appear to either help or hurt team performance in general.

2) Teams of individuals who are highly intelligent, conscientious, and interested in working in team settings are more effective. b. Groups of diverse individuals will be much more effective if leaders can show how members have a common interest in the group’s success.

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VIII. SUMMARY A. There is an official policy of multiculturalism in Canada, enabling people to feel free

to express their cultural traditions and heritage while also being committed to their Canadian identity.

B. The Canadian workforce is highly diverse, creating both opportunities and challenges for managers.

C. Differences in age, gender, sexual orientation, race, ethnicity, immigration status, religious affiliation, and ability all impact workplace experiences. These identity markers combine, or intersect, in complex ways that influence individual outcomes.

D. Stereotyping and associated discrimination can occur on a conscious or a nonconscious basis. Either way there are negative repercussions for both individuals and organizations.

E. Organizations should engage in a range of diversity management practices to ensure equitable, ethical, and legally defensible staffing decisions.

IX. IMPLICATIONS FOR MANAGERS A. Understand your organization’s antidiscrimination and diversity management

policies thoroughly and share them with your employees.

B. Assess and challenge your stereotype beliefs to increase your objectivity.

C. Look beyond readily observable biographical characteristics and consider the individual’s capabilities before making management decisions.

D. Fully evaluate what accommodations a person with disabilities will need and then fine-tune the job to that person’s abilities.

E. Seek to understand and respect the unique biographical characteristics of your employees; a fair but individualistic approach yields the best performance.

Mini Case Discussion Questions Case 1: Disability-Based Discrimination 1. Did the history of conflict between First Nations people and legal officials influence what happened here?

It seems highly likely that stereotyping occurred in this instance since the police officers ignored clear and objective evidence that disconfirmed their subjective (gut) impression that Gambler was not a legitimate service dog. In order to ignore that evidence, they would have needed to be extremely confident that their own assessment was correct.

But where would such confidence come from? People are more likely to engage in stereotyping when they perceive a threat since anxiety interferes with logical thought.

The long history of conflict (in some cases armed) between First Nations people defending their rights and police services could reinforce erroneous perceptions of threat. If Mr. Nachuk also revealed his post-traumatic stress disorder during the interaction, then common stereotypes revolving around mental health and violence risk could also have influenced the officers involved, with just as little objective justification.

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2. What does the situation experienced by Billy-Jo Nachuk tell us about our own capacity for bias and decision-making errors?

This case reinforces that even well-intentioned people can make startling errors.

Nobody is immune from bias. It is an inherent part of the way our brains function. We all need to exercise personal mental vigilance and carefully evaluate our own behaviours and attitudes on an on-going basis to determine if we are being influenced by bias. You can never fully eliminate bias, but with long-term effort, you can drastically lessen the impact it has on your decisions and behaviours.

3. Do you think providing training in the workplace about disability rights will be adequate to prevent similar incidents in the future? Why or why not? If not, what else should Brandon Police Services consider doing?

It is unlikely that this incident was caused by a lack of knowledge about disability rights.

It is possible that the officers were unaware that service dogs are used for conditions other than blindness; however, the official papers provided by Mr. Nachuk should have been sufficient to clear up any confusion if the officers were thinking objectively. The incident stemmed more from their subconscious biases and inability to objectively evaluate information that was right in front of them. Training that focuses on lessening bias and increasing empathy would therefore probably be more effective than knowledge-based training focused on legislative content and rights awareness.

Case 2: Classroom Diversity and Groups 1. What should Amy Liu do next?

Amy is facing a complex and difficult decision. The first thing she should do is realize that she is not an expert on Islamic teachings or applied diversity management. She may be poorly informed or biased and so Amy should seek additional expert opinions. For example, her university likely has a specialist in the HR department who can offer informed insight. A religious authority on Islam could also be consulted to determine what the accepted parameters for social interaction might be. Asking for qualified help when faced with a diversity dilemma is a good way to ensure that everyone’s rights are protected and both the letter and spirit of the law are followed.

One general guideline is that you should not compromise the rights of one group at the expense of the rights of another. In this case, however, it is not clear that the male student’s rights are being compromised. While he does have to work with the female students, he does not have to have direct physical contact with them. Technology mediated communications may be a viable accommodation, although a religious authority with expertise in Islam should be consulted beforehand to ensure the accommodation meets religious guidelines.

If a true stalemate were to occur, then generally, rights associated with things people cannot choose and that are genetic (such as gender, race/ethnicity, gender identity, disability, and sexual orientation) will take precedence over rights associated with identity variables that are chosen (such as religion and political orientation). Hate speech is a good example of this dynamic. Fundamentalist Christians, for example, do not have the right to openly advocate hatred of gay and lesbian people. This is a case where the rights associated with the identity dimension that is in-born and genetic

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(sexual orientation) takes precedence over the rights associated with the identity that is chosen (Fundamentalist Christian as it relates to religious freedom and free speech).

In this particular case, therefore, it is likely that the rights of female students to be free from discrimination would be prioritized over the rights of the Muslim male to exercise religious freedom in the unlikely event that no acceptable compromise was available.

2. What types of resources could and should be used to help make good decisions in ambiguous situations like this?

Amy could consult university policy and procedure manuals to see if there is a formal policy in place for these types of situations. She should also carefully review her course outline to determine how the grading and assessment policies outlined in that document may constrain her decision making.

Amy should seek additional expert opinions. Her Department Chair and Dean may be aware of similar incidents in the past and may be able to share how they were resolved.

She should not rely solely on past precedent, though. Her university likely has a specialist in the HR department who can offer informed insight. A religious authority on Islam could also be consulted to determine what the accepted parameters for social interaction might be.

3. What diversity management policies and procedures could help decision makers to make fair and defensible decisions when rights seem to be in conflict with each other?

Employees/students should have timely access to a transparent, formalized process for diversity-related requests and complaints. That process should focus on mediation, empathy creation, and bringing together interested parties for reasoned discussion and negotiation. When mediation fails, decisions should be adjudicated by committee, with the membership reflecting the diversity of the group being serviced. There should be an appeal process. This structure should exist separate from the primary decision-making hierarchy such that complainants are not forced to report up their own command chain.

(After all, what if their boss is the problem?) All of this helps to lessen the potential for individual bias and maintain consistency from one decision to the next. It also enables reporting and trend analysis such that the effectiveness of diversity programming can be better assessed moving forward.

Exercises 1. Self-analysis. What is your position on diversity in the workplace? How would you describe your attitude toward diversity? Be detailed in your analysis.

2. Web Crawling. Find and present an online article on diversity in a country other than Canada. What commonalities are exposed and what differences are shown to exist?

3. Teamwork. In small groups, meet and discuss diversity. Ask each group to prepare a list of metrics designed to measure progress in an organization toward diversity management. Each group should develop metrics to measure progress for both shortterm and long-term objectives, and each group should develop metrics for upper-, middle-, and lower-level employees. Then, as a class, discuss the metrics each group has

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developed. Look for the common ideas and discuss why they are important. Next, explore the lists for each employee level and discuss how and why they should be different.

4. Analyzing Your Organization (Cumulative Project). Ask students to brainstorm three diversity scenarios that could be encountered in an organization. For example, one scenario could involve two individuals who are up for a promotion. One is a white male, the other an Indigenous woman. The team making the decision is led by a white male.

The team promotes the white male. Then, ask students to meet with different members of their organization to discuss their views on the scenarios and how they perceive the situation was handled. Students should try to meet with as diverse a group of individuals as possible, perhaps including individuals of different ages, races, genders, and so on. What conclusions can be drawn from these responses regarding the effectiveness of their organization’s diversity management program? Keep in mind that this could be a very sensitive task, and instructors should review the need for anonymity and sensitivity in situations such as these.

Suggested Assignment 1. DiversityInc annually surveys companies, assesses their performance on a number of diversity factors, and publishes a list of their top 50 companies. Divide the class into small groups and have them visit the site at http://www.diversityinc.com, where they will find a link to the current DiversityInc Top 50.

2. Ask each group to select three of the companies listed, read the information provided, and identify the common themes on successful diversity management.

3. Have the students write up their findings and the potential impact of those general findings for the firms involved. Discuss the lessons that can be learned from these organizations.

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Chapter 4 Attitudes, Emotions, Moods, and Stress Management Chapter Overview This chapter examines the effect of attitudes, emotions, and moods on stress management in the workplace. The chapter links attitudes to behaviour, and how employees’ satisfaction or dissatisfaction with their jobs affects the workplace The chapter then explores emotions in the workplace. Specifically, the chapter examines the causes of, and influences on, emotion.

Chapter Objectives After studying this chapter, the student should be able to: 4.1 Describe the three components of an attitude and how those components relate to behaviour.

4.2 Compare and contrast the major job attitudes.

4.3 Assess potential sources and impacts of job satisfaction and dissatisfaction.

4.4 a Differentiate between emotions and moods.

4.4 b Discuss whether emotions are rational and what functions they serve.

4.5 Identify sources and triggers of emotion, including emotional labour.

4.6 Apply affective events theory in a workplace context.

4.7 Identify and implement strategies for emotion regulation and assess their likely effects.

4.8 a Identify potential sources and consequences of stress 4.8b Describe individual and organizational approaches to managing stress.

Suggested Lecture Outline

I. INTRODUCTION A. In this chapter, we start by looking at attitudes, their link to behaviour, and how employees’ satisfaction or dissatisfaction with their jobs affects the workplace.

B. Then we transition to emotions, and examine if they have an effect on behaviour.

1. Wide-standing belief that emotions of any kind were thought to be disruptive in the work environment.

2. Certainly, some emotions, particularly when exhibited at the wrong time, can hinder employee performance.

II. ATTITUDES A. Attitudes: evaluative statements—either favourable or unfavourable—concerning objects, people, or events. They reflect how one feels about something.

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1.

Attitudes are complex and the rationale behind them may not be obvious. To fully understand attitudes, we must explore their fundamental properties or components.

B. What Are the Main Components of Attitudes?

1. There are three main components of attitudes (Exhibit 4-1): a. Cognitive. The statement “My pay is low” is the cognitive component of an attitude—a description of or belief in the way things are. b. Affective. Affect is the emotional or feeling segment of an attitude and is reflected in the statement, “I am angry over how little I’m paid.” Finally, affect can lead to behavioural outcomes. c. Behaviour. This describes an intention to behave in a certain way toward someone or something—to continue the example, “I’m going to look for another job that pays better.” d. Viewing attitudes as having three components—cognition, affect, and behaviour—is helpful in understanding their complexity. Keep in mind that these components are closely related, and cognition and affect in particular are inseparable in many ways. e. Exhibit 4-1 illustrates how the three components of an attitude are related.

2. In organizations, attitudes are important for their behavioural component. If workers believe, for example, that supervisors, auditors, bosses, and time-andmotion engineers are all in conspiracy to make employees work harder for the same or less money, it makes sense to try to understand how these attitudes formed, their relationship to actual job behaviour, and how they might be changed.

C. Does Behaviour Always Follow from Attitudes?

1. While attitudes may seem to be directly causal, Leon Festinger argued that attitudes follow behaviour. People, he claimed, change what they say so it does not contradict what they do. a. Cognitive Dissonance. Leon Festinger called situations where attitudes followed behaviour cognitive dissonance. Festinger’s theory is that dissonance between what they say and what they do makes people uncomfortable and that they will take whatever actions they can to reduce that discomfort, such as changing their attitudes or behaviours.

1) Cognitive Dissonance: refers to any incompatibility that an individual might perceive between two or more attitudes, or between behaviour and attitudes.

2) According to Festinger, the level of effort that is put forth to reduce the dissonance depended on three moderating factors: a) Importance. The importance of the elements creating the dissonance modifies the level of effort. The greater the importance, the more effort will be expended to reduce the dissonance. b) Degree of influence. If a person feels he or she has some measure of control over the elements, more effort will be expended. However, if the elements are felt to be outside of the person’s control, little effort will be made to reduce dissonance. c) Rewards. What reward is there to keep or remove the dissonance?

These rewards can affect the motivation toward making changes.

People who are rewarded well for living with high dissonance tend to feel less pressure to remove the dissonance. (“I should be home with my family, yet I need to work long hours in this job. However, 4-2

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the salary is so high that I cannot leave. At least I can now afford to send my kids to a private school.”)

3) Research has generally concluded that people do seek consistency among their attitudes and between their attitudes and their behaviour.

They either alter the attitudes or the behaviour, or they develop a rationalization for the discrepancy.

4) Festinger proposed that the desire to reduce dissonance depends on moderating factors, a) including the of the elements creating it and b) the degree of influence we believe we have over them. c) A third factor is the rewards of dissonance; high rewards accompanying high dissonance tend to reduce the tension inherent in the dissonance.

D. Moderating Variables. The most powerful moderators of the attitude-behaviour relationship are: 1. Importance. Important attitudes reflect fundamental values, self-interest, or identification with individuals or groups we value. The greater the importance, the stronger the link between attitude and behaviour becomes.

2. Correspondence to Behaviour. The more closely the attitude and the behaviour are matched, the stronger the link between them.

3. Accessibility. The easier an attitude is to recall, the stronger the link. The more frequently an attitude is expressed, the more accessible it is and therefore the stronger its link becomes to behaviour.

4. Social Pressures. Exceptional social pressures can override personal attitudes and may have a stronger relation to behaviour than do the attitudes. This subservience of personal attitude to social pressure is often found in organizations.

5. Personal Direct Experience. Predictions of behaviour tend to be more accurate when the person whose behaviour is being predicted has some experience regarding the situation.

III. WHAT ARE THE MAJOR JOB ATTITUDES? A. There are three important attitudes toward work that OB has traditionally studied:

job satisfaction, job involvement, and organizational commitment. There are two other work-related attitudes that are attracting attention: perceived organizational support and employee engagement.

B. Job Satisfaction. A positive feeling about one’s job resulting from an evaluation of its characteristics.

C. Job Involvement. The degree to which people identify psychologically with their jobs and consider their perceived performance level important to self-worth.

D. Psychological Empowerment. Employees’ beliefs in the degree to which they influence their work environment, their competencies, the meaningfulness of their job, and the perceived autonomy in their work.

E. Organizational Commitment. A state in which an employee identifies with a particular organization and its goals and wishes to maintain membership in the organization.

1. A positive relationship appears to exist between organizational commitment and job productivity, but it is a modest one.

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a. A review of 27 studies suggested the relationship between commitment and performance is strongest for new employees, and considerably weaker for more experienced employees. b. Research also shows that employees who feel that their employers do not keep their promises to them feel less committed, and are consequently less creative. c. And, as with job involvement, the research evidence demonstrates negative relationships between organizational commitment and both absenteeism and turnover.

2. Research confirms the theory that employees who are committed are less likely to engage in work withdrawal even if they are dissatisfied because they feel a sense of loyalty or attachment to the organization.

F. Perceived Organizational Support (POS). The degree to which employees believe the organization values their contribution and cares about their well-being.

1. Organizations are considered supportive when they: a. Fairly provide rewards, b. Give employees a voice in decision making, and c. Provide supervisors who are seen as being supportive.

2. Research suggests employees with strong POS perceptions are more likely to have higher levels of organizational citizenship behaviours, lower levels of tardiness, and better customer service. a. Though little cross-cultural research has been done, one study found POS predicted only the job performance and citizenship behaviours of untraditional or low power-distance Chinese employees—in short, those more likely to think of work as an exchange rather than a moral obligation.

G. Employee Engagement. An individual’s involvement with, satisfaction with, and enthusiasm for, the work he or she does.

1. Conditions that can increase engagement include: a. Opportunities to learn new skills, b. Important and meaningful work, and c. Positive interactions with coworkers and supervisors.

2. Highly engaged employees have a passion for their work and feel a deep connection to their company; disengaged employees have essentially checked out—putting time but not energy or attention into their work.

3. The concept is relatively new and still generates active debate about its usefulness. a. One review of the literature concluded, “The meaning of employee engagement is ambiguous among both academic researchers and among practitioners who use it in conversations with clients.” b. Another reviewer called engagement “an umbrella term for whatever one wants it to be.” c. It is clear that the debate about the determinants and dimensions of job engagement is far from settled, but it is also clear that job engagement yields important organizational outcomes.

H. Are These Job Attitudes Really All That Distinct?

1. If people feel deeply engaged by their job (high job involvement), isn’t it probable they like it (high job satisfaction)? Won’t people who think their organization is supportive (high perceived organizational support) also feel committed to it (strong organizational commitment)?

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a. Evidence suggests these attitudes are highly-related, perhaps to a troubling degree that makes one wonder whether there are useful distinctions to be made among them. b. There is some distinctiveness among attitudes, but they overlap greatly for various reasons, including the employee’s personality.

1) If you as a manager know someone’s level of job satisfaction, you know most of what you need to know about how that person sees the organization.

2) Recent research suggests that managers tend to identify their employees as belonging to one of four distinct categories: enthusiastic stayers, reluctant stayers, enthusiastic leavers, and reluctant leavers.

IV. JOB SATISFACTION A. As mentioned earlier, this attitude is one of the oldest and most critical attitudes examined in OB studies.

B. Measuring Job Satisfaction.

1. Our definition of job satisfaction—a positive feeling about a job resulting from an evaluation of its characteristics—is clearly broad. Jobs require interacting with co-workers and bosses, following organizational rules and policies, meeting performance standards, living with less than ideal working conditions, and the like. An employee’s assessment of satisfaction with the job is thus a complex summation of many discrete elements.

2. There are two widely used approaches to measuring this attitude: a. Single Global Rating Method. This method uses responses to a single question about the job to determine job satisfaction. b. Summation Score Method. This method identifies key elements in the job and asks for the employee’s feelings about each element. Respondents answer on a standardized scale and their responses are tallied to create an overall job satisfaction score.

3. Is one of these approaches superior? Intuitively, summing up responses to a number of job factors seems likely to achieve a more accurate evaluation of job satisfaction. a. Research, however, doesn’t support the intuition. This is one of those rare instances in which simplicity seems to work as well as complexity, making one method essentially as valid as the other. b. The best explanation is that the concept of job satisfaction is so broad, a single question captures its essence. c. The summation of job facets may also leave out some important data. Both methods are helpful. d. The single global rating method isn’t very time-consuming, thus freeing time for other tasks, and the summation of job facets helps managers zero in on problems and deal with them faster and more accurately.

C. How Satisfied Are People in Their Jobs? Research shows satisfaction levels vary a lot, depending on which facet of job satisfaction you’re talking about.

1. As shown in Exhibit 4-2, people are, on average, satisfied with their jobs overall, with the work itself, and with their supervisors and co-workers.

2. However, they tend to be less satisfied with their pay and with promotion opportunities.

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3. It’s not really clear why people dislike their pay and promotion possibilities more than other aspects of their jobs.

4. While the concept appears relevant across cultures, there are still cultural differences in job satisfaction.

5. Evidence suggests that Western cultures tend to have higher levels of job satisfaction than Eastern cultures.

6. Avoid making assumptions when working with employees from around the world. Asking people about their satisfaction levels is always important, but especially when working in an unfamiliar cultural context.

D. What Causes Job Satisfaction?

1. Interesting jobs that provide training, variety, independence, and control satisfy most employees. a. A strong relation exists between how well people enjoy the social context of their workplace and how satisfied they are overall. Interdependence, feedback, social support, and interaction with co-workers outside the workplace are strongly related to job satisfaction even, after accounting for characteristics of the work itself.

2. Pay, once above a given level, does not increase satisfaction. While money may be a motivator, it does not necessarily make people happy—at least once they have enough to live comfortably.

3. Job satisfaction is not just about job conditions. Personality also plays a role.

Research has shown that people who have positive core self-evaluations—who believe in their inner worth and basic competence—are more satisfied with their jobs than those with negative core self-evaluations.

V. THE IMPACT OF SATISFIED AND DISSATISFIED EMPLOYEES ON THE WORKPLACE A. There are consequences both when employees like and dislike their jobs.

B. The Exit-Voice-Loyalty-Neglect Framework. This model is helpful in understanding

the consequences of dissatisfaction. The framework has four responses that differ from one another along two dimensions: constructive/destructive and active/passive.

1. Exit. This response involves directing behaviour toward leaving the organization. It includes both looking for a new job, as well as resigning.

2. Voice. This response involves actively and constructively attempting to improve conditions. Includes making suggestions and union activities.

3. Loyalty. This response involves passively, but optimistically, waiting for conditions to improve. It involves trusting the organization and its management to “do the right thing.”

4. Neglect. This response involves passively allowing conditions to worsen.

Includes chronic absenteeism, reduced effort, and increased error rate.

5. This model includes both typical performance variables and constructive behaviours that allow individuals to tolerate unpleasant situations.

C. Managers Often “Don’t Get It.” 1. While there is much evidence that job satisfaction can affect organizational outcomes, many managers still are unconcerned about the job satisfaction of their employees or they falsely believe employee satisfaction is high.

2. Job satisfaction must be a managerial priority and managers must measure it to manage it.

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VI. WHAT ARE EMOTIONS AND MOODS? A. Emotional Terminology:

1. Three closely related terms must be defined before we can explore the subject. a. Affect: the generic term that covers a broad range of feelings that people experience. It's an umbrella concept that encompasses both emotions and moods. b. Emotion: the intense feelings that are directed at someone or something.

1) Emotions are more fleeting than moods.

2) Emotions tend to be clearly revealed through facial expressions and are often action-oriented.

3) Emotions are reactions to a person (seeing a friend at work may make you feel glad) or an event (dealing with a rude client may make you feel angry).

4) You show your emotions when you’re “happy about something, angry at someone, afraid of something.” c. Moods: the feelings that tend to be less intense than emotions and often lack a contextual stimulus.

1) Longer lasting than emotions, moods are not usually directed at a person or event.

2) Moods are more cognitive, meaning they cause us to think or brood about a subject for a while.

3) Moods aren’t usually directed at a person or an event.

2. Exhibit 4-1 shows important relationships. a. First, it shows that affect is a broad term that encompasses emotions and moods. b. Second, it shows differences between emotions and moods.

1) Some of these differences—that emotions are more likely to be caused by a specific event, and emotions are more fleeting than moods—we just discussed.

2) Other differences are more subtle. a) For example, unlike moods, emotions like anger and disgust tend to be more clearly revealed by facial expressions. b) Also, some researchers speculate that emotions may be more actionoriented—they may lead us to some immediate action—while moods may be more cognitive, meaning they may cause us to think or brood for a while. c. Finally, the exhibit shows that emotions and moods are closely connected and can influence each other.

1) Getting your dream job may generate the emotion of joy, which can put you in a good mood for several days.

2) Similarly, if you’re in a good or bad mood, it might make you experience a more intense positive or negative emotion than otherwise.

3) In a bad mood, you might blow up in response to a co-worker’s comment that would normally have generated only a mild reaction.

3. Affect, emotions, and moods are separable in theory; in practice, the distinction isn’t always crystal clear. a. In some areas, researchers have studied mostly moods, in other areas mainly emotions. b. So, when we review the OB topics on emotions and moods, you may see more information on emotions in one area and on moods in another.

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B. The Basic Emotions.

1. There are dozens of emotions. a. They include anger, contempt, enthusiasm, envy, fear, frustration, disappointment, embarrassment, disgust, happiness, hate, hope, jealousy, joy, love, pride, surprise, and sadness. b. Numerous researchers have tried to limit them to a fundamental set.

1) But some argue that it makes no sense to think in terms of “basic” emotions because even emotions we rarely experience, such as shock, can have a powerful effect on us.

2. It’s unlikely psychologists or philosophers will ever completely agree on a set of basic emotions, or even on whether there is such a thing.

3. Many researchers have agreed on six essentially universal emotions. a. They include anger, fear, sadness, happiness, disgust, and surprise. Some even plot them along a continuum: happiness—surprise—fear—sadness— anger—disgust.

1) The closer two emotions are to each other on this continuum, the more likely people will confuse them.

2) We sometimes mistake happiness for surprise, but rarely do we confuse happiness and disgust.

C. The Basic Moods: Positive and Negative Affect.

1. One way to classify emotions is whether they are positive or negative. a. Positive Emotions. Express a favourable evaluation or feeling, such as joy and gratitude.

1) Positive Affect. The mood dimension consisting of positive emotions such as excitement, enthusiasm, and elation at the high end with boredom, depression, and fatigue at the low end. b. Negative Emotions. Express the opposite, such as anger or guilt.

1) Negative Affect. The mood dimension consisting of nervousness, stress, and anxiety at the high end with contentedness, calmness, and serenity at the low end. c. Positivity Offset. At zero input, when no stimulus is provided, most people experience a mildly positive mood. In fact, positive moods tend to be more common than negative ones.

1) The degree to which people experience positive and negative emotions can vary across cultures.

VII. THE FUNCTION OF EMOTIONS AND MOODS A. Do Emotions Make Us less rational? How often have you heard someone say “Oh,

you’re just being emotional”? You might have been offended.

1. These observations suggest rationality and emotion are in conflict, and that if you exhibit emotion you are likely to act irrationally. a. One team of authors argues that displaying emotions such as sadness to the point of crying is so toxic to a career that we should leave the room rather than allow others to witness it. b. These perspectives suggest the demonstration or even experience of emotions can make us seem weak, brittle, or irrational. c. However, research is increasingly showing that emotions are actually critical to rational thinking. There has been evidence of such a link for a long time. d. We must have the ability to experience emotions to be rational.

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1) Our emotions provide important information about how we understand the world around us.

2) The key to good decision making is to employ both thinking andfeeling in our decisions.

3) Do emotions make us ethical? People who are behaving ethically are at least partially making decisions based upon their emotions and feelings.

VIII. SOURCES OF EMOTIONS AND MOODS A. Personality. Moods and emotions have a trait component: most people have built-in tendencies to experience certain moods and emotions more frequently than others do.

1. People also experience the same emotions with different intensities.

2. People also differ in affect intensity, or how strongly they experience their emotions.

3. Affectively intense people experience both positive and negative emotions more deeply: when they’re sad, they’re really sad, and when they’re happy, they’re really happy.

B. Age. One study of people ages 18 to 94 revealed that negative emotions seem to occur less as people get older.

C. Sex. Many people believe women are more emotional than men. Evidence does confirm women are more emotionally expressive than men, experience emotions more intensely, tend to “hold onto” emotions longer, and display more frequent expressions of both positive and negative emotions, except anger.

D. Day of the Week and Time of the Day. Mood and emotion can be affected by the timing of the stimulus.

1. Time. (See Exhibit 4-2) While we commonly think of “morning” or “evening” people, the majority of the population tends to exhibit a similar pattern: moods start out low in the morning, peak during the day, and then decline in the evening. a. No matter what time a person goes to bed or gets up in the morning, the peak of a positive mood effect typically occurs midway between waking and sleeping times. b. Negative affect, however, shows little fluctuation throughout the day.

2. Day. People tend to be in their worst moods (highest negative affect and lowest positive affect) early in the week and in their best moods later in the week. a. This trend appears to be true in several other cultures as well (see Exhibit 43).

E. Weather. When do you think you would be in a better mood—when it’s warm and sunny or on a gloomy, cold, rainy day?

1. Many people believe their mood is tied to the weather. However, a fairly large and detailed body of evidence conducted by multiple researchers suggests weather has little effect on mood. Some people do experience a medical condition called seasonal affect disorder, in which depressive moods are associated with the lowered light levels of the winter months. This occurs most frequently at northern latitudes and can often be addressed with the use of special lights.

2. Illusory correlation explains why people tend to think nice weather improves their mood. It occurs when people associate two events that in reality have no connection.

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F. Stress. As you might imagine, stressful daily events at work (a nasty e-mail, an

impending deadline, the loss of a big sale, a reprimand from the boss) negatively affect moods.

1. The effects of stress also build over time.

2. Mounting levels of stress can worsen our moods, and we experience more negative emotions.

3. Although sometimes we thrive on stress, most of us find stress takes a toll on our mood.

G. Social Activities. For most people, social activities increase positive moods and have little effect on negative moods.

1. The type of social activity also has an impact on mood.

2. Physical, informal, and epicurean activities tend to increase mood more than formal or sedentary events.

3. The personality of the individual is also relevant. Introverts, for example, may find large parties stress inducing rather than stress relieving.

H. Sleep. Sleep does affect mood.

1. Sleep-deprived people report greater feelings of fatigue, irritability and are less alert.

2. Sleep quality affects mood, and increased fatigue puts workers at health risks of disease, injury, and depression.

I. Exercise. Research has shown that exercise does enhance people's positive mood.

1. This effect is strongest in people who are depressed.

2. However, while consistent, the effect of exercise on mood is not very strong.

J. Blood Sugar Levels. Low blood sugar occurs when someone has not eaten too long.

It has been strongly associated with irritability, disagreeableness, and even combative behaviours. Excessively high blood sugar, too, most common among untreated diabetics, has been linked to depression.

IX. EMOTIONAL LABOUR A. Jobs require emotional labour an employee’s expression of organizationally

desired emotions during interpersonal transactions at work 1. The concept of emotional labour emerged from studies of service jobs.

2. But emotional labour is relevant to almost every job.

3. The true challenge arises when employees have to project one emotion while feeling another. a. This disparity is emotional dissonance, and it can take a heavy toll.

1) Bottled-up feelings of frustration, anger, and resentment can eventually lead to emotional exhaustion and burnout. It’s from the increasing importance of emotional labour as a key component of effective job performance that we have come to understand the relevance of emotion within the field of OB b. It can help you, on the job especially, if you separate emotions into felt or displayed emotions.

1) Felt emotions are an individual’s actual emotions.

2) In contrast, displayed emotions are those that the organization requires workers to show and considers appropriate in a given job. a) They’re not innate; they’re learned.

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b) Effective managers have learned to be serious when giving an employee a negative performance evaluation and to hide their anger when they’ve been passed over for promotion.

(1) A salesperson who hasn’t learned to smile and appear friendly, despite his or her true feelings at the moment, typically won’t last long in the job.

(2) How we experience an emotion isn’t always the same as how we show it.

3) Displaying fake emotions requires us to suppress real ones. a) Surface acting is hiding inner feelings and forgoing emotional expressions in response to display rules.

(1) A worker who smiles at a customer even when he doesn’t feel like it is surface acting.

(2) Surface acting deals with displayed emotions, and deep acting deals with felt emotions.

(3) Research shows surface acting is more stressful to employees because it entails feigning their true emotions. b) Deep acting is trying to modify our true inner feelings based on display rules.

(1) A health care provider trying to genuinely feel more empathy for her patients is deep acting.

(2) Displaying emotions we don’t really feel is exhausting, so it is important to give employees who engage in surface displays a chance to relax and recharge

X. AFFECTIVE EVENTS THEORY A. We’ve seen that emotions and moods are important parts of our personal lives and our work lives. But how do they influence our job performance and satisfaction?

B. A model called affective events theory (AET) demonstrates that employees react

emotionally to things that happen to them at work, and this reaction influences their job performance and satisfaction (see Exhibit 4-4).

1. The theory begins by recognizing that emotions are a response to an event in the work environment.

2. Work events trigger positive or negative emotional reactions, to which employees’ personalities and moods predispose them to respond with greater or lesser intensity.

3. AET provides us with valuable insights into the role emotions play in primary organizational outcomes of job satisfaction and job performance. Employees and managers therefore shouldn’t ignore emotions or the events that cause them.

XI. EMOTION REGULATION A. Emotional regulation involves identifying and modifying the emotions you feel.

1. Although the research is ongoing, studies indicate that effective emotion regulation techniques include acknowledging rather than suppressing our emotional responses to situations, and reevaluating events after they occur.

2. Another technique with potential is venting, or expressing negative emotions outwardly. Research shows that open expression of emotions can be helpful to the individual, as opposed to keeping them bottled up. Caution must be exercised, though, because venting touches other people.

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XII. WORK STRESS AND ITS MANAGEMENT A. What Is Stress?

1. Stress is a dynamic condition in which an individual is confronted with an opportunity, demand, or resource related to what the individual desires and for which the outcome is perceived to be both uncertain and important.

2. This is a complicated definition. Let’s look at its components more closely. a. Although stress is typically discussed in a negative context, it is not necessarily bad in and of itself; it also has a positive value. b. It’s an opportunity when it offers potential gain. c. Consider, for example, the superior performance an athlete or stage performer gives in a “clutch” situation.

1) Such individuals often use stress positively to rise to the occasion and perform at their maximum.

2) Similarly, many professionals see the pressures of heavy workloads and deadlines as positive challenges that enhance the quality of their work and the satisfaction they get from their jobs.

3. Types of Workplace Stress a. Challenge Stress.

1) Stressors associated with workload, pressure to complete tasks, and time urgency.

2) Although research is just starting to accumulate, early evidence suggests challenge stressors produce less strain than hindrance stressors. b. Hindrance Stress.

1) Stressors that keep you from reaching your goals (for example, red tape, office politics, confusion over job responsibilities).

4. Stress often results from demands and resources. a. Demands.

1) These are the responsibilities, pressures, obligations, and even uncertainties that individuals face in the workplace.

2) The greater the number of demands, typically the greater the stress level. b. Resources.

1) Things in an individual’s control that can be used to resolve the demands.

2) The scarcer the resources, the higher the stress, given the same level of demands.

B. Managing Stress.

1. Because low to moderate levels of stress can be functional and lead to higher performance, management may not be concerned when employees experience them. a. Employees, however, are likely to perceive even low levels of stress as undesirable. b. It’s not unlikely, therefore, for employees and management to have different notions of what constitutes an acceptable level of stress on the job. c. What management may consider to be “a positive stimulus that keeps the adrenaline running” is very likely to be seen as “excessive pressure” by the employee. d. Keep this in mind as we discuss individual and organizational approaches toward managing stress.

2. Individual Approaches.

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a. An employee can take personal responsibility for reducing stress levels.

Individual strategies that have proven effective include time-management techniques, increased physical exercise, relaxation training, and expanded social support networks.

1) Many people manage their time poorly.

2) The well-organized employee, like the well-organized student, can often accomplish twice as much as the person who is poorly organized.

3) So, an understanding and utilization of basic time-management principles can help individuals better cope with tensions created by job demands.

4) A few of the best-known time-management principles are a) making daily lists of activities to be accomplished, b) prioritizing activities by importance and urgency, c) scheduling activities according to the priorities set, d) knowing your daily cycle and handling the most demanding parts of your job when you are most alert and productive, and e) avoiding electronic distractions like frequently checking e-mail, which can limit attention and reduce efficiency. b. Physicians have recommended noncompetitive physical exercise, such as aerobics, walking, jogging, swimming, and riding a bicycle, as a way to deal with excessive stress levels.

1) These forms of physical exercise increase lung capacity, lower the at-rest heart rate, and provide a mental diversion from work pressures. c. Individuals can teach themselves to reduce tension through relaxation techniques such as meditation, hypnosis, and deep breathing.

1) The objective is to reach a state of deep physical relaxation, in which you focus all your energy on release of muscle tension.

2) Deep relaxation for 15 or 20 minutes a day releases tension and provides a pronounced sense of peacefulness, as well as significant changes in heart rate, blood pressure, and other physiological factors.

3) A growing body of research shows that simply taking breaks from work at routine intervals can facilitate psychological recovery and reduce stress significantly and may improve job performance, and these effects are even greater if relaxation techniques are employed. d. As we have noted, friends, family, or work colleagues can provide an outlet when stress levels become excessive.

1) Expanding your social support network provides someone to hear your problems and offer a more objective perspective on the situation than your own.

3. Organizational Approaches. a. Several factors that cause stress—particularly task and role demands—are controlled by management and thus can be modified or changed. b. Strategies to consider include improved personnel selection and job placement, training, realistic goal setting, redesign of jobs, increased employee involvement, improved organizational communication, employee sabbaticals, and corporate wellness programs. c. Certain jobs are more stressful than others but, as already noted, individuals differ in their response to stressful situations.

1) We know individuals with little experience or an external locus of control tend to be more prone to stress.

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2) Selection and placement decisions should take these facts into consideration.

3) Obviously, management shouldn’t restrict hiring to only experienced individuals with an internal locus, but such individuals may adapt better to high-stress jobs and perform those jobs more effectively.

4) Similarly, training can increase an individual’s self-efficacy and thus lessen job strain. d. We discussed goal setting in Chapter 7.

1) Individuals perform better when they have specific and challenging goals and receive feedback on their progress toward these goals. Goals can reduce stress as well as provide motivation.

2) Employees who are highly committed to their goals and see purpose in their jobs experience less stress because they are more likely to perceive stressors as challenges rather than hindrances.

3) Specific goals perceived as attainable clarify performance expectations.

In addition, goal feedback reduces uncertainties about actual job performance.

4) The result is less employee frustration, role ambiguity, and stress. e. Redesigning jobs to give employees more responsibility, more meaningful work, more autonomy, and increased feedback can reduce stress because these factors give employees greater control over work activities and lessen dependence on others.

1) But as we noted in our discussion of work design, not all employees want enriched jobs.

2) The right redesign for employees with a low need for growth might be less responsibility and increased specialization.

3) If individuals prefer structure and routine, reducing skill variety should also reduce uncertainties and stress levels.

4) Role stress is detrimental to a large extent because employees feel uncertain about goals, expectations, how they’ll be evaluated, and the like.

5) By giving these employees a voice in the decisions that directly affect their job performance, management can increase employee control and reduce role stress.

6) So managers should consider increasing employee involvement in decision making.

7) Increasing formal organizational communication with employees reduces uncertainty by lessening role ambiguity and role conflict. f. Given the importance that perceptions play in moderating the stress– response relationship, management can also use effective communications as a means to shape employee perceptions.

1) Remember that what employees categorize as demands, threats, or opportunities is an interpretation and that interpretation can be affected by the symbols and actions communicated by management. g. Our final suggestion is organizationally supported wellness programs.

1) These typically provide workshops to help people quit smoking, control alcohol use, lose weight, eat better, and develop a regular exercise program; they focus on the employee’s total physical and mental condition.

2) Some help employees improve their psychological health as well.

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3) A meta-analysis of 36 programs designed to reduce stress (including wellness programs) showed that interventions to help employees reframe stressful situations and use active coping strategies led to an appreciable reduction in stress levels.

4) Most wellness programs assume employees need to take personal responsibility for their physical and mental health and that the organization is merely a means to an end.

XIII. SUMMARY A. Attitudes consist of three components: cognitive, affective, and behavioural.

B. Managers should be interested in their employees’ attitudes, especially their job

satisfaction, because attitudes give warnings of potential problems and influence behavior.

C. Emotions and moods are similar in that both are affective in nature. But they’re also different—moods are more general than emotions.

D. Events impact emotions and moods. The time of day, stressful situations, bloodsugar levels, and sleep patterns are some of the factors that influence emotions and moods.

E. OB research on emotional labour, affective events theory, and emotional regulation helps us understand how people deal with emotions.

F. Emotions and moods have proven relevant for virtually every work outcome, with implications for effective managerial practices.

G. Stress is a natural by-product of work life affecting organizational behaviour.

H. Successful organizations recognize the factors that cause undue stress and take an active role in helping employees perform optimally.

XIV. IMPLICATIONS FOR MANAGERS A. Recognize that attitudes have cognitive, affective, and behavioural components.

Managers looking to foster attitudinal change should focus on behaviours but also address cognition and affect.

B. Recognize that emotions are a natural part of the workplace and good management does not mean creating an emotion-free environment.

C. To foster effective decision making, creativity, and motivation in employees, model positive emotions and moods as much as is authentically possible.

D. Provide positive feedback to increase the positivity of the workplace.

E. In the service sector, encourage positive displays of emotion, which make customers feel more positive and thus improve customer service interactions and negotiations.

F. Managers who understand the role of emotions and moods will significantly improve their ability to explain and predict their coworkers’ and employees’ behaviour.

G. You can help alleviate harmful workplace stress for you and any employees you supervise by accurately matching workloads to employees, providing employees with stress-coping resources, and responding to their concerns.

H. You can identify extreme stress when performance declines, turnover increases, health-related absenteeism increases, and engagement declines.

1. However, by the time these symptoms are visible, it may be too late to be helpful, so stay alert for early indicators and be proactive.

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Mini Case Discussion Questions Case 1: The Promotion 1. Explain why Fred’s workplace behaviour changed so dramatically. What could have prevented the behavioural change?

Fred experienced a lack of equity, in this case a lack of procedural justice since he was denied fair access to the interview process despite exceeding the written qualifications.

The perceived lack of equity or fairness was heightened when a less-qualified candidate with a personal relationship with a senior executive was awarded the job.

In addition, Fred experienced a violation of his expectation that hard work would be rewarded with promotions. This experience disrupted the perceived relationship between effort and reward, reducing motivation considerably.

Case 2: Emotional Labour at the Call Centre 1. What might Paul do himself to help him better deal with the emotional labour required for his job?

Eating well, getting enough sleep, and exercising regularly will all help Paul deal with his stress more effectively. Paul may find that engaging in physical activity such as sports, running, or yoga immediately after work can help release stress. In addition, Paul can set small goals for himself each day and reward himself when he meets those goals. Making more time to get to know his co-workers might also help if Paul is a sociable person, but it may enhance his stress if he is introverted.

Exercises 1. Self-analysis. Using the three components of Emotional Intelligence, rate yourself on your ability to successfully interact with others. Choose your weakest area and provide three suggestions for improving that dimension of EI. 2. Web Crawling. Using your favourite search engine, search on the term "emotions in the workplace" and find five webpages related to this chapter. Read the webpages and write up a two-page analysis of what you learned regarding the proper expression of emotions and moods in the workplace. Ensure you note if the webpages were in conflict with the guidance given in the text or agreed with it. Exceptional students will seek out cultural differences as well.

3. Teamwork. As a small group, search for articles and webpages on workplace violence and emotion (try a search term of “going postal workplace”). Discuss the commonalities of the cases and examples. Try to determine what sorts of behaviours and emotions were evidenced before the deviant behaviour, without falling into the perceptual distortion of hindsight. Be prepared to present your findings in the class.

4. Analyzing Your Organization (Cumulative Project). What is the prevalent mood of your workplace? Spend a week carefully observing three employees at your place of work.

Attempt to assess their moods and the impact these moods have on behaviour throughout the day. How well did their initial mood predict their behaviours later in the

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day? What could you have done, if you were the manager, to change these moods and behaviours in a positive way?

Suggested Assignment EI Debate. For this activity, divide the class into two equal groups: one of which will be for the concept of Emotional Intelligence, while the other group will be against it. Select two students who will be the spokesperson for each half. Either select three students to act as a panel of judges or bring in three outside individuals to act as neutral judges. The instructor will act as the debate moderator.

The purpose of this debate is to explore the ramifications of mood and emotion in the workplace as expressed in the concept of emotional intelligence.

Setup: 1. Each half of the class has 30 minutes to prepare their initial points regarding their position. The instructor may choose to give the pro and con positions to either half of the class or the instructor may let the class decide which position each half takes.

2. The proposition before the floor is "Should Emotional Intelligence, as a concept, be removed from the study of organizational behaviour?"

3. The spokespeople should be prepared to present their five-minute arguments regarding their position on the proposition.

4. The moderator should explain the rules in front of the class to the judges; the judges are to make their final decision based solely on the arguments presented during the session and the strength of those arguments.

5. The moderator will keep time during each presentation and will stop the spokesperson when time is up. Pro position should start first. Each side will be allowed to give their arguments without interruption. Notes and written suggestions may be passed from the group to the spokesperson.

6. For the rebuttal, there are a number of options: a. Allow a second person from each side to rebut the arguments first given by the other side. Length of rebuttal should be two minutes. b. Keep the same spokespersons and still limit the rebuttal to two minutes, or c. Open the rebuttal to the two large groups: to do this effectively, allow five questions per side. The moderator selects questions by recognizing one of the members of a large group. A volunteer from the opposing group is allowed to answer the question. The volunteer may be aided verbally or with notes by his or her group. d. Allow the con party to ask the first question, and then the pro party to ask their first question after they've responded. Rotate the questions, side by side, until all 10 have been answered.

7. At the conclusion of the rebuttal, have the judges award the debate to the appropriate side. Have the judges explain why that side won the debate by recapping the strengths and weaknesses of the arguments on both sides.

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Chapter 5 Personality and Values Chapter Overview Personality and values are major shapers of behaviour. In order for managers to predict behaviour, they must know the personalities of those who work for them. The chapter starts out with a review of the research on personality and its relationship to behaviour and ends by describing how values shape many of our work-related behaviours.

Chapter Objectives After studying this chapter, the student should be able to: 5.1 Describe personality, the way it is measured, and the factors that shape it.

5.2 Explain the Myers-Briggs Type Indicator (MBTI) personality framework, the Hogan Personality Inventory, and the Big Five model, and compare their relative strengths and weaknesses.

5.3 Identify the three traits of the Dark Triad and outline their potential impacts at work.

5.4 a Discuss how the concepts of core self-evaluation (CSE), self-monitoring, selfefficacy, and proactive personality contribute to the understanding of personality.

5.4 b Evaluate the evidence for and against the existence of emotional intelligence.

5.5 Assess how context (the specific situation) affects the degree to which personality predicts behaviour.

5.6 Contrast terminal and instrumental values.

5.7 Describe the differences between person-job fit and person-organization fit.

5.8 Evaluate how differences in value scores across Hofstede’s five dimensions of national culture may impact behaviour.

Suggested Lecture Outline

I. PERSONALITY A. What is personality?

1. Personality. When psychologists talk of personality, they mean a dynamic concept describing the growth and development of a person’s whole psychological system.

2. Defining Personality: The sum total of ways in which an individual reacts to, and interacts with, others—described in terms of measurable traits.

3. Measuring Personality. The ability to measure personality traits to help managers select appropriate employees and better match workers to jobs. a. The most common means of measuring personality is through self-report surveys: 1) Individuals evaluate themselves on a series of factors.

2) Potentially inaccurate due to falsehoods, impression management, or the momentary emotional state of the candidate.

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4. Personality Determinants. Personality appears to be development of both hereditary and environmental factors. Of the two, heredity seems to have the most impact. a. Heredity.

1) These are factors determined at conception such as physical stature, facial attractiveness, gender, temperament, muscle composition and reflexes, energy level, and biological rhythms.

2) The heredity approach argues that personality is determined at the chromosome level. b. Twin studies.

1) Studies of identical twins that were separated at birth indicate that genetics accounts for about 50% of the personality similarities.

2) Genetics appears to be more influential on personality development than parental environment. c. Aging and personality.

1) As people grow older, their personalities do change.

2) However, this change is more in terms of level of ability than it is in changes in the actual ranking of the behavioural traits themselves— which are very stable over time. d. Personality traits.

1) Traits are characteristics that describe an individual’s behaviour that are exhibited in a large number of situations.

2) Two of the dominant frameworks for describing relevant personality traits are the MBTI and the Big Five Model.

II. DOMINANT PERSONALITY FRAMEWORKS A. The Myers-Briggs Type Indicator (MBTI).

1. This is the most widely used instrument in the world. Respondents are asked a series of situational questions and their answers are categorized on four scales to determine personality type. a. Four Classification Scales: 1) Extraverted versus Introverted (E or I). People scoring higher on the extraverted side of the scale are more outgoing, social, and assertive while those on the introvert side are quiet and shy.

2) Sensing versus Intuitive (S or N). Sensing individuals are practical, enjoy order, and are detail-oriented. Intuitive people are more “big picture” oriented and rely on “gut” feelings.

3) Thinking versus Feeling (T or F). This scale is important in decision making: thinkers use reason and logic while feelers use emotions and their own personal values to make decisions.

4) Judging versus Perceiving (J or P). Judgers are control-oriented and enjoy structure and order. Perceivers are more flexible and spontaneous. b. Sixteen Personality Types 1) These classifications together describe 16 personality types, with every person identified with one of the items in each of the four pairs. Let’s explore several examples. a) Introverted/Intuitive/Thinking/Judging people (INTJs) are visionaries.

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(1) They usually have original minds and great drive for their own ideas and purposes.

(2) They are skeptical, critical, independent, determined, and often stubborn. b) ESTJs are organizers.

(1) They are realistic, logical, analytical, and decisive and have a natural head for business or mechanics.

(2) They like to organize and run activities. c) The ENTP type is a conceptualizer, (1) They are innovative, individualistic, versatile, and attracted to entrepreneurial ideas.

(2) This person tends to be resourceful in solving challenging problems but may neglect routine assignments.

2. The MBTI is widely used by organizations, many hospitals, and educational institutions. a. In spite of its popularity, evidence is mixed about the MBTI’s validity as a measure of personality—with most of the evidence suggesting it isn’t.

1) One problem is that it forces a person into either one type or another (that is, you’re either introverted or extraverted).

2) There is no in-between, though people can be both extraverted and introverted to some degree.

3) The best we can say is that the MBTI can be a valuable tool for increasing self-awareness and providing career guidance.

4) But because results tend to be unrelated to job performance, managers probably shouldn’t use it as a selection test for job candidates.

B. The Hogan Personality Inventory.

1. The Hogan Personality Inventory is a 206 question assessment that measures aspects of personality related to how people prefer to approach work and personal interactions.

2. The most common Hogan Inventory Personality Types are: a. Rebels: They are interested in being famous, wealth, having power, and living a luxurious life. b. Marketers: They are highly motivated to compete, win, push for results, and make money. c. Proletarians: These individuals are interested in stability and simplistic lifestyle. d. Congenials: They tend to be introverted, but also relaxed, friendly, polite, and rule-abiding at work. e. Over-Achievers: They are hardworking, bright, and resilient to stress. f. Networkers: They are sociable, cool-headed, and bright in daily behavior. g. Misfits: They are highly motivated by fear with a strong desire for stability and to enjoy life. h. Preppers: They are motivated by fear with a strong desire for stability, but they are also dependable when they can keep their emotions in check.

C. The Big Five Model.

1. This model of personality has an impressive body of research that supports it.

2. The model (particularly one factor, conscientiousness) appears to be positively related to job performance and can be used as an employment selection or screening tool.

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3. Five Factors a. Extraversion. Deals with the comfort level with relationships.

1) Like the MBTI, this is contrasted with introversion.

2) Scoring high in this factor means the respondent is more gregarious, assertive, and sociable.

3) Introverts tend to be reserved, timid, and quiet.

4) Extraverts tend to be happy in their jobs but may be impulsive and absent themselves from work to take on some other, more sensational tasks. b. Agreeableness. Measures deference toward others.

1) High scorers are cooperative, warm, and trusting while low scorers are cold, disagreeable, and antagonistic.

2) Agreeable workers are less likely to be involved in drugs and excessive drinking. c. Conscientiousness. Measures reliability.

1) High scorers are responsible, organized, dependable, and persistent.

2) Low scorers are easily distracted, disorganized, and unreliable.

3) Not surprisingly, this is the key determinant of job performance and organizational citizenship behaviour (OCB) on the Big Five.

4) However, conscientious people also tend not to take risks and may find organizational change difficult to handle. d. Emotional Stability (or Neuroticism—its opposite). Measures ability to handle stress.

1) The more stable a person, the better he (or she) can handle stress.

2) People with high emotional stability tend to become self-confident and secure.

3) They often have higher life and job satisfaction. Low emotional stability scorers tend to be nervous, anxious, depressed, and insecure.

4) Yet, surprisingly, low-scoring people make better and faster decisions when in a bad mood than do stable people. e. Openness to Experience. Measures the range of interests and fascination with novelty, a proxy for creativity.

1) People who score low on this factor tend to be conventional and enjoy familiar circumstances.

2) High scorers tend to be creative, curious, and artistically sensitive.

3) People high in this factor deal better with organizational change and are more adaptable.

4. How do the Big Five traits predict behaviour at work? a. Research on the Big Five has found relationships between these personality dimensions and job performance.

1) As the authors of the most-cited review put it, “the preponderance of evidence shows that individuals who are dependable, reliable, careful, thorough, able to plan, organized, hardworking, persistent, and achievement-oriented tend to have higher job performance in most if not all occupations” (Mount et al. 272).

2) In addition, employees who score higher in conscientiousness develop higher levels of job knowledge; probably because highly conscientious people learn more (a review of 138 studies revealed conscientiousness was rather strongly related to GPA).

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3) Higher levels of job knowledge then contribute to higher levels of job performance. b. Conscientiousness is as important for managers as for front-line employees.

1) A study of the personality scores of 313 CEO candidates in private equity companies (of whom 225 were hired, and their company’s performance later correlated with their personality scores) found conscientiousness—in the form of persistence, attention to detail, and setting of high standards—was more important than other traits.

2) The results might surprise you, but they attest to the importance of conscientiousness to organizational success.

3) Although conscientiousness is the Big Five trait most consistently related to job performance, the other traits are related to aspects of performance in some situations. c. All five traits also have other implications for OB. 1) People who score high on emotional stability are happier than those who score low. a) Of the Big Five traits, emotional stability is most strongly related to life satisfaction, job satisfaction, and low stress levels. b) This is probably true because high scorers are more likely to be positive and optimistic in their thinking and experience fewer negative emotions.

2) People low on emotional stability are hyper-vigilant (looking for problems or impending signs of danger) and are especially vulnerable to the physical and psychological effects of stress.

3) Extraverts tend to be happier in their jobs and in their lives as a whole. a) They experience more positive emotions than do introverts, and they more freely express these feelings. b) They also tend to perform better in jobs that require significant interpersonal interaction, perhaps because they have more social skills—they usually have more friends and spend more time in social situations than introverts. c) Finally, extraversion is a relatively strong predictor of leadership emergence in groups; extraverts are more socially dominant, “take charge” sorts of people, and they are generally more assertive than introverts. d) One downside of extraversion is that extraverts are more impulsive than introverts; they are more likely to be absent from work and engage in risky behaviour such as unprotected sex, drinking, and other impulsive or sensation-seeking acts.

4) Individuals who score high on openness to experience are more creative in science and art than those who score low.

5) Because creativity is important to leadership, open people are more likely to be effective leaders. a) They also are more comfortable with ambiguity and change than those who score lower on this trait. b) As a result, open people cope better with organizational change and are more adaptable in changing contexts. Recent evidence also suggests, however, that they are especially susceptible to workplace accidents.

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6) You might expect agreeable people to be happier than disagreeable people. a) And they are, but only slightly. b) When people choose romantic partners, friends, or organizational team members, agreeable individuals are usually their first choice. c) Agreeable individuals are better liked than disagreeable people, which explains why they tend to do better in interpersonally oriented jobs such as customer service. d) They also are more compliant and rule abiding and less likely to get into accidents as a result. e) They are also less likely to engage in organizational deviance. One downside of agreeableness is that it is associated with lower levels of career success (especially earnings). f) Agreeable individuals may be poorer negotiators; they are so concerned with pleasing others that they often don’t negotiate as much for themselves as they might.

7) Interestingly, conscientious people live longer because they take better care of themselves (they eat better and exercise more) and engage in fewer risky behaviours like smoking, drinking and drugs, and risky sexual or driving behaviour. a) Still, probably because they’re so organized and structured, conscientious people don’t adapt as well to changing contexts. b) They are generally performance-oriented and have more trouble learning complex skills early in the training process because their focus is on performing well rather than on learning. c) Finally, they are often less creative than less conscientious people, especially artistically.

III. OTHER PERSONALITY FRAMEWORKS Research indicates the Big Five traits have the most verifiable linkages to important organizational outcomes, but neither are they the only traits a person exhibits nor are they the only ones with organizational behaviour implications. Let’s discuss some other traits, known collectively as the Dark Triad, and the Approach-Avoidance framework, which describe personality traits in terms of motivation.

A. The Dark Triad 1. Researchers have found three socially undesirable traits are relevant to organizational behaviour: Machiavellianism, narcissism, and psychopathy.

Researchers have labelled these traits the Dark Triad.

2. Machiavellianism a. (often abbreviated Mach) Named after Niccolo Machiavelli, who wrote in the sixteenth century on how to gain and use power. b. An individual high in Machiavellianism is pragmatic, maintains emotional distance, and believes ends can justify means. “If it works, use it” is consistent with a high-Mach perspective. c. A considerable amount of research has related high- and low-Mach personalities to behavioural outcomes. d. High Machs manipulate more, win more, are persuaded less, and persuade others more than do low Machs. e. A recent review of the literature revealed that Machiavellianism does not significantly predict overall job performance. High-Mach employees, by 5-6

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manipulating others to their advantage, may win in the short term, but they lose those gains in the long term because they are not well liked.

3. Narcissism. a. The term is from the Greek myth of Narcissus, a man so vain and proud he fell in love with his own image. b. In psychology, narcissism describes a person who has a grandiose sense of self-importance, requires excessive admiration, has a sense of entitlement, and is arrogant. c. Narcissism can have pretty toxic consequences.

1) A study found that although narcissists thought they were better leaders than their colleagues, their supervisors actually rated them as worse.

2) For example, according to Michael Maccoby, an Oracle executive described that company’s CEO Larry Ellison as follows: “The difference between God and Larry is that God does not believe he is Larry.” d. In highly ethical contexts, narcissistic leaders are likely to be perceived as ineffective and unethical. e. A study of narcissistic CEOs revealed that they make more acquisitions, pay higher premiums for those acquisitions, respond less clearly to objective measures of performance, and respond to media praise by making even more acquisitions.

4. Psychopathy a. In the OB context, psychopathy is defined as a lack of concern for others, and a lack of guilt or remorse when their actions cause harm.

1) Measures of psychopathy attempt to assess the person’s motivation to comply with social norms; willingness to use deceit to obtain desired ends and the effectiveness of those efforts; impulsivity; and disregard, that is, lack of empathic concern for others. b. The literature is not consistent about whether psychopathy or other aberrant personality traits are important to work behaviour. c. Given the newness of research on the Dark Triad, using psychopathology scores for employment decisions may carry more risks for now than rewards. Organizations wishing to assess psychopathy or other traits need to exercise caution.

IV. OTHER PERSONALITY TRAITS RELEVANT TO OB A. Core Self-Evaluation. This is a measure of the degree to which a person likes or

dislikes him- (or her-) self.

1. Positive core self-evaluators like themselves and see themselves as being effective, capable, and in charge of their environment. They tend to perform better because they set ambitious goals and persist at achieving them.

2. Negative evaluators tend to dislike themselves, question their capabilities, and view themselves as powerless over their environment.

B. Self-Monitoring. Describes the ability of people to adjust their behaviours to fit external, situational factors.

1. High self-monitors are very adaptable and sensitive to external cues. People with low self-monitoring tend to have high behavioural consistency while high self-monitors can appear chameleon-like to their co-workers.

2. High self-monitors tend to get better performance ratings, take leadership positions, are more mobile, and take up central positions in their organizations, even though they have less commitment to their organization.

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C. Self Efficacy 1. Self-Efficacy Theory (also known as "social cognitive theory" or "social learning theory"). Typically, people with high self-efficacy respond better to challenges and negative feedback than those with low self-efficacy. Self-efficacy: an individual's belief that he or she is capable of performing a task.

D. Proactive Personality.

1. Individuals with this type of personality tend to identify opportunities, show initiative, take action, and persevere until meaningful change occurs.

2. People with this personality attribute are highly prized by organizations for obvious reasons.

3. They are often leaders or change agents and will challenge the status quo.

4. Proactive people tend to have successful careers but may not be a good match for organizations who do not value change.

V. EMOTIONAL INTELLIGENCE A. Introduction. People who know their own emotions and are good at reading others'

emotions may be more effective in their jobs. The concept of EI is controversial in OB. B. Emotional Intelligence (EI): a person’s ability to (1) perceive emotions in the self and others, (2) understand the meaning of these emotions, and (3) regulate one’s emotions accordingly in a cascading model (Exhibit 5-5). Self-aware people tend to be good at reading emotion cues. High EI is moderately associated with high job performance.

C. The Case for EI. Supporters of the concept of EI present the following arguments.

1. Intuitive Appeal. The ability to detect emotions in others, controlling your own emotions, and handling social interactions well seem obvious as a way to business success.

2. EI Predicts Criteria That Matter. Research evidence is increasing that high EI is positively correlated to job performance.

3. EI Is Biologically Based. There is evidence that EI is genetically influenced, further supporting the idea that it measures a real underlying biological factor.

D. The Case against EI. Detractors of EI present these argument 1. EI Researchers Do Not Agree on Definitions. The research definition of EI is too broad and varied to be helpful.

2. EI Can't Be Measured. The measures of EI are diverse, and researchers have not subjected them to as much rigorous study as they have measures of personality and general intelligence.

3. EI Is Nothing but Personality with a Different Label. Some argue that because EI is so closely related to intelligence and personality, once these factors are controlled for, EI has nothing unique to offer. To some extent, researchers have resolved this issue by noting that EI is a construct partially determined by traits like cognitive intelligence, conscientiousness, and neuroticism, so it makes sense that EI is correlated with these characteristics.

VI. PERSONALITY AND SITUATIONS A. Interestingly, we are learning that the effect of particular traits in organizational

behaviour depends on the situation. Two theoretical frameworks, situation strength and trait activation, help explain how this works.

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B. Situation Strength Theory.

1. Situation strength theory proposes that the way personality translates into behaviour depends on the strength of the situation. By situation strength, we mean the degree to which norms, cues, or standards dictate appropriate behaviour. a. Strong situations pressure us to exhibit the right behaviour, clearly show us what that behaviour is, and discourage the wrong behaviour. b. In weak situation, “anything goes,” and thus we are freer to express our personality in our behaviours. c. Thus, research suggests that personality traits better predict behaviour in weak situations than in strong ones.

2. Researchers have analyzed situation strength in organizations in terms of four elements. a. Clarity: the degree to which cues about work duties and responsibilities are available and clear. b. Consistency: the extent to which cues regarding work duties and responsibilities are compatible with one another. c. Constraints: the extent to which individuals’ freedom to decide or act is limited by forces outside their control. d. Consequences: the degree to which decisions or actions have important implications for the organization or its members, clients, supplies, and so on.

3. Some researchers have speculated that organizations are, by definition, strong situations because they impose rules, norms, and standards that govern behaviour. These constraints are usually appropriate.

4. But that does not mean that it is always desirable for organizations to create strong situations for their employees. a. Jobs with myriad rules and tightly controlled processes can be dull or demotivating. b. People do differ, so what works well for one person might work poorly for another. c. Strong situations suppress the creativity, the initiative, and discretion prized by some cultures. d. Work is increasingly complex and interrelated globally. Creating strong rules to govern complex, interrelated, and culturally diverse systems might not only be difficult but unwise.

C. Trait Activation Theory (TAT).

1. TAT predicts that some situations, events, or interventions “activate” a trait more than others. a. Research shows that in a supportive environment, everyone behaves prosocially, but in an environment that is not so nice, whether an individual has the personality to behave prosocially makes a major difference.

2. Together, situation strength and trait activation theories show that the debate over nature versus nurture might best be framed as nature and nurture. Not only does each affect behaviour, but they interact with one another. a. Personality affects work behaviour and the situation affects work behaviour, but when the situation is right, the power of personality to predict behaviour is even higher.

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VII. VALUES A. Values represent basic convictions that “a specific mode of conduct or end-state of

existence is personally or socially preferable to an opposite or converse mode of conduct or end-state of existence” (Rokeach 5).

1. They contain a judgmental element in that they carry an individual’s ideas as to what is right, good, or desirable.

2. Values have both content and intensity attributes. a. The content attribute says a mode of conduct or end-state of existence is important. b. The intensity attribute specifies how important it is. c. When we rank an individual’s values in terms of their intensity, we obtain that person’s value system.

3. All of us have a hierarchy of values that forms our value system. a. We find it in the relative importance we assign to values such as freedom, pleasure, self-respect, honesty, obedience, and equality.

4. Values tend to be relatively stable and enduring. a. A significant portion of the values we hold is established in our early years— by parents, teachers, friends, and others. b. As children, we are told certain behaviours or outcomes are always desirable or always undesirable, with few gray areas. c. You were never taught to be just a little bit honest or a little bit responsible, for example. d. It is this absolute, or “black-or-white,” learning of values that ensures their stability and endurance.

5. If we question our values, of course, they may change, but more often it reinforces them.

6. There is also evidence linking personality to values, implying our values may be partly determined by our genetically transmitted traits.

B. The Importance and Organization of Values.

1. Values lay the foundation for understanding people's attitudes, motivation, and behaviour.

2. They influence our perceptions.

3. Values can cloud objectivity and rationality.

C. Terminal versus Instrumental Values.

1. Values can be classified by instruments such as the Rokeach Value Survey (RVS).

2. This instrument consists of two sets of values. The sets are terminal and instrumental values. a. Terminal Values. Focuses on desirable end-states; goals a person would like to achieve. b. Instrumental Values. Lists preferable modes of behaviour or means of achieving terminal values.

VIII. LINKING AN INDIVIDUAL’S PERSONALITY AND VALUES TO THE WORKPLACE

Managers have become concerned with matching both the personality and the values of an employee with those of the organization. The hope is to identify workers who are both flexible and committed to the organization.

A. Person-Job Fit 1. Holland’s Personality-Job Fit Theory.

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a. Holland identified six personality types and proposed that job satisfaction and propensity to leave depend on how well the job and personalities are matched (congruency). b. Social individuals belong in jobs requiring social skills and so on. c. Vocational Preference Inventory Questionnaire.

1) This was the tool Holland used to identify congruent occupations.

2) The six personality types (or fields in Holland’s terminology) are laid out on a hexagon.

3) Fields that lie adjacent to each other are similar; those diagonally opposite are highly dissimilar.

4) Appropriate jobs for that personality (that is, those jobs that are congruent to the field) are listed either within the field’s segment of the hexagon or in a separate document. d. Holland's theory argues that satisfaction is highest and turnover is lowest when personality and occupation are in agreement.

B. Person-Organization Fit. 1. The understanding that a person must be a good match to the organization itself has become increasingly important to managers.

2. This concept argues that employees are more likely to leave an organization when their personalities do not match the organizational culture rather than when their skills or personalities are a good match with a particular job.

3. The alignment of an employee’s personality and values with an organization’s culture is positively related to increased job satisfaction, lower turnover, and higher organizational commitment.

4. By testing and selecting based on this concept, managers can increase organizational outcomes. a. Are person-job fit and person-organization fit more applicable in some countries than others? Apparently yes.

1) Research indicated that person-job fit was a strong predictor of lower turnover in the United States, but a combination of person-organization fit and other factors strongly predicted lower turnover in India.

2) These findings may be generalizable for individualistic countries like the United States, and collectivistic countries like India, but more research is needed to understand the exact relationship.

IX. INTERNATIONAL VALUES A. Because values differ across cultures, an understanding of the differences would be

helpful in explaining and predicting behaviour of employees from different countries. Two frameworks to assess culture are Hofstede’s Framework and the Globe Framework.

B. Hofstede’s Framework. See Exhibit 5-4. Examines five value dimensions of national culture. While there are many criticisms of this framework, it is one of the most widely read and accepted in OB. 1. Power Distance. The degree to which people accept that power in institutions and organizations is distributed unequally. a. High power distance means that great inequities in power and wealth are tolerated. b. Low power distance cultures stress equality and upward opportunities.

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2. Individualism/Collectivism. The amount of emphasis placed on the individual as opposed to the group. a. Individualism is when people prefer to act as individuals rather than as members of groups and believe in individual rights above all else. b. Collectivism emphasizes a tight social framework in which people expect group members to look after and protect them.

3. Masculinity/Femininity. The value a culture places on traditional gender roles. a. Masculine societies have men dominating society, separate roles for men and women, and expressly value achievement, power, and control. b. Feminine cultures value equality among the sexes.

4. Uncertainty Avoidance. The degree to which people in a culture prefer structured over unstructured situations. a. High uncertainty avoidance cultures are anxious over ambiguity and uncertainty: they emphasize law and controls. b. Low cultures accept a greater variety of opinion and higher levels of risk while relying less on rules: they more readily accept change.

5. Long-Term/Short-Term Orientation. Degree of long-term devotion to traditional values. a. Long-term cultures are future-oriented and value tradition, thrift, and persistence. b. Short-term cultures are immediate and accept change more readily.

6. There are both regional and national differences in culture as measured by this framework.

7. Hofstede’s framework is not without its critics, but it is still highly influential.

C. The GLOBE (Global Leadership and Organizational Behaviour Effectiveness) Framework. A relatively recent and on-going program of research, this framework uses nine dimensions of national culture.

1. Some dimensions – such as power distance, individualism/collectivism, uncertainty avoidance, and future orientation can be seen as an extension of Hofstede’s framework.

2. The main difference is that the GLOBE framework added dimensions such as humane orientation (the degree individuals are rewarded for fair, generous, and altruistic behaviours) and performance orientation (the degree to which group members are rewarded for performance improvement and excellence.) The GLOBE studies also separated Hofstede’s masculinity dimension into two distinct values: gender equality, meaning the support for equality between men and women in society, and assertiveness, meaning the social acceptability of dominant, forceful behaviours.

3. Which framework is better? That is hard to say, and each has its supporters.

D. It is important to learn about many different cultures; but the United States is Canada’s largest trading partner, so it is especially important to be aware of cultural differences between that country and Canada. See Exhibit 5-5.

E. Canada includes many different Indigenous cultures, none of which were examined in the Hofstede and GLOBE studies. There is immense cultural variation across bands. Most notably, some bands are matrilineal and emphasize communal behaviours while others are patrilineal and emphasize a warrior ethos similar to what Hofstede termed “masculinity.”

F. Cultural value profiles become more complex when individuals are exposed to multiple cultures. There is evidence that our core values are formed early in life and

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stabilize between the ages of 11 to 14. Children routinely exposed to two or more cultures from a very early age are likely to adopt a blended value system, or be truly bicultural or even multicultural.

G. There is evidence that older people, however, go through acculturation.

Acculturation is defined as the process by which individuals change as a result of being influenced by contact with another culture.

X. SUMMARY A. Personality matter to organizational behaviour. It does not explain all behaviour, but it sets the stage.

B. Emerging theory and research reveal how personality matters more in some

situations than in others.

C. The Big Five has been a particularly important advancement in our understanding of personality; it, along with the Dark Triad and other traits, impact workplace behaviours and attitudes.

D. Every trait has advantages and disadvantages for work behaviour, and there is no perfect constellation of traits that is ideal for every situation.

E. Personality can help you to understand why people (including you!) act, think, and feel the way we do, and the astute manager can put that understanding to use by taking care to place employees in situations that best fit their personality.

F. Values often underlie and explain attitudes, behaviours, and perceptions. Values tend to vary internationally along dimensions that can predict organizational outcomes; however, an individual may or may not hold values that are consistent with the values of the national culture.

XI. IMPLICATIONS FOR MANAGERS A. Consider screening job candidates for high conscientiousness—as well as the other

Big Five traits or Hogan Inventory traits, depending on the criteria your organization finds most important. Other traits, such as core self-evaluation, EI, or narcissism, may be relevant in certain situations.

B. Although the MBTI has faults, you can use it in training and development to help employees better understand themselves, help team members better understand each other, and open up communication in work groups and possibly reduce conflicts.

C. You need to evaluate your employees’ jobs, their work groups, and your organization to determine the optimal personality fit.

D. Take into account employees’ situational factors when evaluating their observable personality traits, and lower the situation strength to better ascertain personality characteristics.

E. The findings from Hofstede’s work and the GLOBE program underscore the need for managers to understand the cultural values of their employees. The more you take into consideration people’s different cultures, the better you will be able to determine their work behaviour and create a positive organizational climate that performs well.

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Mini Case Discussion Questions Case 1: The Personality Problem 1. Do you agree with Jasmine’s assessment that Rhett is Machiavellian and a narcissist? Why or why not?

Jasmine is not an expert and cannot make a formal diagnosis. That said, Rhett’s behaviours are suggestive of Machiavellianism and narcissism since he is consistently manipulative, unconcerned about the consequences of his actions on others, he enjoys being the centre of attention as a “leader of the pack”, and he leverages associated power.

2. Assuming that Rhett is Machiavellian and a narcissist, what is the most effective way to minimize the damage he can do to other employees?

Rhett should not be put in positions of authority over other employees if it can be avoided. His employer should be particularly attentive to the mental health and wellbeing of his work associates. In addition, his behaviours could be discouraged by no longer funding drinking-focused activities and fostering a culture that emphasizes mutual respect rather than a machismo-based “pack” culture. Using transparent, objective, evidence-based criteria to decide promotions could also lessen Rhett’s perceived power and influence.

3. Assuming that you knew ahead of time that Rhett’s personality included the Dark Triad. Would you still hire him for a sales role? Why or why not?

While Rhett does add value as a high performing sales representative he causes extensive emotional damage throughout the department. This negatively impacts the job performance of a large number of employees and may even contribute to turnover.

His behaviour with female staff (including direct reports) also creates significant potential liability if claims of sexual harassment emerge. Furthermore, Rhett contributes to a broader culture of disrespect and poor behaviour. As such, it is best to avoid hiring him.

Case 2: Interview Expectations and Cultural Confusion 1. Why is Bao-Zhi struggling in his interviews?

Bao-Zhi is in an unfamiliar culture context. Even though he is a competent engineer, he doesn’t know what is expected of him socially. Some of his culture-specific assumptions are actually working against him. For example, he believes that it is important to show modesty during an interview, but the Canadian-born interviewer is expecting him to brag about personal accomplishments. The average Canadian-born job candidate would know that modesty is not expected in this context.

2. Using Hofstede’s cultural values as a frame of reference, what cross-cultural communication barriers do you see operating here? Be specific.

Bao-Zhi is responding in a manner appropriate for someone from a culture high in power distance and collectivism. His unwillingness to question his manager reflects a

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high power distance, and his focus on team accomplishment is collectivistic. The low power distance, individualistic Canadian perspective leads to different behavioural expectations.

3. Is there a way the interviewer might phrase her questions that would minimize cultural misunderstandings or biases? Explain your answer.

The interviewer could word her questions in a manner that clarifies the type of response expected without giving away the desired answer. This practice would render unstated cultural assumptions overt, making it easier for people from other cultures to respond appropriately. For example, instead of asking, “What are your engineering accomplishments?”, she could ask, “What engineering accomplishment are you proudest of and how did you personally, individually contribute to that accomplishment?”

Similarly, instead of asking, “What would you do if a manager made a mistake?” she could ask, “What would be the best method to alert a manager about a mistake he had made?” or, “How do you fulfill your responsibilities for basic safety when people in authority have a knowledge gap?”

Exercises 1. Self-analysis/Web Crawling. Using your favourite search engine, search on the term “Free MBTI” and take one of the “light” versions of the Myers-Briggs Type Indicator.

Then search for “Free Big Five” and do the same for the Big Five model. Write a short paper providing your thoughts on the results of these two personality tests.

2. Teamwork. As individuals, search for “Free Holland Career Model Assessment” on the web and take one of the assessments. Get the list of jobs you are most likely to enjoy doing and those you are least likely to enjoy. Bring your results to the team.

3. As a team, find out which team members are currently in jobs (or if they are not working now, were in jobs) that Holland’s assessment indicates they should enjoy and which are in jobs that the assessment says they would not enjoy. Determine: a. How accurately does the assessment match your own experiences? b. How well do your degree fields match the suggested careers? c. What is the group’s opinion of the personality field in which each person was placed? How accurately does it describe each of you?

Compile your results and share them with the class.

4. Analyzing Your Organization (Cumulative Project). Select a free web-based version of the MBTI, Big Five, or Holland assessment tool. Take the assessment and ask five of your co-workers and your supervisor to also take the assessment. Have them share the results with you. Based on these results, consider the following questions: a. How good a “match” are you with your co-workers and supervisor in terms of personality? b. Does your supervisor have a personality that is a good fit for the leadership position in your particular organization? c. What sort of personality should be hired in your organization if a vacancy occurs in your workgroup?

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Present your findings as your instructor directs, either as: a. A short paper, b. A five-minute oral presentation to the class, or c. A combination of the two.

Suggested Assignment Divide the class into groups of three to five students. Ask them to go to http://www.buzzle.com, search for the article “A Layman’s Guide to Personality Types A, B, C, and D,” and read this resource’s definition of four different personality types.

Ask the student groups to discuss the four types as they relate to people who work at your university. Have them create a table that shows the following: Person’s Position

University Employees Person’s Person’s Person’s SocioApproximate Tenure at Work Economic Age Background

Person’s Personality Type

Please do not place people’s names in the chart. But, attempt to estimate responses to each of the categories for specific people the students know. Once this is completed for 15 to 20 people the group knows who work at the university, have the groups assess the entries for any patterns. Does Personality Type relate to characteristics identified such as age, socio-economic background, or length of time a person has worked at the university? Does the distribution of Personality Types offer suggestions as to how people in different units should be managed? Does management of employees mean understanding their individual types and adjusting management techniques appropriately?

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Chapter 6 Perception and Individual Decision Making Chapter Overview The old saying is that “perception is reality” and managers must learn what “reality” their workers are reacting to in order to effectively predict behaviour. This chapter examines how perception acts to create an employee’s view of reality and modifies decision making.

Chapter Objectives After studying this chapter, the student should be able to: 6.1 Define perception, and explain the factors that influence it.

6.2 Explain attribution theory, and describe the common shortcuts used in judging others.

6.3 Explain the link between perception and decision making.

6.4 Contrast the rational model of decision making with bounded rationality and intuition.

6.5 Recognize common decision biases or errors and discuss how to avoid them.

6.6 Evaluate how organizational constraints affect decision making.

6.7 Contrast the three ethical decision-making criteria and apply those criteria to dayto-day workplace decisions.

6.8 Define creativity, and describe the three-stage model of creativity.

Suggested Lecture Outline

I. INTRODUCTION A. This chapter examines perception and the influences on perception. It continues with an exploration of how individuals make decisions and how perception can influence those decisions.

II. WHAT IS PERCEPTION? A. Perception is a process by which individuals organize and interpret their sensory

impressions in order to give meaning to their environment.

1. However, what we perceive can be substantially different from objective reality.

2. For example, all employees in a firm may view it as a great place to work— favourable working conditions, interesting job assignments, good pay, excellent benefits, understanding and responsible management—but, as most of us know, it’s very unusual to find such agreement.

3. The study of perception is important simply because people’s behaviour is based on their perceptions of what reality is, not on reality itself.

4. The world as it is perceived is the world that is behaviourally important.

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B. Factors Influencing Perception 1. Perceiver: When you look at a target and attempt to interpret what you see, your interpretation is heavily influenced by your personal characteristics. a. Characteristics that affect perception include your attitudes, personality, motives, interests, past experiences, and expectations.

2. Target: the object being perceived. a. Characteristics of the target will affect how it is perceived. b. Things that are bright, beautiful, loud, or unusual are far more likely to be noticed. c. The relationship of the target to its background influences perception as does the human trait of grouping similar things together.

3. Situation: the context in which the perception is made. a. The context (time, location, light, heat, the appropriateness of attire) can influence the extent of perception of a target.

III. SOCIAL PERCEPTION: MAKING JUDGEMENTS ABOUT OTHERS A. OB is concerned with “social perception” because how people see each other can, in

large part, determine how well these individuals can work together and indicate an organization’s level of potential conflict.

1. Social Perception: the perceptions people form about each other.

B. Attribution Theory.

1. Non-living objects such as desks, machines, and buildings are subject to the laws of nature, but they have no beliefs, motives, or intentions. People do.

2. That’s why when we observe people, we attempt to explain why they behave in certain ways.

3. Our perception and judgment of a person’s actions, therefore, will be significantly influenced by the assumptions we make about that person’s internal state. a. Internally Caused Behaviours. Behaviours that are believed to be under the personal control of the individual. b. Externally Caused Behaviours. Behaviours that are believed to be outside of the personal control of the individual. The person is forced into the behaviour by outside causes.

4. Three Factors That Differentiate Internally from Externally Caused Behaviours. a. Distinctiveness refers to whether an individual displays different behaviours in different situations.

1) Is the employee who arrives late today also the one co-workers say regularly “blows off” commitments?

2) What we want to know is whether this behaviour is unusual.

3) If it is, we are likely to give it an external attribution.

4) If it’s not, we will probably judge the behaviour to be internal. b. Consensus is if everyone who faces a similar situation responds in the same way.

1) The behaviour of a tardy employee meets this criterion if all employees who took the same route to work were also late.

2) From an attribution perspective, if consensus is high, you would probably give an external attribution to the employee’s tardiness.

3) If other employees who took the same route made it to work on time, you would attribute his lateness to an internal cause.

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c. Consistency 1) An observer looks for consistency in a person’s actions.

2) Coming in 10 minutes late for work is not perceived in the same way for an employee who hasn’t been late for several months as it is for an employee who is late two or three times a week.

3) The more consistent the behaviours, the more we are inclined to attribute it to internal causes.

5. Exhibit 6-1 summarizes the key elements in attribution theory. a. It tells us, for instance, that if an employee, Kim, generally performs at about the same level on other related tasks as she does on her current task (low distinctiveness), other employees frequently perform differently—better or worse—than Kim does on that current task (low consensus), and Kim’s performance on this current task is consistent over time (high consistency), anyone judging Kim’s work will likely hold her primarily responsible for her task performance (internal attribution). b. One of the most interesting findings from attribution theory research is that errors or biases distort attributions. c. When we make judgments about the behaviour of other people, we tend to underestimate the influence of external factors and overestimate the influence of internal or personal factors. d. This fundamental attribution error can explain why a sales manager is prone to attribute the poor performance of her sales agents to laziness rather than to the innovative product line introduced by a competitor. e. Individuals and organizations also tend to attribute their own successes to internal factors such as ability or effort, while putting the blame for failure on external factors such as bad luck or unproductive co-workers. This is the self-serving bias. f. The evidence on cultural differences in perception is mixed, but generally indicates that there are differences across cultures in the attributions people make.

1) Individuals from Asian cultures tend to make group-based stereotypes, whereas Westerners tend to focus on the individual.

2) However, while self-serving biases are less common in East Asian cultures, they do still exist.

C. Common Shortcuts in Judging Others.

1. We use a number of shortcuts when we judge others. a. These techniques are frequently valuable: they allow us to make accurate perceptions rapidly and provide valid data for making predictions.

1) They are not foolproof.

2) They can and do get us into trouble. Understanding these shortcuts can help you recognize when they can result in significant distortions.

2. Selective perception allows us to “speed-read” others, but not without the risk of drawing an inaccurate picture. a. Any characteristic that makes a person, an object, or an event stand out will increase the probability that we will perceive it. b. It is impossible for us to assimilate everything we see; we can take in only certain stimuli.

1) This tendency explains why you’re more likely to notice cars like your own or why a boss may reprimand some people and not others who are doing the same thing.

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3.

4.

5.

6.

2) Because we can’t observe everything going on about us, we engage in selective perception. c. Because we see what we want to see, we can draw unwarranted conclusions from an ambiguous situation.

Halo Effect. Drawing an overall impression based on a single characteristic, such as intelligence, sociability, or appearance. a. Halo effects can falsely enhance or reduce the perceived overall characteristics of an individual. b. This effect can also result in a negative impression.

Contrast Effect can distort perceptions. a. We don’t evaluate a person in isolation. b. Other persons we have recently encountered influence our reaction to a person.

Social Identity Effects. The basic premise is that social category membership defines the individual, at least in part. People belong to many social categories that vary in importance to them (for example, ethnic, professional, religious, special interest), and each comes with norms defining how one should think, feel, and behave. Since social identities are evaluative, there is a profound need for the individual to feel that their in-group(s) are superior to the relevant outgroup(s). Out-group members are depersonalized to maximize the difference between in-group members and out-group members.

Stereotyping. Judging an individual based on the perception of a group to which the target belongs. a. We rely on generalizations every day because they help us make decisions quickly; they are a means of simplifying a complex world. It’s less difficult to deal with an unmanageable number of stimuli if we use heuristics or stereotypes. b. The problem occurs, of course, when we generalize inaccurately or too much. In organizations, we frequently hear comments that represent stereotypes based on gender, age, race, religion, ethnicity, and even weight. c. Stereotypes can be deeply ingrained and powerful enough to influence lifeand-death decisions.

1) One study found that students who read scenarios describing leaders tended to assign higher scores for leadership potential and effective leadership to Whites than to minorities even though the content of the scenarios was equivalent, supporting the idea of a stereotype of Whites as better leaders. d. One of the problems of stereotypes is that they are widespread and often useful generalizations, despite the fact that they may not contain a shred of truth when applied to a particular person or situation. e. Thus, we constantly have to check ourselves to make sure we’re not unfairly or inaccurately applying a stereotype in our evaluations and decisions.

Stereotypes are an example of the warning, “The more useful, the more danger from misuse.”

IV. THE LINK BETWEEN PERCEPTION AND INDIVIDUAL DECISION MAKING A. Individuals in organizations make decisions, choices from among two or more alternatives.

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1. Top managers determine their organization’s goals, what products or services to offer, how best to finance operations, or where to locate a new manufacturing plant.

2. Middle- and lower-level managers set production schedules, select new employees, and decide how to allocate pay raises.

3. Non-managerial employees decide how much effort to put forth at work and whether to comply with a request by the boss.

4. In recent years, organizations have been empowering their non-managerial employees with decision-making authority historically reserved for managers alone.

B. Individual decision making is thus an important part of organizational behaviour.

C. Decision making occurs as a reaction to a problem.

1. That is, a discrepancy exists between the current state of affairs and some desired state, requiring us to consider alternative courses of action.

2. Most problems don’t come neatly labelled “problem.” a. One person’s problem is another person’s satisfactory state of affairs. b. So awareness that a problem exists and that a decision might or might not be needed is a perceptual issue. c. Every decision requires us to interpret and evaluate information.

1) We typically receive data from multiple sources and need to screen, process, and interpret it.

2) The decision maker’s perceptions will answer that question, “Which data are relevant to the decision, and which are not?” d. We also need to develop alternatives and evaluate their strengths and weaknesses.

1) Again, the individual’s perceptual process will affect the final outcome.

2) Finally, throughout the entire decision-making process, perceptual distortions often surface that can bias analysis and conclusions.

V. DECISION MAKING IN ORGANIZATIONS A. Business schools generally train students to follow rational decision-making models.

1. Although these models have considerable merit, they don’t always describe how people actually make decisions.

2. This is where OB enters the picture: to improve how we make decisions in organizations, we must understand the decision-making errors people commit (in addition to the perception errors we’ve discussed).

B. The Rational Model, Bounded Rationality, and Intuition 1. Rational Decision Making: making consistent, value-maximizing choices within specified constraints. a. Rational Decision-Making Model. This model has six steps that lead to an optimal solution.

1) The Six Steps of the Model: a) Define the problem. b) Identify decision criteria. c) Weight the previously identified criteria. d) Generate possible alternatives. e) Rate each alternative upon each criterion. f) Compute the optimal decision.

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2) Assumptions of the Model: One of the reasons that this model is rarely fully utilized in the real world is because the assumptions are almost never all met. a) Complete knowledge. The decision maker is assumed to have complete knowledge of the situation. b) Known options. The decision maker is assumed to be able to identify all relevant options in an unbiased manner. c) Highest utility. The assumption is that the decision maker will always choose the option with the highest utility.

2. Bounded Rationality a. The limited information-processing capability of human beings makes it impossible to assimilate and understand all the information necessary to optimize.

1) So, most people respond to a complex problem by reducing it to a level at which they can readily understand it.

2) Also, many problems likely don’t have an optimal solution because they are too complicated to be broken down into the parameters of the rational decision-making model.

3) So, people satisfice; that is, they seek solutions that are satisfactory and sufficient. b. Because the human mind cannot formulate and solve complex problems with full rationality, we operate within the confines of bounded rationality.

1) We construct simplified models that extract the essential features from problems without capturing all their complexity.

2) We can then behave rationally within the limits of the simple model.

3) How does bounded rationality work for the typical individual? a) Once we’ve identified a problem, we begin to search for criteria and alternatives. b) But the list of criteria is likely to be far from exhaustive. c) We identify a limited list of the most conspicuous choices, both easy to find and highly visible, that usually represent familiar criteria and tried-and-true solutions. d) Next, we begin reviewing them, but our review will not be comprehensive. e) Instead, we focus on alternatives that differ only in a relatively small degree from the choice currently in effect. f) Following familiar and well-worn paths, we review alternatives only until we identify one that is “good enough”—that meets an acceptable level of performance. g) That ends our search. h) So, the solution represents a satisficing choice—the first acceptable one we encounter—rather than an optimal one.

(1) This process of satisficing is not always a bad idea—using a simple process may frequently be more sensible than the traditional rational decision-making model.

4) To use the rational model in the real world, you need to gather a great deal of information about all the options, compute applicable weights, and then calculate values across a huge number of criteria. a) All these processes can cost you time, energy, and money.

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b) And if there are a great number of unknowns when it comes to weights and preferences, the fully rational model may not be any more accurate than a best guess. c) Sometimes a fast-and-frugal process of solving problems might be your best option.

3. Intuition a. Perhaps the least rational way of making decisions is to rely on intuition. b. Intuitive decision making is an unconscious process created from distilled experience.

1) Its defining qualities are that: a) it occurs outside conscious thought; b) it relies on holistic associations, or links between disparate pieces of information; c) it’s fast; d) and it’s affectively charged, meaning it usually engages the emotions. c. Although intuition isn’t rational, it isn’t necessarily wrong. d. Nor does it always operate in opposition to rational analysis; rather, the two can complement each other. e. But intuition is not superstition, or the product of some magical or paranormal sixth sense.

VI. COMMON BIASES AND ERRORS IN DECISION MAKING A. Decision makers engage in bounded rationality, but they also allow systematic

biases and errors to creep into their judgments.

1. To minimize effort and avoid difficult trade-offs, people tend to rely too heavily on experience, impulses, gut feelings, and convenient rules of thumb.

2. In many instances, these shortcuts are helpful. However, they can lead to severe distortions of rationality.

3. The following are the most common biases in decision making.

B. Overconfidence Bias.

1. The likelihood of overestimating the probability of being correct.

2. Tends to decrease as intellectual and interpersonal abilities rise: knowledge reduces overconfidence.

C. Anchoring Bias.

1. The tendency to fixate on initial information and fail to adequately adjust for subsequent information.

2. The first information given forms the basis for the process, no matter what additional information is provided later.

D. Confirmation Bias.

1. This bias represents a specific case of selective perception. Information used in decision making is selectively gathered: information that reaffirms past choices is amplified, while data that contradicts those choices is discounted.

2. Information that agrees with preconceived views is accepted at face value, while other information is criticized skeptically.

E. Availability Bias.

1. The tendency for people to base their judgments on information that is readily available to them.

2. Emotional, vivid, or recent events tend to be more available in the minds of decision makers and therefore carry a greater weight in decision making.

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3. Causes people to overestimate the chances of unlikely but vivid events and underestimate chances of more likely, but less dramatic, events.

F. Escalation of Commitment.

1. This bias refers to staying with an initial decision through a series of follow-on decisions, even when there is clear evidence that the initial decision was wrong.

2. This bias often occurs when the decision maker views himself or herself as responsible for the failure.

G. Risk Aversion.

1. Nearly everyone but committed gamblers would rather have the sure thing than a risky prospect.

2. This tendency to prefer a sure thing over a risky outcome is risk aversion. a. Risk aversion has important implications. b. To offset the risks inherent in a commission-based wage, companies pay commissioned employees considerably more than they do those on straight salaries. c. Risk-averse employees will stick with the established way of doing their jobs, rather than taking a chance on innovative or creative methods. d. Sticking with a strategy that has worked in the past does minimize risk, but, in the long run, it will lead to stagnation. e. Ambitious people with power that can be taken away (most managers) appear to be especially risk averse, perhaps because they don’t want to lose on a gamble everything they’ve worked so hard to achieve. f. CEOs at risk of being terminated are also exceptionally risk averse, even when a riskier investment strategy is in their firms’ best interests.

H. Hindsight Bias.

1. The tendency to believe (falsely) once the outcome of an event is actually known, that the results could have been accurately predicted.

2. This bias reduces our ability to learn from the past and falsely inflates our opinion of our ability to make accurate predictions.

VII. ORGANIZATIONAL CONSTRAINTS ON DECISION MAKING Organizations can constrain decision makers, creating deviations from the rational model. These constraints can take the form of: A. Performance Management and Reward Systems. People are strongly influence in their decision making by the criteria on which they are evaluated. The reward system influences which choices are preferable in terms of a personal payoff.

B. Formal Regulations. Rules and policies limit the decision maker’s choice of action.

C. System-Imposed Time Constraints. Explicit deadlines create time pressures and often make it difficult to gather necessary information prior to making the decision.

D. Historical Precedence. Commitments that have already been made constrain current options. The historic context of a decision limits available alternatives.

VIII. WHAT ABOUT ETHICS IN DECISION MAKING? A. Three Ethical Decision Criteria: 1. The first ethical yardstick is utilitarianism, in which decisions are made solely on the basis of their outcomes, ideally to provide the greatest good for the greatest number. a. This view dominates business decision making. It is consistent with goals such as efficiency, productivity, and high profits.

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2. Another ethical criterion is to make decisions consistent with fundamental liberties and privileges, as set forth in documents such as the Canadian Charter of Rights and Freedoms. a. An emphasis on rights in decision making means respecting and protecting the basic rights of individuals, such as the right to privacy, free speech, and due process. b. This criterion protects whistleblowers when they reveal an organization’s unethical practices to the press or government agencies, using their right to free speech.

3. A third criterion is to impose and enforce rules fairly and impartially to ensure justice or an equitable distribution of benefits and costs. a. Union members typically favour this view. b. It justifies paying people the same wage for a given job regardless of performance differences and using seniority as the primary determination in layoff decisions.

B. Each criterion has advantages and liabilities.

1. A focus on utilitarianism promotes efficiency and productivity, but it can sideline the rights of some individuals, particularly those with minority representation.

2. The use of rights protects individuals from injury and is consistent with freedom and privacy, but it can create a legalistic environment that hinders productivity and efficiency.

3. A focus on justice protects the interests of the underrepresented and less powerful, but it can encourage a sense of entitlement that reduces risk taking, innovation, and productivity.

4. Decision makers, particularly in for-profit organizations, feel comfortable with utilitarianism.

5. The “best interests” of the organization and its stockholders can justify a lot of questionable actions, such as large layoffs.

6. But many critics believe this perspective needs to change. a. Public concern about individual rights and social justice suggests managers should develop ethical standards based on non-utilitarian criteria. b. This presents a challenge because satisfying individual rights and social justice creates far more ambiguities than utilitarian effects on efficiency and profits. c. This helps explain why managers are increasingly criticized for their actions.

1) Raising prices, selling products with questionable effects on consumer health, closing down inefficient plants, laying off large numbers of employees, moving production overseas to cut costs, and similar decisions can be justified in utilitarian terms.

2) But that may no longer be the single measure by which good decisions are judged.

IX. CREATIVITY IN ORGANIZATIONS A. Although the rational decision-making model will often improve decisions, a

decision maker also needs creativity, the ability to produce novel and useful ideas.

1. Novel ideas are different from what’s been done before but are appropriate for the problem.

2. Although all aspects of organizational behaviour have complexities, that is especially true for creativity.

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3. The three-stage model of creativity: the core of the model is creative behaviour, which has both causes (predictions of creative behaviour) and effects (outcomes of creative behaviour).

B. Creative Behaviour. Creative behaviour occurs in four steps, each of which leads to the next (Exhibit 6-4): 1. Problem formulation. Any act of creativity begins with a problem that the behaviour is designed to solve. Thus, problem formulation is defined as the stage of creative behaviour in which we identify a problem or opportunity that requires a solution as yet unknown.

2. Information gathering. Given a problem, the solution is rarely directly at hand.

We need time to learn more and to process that information. Thus, information gathering is the stage of creative behaviour when possible solutions to a problem incubate in an individual’s mind.

3. Idea generation. Once we have collected the relevant information, it is time to translate knowledge into ideas. Thus, idea generation is the process of creative behaviour in which we develop possible solutions to a problem from relevant information and knowledge. Increasingly, idea generation is collaborative.

4. Idea evaluation. Finally, it’s time to choose from the ideas we have generated.

Thus, idea evaluation is the process of creative behaviour in which we evaluate potential solutions to identify the best one. Sometimes, the method of choosing can be innovative. Generally, you want those who evaluate ideas to be different from those who generate them, to eliminate the obvious biases.

C. Causes of Creative Behaviour. Having defined creative behaviour, the main stage in the three-stage model, we now look back to the causes of creativity: creative potential and creative environment.

1. Creative Potential. Is there such a thing as a creative personality? Indeed. While creative genius—whether in science (Albert Einstein), art (Pablo Picasso), or business (BlackBerry’s Jim Balsillie)—is scarce, most people have some of the characteristics shared by exceptionally creative people. a. The more of these characteristics we have, the higher our creative potential. b. Intelligence is related to creativity. Smart people are more creative because they are better at solving complex problems. However, intelligent people may also be more creative because they have greater “working memory”; that is, they can recall more information that is related to the task at hand. c. The Big Five personality trait of openness to experience correlates with creativity, probably because open individuals are less conformist in action and more divergent in thinking. d. Other traits of creative people include proactive personality, self-confidence, risk taking, tolerance for ambiguity, and perseverance. e. Expertise is the foundation for all creative work and thus is the single most important predictor of creative potential.

1) The potential for creativity is enhanced when individuals have abilities, knowledge, proficiencies, and similar expertise to their field of endeavour. a) For instance, you wouldn’t expect someone with minimal knowledge of programming to be very creative as a software engineer.

2. Creative Environment. Most of us have creative potential we can learn to apply, but as important as creative potential is, by itself it is not enough. a. We need to be in an environment where creative potential can be realized.

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b. What environmental factors affect whether creative potential translates into creative behaviours?

1) First and perhaps most important is motivation. If you aren’t motivated to be creative, it is unlikely you will be. This link is true regardless of whether we are talking about student creativity or employee creativity.

2) It is also valuable to work in an environment that rewards and recognizes creative work. The organization should foster the free flow of ideas, including providing fair and constructive judgment.

3) Freedom from excessive rules encourages creativity; employees should have the freedom to decide what work is to be done and how to do it.

D. Creative Outcomes. The final stage in our model of creativity is the outcome.

Creative behaviour does not always produce a creative or innovative outcome.

1. An employee might generate a creative idea and never share it. Management might reject a creative solution. Teams might squelch creative behaviours by isolating those who propose different ideas. a. When people feel uncertain, their ability to see any idea as creative is blocked.

1) We can define creative outcomes as ideas or solutions judged to be novel and useful by relevant stakeholders. b. Novelty itself does not generate a creative outcome if it isn’t useful.

1) Thus, “off-the-wall” solutions are creative only if they help solve the problem.

2) The usefulness of the solution might be self-evident, or it might be considered successful by stakeholders before the actual success can be known. c. Creative ideas do not implement themselves; translating them into creative outcomes is a social process that requires utilizing other concepts addressed in this text, including power and politics, leadership, and motivation.

X. SUMMARY A. Individuals base their behaviour not on the way their external environment actually is, but rather on the way they see it or believe it to be.

B. Individuals often make errors in perception due to common biases and mental

shortcuts including self-serving biases, social identity effects, and stereotyping.

C. An understanding of the way people make decisions can help us explain and predict behaviour, and also avoid common decision-making errors.

D. Few important decisions are simple or unambiguous enough for the rational model’s assumptions to fully apply. We find individuals looking for solutions that satisfice rather than optimize, injecting biases and prejudices into the decisionmaking process, and relying on intuition.

E. Given the difficulties of making optimal decisions it becomes especially important to consider the ethics of our decisions: utilitarian, rights-based, and justice approaches can help with this.

F. Managers should encourage creativity in employees and teams to create a route to innovative decision making.

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XI. IMPLICATIONS FOR MANAGERS A. Behaviour follows perception, so to influence employee behaviour at work, assess

how employees perceive their work. Often, behaviours we find puzzling can be explained by understanding the initiating perceptions.

B. Make better decisions by recognizing perceptual biases and decision-making errors we tend to commit. Learning about these problems doesn’t always prevent us from making mistakes, but it does help.

C. Adjust your decision-making approach to the national culture you’re operating in and to the criteria your organization values. If you’re in a country that doesn’t value rationality, don’t feel compelled to follow the decision-making model or to try to make your decisions appear rational. Adjust your decision approach to ensure compatibility with the organizational culture.

D. Combine rational analysis with intuition. These are not conflicting approaches to decision making. By using both, you can improve your decision-making effectiveness.

E. Try to enhance your creativity. Actively look for novel solutions to problems, attempt to see problems in new ways, use analogies, and hire creative talent. Try to remove work and organizational barriers that might impede your creativity.

Mini Case Discussion Questions Case 1: Hiring School Bus Drivers 1. In theory, how might perceptual biases and decision-making biases influence Etienne’s decision making?

At the perceptual stage, Etienne is more likely to discount Duane’s positive traits and focus on irrelevant criteria. At the decision-making stage, Etienne is more likely to make unsupported risk assessments, perhaps based on availability bias that is informed by stereotyping. Put another way, if Etienne were exposed to negative stereotypes about cross-dressers, he would be more likely to make use of that highly available information rather than seeking disconfirmatory evidence.

Case 2: Career Planning as Decision-Making 1. Do you see any evidence of perceptual biases influencing Maria’s thinking about each job opportunity? Put another way, is she being objective when she evaluates each option? If not, which perceptual biases are impacting her thought process?

Maria is attracted to the door-to-door sales job despite the fact that her personality is ill-suited to the job. This is likely due to social identity effects. She believed that the successful woman interviewing her had several identity-based traits in common with her, so Maria felt that she herself should be able to succeed there, too. Halo effects may also have influenced Maria since she liked the woman and was focused on her positive traits. Maria felt uncomfortable with the atmosphere at the call centre, although it is not clear if this was biased selective perception or useful intuition. Finally, Maria assumed there wouldn’t be growth opportunities in a family business, but it is not clear if she actually asked her prospective employer about promotions or if she stereotyped them.

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Exercises 1. Self-analysis. What biases, either perceptual or decision-making, do you find you use most commonly? What actions can you take to reduce the effects of those biases?

2. Web Crawling. Using your favourite search engine, enter the term “famous perceptual experiments” and select three that look interesting to you. Describe what impact these studies have on organizational behaviour.

3. Analyzing Your Organization (Cumulative Project). The job interview process is where decision-making and perceptual biases can often come into play. Consider your own interview when you took the job and describe: a. What may have been the influences of the length of the interview? b. What may have been the influence of the length of time it took for the interviewer to make the hiring decision on both the perception of the firm toward the individual and the individual toward the firm? c. What biases may have been involved in your own hire? Consider your own biases regarding the firm as well as theirs toward you. d. What can the company do to reduce the negative effects of bias in the job interview process?

Suggested Assignment Divide the class into groups of three to five students each. Have each team review and discuss the following court case. Answer the question that follows and be prepared to present your findings. Each team will be given additional guidance by the instructor.

State vs. Scroggs In the fall of 1875, Hiram Smith filed a claim on a very fertile piece of land in South Dakota with the land office. Before he could put any improvements on the land, he died. A young Swede, newly immigrated, filed a counterclaim to the land at once, and by late spring of the following year had built a home and had begun to cultivate the land.

In the meantime, the widow of the original claimant was on her way West with her two daughters and her son. She built a house on the land, across a ravine from the Swede’s home, and cultivated that half of the claim. Both parties sent their claims to the Department of the Interior, but ten years went by without a decision. Both the Swede and Mrs. Smith built barns and cultivated the land intensively, each on their own side of the ravine.

A distant relative of Mrs. Smith, a minister named Scroggs, lived in a small town about two miles from the rival farms. He had been an advisor for the Swede on all matters of religion and politics since the fellow had first taken up farming in Dakota.

He had often complimented the Swede on his land and had expressed his opinion at the general store that it was the best land in the West.

Scroggs had acted as arbiter for the disputants and had corresponded with the Secretary of the Interior regarding the land. One day at the general store he told the Swede that he thought the Swede’s claim would be supported. The Swede swore that no one was going to put him off the land. The next day Scroggs went to the Smith farm and showed Mrs. Smith a paper from Washington, D.C., ratifying her claim to the land. He said it would be all

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right for them to take possession. Young Smith hitched a team to the plow and went over on to the Swede’s side of the farm. Scroggs, Mrs. Smith, and the two daughters went along; Scroggs on his horse. Young Smith had just started plowing when the Swede ran out of his house with a gun and shot him.

Two more shots killed the horses at the plow. Scroggs galloped off and shouted that he was going after the marshal. When the marshal and a posse arrived, they found the Swede had killed the three women and had then committed suicide. Scroggs, being the only relative of the dead woman, inherited both pieces of land.

Should Scroggs be held responsible for the killings?

Instructions for Instructor: Copy the case text from this file and place it in a new Word document or other word processing program that can read .docx files. Print the case for your class. This case will allow students to experience a decision-making process and see how different each strategy is in effort, process, and quality of decision.

1. Prior to passing out the case, divide the class into three large groups without telling them how or why they are being divided. One group will use the rational model, the second, bounded rationality, and the third, intuition.

2. Go to each group and quietly tell them the model they are to use to make their decision.

Refer students to the appropriate section of their text for their process. Each large group should not know how the other groups are making their decisions.  Those using the rational model must be prepared to outline how they came to their decision.  Those using bounded rationality must be prepared to explain why they stopped where they did.  Those using intuition are to read the case and make a decision based on their reaction without rereading the case or studying the details.

3. Each group is to track how long it took them to come to their decision.

4. During the next class, have students note on the board or orally present what their decisions were. Simply tabulate their decisions, responsible or not. Begin with those using the rational model, those using bounded rationality, and end with the intuitive.

5. As you debrief the class, note any pattern to the decisions. Did style lead to a given conclusion? Ask the groups for the reasons for their decisions. How long did it take to make the decision? Finally, ask the class if, now that they have heard more viewpoints, whether anyone wishes to change his or her findings.

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Chapter 7 Motivation Chapter Overview Motivation is one of the major areas of interest in OB. Properly motivating a workforce can lead to gains in productivity, innovation, and employee retention. This chapter will review the basics of motivation, assess the number of motivation theories, provide an integrative model that shows how the best of these theories fits together, and also apply motivational concepts in the workplace.

Chapter Objectives After studying this chapter, the student should be able to: 7.1 Describe the three key elements of motivation.

7.2 Evaluate the applicability of hierarchy of needs theory, two factor theory, McClelland’s theory of needs, and self-determination theory.

7.3 Explain the difference between goal-setting theory, equity theory, and expectancy theory and be able to apply each theory to a workplace setting.

7.4 Discuss organizational justice and the four types of justice that influence it.

7.5 Explain the job characteristics model and the way it motivates by changing the work environment.

7.6 Compare the main ways jobs and work arrangements can be redesigned to better motivate employees.

7.7 Explain how employee involvement measures can motivate employees.

7.8 Evaluate how different pay, benefit, and recognition programs can contribute to increased employee motivation.

Suggested Lecture Outline

I. INTRODUCTION Motivation is a problem in the North American workforce. Poorly motivated workers express themselves through detrimental behaviours such as time wasting, absenteeism, and high turnover. It is important that motivational theories are understood and applied in the workplace.

II. DEFINING MOTIVATION

Motivation: the processes that account for an individual’s intensity, direction, and persistence of effort toward attaining a goal, specifically for OB, toward attaining an organizational goal.

A. Three Key Elements in the Definition: 1. Intensity: how much effort a person puts forth to meet a goal.

2. Direction: efforts are channelled toward organizational goals.

3. Persistence: how long a person maintains effort toward a goal.

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III. THEORIES OF MOTIVATION Four early theories of employee motivation formulated during the 1950s, although now of questionable validity, are probably the best known. We discuss more valid explanations later, but these four represent a foundation, and practicing managers still use their terminology.

A. Hierarchy of Needs Theory. In this, perhaps best known (and least supported) of all motivational theories, Abraham Maslow proposed that there are five levels of human needs. As each of the lower level needs are satisfied, the next unsatisfied need becomes dominant. Satisfied needs no longer motivate; only unsatisfied needs motivate people. In cultures that do not share North American traits, the hierarchical order of needs may be out of sequence.

1. Physiological: lower order need, includes hunger, thirst, shelter, sex, and other bodily needs. Lower order needs are satisfied externally, through forces outside of the person.

2. Safety: lower order need, includes security and protection from physical and emotional harm.

3. Social: upper order need, includes affection, belongingness, acceptance, and friendship. Upper order needs are satisfied internally, that is, from within the person.

4. Esteem: upper order need, includes internal (self-respect, autonomy, and achievement) and external (status, recognition, and attention) esteem factors.

5. Self-actualization: upper order need, defined as the drive to “be all one can be,” it includes growth, achieving one’s potential, and self-fulfillment.

B. Two-Factor Theory. Frederick Herzberg proposed that an individual’s relation to work is basic and that one’s attitude toward work can very well determine success or failure. In other words, things that people feel good about at work are motivating and those things they don’t feel good about are de-motivating. This theory is also known as the motivation-hygiene theory.

1. In his research, Herzberg realized that the opposite of satisfaction is not dissatisfaction; rather there are two different factor scales, one ranging from satisfaction to no satisfaction and the other from dissatisfaction to no dissatisfaction. When he related a number of workplace factors against these two scales, he realized they were very different concepts. He called the first set of factors motivation factors and the second hygiene factors. a. Hygiene Factors. These workplace factors, when not met, lead to job dissatisfaction. When they are met, they do NOT lead to job satisfaction, but rather, to a lack of dissatisfaction. Therefore, meeting hygiene factors does NOT increase motivation; it merely placates the workers. Hygiene factors include quality of supervision, pay, company policies, physical working conditions, relations with others, and job security. b. Motivation Factors. These are intrinsically rewarding factors in the work environment such as promotion and personal growth opportunities, recognition, responsibility, and achievement. Meeting these factors will increase motivation by creating a satisfying work environment.

2. As with the other two main motivational theories, this very popular theory is also not well-supported in the research literature. There are many criticisms of the Two-Factor Theory, mostly dealing with the methodology Herzberg used in his initial studies.

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C. McClelland's Theory of Needs. David McClelland and his associates created a theory

based on three subconscious needs: 1. Need for Achievement (nAch): the drive to excel and to achieve in relation to a set of standards. High achievers perform best when they have a 50-50 chance of success. High achievers perform best in jobs with a high degree of personal responsibility and feedback with an intermediate degree of risk. a. High achievers tend to be successful entrepreneurs. b. A high need for achievement does not necessarily mean the person would be a good manager for larger organizations, as his or her desire for personal recognition supersedes his or her concern for the organization.

2. Need for Power (nPow): the need to make others behave in a way they would not have behaved otherwise.

3. Need for Affiliation (nAff): the desire for friendly and close interpersonal relationships.

4. The best managers appear to be those with a high need for power and a low need for affiliation.

5. The need for achievement presupposes certain cultural characteristics such as moderate degree of risk acceptance and a concern with performance. These two cultural characteristics are not universal, and therefore the need for achievement may not be as powerful in other cultures.

6. McClelland’s theory has the best research support, but has the least practical effect of any of the early motivational theories.

D. Self-Determination Theory 1. Self-determination theory, which proposes that people prefer to feel they have control over their actions, so anything that makes a previously enjoyed task feel more like an obligation than a freely chosen activity will undermine motivation.

2. Much research on self-determination theory in OB has focused on cognitive evaluation theory, which hypothesizes that extrinsic rewards will reduce intrinsic interest in a task. a. When people are paid for work, it feels less like something they want to do and more like something they have to do.

3. Self-determination theory also proposes that, in addition to being driven by a need for autonomy, people seek ways to achieve competence and positive connections to others. a. A large number of studies support self-determination theory. b. When organizations use extrinsic rewards as payoffs for superior performance, employees feel less like they are doing a good job because of their own intrinsic desire to excel and more like they are doing a good job because that’s what the organization wants.

1) Eliminating extrinsic rewards can also shift from an external to an internal explanation of an individual’s perception of why she works on a task.

2) If you’re reading a novel a week because your English literature instructor requires you to, you can attribute your reading behaviour to an external source.

3) However, if you find yourself continuing to read a novel a week after the course is over, your natural inclination is to say, “I must enjoy reading novels because I’m still reading one a week.”

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4. The original authors of self-determination theory acknowledge that extrinsic rewards such as verbal praise and feedback about competence can improve even intrinsic motivation under specific circumstances.

5. Deadlines and specific work standards do too if people believe they are in control of their behaviour. a. This is consistent with the central theme of self-determination theory: rewards and deadlines diminish motivation if people see them as coercive.

6. What does self-determination theory suggest for providing rewards? Consider two situations. a. If a senior sales representative really enjoys selling and making the deal, a commission indicates she’s been doing a good job at this valued task. b. The reward will increase her sense of competence by providing feedback that could improve intrinsic motivation. c. On the other hand, if a computer programmer values writing code because she likes to solve problems, a reward for working to an externally imposed standard she does not accept could feel coercive, and her intrinsic motivation would suffer. d. She would be less interested in the task and might reduce her effort.

7. A recent outgrowth of self-determination theory is self-concordance, which considers how strongly people’s reasons for pursuing goals are consistent with their interests and core values. a. If individuals pursue goals because of an intrinsic interest, they are more likely to attain their goals and are happy even if they do not. Why? Because the process of striving toward them is fun. b. In contrast, people who pursue goals for extrinsic reasons (money, status, or other benefits) are less likely to attain their goals and less happy even when they do achieve them. c. Why? Because the goals are less meaningful to them.

8. OB research suggests that people who pursue work goals for intrinsic reasons are more satisfied with their jobs, feel like they fit into their organizations better, and may perform better.

9. What does all this mean? a. It means you should choose your job for reasons other than extrinsic rewards. b. For organizations, it means managers should provide intrinsic as well as extrinsic incentives.

1) They need to make the work interesting, provide recognition, and support employee growth and development. Employees who feel what they do is within their control and a result of free choice are likely to be more motivated by their work and committed to their employers.

E. Goal-Setting Theory.

1. This theory studies the effects goal specificity, measurability, agreed-upon nature, time-bound, challenge, and feedback have on performance. The study of goal setting has created the following general rules: a. Specific goals produce a higher level of output than do generalized goals. b. Objective, measureable feedback leads to higher performance than does non-feedback or subjective, biased feedback. c. Participation in goal creation increases acceptance of the goal as a desirable one toward which to work.

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d. Typically, the more difficult the goal, the higher the level of performance, assuming that the goal has been accepted by the employee. This is because: 1) Difficult goals focus attention on the task and away from distractions.

2) Difficult goals energize employees.

3) Difficult goals tend to make people persist in efforts toward attaining them.

4) Difficult goals force employees to discover strategies to help them perform the task or job more effectively.

2. Feedback is important in goal-setting theory, especially self-generated feedback.

3. The question of whether participative goal setting increases motivation has not yet been resolved. The assumption is that when employees are involved in setting the goals, they have greater buy-in and therefore will have a higher level of commitment. When employees don’t participate in goal setting, the manager must take pains to explain the purpose and importance of the goal.

4. Contingencies in goal-setting theory: a. Goal Commitment. Commitment increases when goals are made public, when the individual has an internal locus of control, and when goals are selfset rather than assigned. b. Task Characteristics. Goals are better in terms of performance on simple rather than complex tasks, when tasks are familiar, and when they are accomplished by a single individual. c. National Culture. Goal-setting theory is culture-bound. It is important that the key components of goal-setting theory match the culture traits.

5. Although goal setting has positive outcomes, it is not unequivocally beneficial.

For example, some goals may be too beneficial. When learning something is important, goals related to performance undermine adaptation and creativity because people become too focused on outcomes and ignore changing conditions. a. A goal to learn and generate alternative solutions will be more effective than a goal to perform. b. Individuals may fail to give up on an unattainable goal, even when it might be beneficial to do so. c. Managers should make sure goals are aligned with company objectives.

6. Research has found that people differ in the way they regulate their thoughts and behaviours during goal pursuit. Generally, people fall into one of two categories, though they could belong to both. a. Those with a promotion focus strive for advancement and accomplishment, and they approach conditions that move them closer toward desired goals. b. Those with a prevention focus strive to fulfill duties and obligations and avoid conditions that pull them away from desired goals. c. Ideally, it’s probably best to be both promotion- and prevention-oriented.

7. Implementing Goal-Setting. Setting specific, challenging goals for employees is the best thing managers can do to improve performance. However, it appears that few managers actually set goals for their employees. One of the ways an organization can ensure this happens is through Management by Objectives (MBO).

F. Management by Objectives (MBO). One of the more effective ways to formalize goalsetting theory into an organization is through management by objectives. MBO emphasizes participatively setting goals that are tangible, verifiable, and measurable. MBO operationalizes the concept of objectives by devising a process by 7-5

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which objectives cascade down through the organization. The result of MBO is a hierarchy of objectives that build toward organizational objectives. It also provides specific performance goals for individuals.

1. Four ingredients common to MBO programs: a. goal specificity, b. participation in decision making, c. an explicit time period, and d. performance feedback.

2. MBO and Goal Setting. The primary difference between MBO programs and goal-setting theory relates to the issue of participation. MBO strongly advocates it, while goal-setting theory demonstrates that having managers assign goals is usually just as effective.

G. Equity Theory 1. This view holds that motivation can be affected by the comparisons employees make of their job inputs (effort, experience, education, confidence) and the job's outcomes (salary levels, raises, recognition) relative to the inputs and outcomes of other employees. If the ratios of inputs to outputs are roughly equal between employees, a state of equity is said to exist.

2. The situation is perceived to be fair. a. However, when the ratios are seen as unequal, employees may experience tension and emotion. b. Employees who believe they are under-rewarded may be angry, while those who feel they are over-rewarded might feel guilty. c. This emotional tension provides the motivation to do something to correct the situation.

3. Based on equity theory, employees who perceive inequity will make one of six choices: a. Change inputs (exert less effort if underpaid or more if overpaid). b. Change outcomes (individuals paid on a piece-rate basis can increase their pay by producing a higher quantity of units at a lower quality). c. Distort perceptions of self (“I used to think I worked at a moderate pace, but now I realize I work a lot harder than everyone else.”). d. Distort perceptions of others (“Mike’s job isn’t as desirable as I thought.”). e. Choose a different referent (“I may not make as much as my brother-in-law, but I’m doing a lot better than my Dad did when he was my age.”). f. Leave the field (quit the job).

4. Some of these propositions have been supported, but others haven’t. a. First, inequities by overpayment do not seem to significantly affect behaviour in most work situations. So, don’t expect an employee who feels overpaid to give back part of her salary or put in more hours to make up for the inequity. Although individuals sometimes perceive that they are overrewarded, they restore equity by rationalizing their situation. b. Second, not everyone is equity-sensitive. A few actually prefer outcomeinput ratios lower than the referent comparisons.

H. Expectancy Theory.

1. This widely accepted theory explains motivation as a coupling of three beliefs: a. Effort will lead to a good performance appraisal, b. Good appraisals will lead to organizational rewards, and c. Organizational rewards will satisfy the employee's personal goals.

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I.

d. The relationship between these three beliefs and the strength of the links between them are the focus of this theory.

2. The Three Key Relationships: a. Effort-Performance Relationship.

1) The probability perceived by the individual that exerting a given amount of effort leads to successful performance.

2) If the employee believes that effort will not result in successful performance or that the performance will not be accurately reflected in the performance appraisal, little effort will be expended. b. Performance-Reward Relationship.

1) The degree to which the individual believes that performing at a particular level will lead to the attainment of a desired outcome. Unless the relationship between strong performance appraisals and rewards is clear, little effort will be expended to achieve those high appraisal marks. c. Rewards-Personal Goals Relationship.

1) The degree to which organizational rewards satisfy an individual's personal goals (or needs) and the attractiveness of those potential rewards for the individual.

2) Unless organizational rewards are tailored to individual employee wants and needs, they will not be very motivational and little effort will be expended. d. While the research results are mixed, there is reasonable support for this theory.

1) It may be considered somewhat idealistic, considering the current realities of the workplace.

2) This theory may explain why such a large portion of the workforce exhibits low levels of effort in carrying out job responsibilities, as most companies do not reward for performance.

Organizational Justice 1. Although equity theory’s propositions have not all held up, the hypothesis served as an important precursor to the study of organizational justice, or more simply, fairness, in the workplace. Organizational justice is concerned with how employees feel authorities and decision makers treat them. For the most part, employees evaluate how fairly they are treated along four dimensions. a. Distributive justice is concerned with the fairness of the outcome, such as pay and recognition that employees receive. People base distributive judgments on a feeling or an emotional reaction to the way they think they are being treated relative to others, and their reactions are often “hot” and emotional rather than rational. b. Procedural justice focuses on the fairness of the process used to distribute rewards. The two key elements of procedural justice are: 1) Employees perceive that procedures are fairer when they are given a say in the decision-making process. Having direct influence over how decisions are made, or at the very least being able to present your opinion to decision makers, creates a sense of control and makes us feel empowered.

2) Employees perceive that procedures are fairer when decision makers follow several “rules.” It is important that managers be consistent, unbiased, use accurate information, and are open to appeals for procedural justice to work.

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2.

3.

4.

5.

6.

7.

3) In the absence of distributive justice, research has shown that procedural justice becomes more important to employees. c. Informational justice reflects whether managers provide employees with explanations for key decisions and keep them informed of important organizational matters. The more detailed and candid managers are with employees, the more fairly treated those employees feel.

1) Though it may seem obvious that managers should be honest with their employees and not keep them in the dark about organizational matters, many managers are hesitant to share information. This is especially the case with bad news, which is uncomfortable for both the manager delivering it and the employee receiving it.

2) Research has linked the absence of explanations to increased litigation intentions by employees who have been laid off. Explanations for bad news are beneficial when they take the form of post hoc excuses rather than justifications. d. Interpersonal justice reflects the individual's perception of the degree to which he or she is treated with dignity, concern, and respect. This is a more interpersonal view of justice, normally related directly between supervisor and employee.

When employees feel fairly treated, they respond in a number of positive ways.

All four types of justice have been linked to higher levels of task performance and citizenship behaviours such as helping co-workers, as well as lower levels of counterproductive behaviours such as shirking job duties.

Distributive and procedural justice are more strongly associated with task performance, while informational and interpersonal justice are more strongly associated with citizenship behaviour. Even more physiological outcomes, such as how well employees sleep and the state of their health have been linked to fair treatment.

Why does justice have these positive effects? First, fair treatment enhances commitment to the organization and makes employees feel it cares about their well-being. In addition, employees who feel fairly treated trust their supervisors more, which reduces uncertainty and fear of being exploited by the organization.

Finally, fair treatment elicits positive emotions, which in turn prompt citizenship behaviours.

To promote fairness in the workplace, managers should consider openly sharing information on how allocation decisions were made, and following consistent unbiased procedures, to increase the perception of procedural justice.

Despite all attempts to enhance fairness, perceived injustices are likely to occur.

Fairness is often subjective; what one person sees as unfair, another may see as perfectly appropriate. a. In general, people see allocations or procedures favouring themselves as fair. b. When addressing perceived injustices, managers need to focus their attentions on the source of the problem.

In terms of cultural differences, meta-analytic evidence shows individuals in both individualistic and collectivistic cultures prefer an equitable distribution of rewards over an equal division. Across nations, the same basic principles of procedural justice are respected, and workers around the world prefer rewards based on performance and skills over rewards based on seniority.

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a. However, in collectivistic cultures employees expect rewards to reflect their individual needs as well as their performance. b. Other research suggests that inputs and outcomes are valued differently in various cultures. Materialistic cultures are more likely to see cash compensation and rewards as the most relevant outcomes of work, whereas relational cultures will see social rewards and status as important outcomes. c. International managers must consider the cultural preferences of each group of employees when determining what is “fair” in different contexts.

IV. MOTIVATING BY JOB DESIGN: THE JOB CHARACTERISTICS MODEL A. The Job Characteristics Model (JCM).

1. Designed by Hackman and Oldham, the JCM proposes that any job can be described in terms of five core job dimensions: a. Skill Variety: described as the degree to which the job requires a variety of different activities so the worker can use a number of different skills and talents. b. Task Identity: this is the degree to which the job requires completion of a whole and identifiable piece of work. c. Task Significance: this is the degree to which the job has a substantial impact on the lives or work of other people. d. Autonomy: this is the degree to which the job provides substantial freedom, independence, and discretion to the individual in scheduling the work and determining the procedures to be used in carrying it out. Jobs that possess autonomy give employees a feeling of personal responsibility for the results. e. Feedback: this is the degree to which carrying out the work activities required by the job results in the individual obtaining direct and clear information about the effectiveness of his or her performance. Jobs that provide feedback let employees know how effectively they are performing.

2. Exhibit 7-1 presents the job characteristics model. a. The first three dimensions—skill variety, task identity, and task significance—combine to create meaningful work the employee will view as important, valuable, and worthwhile. b. Jobs with high autonomy give employees a feeling of personal responsibility for the results; if a job provides feedback, employees will know how effectively they are performing. c. From a motivational standpoint, the JCM proposes that individuals obtain internal rewards when they learn (knowledge of results) that they personally have performed well (experienced responsibility) on a task they care about (experienced meaningfulness).

1) The more these three psychological states are present, the greater will be employees’ motivation, performance, and satisfaction, and the lower their absenteeism and likelihood of leaving. d. As Exhibit 7-1 shows, individuals with a high growth need are more likely to experience the critical psychological states when their jobs are enriched— and respond to them more positively. e. Much evidence supports the JCM concept that the presence of a set of job characteristics—variety, identity, significance, autonomy, and feedback— does generate higher and more satisfying job performance. f. A few studies have tested the JCM in different cultures, but the results are not consistent. The fact that the JCM is relatively individualistic suggests job 7-9

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enrichment strategies may not have the same effects in collectivistic cultures as in individualistic cultures.

V. HOW CAN JOBS BE REDESIGNED? A. Job Rotation (or Cross-Training).

1. Helpful when employees suffer from excessively routine work. This technique is the periodic shifting of an employee from one task to another. a. Strengths. The strengths of job rotation are: 1) it reduces boredom, 2) it increases motivation through diversifying the employee's activities, and 3) it helps employees understand how their work contributes to the organization.

4) International evidence from Britain, Italy, and Turkey shows that job rotation is associated with higher levels of organizational performance in manufacturing settings. b. Costs.

1) Job rotation increases training costs and reduces productivity by moving worker into a new position just as that worker is becoming efficient in the old position. a) There may be social disruptions: members of the workgroup have to adjust to the new employee and supervisors have to spend more time monitoring the newly-rotated employees.

B. Job Enrichment. This refers to the vertical expansion of jobs. It increases the degree to which the worker controls the planning, execution, and evaluation of the work.

1. Purpose. The purpose is to allow the worker to complete an entire activity, which increases the employee's freedom, independence, and responsibility. a. In order for job enrichment to work, there must be sufficient feedback so employees will be able to assess and correct their own performance. b. JCM Guidelines for Job Enrichment: 1) Combining tasks: takes existing and fractionalized tasks and reforms them into a new larger module of work.

2) Forming natural work units: the tasks are combined to create an identifiable and meaningful whole work unit for the employee.

3) Establishing client relationships: creating a direct linkage between workers and their clients. Note: this includes internal as well as external clients.

4) Expanding jobs vertically: allow employees some of the responsibilities and control formerly reserved for management.

5) Opening feedback channels: allows employees to know how well they are performing their jobs.

2. Some newer versions of job enrichment concentrate specifically on improving the meaningfulness of work. a. One method is to establish client relationships, which increases the direct relationships between workers and their clients. b. Another method is to provide employees with mutual assistance programs.

3. The evidence on job enrichment shows it reduces absenteeism and turnover costs and increases satisfaction, but not all job enrichment programs are equally effective.

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a. A review of 83 organizational interventions designed to improve performance management showed that frequent, specific feedback related to solving problems was linked to consistently higher performance, but infrequent feedback that focused more on past problems than future solutions was much less effective. b. Job enrichment can be effective when accompanied by practices—such as feedback—that support it.

VI. ALTERNATIVE WORK ARRANGEMENTS A. Another means of increasing motivation in the workplace is to alter the typical work

arrangements. There are three major ways to accomplish this.

1. Flextime a. Flextime refers to the use of "flexible work time." b. Flextime allows employees some discretion over when they arrive at work and when they can leave. c. Employees have to work a specific number of hours per week, but they are free to vary the hours of work within certain limits. d. Flextime has become popular outside Canada in countries such as Germany where 73 percent of businesses offer flextime, and Japan. e. Core Period 1) Typically, all workers must be in the office during a core period.

2) This core period may be as long as six hours, with the remaining two work hours scheduled at the employee's convenience. f. Benefits. They include: 1) reduced absenteeism 2) increased productivity, 3) reduced overtime expenses, 4) reduced hostility toward management, reduced traffic congestion around work sites, elimination of tardiness, and increased autonomy and responsibility for employees, any of which may increase employee job satisfaction. g. Research Results.

1) Most evidence seems to back up the listed benefits of flextime.

2) The use of this technique is not applicable to every job.

3) It does work well for clerical tasks, where interaction with outside individuals is limited, but 4) It is inappropriate for jobs with comprehensive service demands during predetermined hours.

2. Job Sharing. a. This scheduling innovation allows two or more individuals to split a single traditional 40-hours-a-week job among them. b. Only about 12 percent of large organizations offer job sharing, a significant decline from 18 percent in 2008. c. Reasons it is not more widely adopted include the difficulty of finding compatible pairs of employees to job share and the historically negative perceptions of individuals not completely committed to their jobs and employers. d. However, decreasing job sharing for these reasons may be short-sighted. e. Job sharing allows an organization to draw on the talents of more than one individual for a given job. It opens the opportunity to acquire skilled 7-11

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workers—for instance, women with young children and retirees—who might not be available on a full-time basis. f. From the employee’s perspective, job sharing can increase satisfaction and motivation. g. An employer’s decision to use job sharing is sometimes based on economics and national policy.

1) Two part-time employees sharing a job can be less expensive than one full-time employee, but experts suggest this is not the case because training, coordination, and administrative costs can be high.

2) Many German and Japanese firms have been using job sharing—but for a different reason. Germany’s Kurzarbeit program has kept employment levels from plummeting through economic crises by switching full-time workers to part-time job sharing workers.

3) Ideally, employers should consider each employee and job separately, seeking to match up the skills, personalities, and needs of each employee with the tasks required for the job to look for potential job sharing matches.

3. Telecommuting (or Working from the Virtual Office). a. This refers to employees who do their work remotely for at least two days a week using a computer linked to their office. A closely-related term—the virtual office—describes working from home on a relatively permanent basis. b. While telecommuting would seem to mesh with a transition to knowledge work, it has been a popular topic lately, not for its potential, but rather for reconsideration. c. Recently, large companies such as Yahoo! and Best Buy have eliminated this form of flexible work. d. For most companies, the movement toward telecommuting continues to grow. e. Appropriate Jobs. The three most appropriate categories for telecommuting are: 1) Jobs that deal with routine information-handling tasks, 2) mobile activities, and 3) professional and other knowledge-related tasks. f. Benefits.

1) For organizations, it results in a larger labour pool, higher productivity, improved morale, and reduced office-space costs.

2) For employees, telecommuting can result in a great cost savings. The hours and gas used in commuting and dry cleaning bills for office clothes may see significant reduction. g. Drawbacks.

1) For organizations: managers with telecommuting workforces have far less direct supervision of their employees. Telecommuting may make teamwork more difficult.

2) For employees: employees with high social needs may feel isolated and have reduced job satisfaction as a result of telecommuting. There is also a danger that, because they are not in the office environment on a daily basis, they will be overlooked for promotions and perhaps receive lower performance assessments.

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VII. EMPLOYEE INVOLVEMENT A. Employee Involvement: a participative process that uses the input of employees to

increase their commitment to the organization's success.

1. The logic behind employee involvement is that by involving workers in decisions that affect them and by increasing their autonomy and control over their work lives, employees will become more motivated, more committed to the organization, more productive, and more satisfied with their jobs.

2. Employee involvement programs differ among countries. Research shows that it is important to modify practices to reflect culture.

3. Examples of employee involvement programs. a. Participative Management. Participative management is the use of joint decision making in an organization.

1) Requirements. In order for this type of decision making to be effective, followers must have trust and confidence in their leaders. Leaders should refrain from coercive techniques and instead stress the organizational consequences of decisions to their followers.

2) Research Results. The findings on the use of this technique have been mixed. It appears that participation in decision making only has a modest influence on employee productivity, motivation, and job satisfaction. b. Representative Participation.

1) This technique from Western Europe is a legislated form of participation.

2) Representatives of employees are legally mandated to be placed on an organization's board (or on works councils who must be consulted regarding management’s personnel decisions) to represent the interests of the workers.

3) Purpose is the desire to redistribute power within an organization by giving the interests of labour more of an equal footing with those of management and stockholders.

4) Research a) From results thus far, it appears that this mandatory form of employee involvement has minimal impact on the employees. b) It may be motivational for those employees selected to represent the other workers, but it does not appear to motivate workers in general.

4. Linking Employee Involvement Programs and Motivation Theories a. Employee involvement draws on a number of the motivation theories we discussed in Chapter 7.

1) Theory Y is consistent with participative management and Theory X with the more traditional autocratic style of managing people. a) In terms of two-factor theory, employee involvement programs could provide intrinsic motivation by increasing opportunities for growth, responsibility, and involvement in the work itself. b) The opportunity to make and implement decisions—and then see them work out—can help satisfy an employee’s needs for responsibility, achievement, recognition, growth, and enhanced selfesteem. c) And extensive employee involvement programs clearly have the potential to increase employee intrinsic motivation in work tasks.

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VIII. USING PAY TO MOTIVATE EMPLOYEES A. Introduction 1. While pay is not a primary factor driving job satisfaction, it does motivate people.

2. There are four strategic reward decisions that need to be made in order to establish an effective pay and rewards system: a. what to pay employees, b. how to pay them, c. what benefits to offer, and d. how to recognize them.

B. What to Pay: Establishing a Pay Structure 1. Setting pay levels can be a complex activity and entails balancing the following two values. a. Internal Equity: the worth of the job to the organization, usually established through a technical process called job evaluation. b. External Equity: the external competitiveness of an organization's pay relative to pay elsewhere in the industry, normally established through pay surveys. c. Some organizations pay above the market, while some lag the market because they cannot afford market rates or because they are willing to bear the costs of paying below market. d. Establishing internal and external equity is strategically important, because relative pay can make a great difference in the skill level of employees who are attracted to the organization and to turnover rate, therefore affecting both training and replacement costs.

C. How to Pay: Rewarding Individual Employees Through Variable-Pay Programs 1. Rather than paying a person only for time on the job or seniority, a variable-pay program bases a portion of an employee’s pay on some individual and/or organizational measure of performance.

2. These programs attempt to tie pay directly to productivity and performance.

3. There are seven major types of variable-pay programs: a. Piece-Rate Pay. 1) In these programs, workers are paid a fixed sum for each unit of production completed.

2) These plans may or may not have a base salary attached to them. b. Merit-Based Pay. 1) These individual plans modify pay based on performance appraisal ratings.

2) Advantages. The advantage of these plans is that employers can differentiate pay based on performance, so that high performers are given bigger raises.

3) Disadvantages. However, it should be noted that these plans are only as valid as the appraisals they are based on. Additionally, the pay raise pool from which the merit pay monies are taken may be too low to provide a sufficient level of incentive pay. c. Bonuses.

1) Bonuses, extra money paid for a specific event or organizational achievement, are becoming more common even in the lower levels of organizations.

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2) One advantage of using bonuses is that they reward employees for recent performance rather than historical performance.

3) However, employees may prefer base pay increases to the variable bonuses. d. Skill-Based Pay (competency-based or knowledge-based pay).

1) These plans are an alternative to job-based pay. They pay workers for increasing their skill set at the job, rather than for advancements in position or job titles.

2) Advantages. This pay scheme increases workforce flexibility and makes management's job far easier when it comes to replacing or changing employees for a specific task. Communication throughout the organization also benefits.

3) Disadvantages. Employees can "top out" when they learn all the relevant skills in the program. They may not see any immediate need for the skills and management will be forced to pay for them anyway. e. Profit-Sharing Plans.

1) These are organization-wide programs to distribute compensation based on some established formula designed around a company's profitability. Rewards can be given in the form of cash, or for top management, allocations of stock options. f. Gainsharing.

1) This is a formula-based group incentive plan.

2) Group productivity improvements from one period to another determine the total amount of money that is to be allocated—even when the organization is not profitable.

3) Gainsharing is different from profit sharing because rewards are tied to productivity gains, not profitability. g. Employee Stock Ownership Plans (ESOPs).

1) These are company-established benefit plans in which employees can acquire stock, often at below-market prices, as part of their benefits.

2) Research has shown that these plans do increase employee satisfaction, but their impact on performance is less clear.

IX. EMPLOYEE RECOGNITION PROGRAMS A. Organizations are increasingly recognizing:

1. Important work rewards can be both intrinsic and extrinsic.

2. Rewards are intrinsic in the form of employee recognition programs and extrinsic in the form of compensation systems.

B. Employee recognition programs range from a spontaneous and private thank-you to widely publicized formal programs in which specific types of behaviour are encouraged and the procedures for attaining recognition are clearly identified.

C. Some research suggests financial incentives may be more motivating in the short term, but in the long run it’s nonfinancial incentives.

1. A few years ago, 1,500 employees were surveyed in a variety of work settings to find out what they considered the most powerful workplace motivator.

D. Their response? Recognition, recognition, and more recognition.

1. An obvious advantage of recognition programs is that they are inexpensive because praise is free!

2. It shouldn’t be surprising then that they’ve grown in popularity.

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3. Despite the increased popularity of employee recognition programs, critics argue they are highly susceptible to political manipulation by management.

4. When applied to jobs for which performance factors are relatively objective, such as sales, recognition programs are likely to be perceived by employees as fair.

5. However, in most jobs, the criteria for good performance aren’t self-evident, which allows managers to manipulate the system and recognize their favourites.

6. Abuse can undermine the value of recognition programs and demoralize employees.

X. SUMMARY A. Understanding what motivates individuals is key to organizational performance.

B. Employees whose differences are recognized, who feel valued, and who have the

oppor-tunity to work in jobs tailored to their strengths and interests will be motivated to per-form at the highest levels.

C. Two-factor theory, and McClelland’s theory focus on needs. Neither has found widespread support, although McClelland’s is the strongest, particularly regarding the relation-ship between achievement and productivity.

D. Self-determination theory has merits to consider. Goal-setting theory can be helpful but does not cover absenteeism, turnover, or job satisfaction.

E. Equity theory’s strongest legacy is that it provided the spark for research on organiza-tional justice, which has more support in the literature.

F. Expectancy theory can be helpful, but assumes employees have few constraints on deci-sion making, such as bias or incomplete information, and this limits its applicability.

G. Organizational justice is influenced by distributive, procedural, informational, and inter-personal justice. The relevance of each form of justice varies by situation.

H. The job characteristics model is a tool to help make jobs more engaging by being attentive to task identity, task significance, skill variety, autonomy, and feedback.

I. Compensation and benefit plans, when well designed, can enhance motivation.

When poorly designed, however, they can encourage negative and counterproductive work-place behaviours.

J. Employee participation and recognition can increase employee productivity, commit-ment to work goals, motivation, and job satisfaction.

XI. IMPLICATIONS FOR MANAGERS A. Recognize individual differences. Spend the time necessary to understand what’s

important to each employee. Design jobs to align with individual needs and maximize their motivation potential.

B. Use goals and feedback. You should give employees firm, specific goals, and they should receive feedback on how well they are faring in pursuit of those goals.

C. Allow employees to participate in decisions that affect them. Employees can contribute to setting work goals, choosing their own benefits packages, and solving productivity and quality problems.

D. Link rewards to performance. Rewards should contain a performance component, and employees must find the process to be fair. Recognize the power of both extrinsic and intrinsic rewards.

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E. Check the system for equity. Employees should perceive that experience, skills,

abilities, effort, and job requirements explain differences in pay, job assignments, and other rewards.

F. Make sure extrinsic rewards for employees are not viewed as coercive, and recognize the importance of intrinsic motivators that appeal to employees’ desires for autonomy, relatedness, recognition, and competence.

G. Consider goal-setting theory: Within reason, clear and difficult goals often lead to higher levels of employee productivity.

H. In accordance with self-efficacy theory, efforts you make to help your employees feel successful in completing tasks will result in their increased motivation.

I. As suggested by justice theory, ensure that employees feel fairly treated; sensitivity to processes and interactions are particularly important when rewards are distributed unequally.

Mini Case Discussion Questions Case 1: Getting the Best from Your Sales Force 1. Using motivational theory as your guideline, identify strengths and weaknesses of the existing compensation system. Could the compensation and recognition system be contributing to poor sales of the new product? If so, explain how.

Expectancy theory tells us that workers are more motivated when they anticipate a predictable, positive relationship between effort, performance, and reward. The current compensation system is problematic because the new product takes more effort to sell than the old product, yet the commission rate for the new software is the same for initial licenses and is actually less for maintenance contracts. In the eyes of the sales reps, they have more work to do for less overall compensation, with a higher risk of failure since the new product is untried in the market.

This is made worse by the annual territory changes. Since this product has a long sales cycle once the first quarter of the year is past, there is always risk of losing a deal-inprogress due to territory changes. That would encourage sales reps to focus on maintenance contracts instead. These factors combine together, resulting in poor motivation to sell the new products.

Positive elements of the existing compensation system include the small salary and high commission rate. This motivates employees to sell as much as possible while still providing a basic safety net such that anxiety and stress do not interfere with selling.

Case 2: What Does “Fair” Mean?

1. Using what you know about equity theory, expectancy theory, and organizational justice, explain why Stephen and Bianca have different perceptions of what fairness means when it comes to implementing summer hours.

Equity theory compares the inputs and rewards of one worker (or group of workers) with the inputs and rewards of another. Each worker, however, also engages in selective perception. For example, Bianca notices every time she has to stay on Friday afternoons but she doesn’t directly observe Stephen’s accounting team when they stay late for

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month end. Stephen’s group has a similar experience; they know when they stay late but don’t observe when Bianca’s group does the same thing. As a result, each group feels that they do more work (deliver more inputs) than the other group for inequitable rewards (time off), such that the end result is unfair.

Expectancy theory highlights the relationship between effort, performance, and reward.

The accounting group in particular considers their month-end efforts extraordinary and therefore feels that they have earned extra privileges. Others who do not have visibility into their month-end activities may perceive the situation differently.

Organizational justice focuses on fairness related to outcomes, processes, and interpersonal interactions. Again, perceptions about relative effort and reward will influence these responses. In general, Bianca seems more focused on interpersonal justice (maintaining the family atmosphere) while Stephen seems more concerned with outcomes and processes (overtime tracking and associated compensation), suggesting different foci.

Exercises 1. Self-analysis. After reviewing all of the motivational theories of this chapter, select the one you believe to be the most accurate in describing human behaviour. Justify your selection and describe how the motivational theory would explain the actions you have taken in your own life.

2. Web Crawling. Using your favourite search engine, find webpages that relate to Two Factor Theory. Read five of the most interesting pages. What overall impressions do you get on the perceived validity of this theory on those pages? Did everyone explain the theory in the same way? What may have caused the differences if there were any?

3. Teamwork. In small groups, discuss the motivations that each of you had when you made the decision to attend this university and this class in particular. Were they the same motivations? What motivates you to expend more effort in this class? What motivates you to continue to attend university and expend the effort necessary to graduate?

As a group, decide which motivational theory best fits the results of your discussion. Be ready to give a short description of the most common motivators found in your group.

Justify your application of the chosen motivational theory.

What motivational suggestions would your team make to your professor or the university administrators to increase the likelihood of student performance, that is, successful graduation or increased study?

4. Analyzing Your Organization (Cumulative Project). Discuss with your manager the various motivational theories outlined in this chapter. Interview the manager to determine his or her beliefs regarding the validity of each of these theories. How might these beliefs affect organizational effectiveness? Be prepared to present your findings either orally in class or as a paper.

5. An Application of Motivation—MBO. Instructor notes: The goal here is to help students apply MBO. The emphasis should be on creating measurable realistic objectives. You

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may wish to use this as part of your grading for the course by holding the students accountable for their objectives at the end of the term.

Review the principles of MBO with the class. Carefully describe the nature of effective outcomes. The criteria for effective objectives are that they should be specific, challenging, and measurable. Generalized outcomes, with no means of measuring their accomplishment, should not be accepted.

As writing effective objectives is quite often a difficult task for both students and managers, it is strongly recommended that the first objective be written as a class activity. Typically, the students’ first version of an objective is “Get an A in the course.”

Be gentle as you point out why this is not an effective objective.

Suggested Assignment 1. Review the course objectives (outcomes) as given in the course materials.

2. Create five personal objectives relating to the successful completion of this course’s objectives. Submit the objectives to your instructor, retaining a copy for yourself.

3. In small groups, share your objectives and discuss. Present the five best objectives from the group to the class.

4. At the end of the course, when the instructor directs, write a short paper describing how well you believe you have met your own objectives.

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Chapter 8 Foundations of Group Behaviour

Chapter 8 Foundations of Group Behaviour Chapter Overview The text thus far has been dealing with individual behaviour. Another important component of OB is group behaviour. This chapter and the next will focus on how groups work and how to create effective teams.

Chapter Objectives After studying this chapter, the student should be able to: 8.1 a Define group, and identify the five stages of group development.

8.1 b Discuss how the punctuated equilibrium model helps us to better understand group behaviours.

8.2 Show how role requirements change in different situations.

8.3 Demonstrate how norms exert influence on an individual’s behaviour.

8.4 Discuss the dynamics of status in group behaviour.

8.5 Discuss the impact of cohesion and diversity on group effectiveness.

8.6 Contrast the strengths and weaknesses of group decision making.

8.7 Compare the effectiveness of interacting, brainstorming, and the nominal group technique.

Suggested Lecture Outline

I. INTRODUCTION A. While understanding individual behaviour is important, most work takes place in

group settings.

B. It is important for an effective manager to understand how people work in groups and how to create effective teams.

II. DEFINING AND CLASSIFYING GROUPS A. A group is two or more individuals, interacting and interdependent, who come

together to achieve particular objectives.

1. Formal Groups: groups that are defined by the organization's structure with designated work assignments that establish tasks. a. In these groups, acceptable behaviours are stipulated by, and directed toward, organizational goals.

2. Informal Groups: alliances that are neither formally structured nor organizationally determined. a. Informal groups are natural formations in the work environment that appear in response to the need for social contact. b. These types of interactions among individuals, though informal, deeply affect their behaviour and performance.

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B. The Five-Stage Model.

1. As shown in Exhibit 8-1, the five-stage group-development model characterizes groups as proceeding through the distinct stages of forming, storming, norming, performing, and adjourning. a. Forming. Characterized by a great deal of uncertainty about the group’s purpose, structure, and leadership.

1) Members experiment to determine which behaviours are acceptable.

2) The stage is complete when members think of themselves as part of a group. b. Storming. This stage is full of intragroup conflict as members resist the constraints the group imposes upon them and determine leadership.

1) When complete, the team will have a relatively clear hierarchy of group leadership. c. Norming. The group is cohesive and develops close relationships with a strong sense of group identity and camaraderie.

1) Stage is complete when the group structure solidifies and the group has assimilated a common set of expectations of what defines correct member behaviour. d. Performing. Finally, group energy moves toward performing their assigned task.

1) The group structure is fully functional and accepted. e. Adjourning. While permanent groups may not ever make it to this stage, temporary groups do.

1) In this stage, the group prepares to disband and perhaps join other groups.

2. Many interpreters of the five-stage model have assumed a group becomes more effective as it progresses through the first four stages. a. Although this may be generally true, what makes a group effective is actually more complex. b. Groups proceed through the stages of group development at different rates.

1) Those with a strong sense of purpose and strategy rapidly achieve high performance and improve over time.

2) Those with less sense of purpose actually see their performance worsen over time.

3) Groups that begin with a positive social focus appear to achieve the “performing” stage more rapidly. c. Nor do groups always proceed clearly from one stage to the next.

1) Storming and performing can occur simultaneously.

2) Groups even occasionally regress to previous stages.

C. An Alternative Model for Temporary Groups with Deadlines.

1. Temporary groups with deadlines don’t seem to follow the usual five-stage model. Instead, they follow the punctuated-equilibrium model as shown in Exhibit 8-2.

2. Their first meeting sets the group’s direction; this first phase of group activity is one of inertia.

3. A transition takes place exactly when the group has used up half its allotted time. This transition initiates major changes.

4. A second phase of inertia follows the transition, and the group’s last meeting is characterized by markedly accelerated activity.

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5. The first meeting sets the group’s direction, and then a framework of behavioural patterns and assumptions through which the group will approach its project emerges, sometimes in the first few seconds of the group’s existence. a. Once set, the group’s direction is solidified and is unlikely to be reexamined throughout the first half of its life. This is a period of inertia—the group tends to stand still or become locked into a fixed course of action even if it gains new insights that challenge initial patterns and assumptions.

6. The group’s last meeting is characterized by a final burst of activity to finish its work.

7. In summary, the punctuated-equilibrium model characterizes groups as exhibiting long periods of inertia interspersed with brief revolutionary changes triggered primarily by members’ awareness of time and deadlines. a. Keep in mind that this model doesn’t apply to all groups but is suited to the finite quality of temporary task groups working under a time deadline.

III. GROUP ROLES A. In order to understand workgroups, it is important that we realize that the

behaviour of the members is shaped by the properties of the workgroups.

B. Some defining group properties are roles, norms, status, size, cohesiveness, and diversity.

C. Roles are the set of expected behaviour patterns attributed to someone occupying a given position in a social unit.

1. Typically, people are required to play a number of diverse roles, both on and off the job, which makes the understanding of role behaviour more difficult.

2. There are different ways to examine roles: a. Role Perception.

1) The view of how a person is supposed to act in a given situation.

2) The interpretation of how an individual believes he or she is supposed to behave will determine behaviour.

3) Perceptions can be gained through the media, direct experience, or observation. b. Role Expectations.

1) How others believe a person should act in a given situation.

2) Apprenticeship programs allow beginners to watch an expert so they can learn to act as they should. c. Role Conflict.

1) Role conflict exists when an individual finds that compliance with one’s role requirements makes it more difficult to comply with another role's requirements.

2) At the extreme, two or more role expectations can be completely contradictory.

IV. GROUP NORMS A. Norms are the acceptable standards of behaviour as shaped by the group's

members.

1. When accepted by the group's members, norms act as a powerful means of influencing the behaviour of the group with a minimum of external control.

2. Norms can cover any aspect of group behaviour.

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a. Probably the most common is performance norms, providing explicit cues about how hard members should work, how to do the job, what level of tardiness is appropriate, and the like. b. Other norms include appearance norms (dress codes, unspoken rules about when to look busy), social arrangement norms (with whom to eat lunch, whether to form friendships on and off the job), and resource allocation norms (assignment of difficult jobs, distribution of resources like pay or equipment).

B. Norms and Behaviour. The importance of norms in influencing worker behaviour grew out of a series of studies undertaken at Western Electric Company’s Hawthorne Works in Chicago from 1924 through 1932.

1. The initial study determined that increases in productivity were caused by the fact that the groups were receiving more attention because they were observed, not by changes in the environmental conditions (lighting).

2. In a follow-on study, dealing with pay-for-performance, researchers discovered that workers do not maximize individual economic rewards, but as a group, establish and maintain the norm of a “proper day’s work” level of output. a. This also included strongly enforced norms of not creating too much or too little output or “squealing” to supervisors—enforced by ostracism or punches.

C. Conformity. In order to be accepted, an individual will often change his or her behaviour or opinion to conform to the group.

1. There are numerous reasons for conformity, with recent research highlighting the importance of a desire to develop meaningful social relationships with others or to maintain a favourable self-concept.

2. In the set of classic studies by Solomon Asch, effects of conformity were demonstrated. a. When the subjects of the experiment were shown lines of unequal length in the presence of a group who claimed that the lines were of equal length, 75% of the subjects gave at least one answer that conformed, even though they knew it was wrong. However, these experiments are 50 years old and culture bound; the pressures to conform may not be as strong today as they were then.

3. Do individuals conform to the pressures of all groups to which they belong?

Obviously not, because people belong to many groups and their norms vary and sometimes are contradictory. a. These important groups are called reference groups, in which a person is aware of other members, defines himself as a member or would like to be a member, and feels group members are significant to him. b. The implication then is that all groups do not impose equal conformity pressures on their members, since their importance is in the eye of the perceiver.

D. Deviant Workplace Behaviour (also called antisocial behaviour or workplace incivility). Voluntary behaviour that violates significant organizational norms, and in doing so, threatens the well-being of the organization or its members.

1. Exhibit 8-4 provides a typology of deviant workplace behaviours.

2. Few organizations will admit to creating or condoning conditions that encourage and maintain deviant norms. Yet they exist. a. Employees report an increase in rudeness and disregard toward others by bosses and co-workers in recent years.

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3. Like norms in general, individual employees’ antisocial actions are shaped by the group context within which they work. a. Evidence demonstrates that deviant workplace behaviour is likely to flourish where it’s supported by group norms. b. When deviant workplace norms surface, employee cooperation, commitment, and motivation are likely to suffer.

4. What are the consequences of workplace deviance for teams? Some research suggests a chain reaction occurs in groups with high levels of dysfunctional behaviour. a. The process begins with negative behaviours like shirking, undermining coworkers, or being generally uncooperative. b. As a result, the team collectively starts to experience negative moods. These negative moods result in poor coordination of effort and lower levels of group performance.

V. GROUP STATUS A. Status.

1. Status is a socially defined position or rank given to groups or group members by others. a. Even the smallest group will develop roles, rights, and rituals to differentiate its members. b. Status is a significant motivator and has major behavioural consequences when individuals perceive a disparity between what they believe their status to be and what others perceive it to be.

B. What Determines Status?

1. According to the status characteristics theory, status develops into a hierarchy, and tends to be derived from one of three sources: a. The Power a Person Wields over Others: The more power (control of resources) that an individual has, the higher his or her status. b. A Person’s Ability to Contribute to Group Goals: People whose contributions are critical to the group success also tend to have high status. c. An Individual's Personal Characteristics: When a group positively values certain personal characteristics, people who carry those traits receive high status.

C. Status and Norms.

1. High status members of groups often have more freedom to deviate from norms than do low status members.

2. High status members are also better able to resist conformity pressures, as they are less likely to be motivated by the need for social rewards.

D. Status and Group Interaction.

1. The interactions among members of a group are influenced by status.

2. High status people tend to be more assertive, while lower status members are more likely to be less active participants in discussions.

3. The situation may result in a lower diversity of ideas and creativity.

VI. GROUP SIZE A. Group size does affect the group's overall behaviour, but it is contingent uponwhich dependent variables are being examined.

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B. Smaller groups complete tasks faster and their individuals perform better, but larger groups consistently do better in problem solving.

VII. GROUPS AND WORK ATTITUDES: MORE ON SOCIAL LOAFING A. Social Loafing: the tendency for individuals to expend less effort when working

collectively than when working individually.

1. A group’s effort is not equal to the sum of the efforts of individuals within that group.

2. Group performance does increase with group size, but the addition of new members of the group has diminishing returns on productivity.

3. What causes social loafing? a. There are a number of possible causes of social loafing. b. Equity theory would indicate that when an individual and the group believes that he or she is working harder than the other group members, that individual will reduce effort to match that of the group. c. Another explanation may be the diffusion of responsibility: because the results of a group cannot be attributed to any single individual, the relationship between an individual's input and the group's output is clouded and difficult to measure.

4. Social loafing appears to have a Western bias. It is consistent with individualistic cultures, and not prevalent in collective societies in which individuals are motivated by in-group goals.

5. Preventing Social Loafing. While there is no magic bullet, these four suggestions will help minimize its effect: a. Set group goals so that the group has a common purpose. b. Increase intergroup competition (increases focus on shared outcomes). c. Engage in peer evaluation. d. Select members who have high motivation and prefer to work in groups. e. Distribute group rewards by partially basing them on each member’s unique contributions.

VIII. GROUP COHESIVENESS AND DIVERSITY A. Cohesiveness is the degree to which members are attracted to each other and are

motivated to stay in the group.

1. Cohesiveness is important because it has been found to be related to the group's productivity.

2. Groups may become more cohesive when they spend a lot of time together, the group size is small, or the group has experienced external threats.

3. Cohesiveness affects group productivity. a. Performance-related norms established by the group are the key moderating variable between cohesiveness and productivity. b. If performance-related norms are high and the group is cohesive, they will be more productive than a less cohesive group. c. However, a cohesive group with low performance norms will experience low productivity.

4. Encouraging group cohesiveness. a. The following methods may increase group cohesiveness: 1) Decrease the size of the group.

2) Encourage group members to agree with the group's goals.

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3) Increase the time members spend together.

4) Increase the status of the group and the perceived difficulty of obtaining membership in that group.

5) Stimulate competition with other groups.

6) Give rewards to the group rather than to individual members.

7) Physically isolate the group.

B. Diversity is the degree to which members of the group are similar to, or different from, one another.

1. A great deal of research is being done on how diversity influences group performance. Some looks at cultural diversity and some at racial, gender, and other differences. Studies identify both costs and benefits from group diversity.

2. Diversity appears to increase group conflict, especially in the early stages of a group’s tenure, which often lowers group morale and raises dropout rates.

3. Research shows that teams in which the members’ values or opinions differ tend to experience more conflict, but leaders who can get the group to focus on the task at hand and encourage group learning are able to reduce these conflicts and enhance discussion of group issues.

4. Culturally and demographically diverse groups may perform better over time— if they can get over their initial conflicts.

5. Surface-level diversity—in observable characteristics such as national origin, race, and gender—alters people to possible deep-level diversity—in underlying attitudes, values, and opinions.

6. The impact of diversity on groups is mixed. It is difficult to be in a diverse group in the short term. However, if members can weather their differences, over time diversity may help them be more open-minded, creative, and to do better. But even positive effects are unlikely to be especially strong.

C. Faultlines.

1. One possible side effect of diverse teams—especially those that are diverse in terms of surface-level characteristics—is faultlines, or perceived divisions that split groups into two or more subgroups based on individual differences such as sex, race, age, work experience, and education.

2. Research on faultlines has shown that splits are generally detrimental to group functioning and performance.

3. Subgroups may wind up competing with each other, which takes time away from core tasks and harms group performance.

4. Groups that have subgroups learn more slowly, make more risky decisions, are less creative, and experience higher levels of conflict.

5. Subgroups are less likely to trust each other.

6. Finally, although the overall group’s satisfaction is lower when faultlines are present, satisfaction with subgroups is generally high.

7. Overall, although research suggests that diversity in groups is a potential double-edged sword, recent work indicates they can be strategically employed to improve performance.

IX. GROUP DECISION MAKING A. Groups versus the Individual.

1. Whether or not a group’s decisions are better than an individual’s decisions depends on a number of factors.

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2. To understand group decision making, we must examine its strengths and weaknesses.

B. Strengths of Group Decision Making. The use of groups in decision making provides the following benefits: 1. Generates more complete information and knowledge.

2. Offers increased diversity of views.

3. Increases the acceptance of the solution.

C. Weaknesses of Group Decision Making: 1. Typically, it takes more time to reach a solution.

2. Greater conformity pressures exist.

3. Discussion can be dominated by one or a few members.

4. Ambiguous responsibility decreases accountability.

D. Effectiveness and Efficiency.

1. Effectiveness. a. Whether or not group decisions are more effective than those of an individual depends on the criteria used for defining effectiveness. b. Accuracy: group decisions are generally more accurate than that of the average individual in the group, but less accurate than the judgments of the most accurate group member. c. Speed: individual decision making is much faster than group decision making. d. Creativity: groups tend to be more creative than are individuals. e. Degree of acceptance: group decisions tend to be more readily accepted than are those of an individual.

2. Efficiency. a. Groups are far less efficient than are individual decision makers. b. In deciding whether to use a group, consideration should be given to assessing whether increases in effectiveness more than offset the reductions in efficiency.

E. Groupthink and Groupshift.

1. These two phenomena of group decision making have the potential to affect the group's ability to appraise alternatives subjectively and to arrive at quality decision solutions. a. Groupthink: relates to norms and describes situations in which group pressures for conformity deter the group from critically appraising unusual, minority, or unpopular views. b. Groupshift: describes the way group members tend to exaggerate their initial positions when discussing alternatives and arriving at a solution.

2. Groupthink. a. It describes a deterioration of an individual's mental efficiency, reality testing, and moral judgment as a result of group pressures. b. Symptoms of groupthink: 1) Group members rationalize away any resistance to the assumptions they have made, no matter how strong the evidence may be that those assumptions are incorrect.

2) Members apply direct pressures on those who momentarily express doubts about any of the group’s shared views or who question the validity of arguments supporting the alternative favoured by the majority.

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3) Members who have doubts or hold differing points of view keep silent about their misgivings and may even internally minimize the importance of their doubts.

4) The illusion of unanimity: unless a group member speaks out, his or her silence is taken as concurrence. c. Groupthink appears closely aligned with the conclusions Asch drew in his experiments with a lone dissenter.

1) Individuals who hold a position different from that of the dominant majority are under pressure to suppress, withhold, or modify their true feelings and beliefs.

2) As members of a group, we find it more pleasant to be in agreement—to be a positive part of the group—than to be a disruptive force, even if disruption is necessary to improve the effectiveness of the group’s decisions. d. What can managers do to minimize groupthink?

1) First, they can monitor group size. a) People grow more intimidated and hesitant as group size increases, and, although there is no magic number that will eliminate groupthink, individuals are likely to feel less personal responsibility when groups get larger than about ten members.

2) Managers should also encourage group leaders to play an impartial role. a) Leaders should actively seek input from all members and avoid expressing their own opinions, especially in the early stages of deliberation.

3) In addition, managers should appoint one group member to play the role of devil’s advocate; this member’s role is to overtly challenge the majority position and offer divergent perspectives.

4) Still another suggestion is to use exercises that stimulate active discussion of diverse alternatives without threatening the group and intensifying identity protection. a) One such exercise is to have group members delay discussion of possible gains so they can first talk about the dangers or risks inherent in a decision.

5) Requiring members to first focus on the negatives of an alternative makes the group less likely to stifle dissenting views and more likely to gain an objective evaluation.

3. Groupshift or Group Polarization. a. There are differences between group decisions and the individual decisions of group members.

1) Sometimes group decisions are more conservative.

2) More often, they lean toward greater risk. What appears to happen in groups is that the discussion leads members toward a more extreme view of the position they already held.

3) Conservatives become more cautious, and more aggressive types take on more risk. b. The group discussion tends to exaggerate the initial position of the group. c. We can view group polarization as a special case of groupthink.

1) The group’s decision reflects the dominant decision-making norm that develops during discussion.

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2) Whether the shift in the group’s decision is toward greater caution or more risk depends on the dominant pre-discussion norm. d. The shift toward polarization has generated several explanations.

1) It’s been argued, for instance, that discussion makes the members more comfortable with each other and, thus, more bold and daring.

2) Another argument is that the group diffuses responsibility. a) Group decisions free any single member from accountability for the group’s final choice, so greater risks can be taken. b) It’s also likely that people take on extreme positions because they want to demonstrate how different they are from the outgroup.

3) People on the fringes of political or social movements take on more and more extreme positions just to prove they are really committed to the cause.

4) So how should you use the findings on groupshift? a) Recognize that group decisions exaggerate the initial position of the individual members, b) Recognize that the shift has been shown more often to be toward greater risk, and c) Recognize that which way a group will shift is a function of the members’ pre-discussion inclinations.

X. GROUP DECISION-MAKING TECHNIQUES A. One of the most common forms that groups take when making decisions is that of

interacting groups.

1. Interacting Groups: groups in which the members meet face to face and rely on both verbal and nonverbal interaction to communicate with each other.

2. Brainstorming can overcome the pressures for conformity that dampen creativity by encouraging any and all alternatives while withholding criticism.

3. This somewhat ineffective technique does not lead to a solution, and may in fact lead to fewer creative alternatives than an individual could come up with, due to production blocking (distractions to thought caused by the technique itself).

4. Nominal group technique restricts discussion or interpersonal communication during the decision-making process. a. This is why it is referred to as a "nominal" (in name only) group technique. b. Group members are all physically present, but operate independently. c. A problem is presented and the following steps take place. d. Each member independently writes down ideas on the problem without discussing it in the group. e. Sequentially, each member will present one idea to the group until all ideas have been presented and recorded. No discussion is allowed until all ideas have been recorded. f. Group discusses ideas for clarity and evaluates them. g. Each group member silently and independently rank orders the ideas. h. The idea with the highest aggregate ranking determines the final decision. i. The chief advantage of the nominal group technique is that it does not restrict independent thinking; groups that use this technique tend to outperform brainstorming groups.

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5. Each of the group-decision techniques has its own set of strengths and weaknesses. The choice depends on what criteria you want to emphasize and the cost-benefit tradeoff.

6. As Exhibit 8-5 indicates, an interactive group is good for achieving commitment to a solution, brainstorming develops group cohesiveness, and the nominal group technique is an inexpensive means for generating a large number of ideas.

XI. SUMMARY A. Norms control behaviour by establishing standards of right and wrong.

B. Status inequities create frustration and can adversely influence productivity and willingness to remain with an organization.

C. The impact of size on a group’s performance depends on the type of task.

D. Cohesiveness may influence a group’s level of productivity, depending on the group’s performance-related norms.

E. Diversity appears to have a mixed impact on group performance, with some studies suggesting that diversity can help performance and others suggesting it can hurt it.

F. Role conflict is associated with job-induced tension and job dissatisfaction.

G. People generally prefer to communicate with others at their own status or a higher one, rather than with those below them.

H. Using techniques such as brainstorming and the nominal group technique can lessen bias and member silencing when engaging in group decision making.

XII. IMPLICATIONS FOR MANAGERS A. Recognize that groups can dramatically affect individual behaviour in organizations,

to either positive or negative effect. Therefore, pay special attention to roles, norms, and cohesion—to understand how these are operating within a group is to understand how the group is likely to behave.

B. To decrease the possibility of deviant workplace activities, ensure that group norms do not support antisocial behaviour.

C. Pay attention to the organizational status levels of the employee groups you create.

Because lower-status people tend to participate less in group discussions, groups with high-status differences are likely to inhibit input from lower-status members and reduce their potential.

D. When forming employee groups, use larger groups for fact-finding activities and smaller groups for action-taking tasks. When creating larger groups, you should also provide measures of individual performance.

E. To increase employee satisfaction, work on making certain your employees perceive their job roles the same way you perceive their roles.

XIII. KEEP IN MIND A. Group norms, roles, and identities have powerful effects on individual behaviour.

B. Group decision making is not always better than individual decision making.

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Mini Case Discussion Questions Case 1: Accepting New Norms? A Harassed Reporter Fights Back 1. Discuss how power and status influenced norm development for the FHRITP “community.” Put another way, how might being a male sports fan in 2015 have influenced Simoes’ perceptions of acceptable behaviour?

Sports are one of the last bastions of male privilege in North American society.

Inequality is systematically accepted in the sporting world. For example, more formal resources are available for elite male athletes than elite female athletes. News stories about females being denied playing space/field time still appear occasionally in community papers. The compensation of men playing in the World Cup of Soccer is orders of magnitude higher than the pay for women’s World Cup teams. Male athletes routinely earn more in sponsorships. In most places, being told one “plays like a girl” is still considered an insult. Females who dare tread in this domain as experts are perceived as threatening, taking on roles that are “not their place.” Humiliating those women is one way to attempt to force them back into a traditional, servile role.

The traditionally male world of professional sports is known for discounting women. As such, the context may have activated non-conscious attitudes within Simoes, causing aspects of his personality that he would normally self-edit to come out in an environment in which he would anticipate support for his behaviour.

Case 2: Re-Norm or Adjourn? The US Federal Republican Party 1. What would research about the impact of status, group size, level of cohesion, and diversity predict when assessing this situation? Is it more likely that the Republican Party will re-norm and start to perform again or will they adjourn?

Status is a socially defined position or rank given to groups or group members by others. Donald Trump had a lot of status in his party. Many of the members of the party were willing to listen to what he had to say. The fact that high status members of groups often have more freedom to deviate from norms than do low status members, Donaly Trump was able to make statements that would not have been possible from others in the party.

Group size does not affect the group's overall behaviour, but it does influence the effect of other variables. For example, smaller groups complete tasks faster and their individuals perform better, but larger groups consistently do better in problem solving.

In this particular case, the party was particularly large, which prevented them from completing tasks quickly.

Level of cohesion refers to the degree to which group members are attracted to each other and motivated to stay in the group. The fact that political parties have a high level of cohesion suggests that members of the party are likely to be highly motivated to act based on what Donald Trump says.

Diversity refers to the degree to which members of the group are similar to, or different from, one another. Based on the case study, it would appear that the Republican party has a high level of diversity, which has the tendency to increase group conflict.

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It is likely that the party will renorm. The party’s major status symbol (i.e., Donald Trump) has lost considerable status as a result of the Capital Hill riot and, therefore, is unlikely to continue to be the party’s leader. In order to identify a new leader / status symbol within the party, the members of the Republican party will need to re-norm so that there is consensus regarding the values of the party.

Exercises 1. Self-analysis. Consider the last group that you were in that was required to make a decision. What type of group was it? What types of decision-making techniques were used? How is your input to the group affected by the type of group and decision-making technique?

2. Web Crawling. Using your favourite search engine, locate a group decision-making technique that was not mentioned in the text. Write a brief one-page synopsis of the technique that would allow a manager to use it without having viewed the website.

Ensure you properly cite the source.

3. Teamwork. In this exercise, the instructor will break the class up into groups of various sizes, some large (12+ members) and some small (4-7 members), and will leave three individuals by themselves. The instructor will provide three datasheets on a product (cars, laptop computers, smartphones, or something similar). Using whichever group decision-making technique the group thinks is appropriate, decide which of the three products is superior. Keep track of the time it takes to make your decision. The three individuals will also make this decision, each on their own, and keep track of the time it takes them.

As a class, compare the quality of the results and the time it took to achieve them, based on group size and decision-making technique. What are your findings?

4. Analyzing Your Organization (Cumulative Project). Write a one-page paper that outlines the use of groups and/or teams in your organization for decision making. What decision-making techniques are commonly used and how does the average worker feel about the quality of these decisions?

Suggested Assignments 1. Group Membership Analysis. List all of the groups that you belong to and categorize each group based on the group subcategories given in the text. Count up the number of groups you belong to in each subcategory and record that subtotal. Sum up all of the subcategories and record your total group memberships. Share your results in class and sum up the individual subtotal counts to get a class total. In which subcategory was group membership most frequently identified and in which was membership least frequently identified? What was the average number of groups to which members of the class belonged?

2. Status Symbols. Examine an organization with which you are familiar and pay particular attention to the use of status symbols by those in high status positions. Make a list of the differences in symbols between those in high- and low-status positions.

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Share your findings with the class, and, as a class, discuss how being able to identify these high-status symbols can help you become more effective in the organization.

3. Identifying Norms. As university students you have been exposed to a continuing series of norms. From elementary school on, you have learned what is considered to be proper behaviour in the classroom. As a class (or in small groups), brainstorm and identify these unwritten rules of classroom behaviour. How many norms were there?

How many of these norms were you consciously aware of prior to listing them?

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Chapter 9 Understanding Work Teams

Chapter 9 Understanding Work Teams Chapter Overview Teams are increasingly becoming the primary means for organizing work in contemporary business firms. Understanding how and when to create these work teams is the purpose of this chapter.

Chapter Objectives After studying this chapter, the student should be able to: 9.1 a Analyze the growing popularity of teams in organizations.

9.1 b Contrast groups and teams.

9.2 Contrast the five types of teams.

9.3 Identify the characteristics of effective teams.

9.4 a Show how organizations can create team players.

9.4 b Understand how to contribute to a team effectively as a member.

9.5 Decide when to use individuals instead of teams.

Suggested Lecture Outline

I. WHAT ARE TEAMS AND WHY HAVE THEY BECOME SO POPULAR? A. As organizations have restructured themselves to compete more effectively and efficiently, they have turned to teams as a better way to use employee talents.

B. Teams are more flexible and responsive to changing events than traditional

departments or other forms of permanent groupings.

C. They can quickly assemble, deploy, refocus, and disband. But don’t overlook the motivational properties of teams.

D. Consistent with our discussion of employee involvement as a motivator, teams facilitate employee participation in operating decisions.

E. So another explanation for their popularity is that they are an effective means for management to democratize organizations and increase employee motivation.

F. The fact that organizations have turned to teams doesn’t necessarily mean they’re always effective.

G. Work Group.

1. A group is defined as two or more individuals, interacting and interdependent, who have come together to achieve particular objectives.

2. A work group is a group that interacts primarily to share information and to make decisions to help each member perform within his or her area of responsibility. a. Work groups have no need to engage in collective work or joint efforts, so no positive synergy is created.

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3. In contrast to work groups, work teams create positive synergy through coordinated effort. a. Their individual efforts result in a level of performance that is greater than the sum of those individual inputs.

4. In both work groups and work teams, there are often behavioural expectations of members, collective normalization efforts, active group dynamics, and some level of decision making (even if just informally about the scope of membership). a. Both work groups and work teams may generate ideas, pool resources, or coordinate logistics such as work schedules; for the work group, however, this effort will be limited to information gathering for decision makers outside the group. b. Whereas we can think of a work team as a subset of a work group, the team is constructed to be purposeful (symbiotic) in its member interaction. c. The distinction between a work group and a work team should be kept even when the terms are mentioned interchangeably in differing contexts.

Exhibit 10-1 highlights the differences between work groups and work teams.

5. The definitions help clarify why organizations structure work processes by teams. Management is looking for positive synergy that will allow the organization to increase performance. a. The extensive use of teams creates the potential for an organization to generate greater outputs with no increase in employee headcount. b. Notice however that we said potential. There is nothing magical that ensures the achievement of positive synergy in the creation of teams.

Merely calling a group a team doesn’t automatically improve its performance. c. Effective teams have certain characteristics. If management hopes to gain increases in organizational performance through the use of teams, its teams must possess these characteristics.

II. TYPES OF TEAMS A. In this section, we first describe four common types of teams; problem-solving

teams, self-managed work teams, cross-functional teams, and virtual teams. Then we discuss multi-teams, a “team of teams.”

B. Problem-Solving Teams.

1. These are teams in which members, often from the same department, share ideas or offer suggestions on how work processes and methods can be improved.

2. They rarely have the authority to unilaterally implement any of their suggested actions.

C. Self-Managed Work Teams.

1. Unlike problem-solving teams, these teams move beyond simply making recommendations and instead implement solutions and take responsibility for outcomes.

2. Typically made up of 10 to 15 employees who perform highly related or interdependent jobs. a. This team takes on many of the responsibilities of their former supervisors such as

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1) planning and scheduling of work 2) assigning tasks to members, collective control over the pace of work 3) making operating decisions 4) taking actions on problems 5) working with suppliers and customers 3. Research has indicated that the effectiveness of self-managed teams is not uniformly positive. a. Self-managed teams do not typically manage conflicts well. b. When disputes arise, members stop cooperating and power struggles ensue, which leads to lower group performance. c. Moreover, although individuals on these teams report higher levels of job satisfaction than other individuals, they also sometimes have higher absenteeism and turnover rates.

D. Cross-Functional Teams.

1. These are teams made up of employees from about the same hierarchical level, but from different work areas, who come together to accomplish a specific task.

2. This type of team is an effective means of allowing people from diverse areas within the organization (or even between organizations) to exchange information, develop new ideas and solve problems, and coordinate complex projects.

3. Cross-functional teams are somewhat difficult to manage and it may take significant time for the teams to develop sufficient trust to become effective.

4. The strength of traditional cross-functional teams is the face-to-face collaborative efforts of individuals with diverse skills from a variety of disciplines. When the unique perspectives of these members are considered, these teams can be very effective.

E. Virtual Teams.

1. Unlike the first three types of teams, virtual teams do not meet face to face.

2. Virtual teams use computer technology to tie together physically dispersed members in order to achieve a common goal.

3. These teams have become so pervasive and the technology so advanced that nearly all types of teams today do some of their work remotely.

4. Special Challenges of Virtual Teams. The lack of face-to-face contact results in: a. Less social rapport and direct interaction among members than in other types of teams. b. Another challenge is to correctly disperse information. Evidence from 94 studies involving more than 5,000 groups found that virtual teams are better at sharing unique information (information held by individual members, not the entire group), but they tend to share less information overall. c. A further challenge is finding the best amount of communication. Low levels of virtual communication in teams results in higher levels of information sharing, but high levels of virtual communication hinder it.

5. Thus, it is a mistake to think that virtual teams are an easy substitute for faceto-face teams. While geographic reach and immediacy of virtual communication make virtual teams a natural development, managers must make certain this type of team is the optimal choice for the desired outcome and then maintain an oversight role throughout the collaboration.

F. Multiteam Systems.

1. The types of teams we’ve described so far are typically smaller, standalone 9-3

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2.

3.

4.

5.

teams, though their activities relate to the broader objectives of the organization. As tasks become more complex, teams often grow in size.

Increases in team size are accompanied by higher coordination demands, creating a tipping point at which the addition of another member does more harm than good.

To solve this problem, organizations are employing a multiteam system: collections of two or more interdependent teams that share a superordinate goal. In other words, multiteam systems are “teams of teams.”

Some factors that make smaller, more traditional teams effective do not necessarily apply to multiteam systems and can even hinder their performance. a. One study showed that multiteam systems performed better when they had “boundary spanners” whose job was to coordinate with members of the other subteams. b. This reduced the need for some team member communication. Restricting the lines of communication was helpful because it reduced coordination demands. c. Research on smaller, standalone teams tends to find that opening up all lines of communication is better for coordination, but when it comes to multiteam systems, the same rules do not always apply.

In general, a multiteam system is the best choice when either a team has become too large to be effective, or when teams with distinct functions need to be highly coordinated.

III. CREATING EFFECTIVE TEAMS A. Many researchers have tried to identify factors related to team effectiveness.

Exhibit 10-2 summarizes what we currently know about what makes teams effective.

1. In considering the team effectiveness model, keep in mind three points. a. First, teams differ in form and structure. The model attempts to generalize across all varieties of teams, but avoid rigidly applying its predictions to all teams. Use it as a guide. b. Second, the model assumes teamwork is preferable to individual work.

Creating “effective” teams when individuals can do the job better is like perfectly solving the wrong problem. c. Third, let’s consider what team effectiveness means in this model.

Typically, team effectiveness includes objective measures of the team’s productivity, managers’ rating of the team’s performance, and aggregate measures of member satisfaction. d. We can organize the key components of effective teams into three general categories. First are the resources and other contextual influences that make teams effective. The second relates to the team’s composition.

Finally, process variables are events within the team that influence effectiveness.

B. Context: What Factors Determine Whether Teams Are Effective?

1. There are four general categories of key team effectiveness components (context, composition, work design, and process variables): a. Adequate Resources.

1) All work groups rely on resources outside of the group to sustain them.

2) A scarcity of resources directly reduces the ability of the team to perform its job effectively.

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3) These supportive resources include timely information, proper equipment, adequate staffing, encouragement, and administrative assistance. b. Leadership and Structure.

1) Team leadership and structure are required in order to get team members to agree on the specifics of work and how they fit together to integrate individual skills into a team output.

2) Leadership is especially important in multiteam systems, where different teams need to coordinate efforts to produce a desired outcome.

3) In these situations, leaders need to play the role of facilitators. c. Climate of Trust.

1) Members of effective teams trust each other and their leaders.

2) This trust facilitates cooperation, reduces the need to monitor each other’s behaviour, and increases bonding.

3) Team members are more likely to take risks and expose vulnerabilities when they believe they can trust others on their team.

4) Trust in the leadership helps the team accept and commit to the leader’s goals and decisions. d. Performance Evaluation and Rewards Systems.

1) These systems must be modified to reflect team performance in order to hold both individuals and the team accountable.

2) These modifications may include group-based appraisals, profit sharing, gainsharing, and small-group incentives.

C. Team Composition.

1. There are five variables in this category related to how teams should be staffed. a. Abilities of Members. Part of a team's performance depends on the knowledge, skills, and abilities of its members.

1) A team’s performance is not merely the summation of its individual members’ abilities, but these abilities set limits on what members can do and how effectively they will perform on a team.

2) Research has shown the following results when considering the abilities of members of effective teams. a) For tasks that entail considerable thought, high ability teams (teams composed of mostly intelligent members) do better. b) High ability teams are also better at adapting to changing situations. c) The intelligence and ability of a team’s leader also matters. A less intelligent leader can neutralize the effect of a high ability team. b. Personality of Members.

1) As demonstrated in a previous chapter, personality has a significant influence on individual behaviour; it also does on team behaviour.

2) Teams that rate higher in mean levels of conscientiousness and openness to experience with a minimum level of agreeableness tend to perform better.

3) Conscientious team members are valuable because they back up other team members and are good at sensing limited support. a) When there are not enough conscientious team members to go around, it is better to “pack” teams of conscientious members rather than “seeding” them throughout all of the organization’s teams.

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4) Open team members are better communicators and throw up more ideas leading to more creative and innovative solutions. c. Allocation of Roles.

1) Teams have different needs, and members should be selected to ensure all the various roles are filled.

2) A study of 778 major league baseball teams over a 21-year period highlights the importance of assigning roles appropriately. a) As you might expect, teams with more experienced and skilled members performed better. b) However, the experience and skill of those in core roles who handle more of the workflow of the team, and who are central to all work processes (in this case, pitchers and catchers), were especially vital. c) In other words, put your most able, experienced, and conscientious workers in the most central roles in a team. d. Diversity of Members.

1) Organizational Demography: The degree to which members of a work unit share a common demographic attribute such as age, sex, race, educational level, or length of service in the organization.

2) Attributes such as age or the date of joining should help us predict turnover.

3) Surface-level social-category diversity such as race/ethnicity, gender, and age tend to have negative effects on the performance of teams.

4) While these effects may decline over time, there is little evidence diverse teams perform better.

5) For diverse teams to realize their creative potential, they need to focus on their differences, not their similarities.

6) Culturally heterogeneous teams have more difficulty learning to work with each other and solving problems, but these difficulties dissipate with time. e. Size of Teams.

1) Most effective teams have five to nine members.

2) Using the smallest possible number of people who can accomplish a task tends to be the most effective way of sizing a team.

3) Doing so reduces coordination problems, decreases the chance of social loafing, and increases cohesiveness. f. Member Preferences.

1) Not every employee is a team player. a) Given the option, many employees will select themselves out of team participation. b) When people who would prefer to work alone are required to team up, there is a direct threat to the team’s morale and to individual member satisfaction. c) This suggests that when selecting team members, managers should consider individual preferences along with abilities, personalities, and skills. High-performing teams are likely to be composed of people who prefer working as part of a group.

D. Team Processes.

1. The final key component for team effectiveness is process: specifically, six variables related to how a team completes their task.

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2. Team processes should produce positive results: the output should be greater than the sum of the inputs (positive synergy).

3. Common Plan and Purpose. a. Effective teams begin by analyzing the team’s mission, developing goals to achieve that mission, and creating strategies for achieving the goals. b. Teams that establish a clear sense of what needs to be done and how consistently perform better. c. Members of successful teams put a tremendous amount of time and effort into discussing, shaping, and agreeing on a purpose that belongs to them both collectively and individually. d. This common purpose, when accepted by the team, becomes what celestial navigation is to a ship captain: 1) It provides direction and guidance under any and all conditions. e. Like a ship following the wrong course, teams that don’t have good planning skills are doomed; perfectly executing the wrong plan is a lost cause. f. Effective teams also show reflexivity, meaning they reflect on and adjust their master plan when necessary. g. A team has to have a good plan, but it also has to be willing and able to adapt when conditions call for it.

4. Specific Goals. a. Successful teams translate their common purpose into specific, measurable, and realistic performance goals. b. Specific goals facilitate better communication and help teams maintain focus on results. c. These goals should be challenging in order to be motivational.

5. Team Efficacy. a. Effective teams have confidence in themselves: they believe they can succeed. b. Past success breeds future success. c. In order to increase team efficacy, managers can take one or both of the following two options.

1) Help the team to achieve small initial successes.

2) Provide technical and interpersonal skills training.

6. Mental Models. a. Effective teams have accurate and common mental models—knowledge and beliefs (a “psychological map”) about how the work is done. Incorrect or inaccurate mental models will decrease effectiveness.

7. Conflict Levels. a. A low level of conflict can actually improve team effectiveness. b. Relationship conflicts are usually detrimental, but task conflicts in teams performing non-routine activities may actually lead to superior decisions.

8. Social Loafing. a. Individuals can hide within groups. b. They coast on the group's effort because their individual contributions can't be identified. c. Effective teams undermine this tendency by holding themselves accountable at both the individual and team level.

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IV. TURNING INDIVIDUALS INTO TEAM PLAYERS A. In many cultures and companies, employees have been trained to be fiercely

individualistic.

1. Teamwork is not a natural state for them.

2. Management's challenge, therefore, is to overcome the individual resistance toward team participation.

B. Selection: Hiring Team Players.

1. When hiring team members, in addition to technical skills, candidates should be screened on their ability to fulfill team roles.

2. Creating teams often means resisting the urge to hire the best talent no matter what.

C. Training: Creating Team Players.

1. Managers can train individuals to become team players.

2. This may require the use of outside consultants who can help employees improve the employees’ problem solving, communication, negotiation, conflictmanagement, and coaching skills.

D. Rewarding: Providing Incentives to Be a Good Team Player.

1. An organization’s reward system must be reworked to encourage cooperative efforts rather than competitive ones. a. Hallmark Cards, Inc. added to its basic individual-incentive system an annual bonus based on achievement of team goals. b. Whole Foods directs most of its performance-based rewards toward team performance. c. As a result, teams select new members carefully so they will contribute to team effectiveness (and thus team bonuses).

2. It is usually best to set a cooperative tone as soon as possible in the life of a team. a. As we already noted, teams that switch from a competitive to a cooperative system do not share information and make rushed, poor-quality decisions. b. Apparently, the low trust typical of the competitive group will not be readily replaced by high trust with a quick change in reward systems. c. These problems are not seen in teams that have consistently cooperative systems.

3. Promotions, pay raises, and other forms of recognition should be given to individuals who work effectively as team members by training new colleagues, sharing information, helping resolve team conflicts, and mastering needed skills.

4. Don’t forget the intrinsic rewards, such as camaraderie, that employees can receive from teamwork.

E. How to be an Effective Member of a Team 1. Show up. Be present. Avoid distractions.

2. Be aware of what you know and what you don’t know.

3. Listen actively and respectfully.

4. Focus on ideas not personalities.

5. Be responsible.

6. Be proactive about helping others (with their consent).

7. Avoid jealousy and envy. Give credit to others when it is due.

8. Take flexible approaches to problem solving.

9. Recognize silent team members and create space for them to contribute.

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V. BEWARE! BEWARE! TEAMS AREN'T ALWAYS THE ANSWER A. Teamwork takes more time and often more resources than individual work.

B. Therefore, the benefits of using teams must exceed the costs of having them. This may not always be the case, and there are three tests to determine if a team is necessary in a given situation.

1. Complexity of Work. A good indicator of the need for teams is the complexity of the work and the need for different perspectives for effective solutions.

Simple tasks, that do not need diverse input, are probably best left to individuals.

2. Common Purpose. For organizational outcomes that require multi-function interaction, the common purpose created by a team may increase organizational effectiveness.

3. Interdependence. Teams make sense when the tasks are interdependent and require a great deal of coordination.

VI. SUMMARY A. Few trends have influenced jobs as much as the massive movement to introduce

teams to the workplace. Several different types of teams are commonly used in industry; these include problem-solving teams, self-managed teams, crossfunctional teams, and virtual teams.

B. The shift from working alone to working on teams requires employees to cooperate with others, share information, confront differences, and sublimate personal interests for the greater good of the team.

C. Teams can be rendered more effective by ensuring they are an appropriate size and composition for the tasks at hand and having them use a formal process for information sharing and goal setting.

D. Selection, training, and rewards systems can all support and reinforce teamfriendly behaviours.

VII. IMPLICATIONS FOR MANAGERS A. Effective teams have common characteristics. They have adequate resources,

effective leadership, a climate of trust, and a performance and rewards system that reflects team contributions.

1. These teams have individuals with technical expertise as well as problemsolving, decision-making, and interpersonal skills, as well as the right traits, especially conscientiousness and openness.

B. Effective teams tend to be small—fewer than ten people, preferably of diverse backgrounds.

1. They have members who fill role demands and who prefer to be part of a group. The work that these members do provides freedom and autonomy, the opportunity for members to use different skills and talents, the ability to complete a whole and identifiable task or product, and work that has substantial impact on others.

C. Effective teams have members who believe in the team’s capabilities and are committed to a common plan and purpose, have an accurate shared mental model of what is to be accomplished, share specific team goals, maintain a manageable level of conflict, and show a minimal level degree of social loafing.

D. Because individualistic organizations and societies attract and reward individual accomplishments, it can be difficult to create team players in these environments.

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1. To make the conversion, try to select individuals who have the right interpersonal skills to be effective team players, provide training to develop teamwork skills, and reward individuals for cooperative efforts.

VIII. KEEP IN MIND A. Team composition matters—the optimal way to construct teams depends on the ability, skill, or trait under consideration.

B. By matching individual preferences with team role demands, managers increase

the likelihood that the team members will work well together.

C. Effective teams maintain a common plan and purpose to their actions that guides their actions and concentrates their energies.

Mini Case Discussion Questions Case 1: LifeLong Learning and Teamwork 1. Is there anything that this team could have done at the beginning to avoid the difficulties that they are facing now? If so, what should they have done?

The team started work without addressing the clear conflict that existed between the CEO’s expectations and the Chairman of the Board’s expectations. The team reports to both of these leaders and it is important that the leaders reach agreement about processes and desired outcomes. Without this guiding structure in place, it is difficult, if not impossible, for the team to move forward.

It is likely that the CEO and the Chairman of the Board aren’t even aware that their instructions differed so greatly so the team needs to bring this to their attention in a respectful manner.

2. Outline some of the underlying reasons that the individuals in this particular work team may have difficulty communicating with each other. What could they do about it?

In addition to the lack of structure this team has other barriers to working effectively.

The five-member team comes from four very different cultures, each with their own communication norms. There are also noticeable personality differences. Oladele’s strong goal-orientation and direct communication style, for instance, may be perceived as aggression by someone like Wei, who is process-focused and more familiar with Chinese working norms.

The team members from high power distance, high uncertainty avoidance cultures (Wei and Ranj) seem to have different process-related expectations than the team members from low power distance, low uncertainty avoidance cultures (Jamaica, Canada). These cultural differences don’t seem to be recognized or understood. As a result, communication is impaired and trust undermined.

3. What strategies could Oladele use now that would move the team forward in a productive direction?

It is important to re-establish trust and develop a shared understanding of their goals and associated processes. Clarity from management would help. In addition, the team 9-10

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members may want to confront some of their interpersonal issues more openly so they can get through the “storming” phase into “norming.” Respectful discussion of communication style differences may help create mutual empathy and increased understanding, improving communication going forward. Finally, the team should develop a contract that outlines key responsibilities and roles of each team member along with goals, processes, and associated timelines. Having a shared understanding of where they are going will help ease conflict and tension.

Case 2: Team Incentives and Unintended Consequences 1. Do you think the new incentive plan is impacting the safety of this workplace?

Explain your reasoning.

The new incentive plan encourages hurried work, adding an element of peer pressure since one worker being late can mean that the entire team loses their bonus. This peer pressure encourages people to take shortcuts such as failing to use machine guards and not cleaning up spills. As a result, the incentive plan is contributing directly to safety problems.

2. What types of team incentives would maximize both efficiency and safety while maintaining a respectful workplace? Explain why your strategy would be effective.

Any team incentive should include both safety and efficiency metrics. For example, a group bonus for completing a job on time would be less likely to result in poor safety habits if there was a requirement that the job also have a perfect safety record.

Unfortunately, that policy would create another unintended consequence—people may hide injuries to avoid causing the entire team to lose their bonus! Since focusing on the safety outcomes creates this conflict, employers should reward workers for engaging in safety behaviours and processes instead. For example, bonuses could be tied to 100% compliance in wearing personal protective equipment and using machine guards rather than focusing on a perfect safety record. This protects workers from peer pressure related to factors that may be beyond their control.

3. What are the benefits and drawbacks of Pittiulak’s self-directed project team structure? Is it a good choice for his business? Explain your answer.

The self-directed team structure provides the flexibility that Pittiulak’s business requires. His clients need a wide variety of renovation services and each job is different, so flexibility allows him to make the best use of his labour resources. That effectiveness is especially important in Pittiulak’s industry and geographical location since skilled tradespeople are scarce and expensive. The workers themselves, as experts in their respective areas, are likely to find self-direction more challenging and motivating.

The drawback associated with this structure is lessened control and visibility into team activities. Pittiulak can mitigate these weaknesses with effective, well-designed incentive plans and sound communication practices.

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Exercises 1. Self-analysis. Are you a team player? Based on the information in this chapter, do you believe you are a team player? Why or why not? How might you improve your ability to function well on effective teams?

2. Web Crawling. Using your favourite search engine, search on the term “team effectiveness.” Find five webpages related to this concept and write up a one-page summary of the common team effectiveness concepts you discovered by visiting these pages.

3. Teamwork. As a team, you are to develop a bulleted study guide for this chapter. The items included in the study guide are to fully represent the chapter content. The items are also to be placed in the study guide in descending order of importance. In other words, the most important content item from the chapter is to be listed first, down to the least important content item. The items chosen for inclusion in this study guide, and their order of importance, must be completely agreed upon by ALL members of the team. No use of voting and majority rules can be employed in determining the content of the study guide. Consensus agreement must prevail within the team.

Instructor notes: The purpose of this exercise is to indicate to students the relationship between size and team effectiveness. Divide the class into different sized teams. Make some teams extremely small and lacking in diversity and skills, and some teams extremely large and cumbersome. Give the teams the instructions that they are to come to a consensus on the content of their study guide.

You might want to have a quick discussion on team roles, or simply let the teams themselves formally or informally let team roles evolve naturally, and have the teams identify the different role holders after the conclusion of the exercise.

Record the time required by each different team to complete its task. Walk around the classroom and listen to the conversations within the different groups—this may provide rich insights as to why some groups completed the task more efficiently than others. When the study guides are done, conduct a discussion on what problems the teams encountered (size, diversity, roles) and how they think the team overcame that particular problem.

4. Analyzing Your Organization (Cumulative Project). If you are currently in an environment of teamwork, interview or discuss with the team leaders some of the variables in this chapter, using the following questions as a guide. a. How do you determine the size of the team? b. What types of conflict occur? How do you resolve conflict? c. Does it take longer to complete tasks in a team environment? d. Do you have “resistors” to teamwork? If so, how do you manage that? e. What happened to cause management to look at teams as a more efficient way of doing work? f. If you are not in a teamwork environment at your organization, what aspects of your organization would benefit from teamwork? Justify your answer.

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Suggested Assignment Use the teams structured in the Teamwork exercise. Ask the students to go to Google Docs’ presentation template at https://docs.google.com/present/edit?id=0ASCP6dbp8LXCZGRkMzZoeGpfMTgxY3dicXFo Y2M&hl=en&authkey=CP_bsocC and select “Edit” on the actions menu at the bottom. When the edit window opens, ask students to create a new presentation file by selecting File>New>Presentations (this may require that a student have a Google Docs account. If it does, ask one of the students to act as the coordinator and to sign up for a Google Account to manage the presentation set up.)

A new presentation document should come up. Ask the students to rename the presentation document to a name they will remember by clicking on the “Chapter 9 Robbins and Judge” title. Ask the students to click on the “Share” button on the right. When its dialog box opens, click on “Change” access. Select “Only those with the address.” And “anyone can edit” (two check boxes). This should set the presentation to access by all students who use the unique address as a web URL. Once this is done and everything is saved, the student creating the presentation for the group should email the address to the other members of his or her group.

This is a presentation collaboration site that does not require passwords or other security clearance. Ask the groups to prepare a presentation on the results of the Teamwork Exercise. Assign this task to be done from their home computers or laptops in virtual meeting format. This illustrates the use of “Cloud Computing” for online virtual collaboration on a presentation. The same can be done for reports or spreadsheets. When the presentation is complete, have the students email the presentation address to the instructor, who will then distribute it to the class. Each class member can then view the presentations. Note that creation of this type of stand-alone presentation is different from the typical student outline of a paper that constitutes the slide content.

Ask students to rate the presentations on the basis of creativity, information presentation, and achievement of a communication objective. Discuss in class how the presentation could be improved to better present the information about the teamwork outcome.

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Chapter 10 Communication

Chapter 10 Communication Chapter Overview In order to be successful, managers must be able to communicate effectively. This chapter describes the communication process and the various ways managers communicate to employees. Additionally, barriers to communication are presented.

Chapter Objectives After studying this chapter, the student should be able to: 10.1 Describe the communication process and formal and informal communication.

10.2a Contrast downward, upward, and lateral communication.

10.2 b Compare and contrast formal small-group networks and the grapevine.

10.3 a Discuss the strengths and weaknesses of oral, written (including electronic), and nonverbal communication.

10.3 b Identify basic best practices for managing communication during a crisis and maintaining privacy in an organizational setting.

10.4 Explain how channel richness underlies the choice of communication channel.

10.5 Differentiate between automatic and controlled processing of persuasive messages.

10.6 a Identify common barriers to effective communication and recommend mitigation strategies.

10.6b Assess how to maximize the effectiveness of cross-cultural communication efforts.

Suggested Lecture Outline

I.

INTRODUCTION

A. No individual, group, or organization can exist without communication (the transference and understanding of meaning).

II. THE COMMUNICATION PROCESS A. Before communication can take place, it needs a purpose, expressed as a message to be conveyed.

B. The message passes between a sender and receiver. The message is encoded

(converted to a symbolic form) and passed by way of some medium (channel) to the receiver, who retranslates (decodes) the message. Successful communication results in the transference of meaning from one person to another.

C. Exhibit 10-1 shows the key components of the communication process.

1. Sender: the person who initiates a message by encoding a thought.

2. Encoding: converting the thought into symbols and language.

.

10-1

Chapter 10 Communication

3. Message: the actual physical product the sender is encoding. It is the encoded thought to be transferred.

4. Channel: the sender-selected medium through which the message travels. There are two basic channels for communication in organizations: a. Formal Channels. The path follows the authority chain of the organization.

The messages sent by these channels normally relate to the professional activities of the members of that organization. b. Informal Channels. These are spontaneous channels that emerge as a response to individual choices. Messages sent through these channels are often personal or social.

5. Receiver: the person to whom the message is directed.

6. Decoding: converting a message from symbols and language back into thought.

7. Noise: communication barriers that distort the clarity of the message, such as perceptual problems, information overload, semantic difficulties, or cultural differences.

8. Feedback: information sent from the receiver back to the sender to indicate how successful the transference was.

III. COMMUNICATION IN AN ORGANIZATIONAL SETTING A. Communication can flow vertically or laterally. Vertical communications can be

upward or downward from a person's position in an organization.

1. Downward Communication. Communication that flows from one level of a group or organization to a lower level in that organization. a. Typically used by leaders and managers to assign goals, provide job instructions, inform employees of policies and procedures, point out problems that need attention, and offer feedback about performance. b. Downward communication can be an effective means for managers to explain the reasons why a decision was made. Such explanations can dramatically increase employee commitment to change. c. Downward communication is one way: from manager to employee. The effectiveness of downward communication can be increased if it includes a request for upward communication (feedback, opinions, or advice) from those they supervise.

2. Upward Communication. Communication that moves upward through the organization's hierarchy. a. Used to provide feedback to organizational superiors, inform superiors of progress toward goals, to relay current problems, and solicit employee suggestions.

1) Effective upward communication requires: a) Reduction of distractions. b) Communicating in “headlines,” not “paragraphs.” c) Supporting headlines with actionable items. d) Preparation and use of an agenda.

3. Lateral Communication. Communication that takes place among members of the same work group, among members of work groups of the same level of the hierarchy, among managers at the same level, or between any horizontally equivalent personnel. a. Such communications help to facilitate coordination and save time. These lateral relationships may be formally sanctioned or, more often, they are informally created to short-circuit the vertical hierarchy and expedite action. .

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b. Such communication can be good or bad depending on whether it conflicts or enhances the formal vertical channels of communication.

IV. FORMAL AND INFORMAL ORGANIZATIONAL COMMUNICATION A. Formal Small-Group Networks.

1. This text will demonstrate three basic types of networks: the chain, wheel, and all-channel. a. Chain. These networks rigidly follow the formal chain of command. This can be seen in traditional, bureaucratic organizations. b. Wheel. These networks rely on a central figure to be the conduit for all of the group's communication. This type of network is often seen in teams with strong leaders, with the leader acting as the conduit. c. All-Channel. In this network, all group members actively communicate with each other with no leader present. An example of this type of network is self-managed work teams.

2. Effectiveness. The effectiveness of each network hinges upon which dependent variable needs to be emphasized in the organization. No single network structure is best for all occasions.

B. The Grapevine.

1. In addition to the formal network systems of communication in organizations, there exists an informal one that is just as important: the grapevine.

2. Rumours emerge as a response to situations that are: a. important to us, b. when there is ambiguity, and c. under conditions that arouse anxiety.

3. The fact that work situations frequently contain these three elements explains why rumours flourish in organizations.

4. The secrecy and competition that typically prevail in large organizations— around the appointment of new bosses, the relocation of offices, downsizing decisions, or the realignment of work assignments—encourage and sustain rumours on the grapevine.

5. A rumour will persist either until the wants and expectations creating the uncertainty are fulfilled, or the anxiety has been reduced.

6. Certainly, it’s an important part of any group or organization communication network and is well worth understanding. a. It gives managers a feel for the morale of their organization, identifies issues employees consider important, and helps tap into employee anxieties. b. The grapevine also serves employees’ needs: 1) Small talk creates a sense of closeness and friendship among those who share information.

2) Research suggests it often does so at the expense of those in the “out” group.

7. Can managers entirely eliminate rumours? a. No. b. What they should do, however, is minimize the negative consequences of rumours by limiting their range and impact.

V. MODES OF COMMUNICATION

There are three basic methods of communication: oral, written, and nonverbal.

.

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A. Oral Communication. This is the chief means of conveying messages. It may be in

the form of speeches, formal one-on-one and group discussions, or talk along the grapevine.

1. Advantages. Oral communications are quick and feedback can be received just as quickly, making corrections relatively simple.

2. Disadvantages. Oral communications are subject to personal interpretation, and when passed through a number of people, the message received at the final destination may not be the one that was originally sent. (Remember the childhood game of telephone?) Some people, particularly people with ADHD, autism, or learning disabilities may find it more difficult to process and retain information transmitted via oral communication.

B. Written Communication. This form of communication includes any method that conveys written words or symbols and dates back thousands of years, and since we have samples from these earliest writings, written communication is thus the longest-lasting form of communication.

1. Written communication today is usually conducted via letters, e-mail, instant messaging, social media, and blogs.

2. Norms surrounding emoticons seem to be changing, partly in response to generational shifts and partly due to heightened use of text messaging for professional purposes as a result of remote working during the COVID-19 pandemic. Now emoticons are increasingly being considered work appropriate as long as they are limited to facial expressions.

C. Nonverbal Communication. This form of communication includes body movements, the intonations or emphasis given to words, facial expressions, and the physical distance between the sender and the receiver.

1. Forms of Nonverbal Communication: a. Body Movement. Any movement of the body can have meaning. Such body language conveys two important messages: 1) the degree of like or interest in another (or the person's ideas) and 2) the perceived status differences between sender and receiver.

3) Body language both enhances and complicates verbal communication. b. Intonation. This is the emphasis given to words or phrases in verbal communication. Changing the intonation of a set of words can completely change their meaning. c. Facial Expressions. Similar to intonation, facial expressions can change the meaning of the words communicated. Facial expressions allow people to add an emotional component to the words they use.

2. Non-verbal communication can also be a challenge for neurodiverse people, particularly people on the autism continuum. People with autism report two primary difficulties: trouble interpreting other people’s non-verbal communication, and problems with their own non-verbal communication being misinterpreted.

VI. CHOICE OF COMMUNICATION CHANNEL A. Why do people choose one channel of communication over others? A model of media richness helps explain channel selection among managers.

B. Channel Richness.

1. Channels differ in terms of their capacity to convey information. Some are rich in that they can:

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a. Handle multiple cues simultaneously, b. Facilitate rapid feedback, and c. Be very personal.

2. Others are lean in that they score low on these factors.

3. As Exhibit 10-6 illustrates, face-to-face conversation scores highest in channel richness because it transmits the most information per episode—multiple information cues (words, postures, facial expressions, gestures, intonations), immediate feedback (both verbal and nonverbal), and the personal touch of being physically present.

4. Impersonal written media such as formal reports and bulletins rate the lowest in richness.

C. Choosing Communication Methods.

1. The choice of channel depends on whether the message is routine. a. Routine messages tend to be straightforward and have minimal ambiguity, so channels low in richness can carry them efficiently. b. Non-routine communications are likely to be complicated and have the potential for misunderstanding.

2. Managers can communicate them effectively only by selecting rich channels.

3. Often, a variety of modes of communication work best to convey important ideas.

4. Channel richness is a helpful framework for choosing your mode of communication. It is not always easy to know when to choose oral rather than written communication, for instance.

5. Experts say oral communication or “face time” with coworkers, clients, and upper management is key to success. However, if you seek the CEO out just to say hello, you may be remembered as an annoyance rather than a star, and signing up for every meeting on the calendar to increase your face time is counterproductive to getting the work of the organization done. a. Your communication choice is worth a moment’s thought: Is the message you need to communicate better suited to a discussion, or a diagram?

6. Whenever you need to gauge the receiver’s receptivity, oral communication is usually the better choice.

7. Also consider the receiver’s preferred mode of communication; some individuals focus on content better over the phone than in person. The pace of your work environment matters, too. a. If your manager requests a meeting with you, you may not want to ask for an exchange of emails instead. A fast-paced workplace may thrive on pop-by meetings, while a deadline heavy team project may progress faster with scheduled videoconferences. Sometimes we cannot choose between a faceto-face meeting and a telephone meeting because of distance. Other times, there is an option.

8. Much of what we communicate face-to-face is in the delivery, so consider your speaking skills when choosing your communication method.

9. Written communication is generally the most reliable mode for complex and lengthy communications, and it can be the most efficient method for short messages, as when a two-sentence text can take the place of a ten-minute phone call. a. But keep in mind that written communication can be limited in its emotional expression.

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10. Choose written communication when you want the information to be tangible and verifiable. Both you and the receiver(s) will have a record of the message.

11. People are usually forced to think more thoroughly about what they want to convey in a written message than in a spoken one, so written communications can be well thought out and clear. a. But be aware that, as with oral communication, your delivery is just as important as the content. Managers report that grammar mistakes and lack of business formality are unprofessional and unacceptable.

12. Finally, in choosing a communication channel, it’s important to be alert to nonverbal aspects of your communication and consider your body language cues as well as the literal meaning of your words.

13. You should be particularly aware of contradictions between the verbal and nonverbal messages, as a sender and as a receiver.

D. Communicating in Times of Crisis.

1. Crises create an especial communication challenge because people’s ability to decode information goes down significantly when they are anxious or stressed. a. Plan and strategize an action plan ahead of time.

E. Information Security and Privacy.

1. Security is a huge concern for nearly all organizations with private or proprietary information about clients, customers, and employees. Organizations worry about the security of the electronic information they seek to protect, such as hospital patient data, the physical information they still keep in file cabinets, and the security of the information they entrust their employees with knowing.

2. The recent adoption of cloud-based electronic data storage has brought a new level of worry; 51 percent of managers in a recent survey were considering cloud-based human resource software. a. Early research indicates that fears about cloud computing seem unwarranted, so its business use will likely increase.

3. An organization can lessen employee and shareholder concerns by engaging them in the creation of information-security policies and having written, readily accessible, and well-rehearsed disaster recovery plans.

VII. PERSUASIVE COMMUNICATION A. Automatic and Controlled Processing.

1. To understand the process of communication, it is useful to consider two different ways that we process information. Consider the last time you bought a can of pop. Did you carefully research brands, or did you choose the can that had the most appealing advertising images? If we’re honest, we’ll admit glitzy ads and catchy slogans do indeed influence our choices as consumers.

2. We often rely on automatic processing, a relatively superficial consideration of evidence and information making use of heuristics. a. Automatic processing takes little time and minimal effort, so it makes sense to use it for processing persuasive messages related to topics you don’t care much about. The disadvantage is that it lets us be easily fooled by a variety of tricks, like a cute jingle or a glamorous photo.

3. Now consider the last time you chose a place to live. You probably researched the area, gathered information about prices from a variety of sources, and considered the costs and benefits of renting versus buying. Here, you’re relying

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on more effortful controlled processing, a detailed consideration of evidence and information relying on facts, figures, and logic. a. Controlled processing requires effort and energy, but it’s harder to fool someone who has taken the time and effort to engage in it.

4. So what makes someone engage in either automatic or controlled processing?

There are a few rules of thumb for determining what types of processing an audience will use.

B. Interest Level.

1. One of the best predictors of whether people will use an automatic or controlled process for reacting to a persuasive message is their level of interest in the outcome. a. Interest levels reflect the impact a decision is going to have on your life.

When people are very interested in the outcome of a decision, they’re more likely to process information carefully. That’s probably why people look for so much more information when deciding about something important than something relatively unimportant.

C. Prior Knowledge.

1. People who are very well-informed about a subject area are more likely to use controlled processing strategies. They have already thought through various arguments for or against a specific course of action, and therefore they won’t readily change their position unless very good, thoughtful reasons are provided. a. On the other hand, people who are poorly informed about a topic can change their minds more readily, even in the face of fairly superficial arguments presented without a great deal of evidence. b. Overall, then, a better-informed audience is likely to be much harder to persuade.

D. Personality.

1. Those who are lower in need for cognition are more likely to use automatic processing strategies, relying on intuition and emotion to guide their evaluation of persuasive messages.

E. Message Characteristics.

1. Another factor that influences whether people use an automatic or controlled processing strategy is the characteristics of the message itself. a. Messages provided through relatively lean communication channels, with little opportunity for users to interact with the content of the message, encourage automatic processing. b. Conversely, messages provided through richer communication channels tend to encourage more deliberative processing.

2. The most important implication is to match your persuasive message to the type of processing your audience is likely to use. When the audience is not interested in a persuasive message topic, when they are poorly informed, when they are low in need for cognition, and when information is transmitted through relatively lean channels, they’ll be more likely to use automatic processing. a. In these cases, use messages that are more emotionally laden and associate positive images with your preferred outcome. b. On the other hand, when the audience is interested in a topic, when they are high in need for cognition, or when the information is transmitted through rich channels, then it is a better idea to focus on rational arguments and evidence to make your case.

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VIII. BARRIERS TO EFFECTIVE COMMUNICATION. A. Filtering.

1. Refers to senders purposely manipulating information so it will be seen more favourably by the receiver.

2. Upward communication, especially of bad news, is often filtered and distorted to avoid the possibility of upper management “killing the messenger.”

B. Selective Perception.

1. As mentioned earlier, receivers in the communication process selectively see and hear based on their own needs, motivations, experience, background, and other personal characteristics.

2. Human beings don't see reality; they interpret what they see and call it reality.

C. Information Overload.

1. Individuals have a finite capacity for processing data, and when that capacity is exceeded, the result is information overload.

2. When individuals are in this condition, they tend to pass over, ignore, select out, or forget information, resulting in lost information and less effective communication.

D. Emotions.

1. How a person feels when a message is received will influence how he or she interprets it.

2. When emotions are running high, most people tend to disregard rational and objective thinking processes.

E. Language.

1. Despite sharing a common language, words do not always hold the same meaning among members of the organization.

2. Senders tend to assume the words and terms they use mean the same to the receiver as to them. This assumption is often incorrect.

F. Silence.

1. It’s easy to ignore silence or lack of communication, precisely because it is defined by the absence of information.

2. However, research suggests silence and withholding communication are both common and problematic. a. One survey found that more than 85 percent of managers reported remaining silent about at least one issue of significant concern. Employee silence means managers lack information about ongoing operational problems. b. And silence regarding discrimination, harassment, corruption, and misconduct means top management cannot take action to eliminate this behaviour. c. Finally, employees who are silent about important issues may also experience psychological stress.

3. Silence is less likely where minority opinions are treated with respect, work group identification is high, and high procedural justice prevails. a. Practically, this means managers must make sure they behave in a supportive manner when employees voice divergent opinions or express concerns, and they must take these concerns under advisement. b. One act of ignoring or belittling an employee for expressing concerns may well lead the employee to withhold important future communication.

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G. Communication Apprehension.

1. Approximately 5 to 20% of the population is anxious when put in a situation where they have to communicate to others.

2. This apprehension may affect all forms of communication, not just speaking in front of groups.

H. Lying.

1. The final barrier to effective communication is outright misrepresentation of information, or lying.

2. People differ in their definition of what constitutes a lie. Regardless of the definition, however, lying is prevalent.

3. The average person tells two lies per day, and is more comfortable lying over the phone than face to face, and more comfortable lying in an e-mail than on paper.

4. Most people are not very good at detecting deception in others. The problem is that there are no nonverbal or verbal cues unique to lying.

5. Most people who lie take a number of steps to guard against being detected.

6. Many lies are embedded in truths.

IX. GLOBAL IMPLICATIONS A. Effective communication is difficult under the best of conditions.

1. Cross-cultural factors clearly create the potential for increased communication problems.

2. A gesture that is well understood and acceptable in one culture can be meaningless or lewd in another.

3. Only 18 percent of companies have documented strategies for communicating with employees across cultures, and only 31 percent require that corporate messages be customized for consumption in other cultures.

B. Cultural Barriers.

1. Researchers have identified a number of problems related to language difficulties in cross-cultural communications.

2. First are barriers caused by semantics. a. Words mean different things to different people, particularly people from different national cultures. b. Some words don’t translate between cultures. c. The new capitalists in Russia may have difficulty communicating with British or Canadian counterparts because English terms such as efficiency, free market, and regulation have no direct Russian equivalents.

3. Second are barriers caused by word connotations. a. Words imply different things in different languages. b. Negotiations between Canadian and Japanese executives can be difficult because the Japanese word hai translates as “yes,” but its connotation is “Yes, I’m listening” rather than “Yes, I agree.”

4. Third are barriers caused by tone differences. a. In some cultures, language is formal; in others, it’s informal. In some cultures, the tone changes depending on the context: People speak differently at home, in social situations, and at work. Using a personal, informal style when a more formal style is expected can be inappropriate.

5. Fourth are differences in tolerance for conflict and methods for resolving conflicts.

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a. Individuals from individualist cultures tend to be more comfortable with direct conflicts and will make the source of their disagreements overt. b. Collectivists are more likely to acknowledge conflict only implicitly and avoid emotionally charged disputes. c. They may attribute conflicts to the situation more than to the individuals and therefore may not require explicit apologies to repair relationships, whereas individualists prefer explicit statements accepting responsibility for conflicts and public apologies to restore relationships.

C. Cultural Context.

1. Cultures tend to differ in the degree to which context influences the meaning individuals take from communication. a. In high-context cultures such as China, Korea, Japan, and Vietnam, people rely heavily on nonverbal and subtle situational cues in communicating with others, and a person’s official status, place in society, and reputation carry considerable weight.

1) What is not said may be more significant than what is said.

2) In contrast, people from Europe and North America reflect their lowcontext cultures.

3) They rely essentially on spoken and written words to convey meaning; body language and formal titles are secondary. b. These contextual differences actually mean quite a lot in terms of communication.

2. Communication in high-context cultures implies considerably more trust by both parties. a. What may appear to be casual and insignificant conversation in fact reflects the desire to build a relationship and create trust. b. Oral agreements imply strong commitments in high-context cultures. And who you are—your age, seniority, rank in the organization—is highly valued and heavily influences your credibility.

3. But in low-context cultures, enforceable contracts tend to be in writing, precisely worded, and highly legalistic. a. Similarly, low-context cultures value directness. b. Managers are expected to be explicit and precise in conveying intended meaning.

4. It’s quite different in high-context cultures, in which managers tend to “make suggestions” rather than give orders.

D. A Cultural Guide 1. When communicating with people from a different culture, what can you do to reduce misinterpretations?

2. Begin by trying to assess the cultural context. You’re likely to have fewer difficulties if it’s similar to yours.

3. The following rules can be helpful: a. Know Yourself. Recognizing your own cultural identity and biases is critical to understanding the unique viewpoint of others. b. Foster a Climate of Mutual Respect, Fairness, and Democracy. Clearly establish an environment of equality and mutual concern. This will be your “third culture” context for effective intercultural communication that transcends each person’s cultural norms.

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c. Learn the Cultural Context of Each Person. You may find more similarities or differences to your own frame of reference than you might expect. Be careful not to categorize them, however. d. When in Doubt, Listen. If you mention your opinions too early, you may be more likely to offend the other person. You will also want to listen first to better understand the other person’s intercultural language fluency and familiarity with your culture. e. State the Facts, Not Your Interpretation. Interpreting or evaluating what someone has said or done draws more on your own culture and background than on the observed situation. If you state only facts, you will have the opportunity to benefit from the other person’s interpretation. Delay judgment until you’ve had sufficient time to observe and interpret the situation from the differing perspectives of all concerned. f. Consider the Other Person’s Viewpoint. Before sending a message, put yourself in the recipient’s shoes. Try to see the people in the group as they really are at first, and take a collaborative problem-solving approach whenever potential conflicts arise. g. Proactively Maintain the Identity of the Group. Like any culture, the establishment of a common-ground “third culture” for effective intercultural communication takes time and nurturing. Remind members of the group of your common goals, mutual respect, and need to adapt to individual communication preferences.

X. SUMMARY A. You’ve probably discovered the link between communication and employee

satisfaction in this chapter: the less uncertainty, the greater the satisfaction.

B. Distortions, ambiguities, and incongruities between oral, written, and nonverbal messages all increase uncertainty and reduce satisfaction.

C. Since everyone’s perspective is different, the more you can understand your employees, the better you can respond.

D. Cultural sensitivity is an important organizational component for establishing communications understanding.

E. It is important to foster three distinct types of communication, each for different reasons. They include downward, upward, and lateral communication.

F. Channel richness and context-specific factors should be considered when making choices about how to best communicate.

XI. IMPLICATIONS FOR MANAGERS A. Remember that your communication mode will partly determine your communication effectiveness.

B. Obtain feedback from your employees to make certain your messages—however

they are communicated—are understood.

C. Remember that written communication creates more misunderstandings than oral communication; communicate with employees through in-person meetings when possible.

D. Make sure you use communication strategies appropriate to your audience and the type of message you’re sending.

E. Keep in mind communication barriers such as gender and culture.

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XII. KEEP IN MIND A. Each communication direction has its own challenge that must be overcome.

B. Each form of communication has an optimal purpose and specific limitations—use appropriately.

C. Communication barriers often retard or distort communication.

Mini Case Discussion Questions Case 1: The Informal Communication Network 1. Why do you think the grease trap cleaning issue has not been drawn to Melisande’s attention? Be as specific as possible.

Melisande has created an atmosphere that discourages upward communication. Her body language is unwelcoming and she is impatient and negative with her staff, which inhibits communication since it makes her unapproachable. In addition, Melisande is rarely physically present, which further inhibits communication.

2. What might Melisande do differently to encourage more upward communication?

Be specific.

Melisande should be physically present more frequently and she should encourage employees to contact her using phone or e-mail when she is absent. Melisande could use open body language and change the general manner/tone she uses when interacting with staff. Treating employees with respect and demonstrating patience and concern would make them more likely to approach her with issues. In addition, when issues are brought to her attention, Melisande should respond with action when appropriate or explain why she is not acting on the information.

3. Using this case as an example, discuss how the informal communication network can impact the effectiveness of orientation and training. Remember to consider both potential positive and potential negative impacts.

The informal communication network can support and reinforce orientation or it can undermine it. In this case, undermining orientation was a good thing since the safety training in orientation was inadequate. In many cases, however, undermining is a bad thing. For instance, it can encourage new employees to use old, outdated processes when current employees have been resistant to process improvements. Assigning a formal (and carefully chosen) mentor can help lessen the negative aspects of informal communication networks while retaining their positive aspects.

Case 2: Voicing and Being a “Team Player” 1. List and explain all the communication errors that you can identify in this scenario.

John inhibited upward communication in several ways during this interaction.  He was aggressive and hostile when receiving feedback he disagreed with. Since he is in a position of power, this behaviour was very intimidating.

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 

He presented his own view before employees voiced their opinion. This would have encouraged people to just agree with his plan, lessening creativity and problem-solving effectiveness.

He criticized motivations (“Aren’t you a team player?”), rather than commenting on the ideas being presented. He made it personal.

2. What communication barriers and/or perceptual biases may have contributed to John’s overreaction to Rodrigo’s comments? How might these have been avoided?

Remember to consider what Rodrigo might have done differently and what John might have done differently.

John seems to be personalizing discussions that are not, in fact, personal. He interprets disagreement as a personal attack instead of well-intentioned feedback. Rodrigo’s communication style reinforced this belief since he used unnecessarily aggressive and confrontational vocabulary (i.e., “this sucks”) to make his point. Both parties would have benefited from using respectful communication that focused on the problem being presented. In addition, they could have explained the rationale for their point of view and the expected consequences of each course of action. A rational decision-making model with pre-determined decision-making criteria would also have been useful.

3. What might John do now, after this event, to create an environment conducive to effective upward communication?

Since John is in a position of power and his response was extreme, a public apology would go a long way towards reassuring employees that it is okay to express their opinions. After apologizing, John should ensure that his future responses to negative feedback are calm, measured, and appropriate. John should consider having another party lead brainstorming and problem-solving meetings in the near future while people adjust to his new style and reset their expectations. He could also offer alternate methods for feedback such as a suggestion box or an anonymous electronic equivalent.

Exercises 1. Self-analysis. Have you ever been misinterpreted in an email, TM, or IM because the receiver could not see your facial expressions or hear your tone of voice? If so, describe what happened. Do you think the use of “emoticons” (smiley faces and the like) help reduce this communication confusion?

2. Web Crawling. Using your favourite search engine, enter the phrase “communication tests,” and identify and take three of the free communications tests offered. What did the tests tell you about your communication style? Write up your results and compare the tests and suggestions with those of the text.

3. Teamwork. a. Telephone I: Line the class up and pass a hard copy of the following message to the first student in line. That student is to read the message silently and then whisper the message into the ear of the student next in line. No questions are allowed during the course of this activity and the message can only be passed on (said) once—no repeating.

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All on a summer’s day, Candice crammed cranberries into the cask while Paula pruned the purple primroses completely away.

-OrBob’s budget was bigger than the boss believed and, boy oh boy, was Bill belligerent about being berated about a bollixed budget!

Have the last student in line repeat the message aloud and then have the first student re-read the message. Count the number of words correctly passed along, and calculate the error rate (100% - [number of correct words over total number of words to have been communicated * 100]) and share the results with the class. Have the class discuss what happened and how to remedy the situation. Their answers should lead to Phase II. b. Telephone II: Use whichever of the two messages was not used in Phase I and pass it along in a similar manner. This time, however, allow each recipient to ask for the message to be repeated (still in his or her ear) before forcing the message on to the next person. (As an alternative, also give the recipient the option of being able to repeat the message back into the sender’s ear for confirmation before passing it on.)

End as with Phase I. Compare the results of the two phases. What might account for the differences?

4. Analyzing Your Organization (Cumulative Project). Discuss with various members of your organization where they think the communication breakdowns occur, either in their department or in the organization itself. Analyze their answers in the context of the communications model given as Exhibit 10-1. Where in the process do you feel these breakdowns tend to occur most often? Write up your results and prepare suggestions on “fixing” the process in your organization. If your instructor directs, be ready to share your suggestions in class.

Suggested Assignments 1. The Importance of Nonverbal Communication. Ask a couple of student volunteers to participate in a role-playing communication exercise. Print these role scenarios on sheets that can be given to each “actor.” Allow the volunteers five minutes to resolve this issue. Have the class observe the drama and be ready to comment on the communication they observed: verbal and nonverbal.

Supervisor: You are a supervisor for an accounting department in a mid-sized manufacturing company. You have an employee, Roger, who is a good employee overall.

However, Roger has one bad habit that has continually gotten worse—he is late for work regularly. The lateness has gotten to the level that Roger will be late—15 minutes or more—at least three days every week. However, Roger has worked for you for four years, and his work is of quite high quality and completed in a timely manner. In general, Roger is a good employee, and you would like to keep him. However, his lateness is beginning to affect office morale, as other employees are beginning to wonder (and talk about) why Roger is given the preferential treatment of being able to come in late and yet still leave on time. You have called Roger into your office to have a visit with him and indicate that he must come to work on time, or you will be forced to let him go. Your overall nonverbal messages need to convey a professional attitude of

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concern and authority; you must convey to Roger that his behaviour is not acceptable, and must be changed. So how is he to change it?

Roger: You have worked for the firm for four years, and you are a good employee (at least you think you are, and your past evaluations have reinforced this opinion), but you have a problem getting to work on time. You are truly trying to be an exemplary employee, but your wife has recently left you (you did not tell anyone at work because you don’t believe in bringing your personal problems into the workplace), and you are now a single parent responsible for getting your seven-year-old to school. You must be at work by 8 a.m., but the school where your son attends will not allow him to be in the building until 8 a.m. He cannot ride the bus because you live too close to the school, so he is not eligible to be a bus rider. You have a high school student who is available to pick your son up from school in the afternoon, but she cannot take him in the morning.

You have tried, but can’t find a babysitter who could. Now, your boss is angry because you are late, and has called you into her office. You certainly don’t want to lose your job, so you must communicate very openly about your changed home status. The nonverbal messages that you need to convey are a sense of embarrassment about having your wife leave you; a sense of remorse for being late, but you don’t know any other way to get your son to school; a sense of urgency because you do not want to lose your job.

Suggestions: be very polite to the boss, sit up straight, sit on the forward part of your chair with your hands folded neatly; be sure that your appearance is as “spit and polished” as possible.

2. The Power of Punctuation. Write the following six words on the board without any punctuation: WOMAN WITHOUT HER MAN IS NOTHING. Ask the students to share what they believe the sentence to mean. Once the discussion has gone on for a while, offer to punctuate it this way.

Woman, without her man, is nothing.

Resume the discussion and then change the punctuation to read: Woman, without her, man is nothing!

Punctuation is the way we place tone and emphasis into writing—can the class see why nonverbal communication can be problematic?

3. Emoticons. To try to overcome the nonverbal communications problems in emails, many people have resorted to the use of typographic faces (or “smiley faces”) to convey the emotion behind their words. How many of these can your class identify?

Emoticons #:-o %*} %-( %-6 >>:-<< () /\/\/\ 8-) 8-o :(

Shocked Inebriated Confused Brain-dead Furious Hugging Laughter Wide-eyed Shocked Sad

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Emoticons :) :-@ :-p :-s :-{) :-| :-| :.( :-* @>--->--;) ]:-> ^^^ ~= ^5

Smile Screaming Sticking tongue out What?!

Smile with moustache Déjà vu Crying Kiss A long-stemmed rose Wink Devil Giggles Flame Message High five

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Chapter 11 Leadership Chapter Overview Leaders can make the difference between success and failure. In this chapter, we'll look at the basic approaches to determining what makes an effective leader and what differentiates leaders from non-leaders.

Chapter Objectives After studying this chapter, the student should be able to: 11.1a Contrast leadership and management.

11.1 b Summarize the conclusions of trait theories of leadership.

11.1 c Identify the central tenets and main limitations of behavioural theories of leader-ship.

11.2 Assess contingency theories of leadership.

11.3 a Contrast charismatic and transformational leadership.

11.3 b Discuss the conditions that support toxic and destructive forms of leadership.

11.4 a Describe the roles of ethics and trust in authentic leadership.

11.4 b Identify main differentiators between servant leadership and other forms of leadership.

11.5 Outline how gender impacts leadership style and responses to the leader.

11.6 a Outline how cultural value differences can impact leadership style preferences.

11.6 b Compare and contrast traditional Western views of leadership with the views of In-digenous populations.

11.7 Identify leadership substitutes and neutralizers.

11.8 Describe how organizations can find or create effective leaders and how individuals can improve their own leadership skills.

11.9 Outline strategies that can help employees become more effective followers.

Suggested Lecture Outline

I.

INTRODUCTION

A. This chapter examines what it takes to be an effective leader and what differentiates leaders from non-leaders.

II. LEADERSHIP DEFINED, AND THE EARLY EVOLUTION OF LEADERSHIP THEORY A. Leadership is the ability to influence a group toward the achievement of a vision or set of goals.

1. The source of this influence may be formal, such as that provided by managerial rank in an organization.

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2. Not all leaders are managers, nor are all managers leaders. Just because an organization provides its managers with certain formal rights is no assurance they will lead effectively.

B. Nonsanctioned leadership—the ability to influence that arises outside the formal structure of the organization is often as important, or more important, than formal influence.

C. Organizations need strong leadership and strong management for optimal effectiveness.

1. We need leaders today to challenge the status quo, create visions of the future, and inspire organizational members to want to achieve the visions.

2. We also need managers to formulate detailed plans, create efficient structures, and oversee day-to-day operations.

D. Trait Theories of Leadership.

1. Trait theories of leadership differentiate leaders from non-leaders by focusing on personal qualities and characteristics.

2. The Big Five Personality Framework and Trait Theory. When the existing trait theory research was organized around the Big Five personality framework (extraversion, agreeableness, conscientiousness, emotional stability, and openness to experience—see Chapter 5), a clearer picture began to emerge. a. Extraversion has been found to be the most important trait of effective leaders but more strongly related to leader emergence than to leader effectiveness. Sociable and dominant people are more likely to assert themselves in group situations.

1) But leaders need to make sure they’re not too assertive.

2) One study found leaders who scored very high on assertiveness were less effective than those who were moderately high. b. Conscientiousness and Openness to Experience also showed strong and consistent relationships to leadership, although not as strong as extraversion. c. Using the Big Five framework, leaders do appear to have key traits in common: they are extraverted (individuals who like being around people and are able to assert themselves without being too assertive), conscientious (disciplined individuals who keep the commitments they make), and open (individuals who are creative and flexible).

3. Two conclusions. a. Based on the latest findings, we offer two conclusions.

1) First, traits can predict leadership. Twenty years ago, the evidence suggested otherwise. But this was probably due to the lack of a valid framework for classifying and organizing traits. The Big Five seems to have rectified that.

2) Second, traits do a better job predicting the emergence of leaders and the appearance of leadership than actually distinguishing between effective and ineffective leaders. The fact that an individual exhibits the traits and others consider that person to be a leader does not necessarily mean the leader is successful at getting his or her group to achieve its goals. b. The fact that an individual exhibits the right traits and that others consider him a leader does not necessarily mean he will be an effective leader, successful at getting the group to achieve its goals.

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E. Behavioral Theories of Leadership F. Trait theory provides a basis for selecting the right people for leadership. But you probably noticed trait theories don’t adequately explore the way leaders behave.

G. Behavioural theories of leadership imply that we can determine leadership effectiveness by leader behaviour, and perhaps train people to be leaders.

H. The Ohio State Studies.

1.

I.

These studies attempted to find what behaviours substantially accounted for most of the leadership behaviour described by employees. Beginning with over a thousand dimensions, researchers narrowed the list to two: a. Initiating Structure. This dimension refers to the extent to which a leader is likely to define and structure his or her role and those of employees in the search for goal attainment. It includes behaviour that attempts to organize work, work relationships, and goals. b. Consideration. This dimension is the extent to which a person is likely to have job relationships that are characterized by mutual trust, respect for employees’ ideas, and regard for their feelings.

The University of Michigan Studies.

1. Roughly contemporary to the Ohio State studies, this set of studies had similar research objectives: to locate behavioural characteristics of leaders that appeared to be related to measures of performance effectiveness.

2. They also came up with two dimensions of leadership behaviour that were critical: a. Employee-Oriented. Leaders who were employee-oriented were described as emphasizing interpersonal relations. They took a personal interest in the needs of their employees and accepted individual differences among members. b. Production-Oriented. These leaders tended to emphasize the technical or task aspects of the job. Their main concern was in accomplishing their group’s tasks and the group members were seen as a means to that end.

3. Study Results. At one time, the results of testing behavioural theories were thought to be disappointing. a. However, a more recent review of 160 studies found the followers of leaders high in consideration were more satisfied with their jobs, were more motivated, and had more respect for their leader. Initiating structure was more strongly related to higher levels of group and organization productivity and more positive performance evaluations.

III. CONTINGENCY THEORIES A. Background.

1. While trait and behavioural theories contributed to our understanding of leadership, predicting leadership success proved to be more complex than thought, so researchers began to focus on situational influences. a. The goal of such contingency theories was to match leadership style with work conditions in order to achieve leadership effectiveness.

B. The Fiedler Contingency Model.

1. One of the first models of this type was developed by Fred Fiedler.

2. It proposes that effective group performance depends on the proper match between the leader’s style and the degree to which the situation gives control to the leader.

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3. Fiedler assumes an individual’s leadership style is fixed. This means if a situation requires a task-oriented leader and the person in the leadership position is relationship-oriented, either the situation has to be modified or the leader has to be replaced to achieve optimal effectiveness. a. After assessing an individual’s basic leadership style through the LPC questionnaire, the leader is matched with the situation. b. Fiedler identified three contingency dimensions that defined the key situational factors that will determine the appropriate leadership style.

1) Leader-member relations: the degree of confidence, trust, and respect members have in their leader. Measured as good or poor.

2) Task structure: the degree to which the job assignments are structured or unstructured. Measured as high or low.

3) Position power: the degree of influence a leader has over hiring, firing, discipline, promotions, and salary increases. Measured as strong or weak. c. The next step is to evaluate the situation in terms of these three variables.

1) Fiedler states that the better the leader–member relations, the more highly structured the job, and the stronger the position power, the more control the leader has.

2) A very favourable situation (in which the leader has a great deal of control) might include a payroll manager who is well-respected and whose employees have confidence in her (good leader–member relations); activities to be done—such as wage computation, check writing, and report filing—that are specific and clear (high task structure); and provision of considerable freedom to reward and punish employees (strong position power).

3) An unfavourable situation might be that of the disliked chairperson of a volunteer United Way fundraising team. In this job, the leader has very little control.

4. Combining the three contingency dimensions yields eight possible situations in which leaders can find themselves. a. Task-oriented leaders tend to perform better in situations that are either very favourable to them or which are very unfavourable (category I, II, III, VII, or VIII). b. Relationship-oriented leaders perform better in moderately favourable situations (categories IV through VI). c. Recently, Fiedler has condensed these eight situations down to three based on the degree of control: task-oriented leaders perform best in situations of high and low control while relationship-oriented leaders perform best in moderate control situations. d. Using the Model to Improve Leadership Effectiveness. Because Fiedler believes an individual’s leadership style is fixed, there are really only two ways to improve leader effectiveness: 1) Change the leader to fit the situation. If a group situation rates highly unfavourable but is currently led by a relationshiporiented manager, the group’s performance could be improved under a manager who is task-oriented.

2) Change the situation to fit the leader. This can be done by restructuring tasks or increasing/decreasing the power the leader has

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to control factors such as salary increases, promotions, and disciplinary actions.

5. Considerable evidence supports substantial parts of Fiedler's model. a. If we use only three categories rather than the original eight, there is ample evidence to support Fiedler’s conclusions. b. But the logic underlying the LPC questionnaire is not well understood, and respondents’ scores are not stable. c. The contingency variables are also complex and difficult for practitioners to assess.

C. Other Contingency Theories 1. Situational Leadership Theory. Situational leadership theory (SLT) focuses on the followers. It says successful leadership depends on selecting the right leadership style contingent on the followers’ readiness, the extent to which followers are willing and able to accomplish a specific task.

2. A leader should choose one of the following four behaviours depending on follower readiness. a. If followers are unable and unwilling to do a task, the leader needs to give clear and specific directions. b. If followers are unable but willing, the leader needs to display high task orientation to compensate for followers’ lack of ability and high relationship orientation to get them to “buy into” the leader’s desires. c. If followers are able but unwilling, the leader needs to use a supportive and participative style. d. If followers are both able and willing, the leader doesn’t need to do much.

3. SLT has intuitive appeal. It acknowledges the importance of followers and builds on the logic that leaders can compensate for their limited ability and motivation. a. Yet, research efforts to test and support the theory have been relatively disappointing. Possible explanations include internal ambiguities and inconsistencies in the model itself as well as problems with research methodology.

4. Path-Goal Theory. Developed by Robert House, path-goal theory extracts elements from the Ohio State leadership research on initiating structure and consideration, and the expectancy theory of motivation.

5. Path-goal theory suggests it’s the leader’s job to provide followers with information, support, or other resources necessary to achieve goals.

6. The theory predicts: a. Directive leadership yields greater satisfaction when tasks are ambiguous or stressful than when they are highly-structured and well laid out. b. Supportive leadership results in high performance and satisfaction when employees are performing structured tasks. c. Directive leadership is likely to be perceived as redundant by employees with high ability or considerable experience.

7. The match between leadership style and situation can be individualistic and mercurial. Some tasks may be both stressful and highly-structured, and employees may have high ability or experience in some tasks and not others.

8. Studies indicate that leaders who set goals enable conscientious followers to achieve higher performance but may cause stress for workers who are low in conscientiousness.

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9. Altogether, the foundations of path-goal theory have merit. Directive or supportive leadership does matter to followers’ performance, and leaders need to be aware of their important facilitating role.

10. Additionally, path-goal theory, like SLT and other contingency theories, reminds us that the effectiveness of leaders depends to a large degree on their followers.

11. Leader-Member Exchange Theory (LMX) takes the concept of the importance of followers further, highlighting that individual followers may not all have the same relationship with a given leader.

12. The theory reminds us that leaders form a deep, trusting bond with some employees and not others, partly due to time constraints and resource limitations and partly due to personality dynamics and in-group effects. The nature of this dyadic relationship influences leadership outcomes, as the same leader will have varied outcomes depending on the leader's individual relationship with specific followers.

13. LMX theory has been well supported by research, indicating that a “high-quality exchange” relationship (meaning relationships with the leader that are characterized by high trust and perceived supportiveness), are associated with higher job satisfaction, reduced turnover, increased organizational citizenship, and better performance.

IV. CHARISMATIC LEADERSHIP AND TRANSFORMATIONAL LEADERSHIP A. In this section, we present two contemporary leadership theories—charismatic

leadership and transformational leadership—which have a common theme: they view leaders as individuals who inspire followers through their words, ideas, and behaviours.

B. Charismatic Leadership.

1. What Is Charismatic Leadership? a. Max Weber, a sociologist, defined charisma (from the Greek for “gift”) more than a century ago as “a certain quality of an individual personality, by virtue of which he or she is set apart from ordinary people and treated as endowed with supernatural, superhuman, or at least specifically exceptional powers or qualities.

1) These are not accessible to the ordinary person and are regarded as of divine origin or as exemplary, and on the basis of them, the individual concerned is treated as a leader.”

2) Weber argued that charismatic leadership was one of several ideal types of authority.

2. House’s Charismatic Leadership Theory. a. In this theory, followers are believed to make attributions of heroic or extraordinary leadership abilities when they observe certain behaviours. b. The charismatic characteristics identified by the research so far are: 1) vision, 2) a willingness to take personal risks to achieve that vision, 3) sensitivity to followers’ needs, and 4) exhibiting behaviours that are out of the ordinary.

3. How Do Charismatic Leaders Influence Followers? a. It begins with articulating an appealing vision, a long-term strategy for attaining a goal by linking the present with a better future for the organization.

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1) Desirable visions fit the times and circumstances and reflect the uniqueness of the organization. b. A vision is incomplete without an accompanying vision statement, a formal articulation of an organization’s vision or mission.

1) Charismatic leaders may use vision statements to imprint on followers an overarching goal and purpose.

2) They then communicate high performance expectations and express confidence that followers can attain them.

3) This enhances follower self-esteem and self-confidence. c. Through words and actions, the leader conveys a new set of values and sets an example for followers to imitate.

1) One study of Israeli bank employees showed charismatic leaders were more effective because their employees personally identified with them.

2) Charismatic leaders also set a tone of cooperation and mutual support. d. Finally, the charismatic leader engages in emotion-inducing and often unconventional behaviour to demonstrate courage and conviction about the vision. Followers “catch” the emotions their leader is conveying.

4. The Destructive and Toxic Side of Charismatic Leadership a. Narcissists score higher in some behaviours associated with charismatic leadership. b. Destructive leadership traits include a willingness to use power for personal gain and self-aggrandizement; having a childhood characterized by powerlessness, trauma, and neglect that resulted in a broad view of the world as negative and threatening; and embracing ideologies of hatred.

5. Does Charismatic Leadership Depend on the Person and the Situation? a. There are strong correlations between charismatic leadership and high performance and satisfaction among followers, but such results may be situationally dependent.

1) Charisma appears to be most successful when the follower’s task includes ideology or the environment involves a high degree of stress and uncertainty.

2) Additionally, charisma, given its need for a vision, is more often associated with high-level executives than with low-level managers.

Also, charisma affects some followers more than it does others.

3) Finally, people are especially receptive to charismatic leadership when they sense a crisis, when they are under stress, or when they fear for their lives.

4) Top executives create vision. It is more difficult to utilize a person’s charismatic leadership qualities in lower-level management jobs or to align new vision with the specific top-management goals of the organization. a) While charismatic leadership may be more important in the upper echelons of organizations, it is also clear that its effects are not confined to high-level leaders, as it can be effective from a distance, or from close range.

5) Some personalities are especially susceptible to charismatic leadership. a) For instance, an individual who lacks self-esteem and questions his self-worth is more likley to absorb a leader’s direction rather than establish his own way of leading or thinking. For these people, the 11-7

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situation may matter much less than the charismatic qualities of the leader.

C. Transformational Leadership.

1. Leadership Types. This theory of leadership divides leaders into two types, based on their methods and outcomes: a. Transactional Leaders: those who guide or motivate their followers in the direction of established goals by clarifying role and task requirements.

These leaders were described in the Ohio State studies and Fiedler's model. b. Transformational Leaders: those who inspire followers to transcend their own self-interests for the good of the organization and are capable of having a profound or extraordinary effect on their followers. c. Transactional and transformational leadership aren’t opposing approaches to getting things done. They complement each other, though they’re not equally important.

1) Transformational leadership builds on transactional leadership and produces levels of follower effort and performance beyond what transactional leadership alone can do.

2) But the reverse isn’t true. So, if you are a good transactional leader but do not have transformational qualities, you’ll likely only be a mediocre leader.

3) The best leaders are transactional and transformational. d. Full Range of Leadership Model. Exhibit 11-4 shows the full range of leadership model. e. The first three: 1) Laissez-faire is the most passive and therefore least effective of leader behaviours.

2) Management by exception—active or passive—is slightly better than laissez-faire, but it’s still considered ineffective.

3) Management-by-exception leaders tend to be available only when there is a problem, which is often too late.

4) Contingent reward leadership can be an effective style of leadership but will not get employees to go above and beyond the call of duty. f. Only with the four remaining styles—all aspects of transformational leadership—are leaders able to motivate followers to perform above expectations and transcend their self-interest for the sake of the organization.

1) Individualized consideration, intellectual stimulation, inspirational motivation, and idealized influence all result in extra effort from workers, higher productivity, higher morale and satisfaction, higher organizational effectiveness, lower turnover, lower absenteeism, and greater organizational adaptability. g. Based on this model, leaders are generally most effective when they regularly use each of the four transformational behaviours.

2. Evaluation of Transformational Leadership. a. Transformational leadership has been impressively supported at various job levels and in disparate occupations. b. Transformational leadership isn’t equally effective in all situations, however.

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3. What elements of transformational leadership appear universal? Vision, foresight, providing encouragement, trustworthiness, dynamics, positiveness, and proactiveness top the list. a. The GLOBE team concluded that “effective business leaders in any country are expected by their subordinates to provide a powerful and proactive vision to guide the company into the future, strong motivational skills to stimulate all employees to fulfill the vision, and excellent planning skills to assist in implementing the vision” (Carl and Javidan 29).

4. A vision is important in any culture, then, but the way it is formed and communicated may need to vary by culture.

V. AUTHENTIC LEADERSHIP: ETHICS AND TRUST One area left out of charismatic and transformational leadership theories is the role of ethics and trust in leadership effectiveness.

A. What Is Authentic Leadership? Authentic leaders know who they are, what they believe in and value, and act on those values and beliefs openly and candidly.

1. Their followers consider them ethical people. The primary quality produced by authentic leadership, therefore, is trust.

2. Authentic leaders share information, encourage open communication, and stick to their ideals. The result: people come to have faith in them.

3. Because the concept is new, there has been little research on authentic leadership. a. However, recent research indicated that authentic leadership, especially when shared among top management team members, created a positive energizing effect that heightened firm performance. b. Transformational or charismatic leaders can have a vision and communicate it persuasively, but sometimes the vision is wrong, or the leader is more concerned with his or her own needs or pleasures.

B. Ethical Leadership. For better or worse, leadership is not value-free. In assessing leadership effectiveness, we need to address the means a leader uses to achieve goals as well as the content of those goals.

1. The role of the leader in creating the ethical expectations for all members is crucial. Therefore, although every member of an organization is responsible for ethical behaviour, many initiatives aimed at increasing organizational ethical behaviour are focused on the leaders.

2. Ethics and leadership intersect at a number of junctures. a. Leaders who treat their followers with fairness, especially by providing honest, frequent, and accurate information, are seen as more effective. b. Related to this is the concept of humbleness, another characteristic ethical leaders often exhibit as part of being authentic. Research indicates that leaders who model humility help followers to understand the growth process for their own development. c. Leaders can build on a foundation of trust to show their character, enhance a sense of unity, and create buy-in from followers. Research findings suggest that organizations should invest in ethical leadership training programs, especially in industries with few regulations.

C. Servant Leadership. Scholars have recently considered ethical leadership from a new angle by examining servant leadership.

1. Servant leaders go beyond their own self-interest and focus on opportunities to

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help followers grow and develop. They don’t use power to achieve ends; they emphasize persuasion.

2. Characteristic behaviours include listening, empathizing, persuading, practicing stewardship, and actively developing followers’ potential.

3. What are the effects of servant leadership? One study of 123 supervisors found that it resulted in higher levels of commitment to the supervisor, self-efficacy, and perceptions of justice, which were all related to organizational citizenship behaviour. The relationship between servant leadership and follower organizational citizenship behaviour appears to be stronger when followers are focused on being dutiful and responsible.

4. Servant leadership increases team potency (a belief that one’s team has aboveaverage skills and abilities), which in turn leads to higher levels of group performance.

5. A study with a nationally representative sample found higher levels of citizenship associated with a focus on growth and advancement, which in turn was associated with higher levels of creative performance.

6. Servant leadership may be more prevalent and more effective in certain cultures. In particular, the East Asian prototype is more like a servant leader, which might mean servant leadership is more effective in these cultures.

D. Trust and Leadership 1. Trust is a psychological state that exists when you agree to make yourself vulnerable to another because you have positive expectations about how things are going to turn out. Although you aren’t completely in control of the situation, you are willing to take a chance that the other person will come through for you.

2. Trust is a primary attribute associated with leadership; breaking it can have serious adverse effects on a group’s performance.

E. What Are the Consequences of Trust?

1. Trust between supervisors and employees is related to a number of positive employment outcomes.

2. Here are just a few of the most important outcomes that research has shown: a. Trust encourages taking risks.

1) Whenever employees decide to deviate from the usual way of doing things, or to take their supervisors’ word on a new direction, they are taking a risk.

2) In both cases, a trusting relationship can facilitate that leap. b. Trust facilitates information sharing.

1) One big reason employees fail to express concerns at work is that they don’t feel psychologically safe revealing their views.

2) When managers demonstrate they will give employees’ ideas a fair hearing and show they are concerned enough to actively make changes, employees are more willing to speak out. c. Trusting groups are more effective.

1) When a leader sets a trusting tone in a group, members are more willing to help each other and exert extra effort for one another, which further increases trust.

2) Conversely, members of mistrusting groups tend to be suspicious of each other, are constantly on guard against exploitation, and restrict communication with others in the group.

3) These actions tend to undermine and eventually destroy the group.

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d. Trust enhances productivity.

1) The bottom-line interest of companies also appears positively influenced by trust.

2) Employees who trust their supervisors tend to receive higher performance ratings.

3) Mistrust focuses attention on the differences in member interests, making it difficult for people to visualize common goals.

4) People respond by concealing information and secretly pursuing their own interests.

VI. GENDER AND LEADERSHIP A. Gender impacts leadership style and responses to the leader.

1. There is a long-standing stereotype that women are more communal, empathetic and nurturing, while men are more agentic, dominant and forceful.

2. Recent research has highlighted that men, women, and nonbinary people tend use a range of tactics and that their choice is driven more by organizational context, occupational norms, individual personality, and personal values than by gender.

VII. The GLOBE studies explicitly CROSS CULTURAL AND INDIGENOUS LEADERSHIP A. GLOBE Leadership findings

1. The GLOBE studies explicitly examined perceptions of ideal leadership traits in 64 countries across the world.

2. 22 traits were determined to be universally positive (e.g., trustworthy, just, honest, having foresight, planning, well informed, encouraging, communicative, motivating).

3. 8 universal negatives identified (e.g., anti-social, self-protective, irritable, noncooperative, dictatorial).

4. 35 traits were culturally contingent (e.g., being status conscious was related to power distance, being a risk-taker was related to uncertainty avoidance).

5. The GLOBE studies provided concrete evidence of the link between cultural values and leadership preferences.

6. Main Implication: Leaders working with diverse groups of employees, and leaders who are expatriates working in a new culture, should inform themselves of the cultural values and business norms that may impact the behavioural expectations of their direct reports.

B. Indigenous Leadership 1. The concept of a leader tends to be broader among Indigenous people and it is not always driven by formal title or authority.

2. People with knowledge of ceremony, traditions, and stories are often considered important community leaders, termed “knowledge keepers”.

3. Business leaders in most Indigenous communities are not only communityoriented, they are also more spiritual than leaders in traditional Western organizations.

VIII. LEADERSHIP SUBSTITUTES AND NEUTRALIZERS A. While leadership is important, leaders cannot do everything. This theory holds

that leadership actions are often irrelevant when trying to explain organizational outcomes.

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1. Experience and training are among the substitutes that can replace the need for a leader’s support or ability to create structure. a. Organizational characteristics such as explicit formalized goals, rigid rules and procedures, and cohesive work groups can also replace formal leadership, while indifference to organizational rewards can neutralize its effects.

2. Neutralizers make it impossible for leader behaviour to make any difference to follower outcomes.

3. There are many possible substitutes for and neutralizers of many different types of leader behaviours across many different situations. a. Moreover, sometimes the difference between substitutes and neutralizers is fuzzy. b. If I’m working on a task that’s intrinsically enjoyable, theory predicts leadership will be less important because the task itself provides enough motivation. But does that mean intrinsically enjoyable tasks neutralize leadership effects, or substitute for them, or both? c. Another problem is that while substitutes for leadership (such as employee characteristics, the nature of the task, and so forth) matter to performance, we can’t infer that leadership doesn’t.

IX. FINDING AND CREATING EFFECTIVE LEADERS A. Selecting Leaders.

1. The process organizations go through to fill management positions is an exercise in the identification of effective leaders. a. You might begin by reviewing the knowledge, skills, and abilities needed to do the job effectively. b. Personality tests can identify traits associated with leadership— extraversion, conscientiousness, and openness to experience. c. High self-monitors are better at reading situations and adjusting their behaviour accordingly. d. Candidates with high emotional intelligence should have an advantage, especially in situations requiring transformational leadership.

2. Experience is a poor predictor of leader effectiveness, but situation-specific experience is relevant.

B. Training Leaders.

1. How can managers get more from their training budgets? a. Leadership training is likely to be more successful with high-self monitors. b. Organizations can teach implementation skills. c. We can teach skills such as trust building and mentoring. d. Behavioural training through modelling exercises can increase an individual’s ability to exhibit charismatic leadership qualities. e. Leaders should engage in regularly reviewing their leadership after key organizational events. f. Leaders can be trained in transformational leadership skills that have bottom-line results.

2. Mentors are senior employee who sponsors and supports a less experienced employee. a. Formal mentors: protégé candidates are identified according to assessments of leadership potential and then matched with leaders in corresponding organizational functions.

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b. Informal mentors: a less experienced, lower-level employee who appears to have potential for future development is identified and informally tested by the senior employee. If the lower-level employees passes the test, they will be come a mentee.

C. Developing Your Own Leadership Skills 1. Complete a self-assessment to determine your leadership strengths and weaknesses. This assessment will provide some guidance in terms of where you need to invest your efforts to develop your leadership skills.

2. Formal learning can help you develop your leadership skills (e.g., university courses, project management courses).

3. Read books by famous leaders, or watch Ted Talks to expose yourself to new perspectives.

4. Practice the behaviors that you have learned about.

5. Be honest with your successes and failures.

X. BEING AN EFFECTIVE FOLLOWER A. Effective followers have been defined in the leadership literature as people who are able to “manage up”.

B. Managing up is challenging: as a follower you are not in control and you need to

balance constructive criticism with respect (and even then certain personality types may not be receptive).

C. How to be an effective follower?

1. Know your leader well.

2. If you are unsure, ask and then communicate with the leader according to their preferences (not yours).

3. Approach interactions with a positive attitude focused on achieving shared goals.

4. Offer opinions to the leader in a private and respectful manner.

5. Share credit when appropriate (preferably in public).

6. Actively ask for feedback.

7. Be willing to collaborate.

XI. SUMMARY A. Leadership plays a central part in our understanding of group behaviour because

it’s the leader who usually directs us toward our goals.

B. Knowing what makes a good leader should thus be valuable in improving group performance.

1. The early search for a set of universal leadership traits failed. However, recent efforts using the Big Five personality framework show strong and consistent relationships between leadership and extraversion, conscientiousness, and openness to experience.

2. The behavioural approach’s major contribution was narrowing leadership into task-oriented (initiating structure) and people-oriented (consideration) styles.

3. By considering the situation in which the leader operates, contingency theories promised to improve on the behavioural approach.

4. Research on charismatic and transformational leadership has made major contributions to our understanding of leadership effectiveness.

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5. The concept of authentic leadership encompasses the dimensions of ethics and trust that characterize the best leadership practices, although the need for leadership to increase performance is not always certain.

6. Servant leadership involves helping others grow and develop.

7. The expectations of leaders can differ significantly by culture, it is important to be aware of the influence of culture when leading people from diverse backgrounds.

8. Regardless of the type of leadership style used, trust is key for leadership effectiveness.

XII. IMPLICATIONS FOR MANAGERS A. For maximum leadership effectiveness, ensure that your preferences on the

initiating structure and consideration dimensions are a match for your work dynamics and culture.

B. Hire candidates who exhibit transformational leadership qualities and who have demonstrated success in working through others to meet a long-term vision.

1. Personality tests can reveal candidates higher in extraversion, conscientiousness, and openness, which may indicate leadership readiness.

C. For the management role, hire candidates whom you believe are ethical and trustworthy; and train managers in your organization’s ethical standards.

D. Seek to develop trusting relationships with followers because, as organizations have become less stable and predictable, strong bonds of trust are replacing bureaucratic rules in defining expecations and relationships.

E. Consider investing in leadership training such as formal courses, workshops, rotating job responsibilities, coaching, and mentoring.

XIII. KEEP IN MIND A. Leaders can influence a group toward the achievement of goals.

B. The best leaders are ethical and authentic in addition to being charismatic.

Mini Case Discussion Questions Case 1: A Study of Leadership Style 1. How would you characterize Bryce Williams’ leadership style? Justify your answer. Remember that he may be combining styles or exhibiting varied styles at different times or in different contexts.

Bryce Williams combines aspects of participative leadership with transformational and supportive leadership behaviours. He has a vision for his band that includes inspirational messages about combining economic prosperity with cultural maintenance. He asks for feedback and insight from his legislative assembly. He is directly engaged in supporting his community by teaching carving to children.

Although he makes sure tasks are completed, Bryce is highly relationship-focused. That focus carries through into all leadership contexts, whether he is acting in transformational, participative, or supportive ways.

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2. Is Bryce’s leadership style or styles suitable for the context that he is working in?

Justify your answer.

Bryce’s leadership style is highly appropriate for the culture and context he is working in. First Nations cultures emphasize inclusive decision making. In addition, he is young and relatively less experienced. These traits, in combination, make participative leadership especially appropriate. Furthermore, as Chief of the first provincial urban reserve in B.C., Bryce is likely aware that their community can serve as a model and inspiration for others, making transformational leadership a timely tool.

3. Describe two jobs/scenarios in which Bryce’s current primary leadership style would likely be ineffective. Explain your answer.

Bryce’s leadership style is inclusive and respectful, but time-consuming. Contexts which require rapid, decisive decision making, such as leading a team of first responders in an emergency situation, would be ill-suited to his style.

His style is also less suited to contexts in which task completion is the primary focus, tasks are simple, and the followers unskilled. In that type of environment, Bryce’s transformational and participative styles would be unhelpful, since task completion is the main goal, emotions are less relevant, and the followers have limited insight to offer. Examples include manufacturing contexts and short-term projects requiring manual labour (putting up sandbags in preparation for a flood, for instance).

Case 2: Situational Leadership Comes Clean 1. Why is Martha having such a different leadership experience with her new team compared to her old team and how can she correct the situation such that her current team respects her leadership more?

Martha is having a different leadership experience with her new team compared to her old team because the team composition is very different. According to the Fiedler contingency model, effective groups depend on a proper match between a leader’s style of interacting with subordinates and the degree to which the situation gives control and influence to the leader. In this case, there was a proper match between Martha’s leadership style and the first crew (e.g., they needed more specific instructions, they responded well to the ‘mom voice’). There was an improper match between Martha’s leadership style and the second crew (e.g., they needed less specific instructions as they were more experienced, they needed more autonomy).

Martha can correct the situation such that her current team respects her leadership more by changing the task structure, which refers to the degree to which the job assignments are procedurized (that is, structured or unstructured). As the second crew are more experienced and are taking on more challenging tasks, they might appreciate less structured interactions with Martha. These interactions might be less directive (e.g., ‘you do this’) and more collaborative (e.g., ‘what do you think about this approach?’).

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Exercises 1. Self-analysis. Based on your Big Five personality profile, what leadership traits do you possess? Do you think you would be a good leader? Why or why not? (If you have not already completed this personality test in an earlier chapter, search the Internet for a free version of the Big Five personality test and take it.)

2. Web Crawling. Search the Internet to find three sources that believe that leadership is necessary for organizations to be effective and three sources that do not. Concisely summarize the two arguments and then provide your opinion on the matter.

3. Teamwork. Split the class into small groups of four. Half of these teams will elect a leader who will act as a transactional leader. The other half will select leaders who will act as transformational leaders. Give each team three decks of cards that have been shuffled together and randomly stacked. Call the leaders together and inform them of their team’s task. The task of each group is to sort and sequence the pile into the original three separate decks of cards (ordered by suit and rank: A♠-K♠, A♣-K♣, A♥K♥, and A♦-K♦). This activity is a race between teams. The winning team will be the one that completes the task the fastest and the most accurately. Every card that is found to be out of place is a 30-second penalty. Review with the leaders the differences between transactional and transformational leadership before allowing them to start the exercise. Allow the leaders to act in the way they see fit, based on their style of leadership. Time each team. At the end of the activity, have the competing teams check each other's results for accuracy. Average the time taken by each type of leader’s teams. Was there a difference? Why or why not? Address these questions to the team members, not the team leaders. Ask the team members of each type of leader how they felt during the activity. Ask the team leaders how they felt about their team members and the activity. Hold a discussion on the effects of these two types of leadership on the results of this activity.

4. Analyzing Your Organization (Cumulative Project). Analyze the leadership in your organization using the theories discussed in this chapter as a framework. Pick one or more theories that you think applies most to your organization, and actually write a case study on it. For example, if you think that the Fiedler model is what is driving the leadership in your organization, write a paper discussing why this is the case. For example, you may have a strong task-oriented leader who is very effective because the situational variables are either very high or very low.

5. What Characterizes a Leader? This exercise will show students different leadership styles in a fun way. It requires some significant preparation on the instructor’s part. a. Rent one or more of the following movies: 1) Karate Kid - Good for contingency leadership.

2) Lawrence of Arabia - Good for charismatic/visionary leadership.

3) Hoosiers - Good for transactional leadership. b. Preview the film(s) you will use in class and note where the following sections are.

(By previewing, you will reduce viewing time to 15 to 20 minutes out of each film.)

1) Karate Kid: (1) When Miagi has Daniel washing, sanding, and painting, only to show him that he has learned karate: high task/low relationship. (2) When they are on the inlet fishing and Daniel is standing on the boat practicing: moderate 11-16

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task/moderate relationship. And (3) the tournament at the end of the film: high relationship/low task direction.

2) Lawrence of Arabia: (1) The beginning of the film when Lawrence gets his assignment and declares it is fun. (2) When he is first riding in the desert and won’t drink his water except when his guide does. (3) When he is talking the tribal leader into riding across the desert to attack the port city and (4) later when he talks the second tribal leader into joining them. The pattern shows the development, execution, and creation commitment to a vision.

3) Hoosiers: (1) When Gene Hackman is first coaching the players and tells them to leave if they don’t want to work. (2) Choose one or two scenes where he is dictating to them how to play: my way or the highway. Be sure to close with (3) the tournament game where the players finally have enough confidence to tell him they want to do something different and he lets them. This last scene is important to show that transactional leadership does work; you just may not like the method. c. Lead a discussion after watching the clips from each film. As an alternative, watch the entire movie(s), stopping the video periodically and discussing the elements of leadership displayed to that point.

6. Name That Leader! Before even beginning the discussion of leadership, have students name/identify who they think are or have been great leaders. This list can include past, present, and future leaders; male and female leaders; living or deceased leaders of the following categories: business leaders, governmental leaders (domestic and international), ethnic leaders, and religious leaders from any/all denominations.

Try to encourage a wide variety of leaders, even some leaders that would not be considered socially acceptable, such as Hitler, Saddam Hussein, Osama bin Laden, and cult leaders such as Jim Jones and Charles Manson, because they will lead into the discussion. While they were not exactly nice people, they were able to influence the behaviour of others to act in a certain manner.

After the class has generated a relatively lengthy list (20 or more), have the students identify why all of the people on this list are or were leaders, and what characteristics they all have in common. Write the list on the board. This can lead into an interesting discussion on trait theory.

7. Ethical Leadership. Have the class search for news stories on ethical breakdowns by current leaders. Discuss the events in the context of why the breakdowns occurred.

Was it due to a wrong style, such as using charisma when it did not work? Discuss the concept of traits and behaviours in the context of what makes a great leader. For example, can one behave unethically in their personal lives, but still be a great leader?

Suggested Assignments 1. Ask students to look at the list of famous quotes from well-known leaders from history.

They may use the Internet to find these leaders.

2. Once the leaders are identified, ask students to write a short paper about one of these leaders to describe their leadership characteristics in terms introduced in the chapter.

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Who Said That?

Name That Leader 1. I have a dream.

2. I have not yet begun to fight.

3. [In response to a female heckler who claimed he was drunk.] And you, madam, are ugly. But I shall be sober in the morning.

4. Give me liberty or give me death.

5. If you judge people, you have no time to love them.

Who Said That?

Name That Leader: Answer Key 1. I have a dream. - Martin Luther King, Jr. 2. I have not yet begun to fight. - John Paul Jones 3. [In response to a female heckler who claimed he was drunk.] And you, madam, are ugly. But I shall be sober in the morning. - Winston Churchill 4. Give me liberty or give me death. - Patrick Henry 5. If you judge people, you have no time to love them. - Mother Teresa

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Chapter 12 Power and Politics Chapter Overview For anything to be accomplished in an organization people must use both power and politics. While often looked at as negative aspects of organizations, both power and politics are the means by which organizations and individuals get objectives accomplished.

Chapter Objectives After studying this chapter, the student should be able to: 12.1 a Define power.

12.1 b Contrast leadership and power.

12.2 Describe the five bases of power.

12.3 Identify nine power or influence tactics and their contingencies.

12.4 Explain how power affects people.

12.5 Define organizational politics and evaluate the role of politics in organizations.

12.6 a Identify the causes and consequences of political behaviour.

12.6 b Assess whether a political action is ethical.

12.7 Describe the political mapping process and its advantages.

Suggested Lecture Outline

I.

INTRODUCTION

A. This chapter will examine how power shapes group goals and resource allocation as well as the individual use of political skills to achieve goals.

II. A DEFINITION OF POWER A. Power: a capacity that one person has to influence the behaviour of another so that

the other acts in accordance with the first person's wishes.

1. Power requires a dependency relationship: the greater the dependency, the greater the power that exists. a. Dependence is based on alternatives and their desirability. b. Alternatives. Dependence is increased as a number of alternatives decrease.

Control over an alternative gives power. c. Desirability. The more desirable an alternative is, the more dependent a person (target) is on the person (controller) who controls the alternative and therefore the more power the controller has.

III. POWER AND LEADERSHIP COMPARED A. Similarities. The concepts of leadership and power are closely intertwined.

Leaders use power as a means of attaining group goals.

B. Differences. Power and leadership differ in three major areas: 12-1

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1. Power does not require goal compatibility, merely dependence. a. Leadership requires some congruence between the goals of the leader and those being led.

2. Leadership focuses on the downward influence over one's followers. a. It minimizes the importance of lateral and upward influence patterns.

Power is concerned with all directions of influence.

3. Leadership research tends to emphasize the style leaders take. a. Research on power is a broader topic and focuses on tactics for gaining compliance.

4. Power research looks at the power exerted by individuals, as well as that used by groups.

IV. BASES OF POWER A. There are two general groupings of power sources: formal and personal.

1. Formal Power. a. This source of power comes from an individual's position in an organization. b. It is based on the ability to coerce or reward, or from formal authority.

1) Coercive Power. a) This power base is driven by fear. b) A target reacts to this power out of fear of the negative results that would occur if he or she failed to comply. c) It rests on the application, or threat of application, of physical sanctions (pain, frustration, or threatening lower order needs).

2) Reward Power. a) The opposite of coercive power, this source of power is based on producing positive benefits for the target who complies. b) Rewards can be financial (pay or bonuses) or nonfinancial (recognition, interesting assignments, or preferred work shifts).

3) Legitimate Power. a) In formal groups and organizations, this common base of power is the formal authority to control and use organizational resources based on structural position. b) It is based on member acceptance of the position, not simply the power to coerce and reward given with that position.

2. Personal Power. a. This power stems from an individual's unique characteristics. b. There are two bases of personal power: 1) Expert Power. a) This is influence wielded because of expertise, special skill, or knowledge. b) This has become a powerful source of influence as the world becomes more technologically oriented.

2) Referent Power. a) This power is based on identification with a person who has desirable resources or personal traits. b) It develops out of admiration of another and the desire to be like that person: followers wish to please a person with referent power. c) This source of power is closely aligned with charisma.

B. Which Bases of Power Are Most Effective?

1. Personal Power.

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a. Both expert and referent power are positively related to employee satisfaction with supervision, organizational commitment, and performance.

2. Formal Power. a. Reward and legitimate power are unrelated to organizational outcomes. b. Coercive power is negatively related to employee satisfaction and commitment.

V. POWER TACTICS A. Defined: Power tactics are what people use to translate power bases into specific

actions that influence others.

1. Power tactics are more immediate in nature than power bases, although they are similar concepts.

2. In fact, over time, successfully applied power tactics can result in the accumulation of a power base.

B. Nine Influence Tactics: 1. Legitimacy. Relying on one's positional authority or stressing the request is in accordance with organizational policies and rules.

2. Rational Persuasion. Presenting logical arguments and factual evidence to demonstrate the request is reasonable.

3. Inspirational Appeals. Developing emotional commitment by appealing to a target’s values, needs, hopes, and aspirations.

4. Consultation. Increasing the target’s motivation and support by involving him or her in deciding how the plan or change will be done.

5. Exchange. Rewarding the target with benefits or favours in exchange for following a request.

6. Personal Appeals. Asking for compliance based on friendship or loyalty.

7. Ingratiation. Using flattery, praise, or friendly behaviour prior to making the request.

8. Pressure. Using warnings, repeated demands, and threats.

9. Coalitions. Enlisting the aid of other people to persuade the target or using the support of others as a reason for the target to agree.

C. Not all tactics are equally effective.

1. Rational persuasion, inspirational appeals, and consultation tend to be the most effective tactics.

2. Pressure is the least effective of all nine tactics.

3. Effectiveness is increased by using more than one type of tactic at the same time or sequentially, as long as the tactics are compatible.

4. Tactic effectiveness is modified by the direction of the influence. a. Inspirational appeals and pressure work best as downward influencing tactics. b. Personal appeals and coalitions are most effective as lateral influence attempts.

5. You’re more likely to be effective if you begin with “softer” tactics that rely on personal power, such as personal and inspirational appeals, rational persuasion, and consultation.

6. If these fail, you can move to “harder” tactics, such as exchange, coalitions, and pressure, which emphasize formal power and incur greater costs and risks.

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7. Interestingly, a single soft tactic is more effective than a single hard tactic, and combining two soft tactics or a soft tactic and rational persuasion is more effective than any single tactic or combination of hard tactics.

8. The effectiveness of tactics depends on the audience. a. People especially likely to comply with soft power tactics tend to be more reflective, are intrinsically motivated, have high self-esteem, and have greater desire for control. b. People likely to comply with hard power tactics are more action oriented and extrinsically motivated and are more focused on getting along with others than with getting their own way.

9. There are some gender role congruency effects when it comes to the use of influence tactics. Men and women who use the exact same tactic in the same situation may be perceived differently.

10. People in different countries prefer different power tactics. a. Those from individualistic countries tend to see power in personalized terms and as a legitimate means of advancing their personal ends, whereas those in collectivistic countries see power in social terms and as a legitimate means of helping others.

1) Research suggests that managers have less need for influence tactics in countries with high power distance, as employees will comply with requests simply out of respect for the manager’s authority.

2) Canadian Indigenous peoples, whose varied cultures tend to be collectivistic and emphasize “power with” rather than “power over,” generally respond better to softer tactics that help develop consensus and shared understanding.

11. People differ in their political skill, or their ability to influence others to enhance their own objectives.

12. The politically skilled are more effective users of all of the influence tactics. a. Political skill also appears more effective when the stakes are high—such as when the individual is accountable for important organizational outcomes.

13. The politically skilled are able to exert their influence without others detecting it, a key element in being effective (it’s damaging to be labelled political).

14. Finally, we know cultures within organizations differ markedly—some are warm, relaxed, and supportive; others are formal and conservative. a. The organizational culture in which a person works will have a bearing on which tactics are considered appropriate. Some cultures encourage participation and consultation, some encourage reason, and still others rely on pressure. b. People who fit the culture of the organization tend to obtain more influence.

1) Specifically, extraverts tend to be more influential in team-oriented organizations, and highly conscientious people are more influential in organizations that value working alone on technical tasks. c. Part of the reason people who fit the culture are influential is that they are able to perform especially well in the domains deemed most important for success. In other words, they are influential because they are competent. So the organization itself will influence which subset of power tactics is viewed as acceptable for use.

VI. HOW POWER AFFECTS PEOPLE A. Does power corrupt?

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B. There is currently evidence that there are corrupting aspects of power. Research

suggests that power leads people to place their own interests ahead of others. Why does this happen?

1. Interestingly, research suggests that power not only leads people to focus on their self-interests because they can, but it also liberates people to focus inward and thus come to place greater weight on their goals and interests.

2. Power also appears to lead individuals to “objectify” others and to see relationships as more peripheral.

C. Powerful people react—especially negatively—to any threats to their competence.

They’re more willing to denigrate others.

1. People given power are more likely to make self-interested decisions when faced with a moral dilemma.

2. Power also leads to overconfident decision making.

D. Power doesn’t affect everyone in the same way. There are some positive effects of power.

1. The toxic effects of power depend on one’s personality. Research suggests that if we have an anxious personality, power does not corrupt us because we are less likely to think that using power benefits us.

2. The corrosive effects of power can be contained by organizational systems.

3. We have the power to blunt the negative effects of power.

4. The people who are most likely to abuse power are those who are low in status and gain power. Why is this the case? It appears that having low status is threatening, and this fear is used in negative ways if power is given.

E. As you can see, there are factors that can ameliorate the negative effects of power.

But there also appear to be general positive effects.

1. Power energizes and leads to approach motivation. It can also enhance people’s motivation to help others, at least for certain people. a. One study found, for example, that values toward helping others translated into actual work behaviour only when people felt a sense of power.

2. This study points to an important insight about power. It is not so much that power corrupts, as it reveals. a. Supporting this line of reasoning, another study revealed that power led to self-interested behaviour only for those with a weak moral identity; power actually enhanced their moral awareness.

VII. POLITICS: POWER IN ACTION A. Definition of Organizational Politics:

1. Occurs when employees convert their power into action.

2. Employees with good political skills have the ability to use their bases of power effectively.

B. Definition of Political Behaviour.

1. Political behaviour is activities that are not required as part of one's formal role in the organization, but that influence, or attempt to influence, the distribution of advantages and disadvantages within the organization.

2. This definition includes these key elements: a. Outside of Job. Political behaviour is outside one’s specified job requirements. b. Use of Power. The behaviour requires some attempt to use one's power bases.

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C. The Reality of Politics.

1. Interviews with experienced managers show that most believe political behaviour is a major part of organizational life.

2. Many managers report some use of political behaviour is both ethical and necessary, as long as it doesn’t directly harm anyone else.

3. Managers describe politics as a necessary evil and believe someone who never uses political behaviour will have a hard time getting things done.

4. Most managers indicate they had never been trained to use political behaviour effectively.

5. But why, you may wonder, must politics exist? a. Organizations are made up of individuals and groups with different values, goals, and interests. b. This sets up the potential for conflict over the allocation of limited resources, such as departmental budgets, space, project responsibilities, and salary adjustments. c. If resources were abundant, then all constituencies within the organization could satisfy their goals. d. But because they are limited, not everyone’s interests can be satisfied. e. Furthermore, gains by one individual or group are often perceived as coming at the expense of others within the organization (whether they are or not). f. These forces create real competition among members for the organization’s limited resources. g. Maybe the most important factor leading to politics within organizations is the realization that most of the “facts” used to allocate the limited resources are open to interpretation. h. It is in the large and ambiguous middle ground of organizational life—where the facts don’t speak for themselves—that politics flourish. i. Finally, because most decisions have to be made in a climate of ambiguity— where facts are rarely fully objective and thus are open to interpretation— people within organizations will use whatever influence they can to taint the facts to support their goals and interests. j. Therefore, to answer the question of whether it is possible for an organization to be politics free, we can say “yes”— 1) if all members of that organization hold the same goals and interests, 2) if organizational resources are not scarce, and 3) if performance outcomes are completely clear and objective.

But that doesn’t describe the organizational world in which most of us live.

VIII. CAUSES AND CONSEQUENCES OF POLITICAL BEHAVIOUR A. Factors Contributing to Political Behaviour.

There are a number of factors that appear to encourage political behaviour: some are individual characteristics and others are the results of the organization's culture or internal environment.

1. Individual Factors. a. At the individual level, researchers have identified certain personality traits, needs, and other factors likely to be related to political behaviour. b. In terms of traits, we find that employees who are high self-monitors, possess an internal locus of control, and have a high need for power are more likely to engage in political behaviour.

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1) The high self-monitor is more sensitive to social cues, exhibits higher levels of social conformity, and is more likely to be skilled in political behaviour than the low self-monitor. c. Because they believe they can control their environment, individuals with an internal locus of control are more prone to take a proactive stance and attempt to manipulate situations in their favour.

1) Not surprisingly, the Machiavellian personality—characterized by the will to manipulate and the desire for power—is comfortable using politics as a means to further his or her self-interest. d. In addition, an individual’s investment in the organization, perceived alternatives, and expectations of success influence the degree to which he or she will pursue illegitimate means of political action.

1) The more a person expects increased future benefits from the organization, the more that person has to lose if forced out and the less likely he or she is to use illegitimate means.

2) The more alternative job opportunities an individual has—due to a favourable job market or the possession of scarce skills or knowledge, a prominent reputation, or influential contacts outside the organization— the more likely that individual is to risk illegitimate political actions.

3) Finally, if an individual has a low expectation of success in using illegitimate means, it is unlikely he or she will attempt to do so. a) High expectations of success in the use of illegitimate means are most likely to be the province of both experienced and powerful individuals with polished political skills and inexperienced and naïve employees who misjudge their chances.

2. Organizational Factors. This is the most influential set of factors leading to political behaviour. a. When an organization’s resources are declining or when the existing patterns of resource distribution are changing, the likelihood of political behaviour increases.

1) This is especially true in periods of downsizing. b. The availability of promotions is one of the most political aspects of any organization and is most likely to cause political behaviour. c. Cultures evidencing the following characteristics are more likely to experience political behaviours.

1) Low levels of trust (also increases the likelihood of illegitimate political actions).

2) The more ambiguous a worker’s role, the fewer limits there are to the scope and functions of the employee’s political actions.

3) The more organizations use subjective criteria in performance appraisal, emphasize a single outcome measure, or allow significant time to pass between the time of an action and its appraisal, the greater the likelihood that an employee can get away with politicking. a) Subjective performance criteria create ambiguity. b) The use of a single outcome measure encourages individuals to do whatever is necessary to “look good” on that measure, but that often occurs at the expense of good performance on other important parts of the job that are not being appraised. c) The time lapse between an action and its appraisal is also a relevant factor.

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d) The longer the time, the more unlikely it is that the employee will be held accountable for political behaviours.

4) The use of zero-sum or win-lose reward allocation practices, which forces employees to compete with each other for a limited reward.

5) When there are high pressures for performance, especially when employees are held strictly accountable for outcomes and have great pressure upon them to look “good.”

6) When the firm is being led by poor example: self-serving senior managers who use political behaviours make such behaviour acceptable throughout the organization.

B. How Do People Respond to Organizational Politics?

1. In our previous discussion in this chapter of factors that contribute to political behaviour, we focused on the favourable outcomes. a. But for most people—who have modest political skills or are unwilling to play the politics game—outcomes tend to be predominantly negative. b. Exhibit 12-2 summarizes the extensive research on the relationship between organizational politics and individual outcomes.

1) Very strong evidence indicates, for instance, that perceptions of organizational politics are negatively related to job satisfaction.

2) The perception of politics also tends to increase job anxiety and stress.

3) This seems due to the perception that, by not engaging in politics, a person may be losing ground to others who are active politickers or, conversely, to the additional pressures felt from having entered into and competing in the political arena.

4) When politicking becomes too much to handle, it can lead employees to quit. c. Researchers have also noted several interesting qualifiers.

1) First, the politics-performance relationship appears to be moderated by an individual’s understanding of the “hows” and “whys” of organizational politics. a) “An individual who has a clear understanding of who is responsible for making decisions and why they were selected to be the decision makers would have a better understanding of how and why things happen the way they do than someone who does not understand the decision-making process in the organization” (Kacmar et al. 389). b) When both politics and understanding are high, performance is likely to increase because the individual will see political actions as an opportunity.

(1) This is consistent with what you might expect among individuals with well-honed political skills.

(2) But when understanding is low, individuals are more likely to see politics as a threat, which would have a negative effect on job performance.

2) Second, political behaviour at work moderates the effects of ethical leadership.

3) Third, when employees see politics as a threat, they often respond with defensive behaviours—reactive and protective behaviours to avoid action, blame, or change. a) Exhibit 12-3 provides some examples of these behaviours.

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b) Defensive behaviours are often associated with negative feelings toward the job and work environment. c) Employees may find that defensiveness protects their self-interest, but in the long run it wears them down. d) People who consistently rely on defensiveness find that, eventually, it is the only way they know how to behave.

(1) At that point, they lose the trust and support of their peers, bosses, employees, and clients.

C. Impression Management (IM).

1. The process by which individuals attempt to control the impression others form of them is called impression management (IM). a. Being perceived positively by others should have benefits for people in organizations. b. It might, for instance, help them initially to get the jobs they want in an organization and, once hired, to get favourable evaluations, superior salary increases, and more rapid promotions. c. In a political context, it might help sway the distribution of advantages in their favour.

2. Who is most likely to use or not use this concept? a. The high self-monitor is the most likely to employ this concept. b. Low self-monitors tend to present images of themselves that are consistent with their personalities, regardless of the beneficial or detrimental effects for them. c. In contrast, high self-monitors are good at reading situations and molding their appearances and behaviour to fit each situation. d. Exhibit 12-4 summarizes some of the most popular IM techniques and provides an example of each.

3. Keep in mind that the impressions people use IM to convey are necessarily false (although, of course, they sometimes are true). a. Excuses, for instance, may be offered with sincerity. b. Referring to the example in Exhibit 12-4, you can actually believe that ads contribute little to sales in your region. c. But misrepresentation can have a high cost.

1) If you “cry wolf” once too often, no one is likely to believe you when the wolf really comes.

2) So the impression manager must be cautious not to be perceived as insincere or manipulative.

3) People don’t like to feel others are manipulating them through impression management, so such tactics should be employed with caution. d. Are there situations in which individuals are more likely to misrepresent themselves or more likely to get away with it?

1) Yes—situations characterized by high uncertainty or ambiguity provide relatively little information for challenging a fraudulent claim and reduce the risks associated with misrepresentation.

4. The increasing use of telework may be increasing the use of IM. a. Individuals who work remotely from their supervisors engage in high levels of IM relative to those who work closely with their supervisors.

5. Most of the studies undertaken to test the effectiveness of IM techniques have related it to two criteria: interview success and performance evaluations.

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a. The evidence indicates most job applicants use IM techniques in interviews and that it works.

1) In one study, for instance, interviewers felt applicants for a position as a customer service representative who used IM techniques performed better in the interview, and they seemed somewhat more inclined to hire these people.

2) Moreover, when the researchers considered applicants’ credentials, they concluded it was the IM techniques alone that influenced the interviewers—that is, it didn’t seem to matter whether applicants were well or poorly qualified.

3) If they used IM techniques, they did better in the interview. Some IM techniques work better than others in the interview.

4) Researchers have compared applicants whose IM techniques focused on promoting their accomplishments (called self-promotion) to those who focused on complimenting the interviewer and finding areas of agreement (referred to as ingratiation).

5) In general, applicants appear to use self-promotion more than ingratiation. What’s more, self-promotion tactics may be more important to interviewing success.

6) Applicants who work to create an appearance of competence by enhancing their accomplishments, taking credit for successes, and explaining away failures do better in interviews.

7) These effects reach beyond the interview: a) Applicants who use more self-promotion tactics also seem to get more follow-up job-site visits, even after adjusting for grade-point average, gender, and job type.

8) Ingratiation also works well in interviews; applicants who compliment the interviewer, agree with his or her opinions, and emphasize areas of fit do better than those who don’t. b. In terms of performance ratings, the picture is quite different.

1) Ingratiation is positively related to performance ratings, meaning those who ingratiate with their supervisors get higher performance evaluations.

2) However, self-promotion appears to backfire: a) Those who self-promote actually seem to receive lower performance evaluations. b) There is an important qualifier to this general result.

(1) It appears that individuals high in political skill are able to translate IM into higher performance appraisals, whereas those lower in political skill are more likely to be hurt by their IM attempts.

(2) Self-promotion may also work better for males than females.

Women who use it are sometimes inappropriately labelled a “braggart” or “pushy” due to gender role stereotypes that favour modesty for females. That does not mean that women should not engage in self-promotion; in fact, failing to do so in appropriate contexts may disadvantage their careers. It does mean, however, that managers and coworkers should be aware of these stereotypes and make an effort to avoid them.

(3) What explains these results unrelated to gender?

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(a) If you think about them, they make sense. (b) Ingratiating always works because everyone—both

interviewers and supervisors—likes to be treated nicely.

(c) However, self-promotion may work only in interviews and

backfire on the job because, whereas the interviewer has little idea whether you’re blowing smoke about your accomplishments, the supervisor knows because it’s his or her job to observe you. (d) Thus, if you’re going to self-promote, remember that what works in an interview won’t always work once you’re on the job. c. Are our conclusions about responses to politics globally valid?

1) Almost all of our conclusions on employee reactions to organizational politics are based on studies conducted in North America.

2) The few studies that have included other countries suggest some minor modifications.

IX. THE ETHICS OF BEHAVING POLITICALLY A. Ethical Guidelines for Political Behaviour.

1. While there are no clear-cut standards to differentiate ethical from unethical politicking, answering the following questions may prove helpful. a. Realize, however, that the answers to these questions are often argued in ways to make unethical practices seem ethical. b. This is especially true for powerful people who are articulate and persuasive.

2. What is the utility of engaging in the behaviour?

3. How does the utility of engaging in the political behaviour balance out any harm (or potential harm) it will do to others?

4. Does the political activity conform to the standards of equity and justice? a. Sometimes it is difficult to weigh the costs and benefits of a political action, but its ethicality is clear. b. The department head who inflates the performance evaluation of a favoured employee and deflates the evaluation of an unpopular employee—and then uses these evaluations to justify giving the former a big raise and nothing to the latter—has treated the unpopular employee unfairly.

5. Unfortunately, powerful people can become very good at explaining self-serving behaviours in terms of the organization’s best interests. a. They can persuasively argue that unfair actions are really fair and just. b. Our point is that immoral people can justify almost any behaviour. c. Those who are powerful, articulate, and persuasive are most vulnerable to ethical lapses because they are likely to be able to get away with unethical practices successfully. d. When faced with an ethical dilemma regarding organizational politics, try to consider whether playing politics is worth the risk and whether others might be harmed in the process. e. If you have a strong power base, recognize the ability of power to corrupt. f. Remember that it’s a lot easier for the powerless to act ethically, if for no other reason than they typically have very little political discretion to exploit.

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X. MAPPING YOUR POLITICAL CAREER A. You can use the concepts presented in this chapter in some very tangible ways we

have outlined. However, there is another application: You. 1. One of the most useful ways to think about power and politics is in terms of your own career. Think about your career in your organization of choice. a. What are your ambitions? Who has the power to get you there? What is your relationship with these people?

2. The best way to answer these questions is with a political map, which can help you sketch out your relationships with the people upon whom your career depends (see Exhibit 12-5).

XI. SUMMARY A. An effective manager accepts the political nature of organizations.

1. Some people are more politically astute than others, meaning that they are aware of the underlying politics and can manage impressions.

2. Those who are good at playing politics can be expected to get higher performance evaluations, and hence, larger salary increases and more promotions than the politically naïve or inept.

3. The politically astute are also likely to exhibit higher job satisfaction and be better able to neutralize job stressors.

B. Few employees relish being powerless in their job and organization. People respond differently to the various power bases. Expert and referent power are derived from an individual’s personal qualities.

C. In contrast, coercions, reward, and legitimate power are essentially organizationally derived.

D. Cultural differences impact the types and forms of power tactics and impression management tactics considered appropriate for the workplace.

E. Gender stereotypes influence the effectiveness of certain influence and impression management tactics; however, these stereotypes are counterproductive and efforts should be made to avoid them when assessing others. Organizations influence the degree of politicking that takes place within them via their policies, organizational culture, reward systems, and tone from the top.

F. Political mapping is a useful tool to help understand and manage politics in your organization.

XII. IMPLICATIONS FOR MANAGERS A. If you want to get things done in a group or an organization, it helps to have power.

B. As a manager who wants to maximize your power, you will want to increase others’

dependence on you.

1. You can, for instance, increase your power in relation to your boss by developing knowledge or a skill she needs and for which she perceives no ready substitute.

C. You will not be alone in attempting to build your power bases.

1. Others, particularly employees and peers, will be seeking to increase your dependence on them, while you are trying to minimize it and increase their dependence on you.

D. Try to avoid putting others in a position where they feel they have no power.

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E. By assessing behaviour in a political framework, you can better predict the actions

of others and use that information to formulate political strategies that will gain advantages for you and your work unit.

F. Consider that employees who have poor political skills or are unwilling to play the politics game generally relate perceived organizational politics to lower job satisfaction and self-reported performance, increased anxiety, and higher turnover.

1. Therefore, if you are adept at organizational politics, help others understand the importance of becoming politically savvy.

XIII. KEEP IN MIND A. Informal, expert, and referent power are the most important to acquire.

B. Use consultation and inspirational appeals.

C. IM techniques’ effectiveness depends on the setting.

Mini Case Discussion Questions Case 1: Power Abused—Celebrity and Harassment 1. The media firm involved is re-examining their sexual harassment policies and procedures. Were the policies and procedures really the problem in the first place? Explain your answer.

The comments made by complainants suggest that policies and procedures were in place to address harassment issues. Those policies and procedures were not enforced, however, due to the considerable formal and informal power held by the person engaging in harassment. Since this was an enforcement problem born of power and privilege, changes in policies in isolation are unlikely to address the issue effectively.

2. What type(s) of power did the media celebrity described in this scenario have and why was he able to wield it so effectively?

One of the reasons this celebrity wielded power so effectively is that he enjoyed multiple sources of power, each reinforcing the other. He had legitimate power. As the host of a popular show many people considered him the “boss.” He had referent power since his celebrity status made people fond of him. He also had reward and coercive power since he had some authority to decide who worked on his show and he wielded influence in determining who could access the best opportunities. As a result, he could directly influence the career trajectories of individuals.

3. When people in formal authority failed to respond, what sources of power were left to victims to help them address and cope with this situation? What form of power would be most useful to them and why?

In the absence of a formal response, workers could use coercive power by threatening legal action or media exposure. If they had traits the harasser admired, they could attempt to use referent power to influence him. They could also use social sanctions—a form of reward power—by ignoring or otherwise treating him dismissively when he engages in harassment. The latter may, with some people, escalate harassment. The judicious use of coercive power is therefore warranted in this situation.

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Case 2: Power Plays, Politics, and COVID-19 Vaccines 1. Which power and influence tactics are displayed in these examples and which ones would you anticipate would be most effective? Explain your reasoning.

There are numerous power and influence tactics illustrated in this case. Rational Persuasion (i.e., Presenting logical arguments and factual evidence to demonstrate the request is reasonable) was seen by people using scientific, data-driven arguments (e.g., healthcare workers, indigenous leaders). Coalitions (i.e., enlisting the aid of other people to persuade the target or using the support of others as a reason for the target to agree) was also seen by politicians in US and European nations that fought for access to vaccines based on alliances or simple control of the resource. Personal Appeals (i.e., asking for compliance based on friendship or loyalty) was also seen when advocates of people with disabilities made public and emotional appeals for justice and equity.

The tactics that appeared to be most effective throughout the pandemic were rational persuasion and coalitions. Healthcare workers were among the first to receive the vaccine in Canada. This would suggest that their data-driven arguments were well received. Governmental coalitions also played a major role, as doses were not fairly distributed among countries.

Exercises 1. Self-analysis. What are your formal and personal bases of power? Create a written plan for increasing your power for all five bases. Submit to your instructor for comment.

2. Web Crawling. Use the Internet to look up three articles on an instance of abuse of power in a corporate, government, religious, or other organizational environment.

Using the articles as a reference and the terms from this chapter, describe what you believe happened in this abuse situation.

3. Teamwork. Assign students to teams based on their favourite television drama. The television show must have a wide range of characters in a work-type setting. As individuals, each team member will watch a minimum of one hour of the program, observing and identifying the use of power by the drama’s characters. Have the students keep a journal in which they identify the character, the action they see taking place, and describe enough of the scene that they can discuss this example with their team. Have the teams meet and summarize their individual observations. Teams will elect a spokesperson, who will provide a 10-minute overview of their findings on the uses of power in the program.

4. Analyzing Your Organization (Cumulative Project). Keep a journal for one week in which you observe the political behaviours and impression management strategies of your co-workers. Meetings are an excellent time to observe these behaviours. In a meeting, examine the reactions of participants toward those that have the power, versus those that don’t. For example, did the participants tend to agree with the members that have power regardless of the quality of their ideas and comments? Did those that did not have power tend to be interrupted often? Type up the journal and be prepared to discuss it in class. Specific examples should be given anonymously due to the ethical implications of the behaviours you will be observing.

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Suggested Assignment Name That Power Base! The goal is for students to recognize through practice what the different bases of power look like in a real situation. Choose students to role play the two positions, SGA Representative and President of your university. Let the students role play for 10 to 12 minutes. Adjust the time as you see fit. The rest of the class should observe the role play and note: 1.

2.

3.

4.

What power base was used by each person?

What else could they have done to make the position more powerful?

What did they do that didn’t fit that power perspective?

Did they choose the most appropriate power base for this situation? Why?

Once the role play is completed, have the class discuss the following: 1. Was this the only effective power base that could be used by the SGA? 2. How did the choice of power bases on the part of the SGA Representative and the President affect the outcome of the negotiation?

Power Play Situation You are a member of the Student Government Association’s (SGA) executive body at your college or university. You are an elected student representative, an executive-level officer, but not the President of the SGA. You represent students in the business program/school.

This program is a major source of revenue for the university. The program’s graduates tend to become wealthy alumni who make generous contributions. The business school/program and the SGA have built a close relationship with a number of these alumni. You also have been part of an undergraduate team that has enticed 20 percent more large corporations to interview at your campus through networking and personal contacts with the executives of these organizations.

The administration has implemented a campus-wide policy affecting all undergraduates that you want changed. [You may choose a current issue on campus, or leave the particulars ambiguous.] This policy is a special pain for business students. The policy came out of administration/alumni talks over the last year. Your President is a strong but reasonable person, who doesn’t easily change direction but is willing to hear someone’s perspective.

The President is a bit feared by students, respected by faculty, and doesn’t have the best relationship with alumni.

SGA Representative: choose one of the five power bases and negotiate the elimination of, or modification of, this policy. Choose the one you think has the most credibility given this situation. Talk, negotiate, and so on, as you think appropriate given this base of power. Do not make overt statements that will give away your power base.

President: choose a power base in response to the SGA representative. Choose the one you think has the most credibility given this situation. Talk, negotiate, and so on, as you think appropriate given this base of power. Do not make overt statements that will give away your power base.

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Chapter 13 Conflict and Negotiation Chapter Overview Managers in organizations need to be able to effectively deal with conflict and to negotiate with people inside and outside of the organization. These two skill sets are critical for managerial success.

Chapter Objectives After studying this chapter, the student should be able to: 13.1 Differentiate between the traditional and interactionist views of conflict.

13.2 Describe the three types of conflict and the three loci of conflict.

13.3 a Outline the conflict process.

13.3 b Describe evidence-based strategies to make workplace conflict more functional.

13.4 Contrast distributive and integrative bargaining.

13.5 Apply the five steps of the negotiation process.

13.6 Show how individual differences influence negotiations.

Suggested Lecture Outline

I.

INTRODUCTION A. This chapter examines both the positive and negative impacts of conflict, as well as describing how conflicts develop.

B. One of the ways to end conflict, negotiation, is also presented.

II. A DEFINITION OF CONFLICT A. Conflict: A process that begins when one party perceives another party has

negatively affected, or is about to negatively affect something that the first party cares about.

1. This definition is flexible enough to cover the full range of conflict levels, from overt and violent acts to subtle forms of disagreement.

2. There has been disagreement over the role of conflict in groups and organizations. One school of thought argues that conflict must be avoided—that conflict indicates a malfunction within the group. a. We call this the traditional view.

3. Another perspective proposes not only that conflict can be a positive force in a group but that some conflict is absolutely necessary for a group to perform effectively. a. We call this the interactionist view.

B. The Traditional View of Conflict.

1. In the earliest approach (1930s through 1940s) to conflict in organizations, it was assumed that all conflict was harmful and needed to be avoided.

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2. With this traditional view of conflict, conflict was seen as a dysfunctional outcome resulting from poor communication, a lack of openness and trust between people, and the failure of managers to be responsive to the needs and aspirations of their employees.

3. Conflict was discussed with the terms violence, destruction, and irrationality.

4. While the idea that all conflict is bad and should be avoided certainly offers a simple approach to looking at the behaviour of people who create disagreements, researchers realized that some level of conflict was inevitable. a. We need merely study the causes of conflict and correct malfunctions to improve group and organizational performance.

C. The Interactionist View of Conflict.

1. The interactionist view of conflict encourages conflict on the grounds that a harmonious, peaceful, tranquil, and cooperative group is prone to becoming static, apathetic, and unresponsive to needs for change and innovation. a. The major contribution of this view is recognizing that a minimal level of conflict can help keep a group viable, self-critical, and creative.

2. Functional conflict is conflict that supports the goals of the group and improves its performance: it is constructive.

3. Dysfunctional conflict is conflict that hinders group performance: it is destructive.

III. TYPES AND LOCI OF CONFLICT A. Types of conflict.

1. Task Conflict. This type of conflict relates to the content and goals of the work.

2. Relationship Conflict. This type of conflict focuses on interpersonal relationships. Almost all conflict of this type is dysfunctional and its resolution can consume a fair portion of a manager’s time.

3. Process Conflict. This final type of conflict relates to how the work is accomplished.

B. Studies demonstrate that relationship conflicts, at least in work settings, are almost always dysfunctional. Why? It appears that the friction and interpersonal hostilities inherent in relationship conflicts increase personality clashes and decrease mutual understanding, which hinders the completion of organizational tasks.

1. Of the three types, relationship conflicts also appear to be the most psychologically exhausting to individuals. a. Because they tend to revolve around personalities, you can see how relationship conflicts can become destructive. After all, we can’t expect to change our co-workers’ personalities, and we would generally take offense at criticisms directed at who we are as opposed to how we behave.

2. There is considerably less agreement as to whether task and process conflicts are functional. Early research suggested that task conflict was associated with higher group performance, but a recent review of 116 studies found that task conflict was essentially unrelated to group performance.

3. One such factor was whether the conflict included top management or occurred lower in the organization. a. Task conflict among top management teams was positively associated with their performance, whereas conflict lower in the organization was negatively associated with group performance.

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b. This review also found that it mattered whether other types of conflict were occurring at the same time.

1) If task and relationship conflict occurred together, task conflict was more likely negative, whereas if task conflict occurred by itself, it was more likely positive. c. Finally, some scholars have argued that the strength of the conflict is important—if task conflict is very low, people aren’t really engaged or addressing the important issues. If task conflict is too high, however, infighting will quickly degenerate into relationship conflict. d. According to this view, moderate levels of task conflict are optimal.

4. Finally, the personalities of the teams appear to matter. a. A recent study demonstrated that teams made up of individuals who are, on average, high in openness and emotional stability, are better able to turn task conflict into increased group performance.

5. What about process conflict? a. Researchers found that process conflict revolves around delegation and roles. Conflicts over delegation often revolve around shirking, and conflicts over roles can leave some group members feeling marginalized. b. Thus, process conflict often becomes highly personalized and quickly devolves into relationship conflict.

C. Loci of Conflict.

Another way to understand conflict is to consider its locus, or where the conflict occurs.

1. Dyadic conflict is conflict between two people.

2. Intragroup conflict occurs within a group or team.

3. Intergroup conflict is conflict between groups or teams.

D. Nearly all the literature on task, relationship, and process conflict considers intragroup conflict. However, it doesn’t necessarily tell us about the other loci of conflict.

1. For example, research has found that for intragroup task conflict to influence performance within the team, it is important that the teams have a supportive climate in which mistakes aren’t penalized and every team member “(has) the other’s back.”

2. One study that focused on intergroup conflict found an interplay between an individual’s position within a group and the way that individual managed conflict between groups. a. Group members who were relatively peripheral in their own group were better at resolving conflicts between their group and another one.

1) But this happened only when those peripheral members were still accountable to their group. Thus, being at the core of your work group does not necessarily make you the best person to manage conflict with other groups.

3. Another intriguing question about loci is whether conflicts interact or buffer one another. a. One study found, for example, that high levels of conflict between teams caused individuals to focus on complying with norms within their teams.

4. Thus, understanding functional and dysfunctional conflict requires not only that we identify the type of conflict; we also need to know where it occurs. It’s possible that while the concepts of task, relationship, and process conflict are

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useful in understanding intragroup or even dyadic conflict, they are less useful in explaining the effects of intergroup conflict.

5. In sum, the traditional view took a short-sighted view in assuming all conflict should be eliminated.

IV. THE CONFLICT PROCESS

There are five stages in the conflict process.

A. Stage I: Potential Opposition or Incompatibility.

1. This indicates the presence of conditions that create opportunities for conflict to arise.

2. These conditions don’t need to directly lead to conflict, but one of these conditions is necessary for conflict to surface.

3. There are three general categories of these conditions (causes or sources of conflict): 4. Communication. This source of conflict arises from semantic difficulties, misunderstandings, and “noise” in the communication channels. Differing word connotations, jargon, insufficient exchange information, and other barriers to communication are potential antecedents to conflict. a. The potential for conflict increases when: 1) Communication barriers exist.

2) Too little or too much communication takes place.

5. Structure. a. This includes variables such as: 1) size, 2) degree of specialization in the tasks assigned to group members, 3) jurisdictional clarity, 4) member-goal compatibility, 5) leadership styles, 6) reward systems, and 7) the degree of dependence between groups. b. The potential for conflict increases when: 1) Groups are larger or more specialized.

2) Group members are younger or have less tenure.

3) Turnover is high.

4) Jurisdiction and/or responsibility for action are ambiguous.

5) Diversity of goals exists among groups.

6) Reward systems are designed so that one member gains at another's expense.

7) The group is dependent upon another group.

8) One group can gain at another group’s expense.

6. Personal Variables. a. Personality types, values, and emotions can lead to conflict. b. The potential for conflict increases when: 1) Personality traits such as disagreeableness, neuroticism, or selfmonitoring exist in the work group.

2) Members are highly emotional in the work environment (no matter what the cause of those emotions).

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B. Stage II: Cognition and Personalization.

1. If the antecedent conditions of the first stage negatively affect something one party cares about, then the potential for conflict or incompatibility becomes actualized in the second stage.

2. As we noted in our definition of conflict, one or more of the parties must be aware that antecedent conditions exist. a. However, because a conflict is a perceived conflict does not mean it is personalized. b. In other words, “A may be aware that B and A are in serious disagreement... but it may not make A tense or anxious, and it may have no effect whatsoever on A’s affection toward B” (Pondy 302). It is at the felt conflict level, when individuals become emotionally involved, that parties experience anxiety, tension, frustration, or hostility.

3. Keep in mind two points. a. First, Stage II is important because it’s where conflict issues tend to be defined.

1) This is the point when the parties decide what the conflict is about.

2) The definition of a conflict is important because it typically delineates the set of possible settlements. b. Second, emotions play a major role in shaping perceptions.

1) Negative emotions allow us to oversimplify issues, lose trust, and put negative interpretations on the other party’s behaviour.

2) In contrast, positive feelings increase our tendency to see potential relationships among the elements of a problem, take a broader view of the situation, and develop more innovative solutions.

C. Stage III: Intentions.

1. Intentions intervene between people’s perceptions and emotions and their overt behaviour. a. They are decisions to act in a given way. b. We separate out intentions as a distinct stage because we have to infer the other’s intent to know how to respond to his or her behaviour. c. A lot of conflicts are escalated simply because one party attributes the wrong intentions to the other. d. There is also typically a great deal of slippage between intentions and behaviour, so behaviour does not always accurately reflect a person’s intentions.

2. Using two dimensions—cooperativeness (the degree to which one party attempts to satisfy the other party’s concerns) and assertiveness (the degree to which one party attempts to satisfy his or her own concerns)—we can identify five conflict-handling intentions: competing (assertive and uncooperative), collaborating (assertive and cooperative), avoiding (unassertive and uncooperative), accommodating (unassertive and cooperative), and compromising (midrange on both assertiveness and cooperativeness). a. Competing.

1) When one person seeks to satisfy his or her own interests regardless of the impact on the other parties to the conflict, that person is competing.

2) You compete when you place a bet that only one person can win, for example. b. Collaborating.

1) When parties in conflict each desire to fully satisfy the concerns of all 13-5

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parties, there is cooperation and a search for a mutually beneficial outcome.

2) In collaborating, the parties intend to solve a problem by clarifying differences rather than by accommodating various points of view.

3) If you attempt to find a win–win solution that allows both parties’ goals to be completely achieved, that’s collaborating. c. Avoiding.

1) A person may recognize a conflict exists and want to withdraw from or suppress it.

2) Examples of avoiding include trying to ignore a conflict and avoiding others with whom you disagree. d. Accommodating.

1) A party who seeks to appease an opponent may be willing to place the opponent’s interests above his or her own, sacrificing to maintain the relationship.

2) We refer to this intention as accommodating.

3) Supporting someone else’s opinion despite your reservations about it, for example, is accommodating. e. Compromising.

1) In compromising, there is no clear winner or loser.

2) Rather, there is a willingness to ration the object of the conflict and accept a solution that provides incomplete satisfaction of both parties’ concerns.

3) The distinguishing characteristic of compromising, therefore, is that each party intends to give up something.

3. Intentions are not always fixed.

1) During the course of a conflict, they might change if the parties are able to see the other’s point of view or respond emotionally to the other’s behaviour.

2) However, research indicates people have preferences among the five conflict-handling intentions we just described and tend to rely on them quite consistently.

3) We can predict a person’s intentions rather well from a combination of intellectual and personality characteristics.

D. Stage IV: Behaviour.

1. When most people think of conflict situations, they tend to focus on Stage IV because this is where conflicts become visible.

2. The behaviour stage includes the statements, actions, and reactions made by the conflicting parties, usually as overt attempts to implement their own intentions.

3. As a result of miscalculations or unskilled enactments, overt behaviours sometimes deviate from these original intentions.

4. It helps to think of Stage IV as a dynamic process of interaction.

5. For example, a. you make a demand on me, b. I respond by arguing, you threaten me, c. I threaten you back, and so on.

6. Exhibit 13-2 provides a way of visualizing conflict behaviour. a. All conflicts exist somewhere along this continuum.

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b. At the lower part are conflicts characterized by subtle, indirect, and highly controlled forms of tension, such as a student questioning in class a point the instructor has just made. c. Conflict intensities escalate as they move upward along the continuum until they become highly destructive. d. Strikes, riots, and wars clearly fall in this upper range. e. For the most part, you should assume conflicts that reach the upper ranges of the continuum are almost always dysfunctional. f. Functional conflicts are typically confined to the lower range of the continuum. g. If a conflict is dysfunctional, what can the parties do to de-escalate it? h. Or, conversely, what options exist if conflict is too low and needs to be increased?

1) This brings us to techniques of conflict management. We have already described several techniques as part of conflict-handling intentions.

2) Under ideal conditions, a person’s intentions should translate into comparable behaviours.

E. Stage V: Outcomes.

1. The action–reaction interplay between the conflicting parties results in consequences.

2. As our model demonstrates (see Exhibit 13-1), these outcomes may be functional, if the conflict improves the group’s performance, or dysfunctional, if it hinders performance.

3. Functional Outcomes. a. Normally associated with low-to-moderate levels of task and process conflict (and excluding relationship conflict) these outcomes result in an improvement in the group's performance. b. Functional Outcome Indicators. Conflicts can be considered to have functional outcomes when any of the following end-conditions exist: 1) The quality of decisions is improved by allowing multiple points of view to be considered: reduces the potential for groupthink.

2) Creativity and innovation are stimulated by challenging the status quo.

3) Interest and curiosity among group members is encouraged.

4) Problems are aired and tensions are released.

5) An environment of self-evaluation and change is created. c. Research Results.

1) Studies in diverse settings confirm the functionality of conflict and its ability to increase group performance.

2) Additionally, team members with greater differences in work styles and experience tend to share more information with one another.

4. Dysfunctional Outcomes. a. Uncontrolled opposition breeds discontent, which acts to dissolve common ties, and eventually leads to the destruction of the group. b. Dysfunctional Outcome Indicators.

1) Group effectiveness is reduced.

2) Group communication is poor.

3) Group cohesiveness is reduced.

4) Group goals are subordinated to infighting among members.

5) The group is threatened with destruction.

5. Managing Functional Conflict.

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a. If managers recognize that, in some situations, conflict can be beneficial, what can they do to manage conflict effectively in their organizations? b. One of the keys to minimizing counterproductive conflict is recognizing when there really is a disagreement. Many apparent conflicts are due to people using a different language to discuss the same general course of action.

1) Successful conflict management recognizes these different approaches and attempts to resolve them by encouraging open, frank discussion focused on interests rather than issues.

2) Another approach is to have opposing groups pick the issues that are most important to them and then focus on how each side can get its top needs satisfied. Neither side may get exactly what it wants, but each side will get the most important parts of its agenda. c. Constructive controversy involves deliberative discussions aimed at creative problem solving, and can be contrasted to debate (a competitive process where one view "wins" over the other), concurrence seeking (which suppresses disagreement and consideration of alternatives), or various individualistic processes. Constructive controversy reflexivity training helps individuals see alternative perspectives through cooperation. d. Groups that resolve conflicts successfully discuss differences of opinion openly and are prepared to manage conflict when it arises.

1) The most disruptive conflicts are those that are never addressed directly.

2) An open discussion makes it much easier to develop a shared perception of the problems at hand; it also allows groups to work toward a mutually acceptable solution.

3) Managers need to emphasize shared interests in resolving conflicts, so groups that disagree with one another don’t become too entrenched in their points of view and start to take the conflicts personally.

4) Groups with cooperative conflict styles and a strong underlying identification to the overall group goals are more effective than groups with a more competitive style. e. Differences across countries in conflict resolution strategies may be based on collectivistic tendencies and motives. f. Collectivist cultures see people as deeply embedded in social situations, whereas individualist cultures see them as autonomous.

1) As a result, collectivists are more likely to seek to preserve relationships and promote the good of the group as a whole.

2) They will avoid direct expression of conflicts, preferring indirect methods for resolving differences of opinion. g. Collectivists may also be more interested in demonstrations of concern and working through third parties to resolve disputes, whereas individualists will be more likely to confront differences of opinion directly and openly.

V. NEGOTIATION A. Negotiation permeates the interactions of almost everyone in groups and organizations.

1. There’s the obvious: Labour bargains with management.

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2. There’s the not so obvious: Managers negotiate with employees, peers, and bosses; salespeople negotiate with customers; purchasing agents negotiate with suppliers.

3. And there’s the subtle: An employee agrees to cover for a colleague for a few minutes in exchange for some past or future benefit.

4. In today’s loosely structured organizations, in which members work with colleagues over whom they have no direct authority and with whom they may not even share a common boss, negotiation skills become critical.

5. We can define negotiation as a process that occurs when two or more parties decide how to allocate scarce resources. a. Although we commonly think of the outcomes of negotiation in one-shot economic terms, like negotiating over the price of a car, every negotiation in organizations also affects the relationship between the negotiators and the way the negotiators feel about themselves. b. Depending on how much the parties are going to interact with one another, sometimes maintaining the social relationship and behaving ethically will be just as important as the immediate outcome of each bargain.

6. Note that we use the terms negotiation and bargaining interchangeably. a. In the next section, we contrast two bargaining strategies, provide a model of the negotiation process, and ascertain the role of individual differences in negotiation effectiveness.

B. Bargaining Strategies.

1. There are two general approaches to negotiation: distributive bargaining and integrative bargaining.

2. Distributive Bargaining. a. This type of bargaining operates under zero-sum (or fixed pie) conditions: one party’s gains reflect losses by the other. b. A classic example of this type of bargaining is labour-management negotiations over wages. c. This model reflects zero-sum distributive bargaining positions. Each party is a negotiator.

1) Each has a unique target point (what he or she would like to achieve) and resistance point (the lowest acceptable outcome before negotiations are broken off).

2) The area between each negotiator’s target and resistance points is that negotiator’s aspiration range. a) If the two ranges overlap, this common area is referred to as the settlement range.

3) When you are engaged in distributive bargaining, research consistently shows one of the best things you can do is make the first offer—and make it an aggressive one. a) One reason for this is that making the first offer shows power; individuals in power are much more likely to make initial offers, speak first at meetings, and thereby gain the advantage. b) Another reason is the anchoring bias. People tend to fixate on initial information. c) Once that anchoring point is set, they fail to adequately adjust it based on subsequent information.

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4) A savvy negotiator sets an anchor with the initial offer, and scores of negotiation studies show that such anchors greatly favour the person who sets it.

3. Integrative Bargaining. a. This type of bargaining operates under the assumption that one or more settlements can create a win-win solution. b. In terms of intraorganizational behaviour, all things being equal, integrative bargaining is preferable to distributive bargaining because the former builds long-term relationships.

1) Integrative bargaining bonds negotiators and allows them to leave the bargaining table feeling they have achieved a victory.

2) Distributive bargaining, however, leaves one party a loser. It tends to build animosities and deepen divisions when people have to work together on an ongoing basis. c. Research shows that over repeated bargaining episodes, when the “losing” party feels positive about the negotiation outcome, he is much more likely to bargain cooperatively in subsequent negotiations. d. This points to an important advantage of integrative negotiations: even when you “win,” you want your opponent to feel good about the negotiation. e. Necessary Conditions. Because of the following requirements, integrative bargaining is not as common in business as perhaps it should be: 1) Parties must be open with information and candid about their concerns.

2) There must be sensitivity by both parties regarding the other's needs.

3) The parties must be able to trust each other.

4) Both parties must be willing to maintain flexibility. f. Integrative Bargaining Tactics. To achieve higher joint-gain settlements, put more issues on the table: this allows for better outcome as issues are traded.

1) Avoid compromise as it reduces the pressure to bargain integratively. g. Results of Using Integrative Bargaining. This is the preferable means of bargaining as it builds long-term relationships and positive feelings about the other party for both parties.

VI. THE NEGOTIATION PROCESS A. This simplified model of the negotiation process is composed of five steps.

1. Step One: Preparation and Planning. a. Before you start negotiating, you need to do your homework.

1) What’s the nature of the conflict?

2) What’s the history leading up to this negotiation?

3) Who’s involved and what are their perceptions of the conflict?

4) What do you want from the negotiation?

5) What are your goals? a) It often helps to put your goals in writing and develop a range of outcomes—from “most hopeful” to “minimally acceptable”—to keep your attention focused. b) You also want to assess what you think are the other party’s goals. c) What are they likely to ask/request? d) How entrenched is their position likely to be? e) What intangible or hidden interests may be important to them? f) On what might they be willing to settle?

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2.

3.

4.

5.

g) When you can anticipate your opponent’s position, you are better equipped to counter arguments with the facts and figures that support your position.

6) Determine Strategic Limits. a) An important consideration in any negotiation is to determine the best alternative to a negotiated agreement (BATNA) for both the negotiator and the opponent. b) This is similar in concept to a resistance point: the negotiator must determine when it is better strategically to cease negotiations and accept some other alternative. c) One possible negotiation strategy is to get the opponent to modify his or her BATNA to increase the settlement range.

Step Two: Definition of Ground Rules. a. In this initial stage of negotiations, the methodology of the negotiation itself is determined. b. The step determines the who, what, when, and how of the negotiation process. c. The initial proposals or demands will be exchanged between the parties.

Step Three: Clarification and Justification. a. In this step each party will explain, amplify, clarify, bolster, and justify the original demands or proposals. b. This step should be more explanatory in nature, rather than confrontational; it should be used to build understanding between the parties.

Step Four: Bargaining and Problem Solving. a. This step is what is typically thought of as negotiations. b. It is the actual give-and-take necessary to accomplish agreement. c. It is likely that both parties will have to make some concessions in order to reach agreement.

Step Five: Closure and Implementation. a. The final step in the process is formalizing the negotiated agreement and developing any necessary procedures for implementing and monitoring that agreement. b. This step can be accomplished by anything from creating a formal contract through simply shaking hands on it.

VII. INDIVIDUAL DIFFERENCES IN NEGOTIATION EFFECTIVENESS A. Personality Traits in Negotiation.

1. Can you predict an opponent’s negotiating tactics if you know something about his or her personality? a. Because personality and negotiation outcomes are related but only weakly, the answer is, at best, “sort of.” b. Most research has focused on the Big Five trait of agreeableness, for obvious reasons—agreeable individuals are cooperative, compliant, kind, and conflict-adverse.

1) We might think such characteristics make agreeable individuals easy prey in negotiations, especially distributive ones.

2) The evidence suggests, however, that overall agreeableness is weakly related to negotiation outcomes. c. It appears that the degree to which agreeableness and personality more generally affects negotiation outcomes depends on the situation.

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1) The importance of being extraverted in negotiations depends on how the other party reacts to someone who is assertive and enthusiastic.

2) One complicating factor for agreeableness is that it has two facets: a) The tendency to be cooperative and compliant is one, but so is the tendency to be warm and empathetic.

3) It may be that while the former is a hindrance to negotiating favourable outcomes, the latter helps. Empathy, after all, is the ability to take the perspective of another person and to gain insight/understanding of them.

4) We know so-called perspective-taking benefits integrative negotiations, so perhaps the null effect for agreeableness is due to the two tendencies pulling against one another.

B. Moods/Emotions in Negotiations.

1. Do moods and emotions influence negotiation? a. They do, but the way they do appears to depend on the emotion as well as the context. b. A negotiator who shows anger generally induces concessions because the other negotiator believes no further concessions from the angry party are possible. c. One factor that governs this outcome, however, is power—you should show your anger in negotiations only if you have at least as much power as your counterpart. If you have less, showing anger actually seems to provoke “hardball” reactions from the other side. d. Another facet is how genuine your anger is—“faked” anger, or anger produced from so-called surface acting (see Chapter 4), is not effective, but showing anger that is genuine (so-called deep acting) does. e. It also appears that having a history of showing anger, rather than sowing the seeds of revenge, actually induces more concessions because the other party perceives the negotiator as “tough.” f. Finally, culture seems to matter.

1) One study found that when East Asian participants showed anger, it induced more concessions than when the negotiator expressing anger was from the United States or Europe, perhaps because of the stereotype of East Asians refusing to show anger.

2. Another relevant emotion is disappointment. Generally, a negotiator who perceives disappointment from her counterpart concedes more because disappointment makes many negotiators feel guilty.

3. Anxiety also appears to have an impact on negotiation. a. One study found that individuals who experienced more anxiety about a negotiation used more deceptions in dealing with others. b. Another study found that anxious negotiators expect lower outcomes, respond to offers more quickly, and exit the bargaining process more quickly, leading them to obtain worse outcomes.

4. As you can see, emotions—especially negative ones—matter to negotiation.

Even emotional unpredictability affects outcomes; researchers have found that negotiators who express positive and negative emotions in an unpredictable way extract more concessions because it makes the other party feel less in control.

C. Culture in Negotiations.

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1. It appears that people generally negotiate more effectively within cultures than between them.

2. It appears that in cross-cultural negotiations, it is especially important that the negotiators be high in openness. a. This suggests choosing cross-cultural negotiators who are high in openness to experience, but also avoiding factors—such as time pressures—that tend to inhibit learning to understand the other party.

3. Finally, because emotions are culturally sensitive, negotiators need to be especially aware of the emotional dynamics in cross-cultural negotiation. a. One study, for example, explicitly compared how U.S. and Chinese negotiators reacted to an angry counterpart. Chinese negotiators increased their use of distributive negotiating tactics, whereas U.S. negotiators decreased their use of these tactics. That is, Chinese negotiators began to drive a harder bargain once they saw that their negotiation partner was becoming angry. b. Why the difference? It may be that individuals from East Asian cultures feel that using anger to get their way in a negotiation is not a legitimate tactic, so they respond by refusing to cooperate when their opponents become upset. c. Even cultures that seem to have similarities, such as Canada and the United States, can have very different negotiating cultures. Canadians, for instance, tend to focus on collaborative problem solving and respond poorly to the “hard sell” tactics that are often quite successful in the United States. d. First Nations cultures also tend to emphasize cooperation and collaboration when negotiating within and between bands. Historically, however, they have been mistreated by colonial governments and their treaties have been violated and/or ignored, so the tone of contemporary negotiations with government agencies will be influenced by that history of confrontation and associated emotion. This may make their tactics more assertive and competition focused than they would be otherwise.

D. Gender Differences in Negotiations.

1. Although men and women do not tend to negotiate differently, the negotiation outcomes do differ based on gender.

2. Men tend to place a higher value on status, power, and recognition, whereas women tend to place a higher value on compassion and altruism. Moreover, women tend to value relationship outcomes more than men, and men tend to value economic outcomes more than women.

3. These differences affect both negotiation behaviour and negotiation outcomes. a. Compared to men, women tend to behave in a less assertive, less selfinterested, and more accommodating manner.

4. Evidence suggests that women’s own attitudes and behaviours hurt them in negotiations. a. Managerial women demonstrate less confidence than men in anticipation of negotiating and are less satisfied with their performance afterward, even when their performance and the outcomes they achieve are similar to those for men. b. Women are also less likely than men to see an ambiguous situation as an opportunity for negotiation. c. Women may unduly penalize themselves by failing to engage in negotiations that would be in their best interests. Some research suggests that women

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are less aggressive in negotiations because they are worried about backlash from others.

1) Women are more likely to engage in assertive negotiations when they are bargaining on behalf of someone else than when they are bargaining on their own behalf.

VIII. SUMMARY A. Although many people assume conflict lowers group and organizational

performance, this assumption is frequently incorrect. Conflict can be either constructive or destructive to the functioning of a group or unit.

B. An optimal level is one that prevents stagnation, stimulates creativity, allows tensions to be released, and initiates the seeds of change, without being disruptive or preventing coordination of activities.

C. Negotiation can focus on win–lose (distributive) or win–win (integrative). While historically distributive tactics have dominated Western business practice, integrative negotiation is becoming increasingly important.

D. Negotiation often resolves conflict, particularly if the negotiators seek integrative solutions and constructively work through the negotiation process.

E. Negotiations can be further improved when the parties take their individual differences into account, particularly cultural and gender-based differences.

IX. IMPLICATIONS FOR MANAGERS A. Managing Conflict

1. Authoritarian. Use this method when: a. Quick, decisive action is vital (emergencies). b. Deciding important issues for which unpopular actions need to be implemented (such as cost cutting and discipline). c. Deciding issues vital to the organization's welfare when you know you are right and your opponents are wrong.

2. Collaboration. Use this method when: a. There is a need to find an integrative solution when both sets of concerns are too important to be compromised. b. Your objective is to learn. c. The desire is to merge insights from people with different perspectives. d. Wishing to gain commitment by incorporating concerns into a consensus. e. Working through feelings that interfered with the relationship.

3. Accommodation. Use this method when: a. You find you are wrong and wish to allow a better position to be heard in order to learn and to show your reasonableness. b. Issues are more important to others than to yourself and you wish to satisfy others and maintain cooperation. c. You wish to build social credits for later issues. d. You desire to minimize loss when you are outmatched and losing. e. Harmony and stability are especially important. f. You wish to allow subordinates to develop by learning from their mistakes.

4. Compromise. Use this method when: a. Goals are important but not worth the potential disruption caused by approaches that are more assertive.

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b. Opponents have power equal to yours and they are committed to mutually exclusive goals. c. Desiring to achieve temporary settlements to complex issues. d. Wishing to arrive at expedient solutions under time pressure. e. Needing a backup when collaboration or competition is unsuccessful.

5. When engaged in negotiation, make sure you set aggressive goals and try to find creative ways to achieve the goals of both parties, especially when you value the long-term relationship with the other party. a. That doesn’t mean sacrificing your self-interest; rather, it means trying to find creative solutions that give both parties what they really want.

X. KEEP IN MIND A. Conflict is an inherent part of organizational life: probably necessary for optimal

organizational function.

B. Task conflict is the most constructive.

C. Most effective negotiators use both types of bargaining and know the appropriate tactics.

Mini Case Discussion Questions Case 1: Win-Lose Negotiation Tactics Lead to Corporate Humiliation 1. Why do you think that PT/GBB failed to attempt a mutually beneficial integrative negotiating strategy when addressing Christian’s concerns? (Remember to consider content from this chapter AND the previous chapter on power and politics.)

There are likely many contributing factors to the PT/GBB decision. Students may identify any of the following:      

Financial conflict of interest for the CEO and Board and associated motivation for greed and/or fear of financial vulnerability.

Legal council also had a financial conflict when advising the Board so their advice was tainted.

Perceived trust issues may have become personalized when a formal change to the contract was requested by Christian, resulting in a negative emotional reaction that led to punitive behaviours.

The parties involved may simply be in the habit of considering negotiation as a win/lose process and as a result they never considered another alternative.

Significant differentials in personal power may have led to feelings of invulnerability by the PT/GBB CEO and Board. Power corrupts.

PT/GBB may have felt they had an airtight case since they had a signed contract stating removal of stock options upon dismissal; as a result, they felt no need to negotiate.

2. At what point(s) in this scenario were there opportunities for integrative style negotiating? Who could have started the process and how?

Christian attempted to begin bargaining by requesting that the clause be removed from his contract. This may have been interpreted as a demand, however, which would have

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lessened the potential for the CEO to engage in integrative bargaining. The CEO had an opportunity at that point and again when presenting a severance package to Christian.

The Board could have engaged in integrative bargaining when the complaint was received and once court action was initiated but before the trial.

Beginning the process would require clear communication, a neutral location, and perhaps expert mediation. Both parties should arrive prepared and ready to discuss specific plans and concessions.

3. Moving forward, how could PT help prevent conflicts over stock options in the future?

Decisions should be made at the Board level so that multiple people are involved. The Board should be advised by legal counsel with no financial interest in the case. Outside experts should vet their standard policies and contracts and weed out clauses that have a high potential for abuse. Board members should be more aware of stakeholder opinion and public relations when making executive compensation decisions.

Case 2: Coming Back from Conflict 1. Identify the types of conflict being described in this scenario. Which aspect of the conflict is most likely to turn highly toxic and why?

This case includes process-based conflict (regarding the bonus allocation process), and interpersonal conflict (relating to Oscar’s feeling of betrayal). Although the conflicts are interrelated, the interpersonal aspect is much more likely to become toxic because emotions are more directly engaged.

2. Discuss the linkages between poor communication and conflict that you observe in this scenario. In addition to poor communication, what else makes conflict more likely in this setting?

Poor communication is the entire reason for this conflict since it began with a misunderstanding about how Brittany was supposed to use information provided by Oscar. If Brittany had used active listening techniques such as paraphrasing and if she had asked permission to share Oscar’s story, they may have been able to avoid the misunderstanding in the first place. If Oscar had made his desire for privacy explicit, they also would have avoided this situation.

Conflict is more likely because the process being discussed relates to resource allocation and perceived self-worth. Promotion, performance, and bonus decisions are sensitive because they impact material resources (pay), but they also impact identity (being perceived as a “good worker”), which means that highly emotional reactions are more likely.

3. What (if anything) should Brittany do now to mend her relationship with Oscar?

The biggest barrier faced by Brittany is Oscar’s belief that her actions were intended to deliberately undermine him. When trust has been violated it can be difficult to recover, but sincere apologies are usually the best place to begin. She should begin by apologizing and acknowledging the hurt she has caused. That may make Oscar receptive

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to hearing about her perspective and how it was a misunderstanding. In addition, Brittany could visibly advocate for recognition of Oscar’s waste reduction achievements as further evidence of her supportiveness.

Exercises 1. Self-analysis. Remember your last negotiation activity. This activity could have been as simple as asking someone out for a date or as complex as trying to purchase a home.

Describe that negotiation using the terms and concepts from this chapter. What could you have done better to increase your likelihood of success in the negotiation? Be specific.

2. Web Crawling. Using your favourite search engine, seek out the term “conflict management.” Find five different and varied sources (perhaps one from a consultant, one from an institute of higher learning, one from a government source, one from a general-purpose site, and one from a business site) and read them carefully to see what they would tell the average manager about conflict management. Write up a brief synopsis of your findings. Compare and contrast your findings with the materials from this chapter and be ready to present them in class.

3. Teamwork. Have students work in small groups to develop a script to role play the following scenarios in front of the class. You can assign a different scenario to each group, or have two groups role play the same scenario to discuss comparisons and contrasts in style. Require each group to first role play the scenario from a distributive bargaining perspective, and then from an integrative bargaining perspective. This should allow for comparison and contrast of the two styles of bargaining, and then encourage students to discuss which style they believed was more effective for achieving a final outcome.

Scenario 1: A group of students wants a faculty member to postpone the next exam until after Spring Break. Currently, the exam is scheduled for the Friday before Spring Break, and you would prefer to have the exam on the Monday, or even Wednesday, after Spring Break. The week before Break is getting quite busy, and you need the time to study over Spring Break in order to do well on the exam.

Scenario 2: The firm you currently work for does not have any educational reimbursement benefit available. You would like to have your employer offer this benefit, as you and many of your fellow workers would like to go back to school (parttime) and earn your MBA degree. But, the cost of tuition is expensive, and you would like your company to help with the expenses. Many of the other companies in your locale and industry do offer their employees this educational reimbursement, and you would like your company to do so as well.

Scenario 3: The university is considering adding a computer fee to all students who are enrolled at your campus. The reason for the computer fee is to be able to generate funds in order to provide better computer instruction and facilities (labs and classrooms). But, fees are already relatively high. You and your group want to have the facilities, but you are reluctant to have fees increase.

Scenario 4: You would like to have your company allow you to work on a flexible schedule. You would agree to core hours of 10 a.m. to 2 p.m., when every employee is required to be at the workplace, but you would like to choose the other four hours you

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work each day. Your job is such that it would support this type of schedule, i.e., you do not work on an assembly line. Present a persuasive discussion to encourage your employer to go to a “flextime schedule.”

4. Analyzing Your Organization (Cumulative Project). Observe the negotiations that take place around you at work. Focus on one negotiation that appears typical for your organization. Disguise the names of those involved and write up a case study on the negotiation process you observed. Utilizing the terms and concepts from this chapter, report your assessment of the effectiveness of both negotiators, their negotiating styles, and provide suggestions for improvement of each person’s negotiation skills.

5. Try It in Real Life. Have students create a negotiation scenario where they may not have thought of negotiating. For example, it is common and accepted that, in the Canadian culture, we will negotiate for automobiles, but not as widely accepted when purchasing furniture, for example. Challenge the class to negotiate their next non-convenience purchase, and have them bring to the class the results of their negotiation attempts. For example, was the negotiation integrative or distributive? Did they implement any of the methods discussed in class for improving negotiation skills? What was the outcome?

Did gender or other variables affect the outcome? Did they actually save any money?

This can be submitted as a written report or given as an in-class exercise.

Suggested Assignment Have students complete the Personal Inventory Assessment titled “Managing Interpersonal Conflict.”

Divide the class in groups for discussion. Since some students may be uncomfortable sharing their personal results, have them focus on the general information about the three facets that is provided on the results page: initiating a complaint, responding to criticism, and mediating a conflict. Ask them to consider situations they have experienced or observed and to brainstorm ways in which the conflict could have been avoided or resolved.

Have each group select one example they have discussed to present to the class.

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Chapter 14 Organizational Change Chapter Overview This chapter is about change and stress. We describe environmental forces that require managers to implement comprehensive change programs. We also consider why people and organizations often resist change and how this resistance can be overcome. We review various processes for managing organizational change. We also discuss contemporary work stress issues for today’s managers.

Chapter Objectives After studying this chapter, the student should be able to: 14.1 Identify forces that act as stimulants to change.

14.2 Describe the sources of resistance to change.

14.3 a Compare the three main approaches to managing organizational change.

14.3 b Outline the steps in the software development lifecycle, a tool used to effectively manage technological change.

14.4 a Identify broad ways individual workers can support change within the organization.

14.4 b Describe specific strategies and tactics individuals can use to support reconciliation and social justice-based change initiatives within organizations and broader society.

Suggested Lecture Outline

I. INTRODUCTION A. Change is an environmental constant for modern organizations. Managers must be able to help organizations change, understand the reasons for resistance to change, and move organizations in new relevant directions.

II. FORCES FOR CHANGE A. No company today is in a particularly stable environment.

1. Even those with dominant market share must change, sometimes radically.

2. For example, in the 20 years between 1997 and 2017 there were fundamental transformations in many industries ranging from security to agriculture, telecommunications to healthcare.

B. Five Specific Forces That Act As Stimulants for Change.

1. Changing Nature of the Work Force. a. Almost every organization must adjust to a multicultural environment, demographic changes, immigration, and outsourcing.

2. Technology. a. Technology is continually changing jobs and organizations.

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3. Competition. a. The global economy also means global competition. Speed of development and implementation is increasing. b. Successful firms must be flexible and responsive, requiring an equally nimble workforce.

4. Social Trends. a. Consumers who are otherwise strangers now meet and share product information in chat rooms and blogs. b. Companies must continually adjust product and marketing strategies to be sensitive to changing social trends.

5. World Politics. a. In recent years, we’ve seen a major set of financial crises that have rocked global markets, a dramatic rise in the power and influence of China, and dramatic shakeups in government across the Arab world. b. Throughout the industrialized world, businesses—particularly in the financial, transportation and energy sectors—have come under new scrutiny.

III. RESISTANCE TO CHANGE A. Dynamics of Resistance to Change

1. We often see change as threatening. a. One recent study showed that even when employees are shown data that suggest they need to change, they latch onto whatever data they can find that suggests they are okay and don’t need to change. b. Employees who have negative feelings about a change cope by not thinking about it, increasing their use of sick time, and quitting. c. All these reactions can sap the organization of vital energy when it is most needed.

2. Resistance to change can be positive if it leads to open discussion and debate. a. These responses are usually preferable to apathy or silence and can indicate that members of the organization are engaged in the process, providing change agents an opportunity to explain the change effort. b. Change agents can also use resistance to modify the change to fit the preferences of other members of the organization.

1) When they treat resistance only as a threat, rather than a point of view to be discussed, they may increase dysfunctional conflict.

3. Resistance doesn’t necessarily surface in standardized ways. It can be overt, implicit, immediate, or deferred. a. It’s easiest for management to deal with overt and immediate resistance, such as complaints, a work slowdown, or a strike threat. b. The greater challenge is managing resistance that is implicit or deferred. c. These responses—loss of loyalty or motivation, increased errors or absenteeism—are more subtle and more difficult to recognize for what they are. d. Deferred actions also cloud the link between the change and the reaction to it and may surface weeks, months, or even years later. e. Or a single change of little inherent impact may be the straw that breaks the camel’s back because resistance to earlier changes has been deferred and stockpiled.

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4. Exhibit 17-1 summarizes major forces for resistance to change, categorized by their sources. Individual sources reside in human characteristics such as perceptions, personalities, and needs. a. Organizational sources reside in the structural makeup of organizations themselves.

5. It’s worth noting that not all change is good. a. Speed can lead to bad decisions, and sometimes those initiating change fail to realize the full magnitude of the effects or their true costs. b. Rapid, transformational change is risky in some organizations. c. Change agents need to carefully think through the full implications.

B. Overcoming Resistance to Change.

1. There are eight tactics change agents can use to deal with resistance to change. a. Education and Communication.

1) Resistance can be reduced by communicating with employees to help them see the logic of the change.

2) Doing so reduces misinformation and can help managers “sell” the need for the change. b. Participation.

1) Involving people in the change decision builds buy-in and reduces resistance.

2) Assuming that the participants have the expertise to make a meaningful contribution, the result could be a higher quality solution. c. Building Support and Commitment.

1) If the emotional commitment to change can be raised, it will reduce resistance. d. Develop Positive Relationships.

1) People are more willing to accept changes if they trust the managers implementing them. e. Implementing Changes Fairly.

1) As noted in Chapter 7, procedural fairness becomes especially important when employees perceive an outcome as negative (as change often is).

2) Organizations should make sure employees see the changes are being implemented consistently and fairly. f. Manipulation and Cooptation.

1) Manipulation refers to covert influence attempts. a) Twisting facts to make them more attractive, withholding information, and creating false rumours to get employees to accept change are all examples of manipulation.

2) Cooptation seeks to “buy off” leaders of the resistance group by giving them a key role in the change decision. a) The organization seeks not their advice but their endorsement.

3) This manipulative tactic can backfire if the targets become aware they are being used. g. Selecting People Who Accept Change.

1) Organizations that have selected individuals whose personality easily accepts and adapts to change have far lower levels of resistance than organizations that have not used this criterion for selection.

2) Personalities that accept change are those that are open, risk-taking, flexible, and have a high self-concept. h. Coercion.

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1) If all else fails, change agents can apply direct threats or force on those who resist.

2) This technique has limited effectiveness and may actually increase resistance to change.

IV. APPROACHES TO MANAGING ORGANIZATIONAL CHANGE A. This chapter presents three approaches to managing change: Lewin's classic three-

step model of the change process, Kotter’s eight-step plan, and organizational development.

B. Lewin's Three-Step Model.

1. This model treats change as a break in the organization's equilibrium state.

2. The status quo has been disturbed and change is necessary to establish a new equilibrium state.

3. Unfreezing. a. Pressure is required to overcome the inertia of the current status quo. b. Unfreezing must occur in one of three ways: 1) Driving Forces. a) The forces that direct behaviour away from the status quo can be increased.

2) Restraining Forces. a) The forces that hinder movement from the existing equilibrium (or maintain the current status quo) can be decreased.

3) Combination Approaches. a) Pressure can be exerted by increasing the driving forces and decreasing the restraining forces.

4. Movement. a. Research on organizational change has shown that, to be effective, change has to happen quickly. b. Organizations that build up to change do less well than those that get to and through the movement stage quickly.

5. Refreezing. a. Without this last step, change will likely be short-lived and employees will attempt to revert to the previous equilibrium state. b. The objective of refreezing, then, is to stabilize the new situation by balancing the driving and restraining forces.

C. Kotter's Eight-Step Plan for Implementing Change.

1. Builds from Lewin's change model and focuses on the various historic managerial failures in implementing change.

2. These eight sequential steps overcome historic problems. a. The first four steps are the “unfreezing” stage, the next three represent “movement,” and the final step is Lewin's “refreezing.”

3. The Eight Steps: a. Establish a sense of urgency by creating a compelling reason for why change is needed. b. Form a coalition with enough power to lead the change. c. Create a new vision to direct the change and strategies for achieving the vision. d. Communicate the vision throughout the organization.

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e. Empower others to act on the vision by removing barriers to change and encouraging risk-taking and creative problem solving. f. Plan for, create, and reward short-term “wins” that move the organization toward the new vision. g. Consolidate improvements, reassess changes, and make necessary adjustments in their programs. h. Reinforce the changes by demonstrating a relationship between new barriers and organizational success.

D. Organizational Development (OD).

1. OD is a generalized concept. a. It encompasses a collection of change methods that seek to improve organizational effectiveness and employee well-being. b. OD values human organizational growth, collaborative and participative processes, and a spirit of inquiry.

2. OD holds to the following underlying values: a. Respect for People. People are believed to be responsible, conscientious, and caring, and should be treated with dignity and respect. b. Trust and Support. Effective organizations are characterized by trust, authenticity, openness, and a supportive climate. c. Power Equalization. Effective organizations deemphasize hierarchical authority and control. d. Confrontation. Problems should be openly confronted. e. Participation. Involving people in decision making regarding a change increases their commitment to implementing the change.

3. Five OD Interventions for Change a. Survey feedback.

1) One tool for assessing attitudes held by organizational members, identifying discrepancies among member perceptions, and solving these differences, is the survey feedback approach.

2) A questionnaire, usually completed by all members of the organization or unit, typically asks about their perceptions and attitudes on a range of topics, including decision-making practices; communication effectiveness; coordination among units; and satisfaction with the organization, job, peers, and immediate supervisor.

3) These data become the springboard for identifying problems and clarifying issues that may be creating difficulties for people.

4) Particular attention is given to encouraging discussion and ensuring it focuses on issues and ideas and not on attacking individuals.

5) For instance, are people listening? Are new ideas being generated? Can decision making, interpersonal relations, or job assignments be improved?

6) Answers should lead the group to commit to various remedies for the problems identified. b. Process consultation.

1) Managers often sense their unit’s performance can be improved but are unable to identify what to improve and how.

2) The purpose of process consultation (PC) is for an outside consultant to assist a client, usually a manager, “to perceive, understand, and act upon process events” with which the manager must deal (Schein 9).

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3) PC is similar to sensitivity training in assuming we can improve organizational effectiveness by dealing with interpersonal problems and in emphasizing involvement.

4) But PC is more task-directed, and consultants are there to “give the client ‘insight’ into what is going on around him, within him, and between him and other people” (Schein 9).

5) They do not solve the organization’s problems but rather guide or coach the client to solve his or her own problems after jointly diagnosing what needs improvement.

6) The client develops the skill to analyze processes within his or her unit and can continue to call on it long after the consultant is gone. c. Team building.

1) We’ve noted throughout this text that organizations increasingly rely on teams to accomplish work tasks. Team building uses high-interaction group activities to increase trust and openness among team members, improve coordinative efforts, and increase team performance.

2) Team building typically includes goal setting, development of interpersonal relations among team members, role analysis to clarify each member’s role and responsibilities, and team process analysis.

3) It may emphasize or exclude certain activities, depending on the purpose of the development effort and the specific problems with which the team is confronted. d. Intergroup development.

1) A major area of concern in OD is dysfunctional conflict between groups.

2) Intergroup development seeks to change groups’ attitudes, stereotypes, and perceptions about each other. a) Here, training sessions closely resemble diversity training (in fact, diversity training largely evolved from intergroup development in OD), except rather than focusing on demographic differences, they focus on differences among occupations, departments, or divisions within an organization. b) Among several approaches for improving intergroup relations, a popular one emphasizes problem solving.

3) Each group meets independently to list its perceptions of itself and of the other group, and how it believes the other group perceives it. a) The groups share their lists, discuss similarities and differences, and look for the causes of disparities. b) Once they have identified the causes of the difficulty, the groups move to the integration phase—developing solutions to improve relations between them. c) Subgroups can be formed of members from each of the conflicting groups to conduct further diagnosis and formulate alternative solutions. e. Appreciative inquiry.

1) Most OD approaches are problem centred.

2) They identify a problem or set of problems, and then look for a solution.

3) Appreciative inquiry (AI) instead accentuates the positive; that is, AI focuses on an organization’s successes rather than its problems.

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4) The AI process consists of four steps—discovery, dreaming, design, and destiny—often played out in a large-group meeting over a two- or threeday time period and overseen by a trained change agent. a) Discovery sets out to identify what people think are the organization’s strengths. b) Employees recount times they felt the organization worked best or when they specifically felt most satisfied with their jobs. c) In dreaming, employees use information from the discovery phase to speculate on possible futures, such as what the organization will be like in five years. d) In design, participants find a common vision of how the organization will look in the future and agree on its unique qualities. e) For the fourth step, participants seek to define the organization’s destiny or how to fulfill their dream, and they typically write action plans and develop implementation strategies.

E. The Software Development Lifecycle (SDLC): Change Management for Technology Projects 1. SDLC highlights the stages a company should go through when making changes to their information technology tools and processes (i.e., requirements analysis, design and development, testing, implementation, and evaluation and maintenance).

2. The SDLC helps remind practitioners not to skip key steps.

F. Balanced Scorecards 1. The balanced scorecard is an employee performance management tool that is frequently used to support organizational change initiatives, including but not limited to technology-based projects.

2. This approach uses a formal process to take broad strategic corporate objectives (such as increasing market share, maximizing efficiency, or achieving the industry’s highest customer satisfaction levels) and translate them into very specific individual performance goals suited to the worker’s job title and responsibilities.

V. SUPPORTING CHANGE AS AN INDIVIDUAL A. Specific things that employees in non-managerial jobs can do to support change.

1. Embrace the change yourself, be a role model for the new behaviours.

2. Ask questions when unsure (chances are colleagues have the same question but were reluctant to ask).

3. Assume responsibility.

4. Support coworkers and colleagues, help them learn new processes and systems and explain how embracing the change has helped make your work life easier or more efficient.

5. Learn to better tolerate uncertainty and ambiguity through cognitive exercises and stress reduction techniques.

6. Use repetition to make new habits “stick” – usually doing something for 2 months is enough for it to become a habit.

7. Reward yourself in small ways – like a favourite meal, once you have embraced a change.

B. Specific things people can do to support changes involving increasing inclusion and reducing discrimination.

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1. Do your research to understand the current state of equity in Canada.

2. Openly acknowledge that racism, sexism, ableism, and other forms of discrimination exist in Canadian workplaces.

3. Believe people when they tell you they have experienced discrimination or harassment .

4. Do not make excuses for the people who engage in discriminatory acts.

5. Consider researching, creating, and signing a personal pledge of reconciliation.

6. If you have privilege, acknowledge it.

7. Do not participate in the telling of racial or ethnic jokes, do not rank random members of the opposite sex based on attractiveness, or otherwise participate in discriminatory behaviours or comments even when alone with members of your own racial, ethnic, or gender group.

8. When it is physically safe to do so, intervene verbally when overhearing offensive jokes and comments or when someone is being treated inappropriately.

9. Make a point of including new employees, especially those who are demographically different, in informal workplace social events.

10. Make a point of authentically attempting to understand the perspectives of people different from yourself.

11. Don’t expect people from a group that is discriminated against to fix the problem themselves or invest emotional labour into your understanding, growth and development.

12. Show up and be present for diversity and justice-supporting educational, political, and social events.

13. Create space for people who are discriminated against to express their opinions.

14. If in a position of authority, actually implement the anti-bias and inclusion techniques described throughout this textbook.

VI. SUMMARY A. The real world is turbulent, requiring organizations and their members to undergo dynamic change if they are to perform at competitive levels.

B. Resistance to change is common and should be anticipated.

C. Formal change management strategies and tactics such as those outlined in the Kotter model can help lessen resistance and increase the probability of launching successful change initiatives.

D. Organizations can select employees and structure themselves in ways that encourage acceptance of change and innovation.

E. Individuals at all levels of the organization should take responsibility for their own role in enabling positive change.

VII. IMPLICATIONS FOR MANAGERS A. Consider that as a manager, you are a change agent for your organization.

1. The decisions that you make and your role-modelling will help shape the organization’s change culture.

B. Your management policies and practices will determine the degree to which the organization learns and adapts to changing environmental factors.

C. Formal tools such as the Kotter change model, the SDLC, and the balanced scorecard can help you implement change in a systematic way that makes the change more likely to succeed.

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D. Fostering change related to broad social inequities and prejudices requires active

work, passive approaches are ineffective. Every manager needs to consider changes to foster greater justice, equity, and respect in the workplace a personal priority.

VIII. KEEP IN MIND A. Organizations and their members tend to resist change.

B. It is unlikely that any one approach to managing change works best in every situation.

C. Change is often stressful, but not all stress is harmful.

Mini Case Discussion Questions Case 1: How to get the Software Development Lifecycle Wrong: The Phoenix Payroll Fiasco 1. What can be done to make sure managers actually implement known best practices when overseeing important change initiatives?

There are numerous tactics managers can do to ensure known best practices are utilized when overseeing important change initiatives. First, they can research and identify the best practices that they endorse, and educate managers about these best practices. They could make a list of best practices, and managers could use this list to draw specific practices in their own unit. Second, managers could track key performance indicators (KPIs) to make sure that the implemented best practices are actually resulting in desirable outcomes. Third, they could hire a change management expert who has considerable experience in managing change.

Case 2: The COVID Pandemic and Abrupt Organizational Change 1. Think back to prior employers you have had. Using the information from this mini-case would they be likely to have adapted well to the COVID pandemic?

Explain your reasoning.

This case identifies numerous factors that were associated with successful pivoting throughout the pandemic.

1) The nature of some tasks could transitioned to home easily but not for others.

2) Organizations that already had well developed crisis response plans were able to utilize these plans.

3) Size matters. The organizations best able to respond were often very small, which provided flexibility and ease of communication, or very large, with greater access to material and technological resources and in-house expertise about things such as work-from-home best practices.

4) Organizations with trusting and positive workplace relationships based on mutual respect were better able to pivot.

5) Organizations that had creative leaders who could think “out of the box” were better prepared to think of creative solutions 6) Organizations that had strong communication competencies at all levels in the hierarchy were better able to communicate about the uncertainty of the pandemic.

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7) Organizations with a centralized decision-making policy ensured consistency across the organization.

8) Organizations with budgetary flexibility had more resources to try different types of changes and be attentive to employee emotional needs (by offering assistance programs and access to counselling).

Exercises 1. Self-analysis. How open to change are you? Select three activities you do frequently on a daily basis: brushing your teeth, combing your hair, making a sandwich, or pouring a glass of milk. For 24 hours, consciously try to do these activities using the hand opposite from the one you typically use. How did you feel during this 24-hour period?

Were you more anxious? Did you find yourself slipping into the habitual use of your dominant hand? How strong were your habits? Write a one-page paper summarizing your feelings and experiences during this 24-hour period.

2. Web Crawling. Using your favourite search engine, search the term “making change happen” and review the listed websites. Your task is to find five techniques for implementing change in organizations that were not mentioned in your text. List these with references and be prepared to discuss them in class.

3. Teamwork. Divide the class into teams. Ask students to think about assignments they have had in other classes where they were required to work in groups. Can the students assess these groups as effective or not (relate to production of the desired outcome)?

Can patterns be identified such as more effective group activity occurred when the group had less stress (maybe due dates, complexity of the assignment, concern for grade or others)? Ask the students to discuss their findings in the class.

4. Analyzing Your Organization (Cumulative Project). Discuss with your manager the times in which he or she has met resistance to a proposed organizational change. What types of resistance were encountered? How did the manager overcome the resistance?

What types of change seem to be "hot buttons" with this organization? Have employees resisted when upper management implemented the change?

Related to this, discuss the methods by which your organization tries to improve. Do they have specific quality programs in place? How about OD initiatives? Find out how they work, and how the organization responds to these initiatives. Report your findings to the class.

5. Analyzing Your Organization (Summation). Review the answers you submitted for your Analyzing Your Organization questions throughout this course. Write a three-page summary of what you've learned through this course. How have your views and beliefs regarding your organization changed since the beginning of the course?

Suggested Assignment Divide the class into relatively large teams of six to eight people each. Students will learn that necessary change may be undesired and resisted. Yet the resistance must be overcome if the organization is to change, grow, and succeed. You can use this as a double exercise.

Either have the students simply strategize means to overcome resistance, or (and this is a

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more complex option) have students think through the whole change process and create alternative courses of action—other change efforts that might help the college/university solve its problem in another way.

Introduce the following scenario (or one of your own that is more relevant to your situation) to the class: Due to massive cutbacks in both federal and provincial support and dramatically decreasing alumni gifts, your college or university must make some significant changes that will influence revenue and cash flow. The school had anticipated a budget increase this year in order to hire more faculty, reduce class sizes, and improve academic programs. Instead, funding was cut.

The university administration is mandating the following initiatives: 1. All first and second year students must live on campus in dorms (to increase occupancy).

2. There will be Saturday classes (to increase utilization of classroom space).

3. All faculty members will have their teaching loads increased by one class per semester (to reduce the need for additional faculty).

4. All classes must have a minimum of 15 enrollments or they will be cancelled. All introductory courses will be taught as large lecture sections (to reduce the need for faculty and increase the “profit margin” per class).

5. Students must pay a $250 per semester parking fee to have a car on campus and a $100 per semester security fee (to pay for parking facilities and campus police).

6. All majors with less than 100 students will either be consolidated or eliminated (to focus resources on larger majors).

Have the teams brainstorm what type of resistance is likely to arise from these changes and from whom. Have the teams share their findings with the whole class and consolidate the specific examples of resistance into five or six categories.

Reform the teams and have them discuss what strategies might be effective in overcoming each category of resistance. In addition, discuss what other ways the college or university might address the problem. When complete, have each team report their suggestions to the class for critique.

Instructor Notes: Students will often begin by arguing about the specific changes. Students will want to argue that the changes shouldn’t be made or make judgmental statements (“these are stupid”). Help them focus on the fact that, as managers, they may have to support and implement changes about which they personally do not agree. Next, students often start talking about the kind of resistance and focus on specific acts—protests, demonstrations, angry letters, and so on. Help them think about the constituencies: those who have a stake in the changes besides just students and faculty members.

If you chose the more complex option, then your students should begin by going back to the basic problem and assumptions. The basic problem is insufficient money (capital) and the assumption is that the university can solve the problem by spending less (reducing costs).

Students should be encouraged to think about the particular needs represented by the various stakeholders. What does the administration need? What does the faculty need?

What do students need? What do the alumni need?

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