Organizational Behavior, 2nd Edition Solution Manual

Type:

Solution Manual

Resource:

Organizational Behavior

Edition:

2nd Edition

Author(s):

Mary Uhl-Bien Ronald F. Piccolo John R. SChermerhorn

Organizational Behavior, 2e

Instructor’s Resource Guide

Chapter 1 INTRODUCING ORGANIZATIONAL BEHAVIOR CHAPTER OVERVIEW This chapter sets the foundation for our examination of individuals and teams in the workplace. We first describe organizational behavior as a field of study, highlighting the importance and broad application of its topics and principles. We then encourage critical thinking about human behavior, introducing scientific evidence that explains why people do what they do at work. Lastly, we connect concepts in organizational behavior with the functions of managers in organizational systems.

CHAPTER OUTLINE ORGANIZATIONAL BEHAVIOR What Is Organizational Behavior?

Why Is Organizational Behavior Important?

Why Learn About Organizational Behavior?

THINKING CRITICALLY ABOUT ORGANIZATIONAL BEHAVIOR What Is the Science of Organizational Behavior?

What Does It Mean to Think Critically?

Why Is It so Hard to Think Critically?

What Are Steps in the Critical Thinking Process?

MANAGERS, TEAM LEADERS, AND ORGANIZATIONAL BEHAVIOR Effective Managers and Team Leaders What Do Managers and Team Leaders Do? What Are the Essential Skills of Managers and Team Leaders?

CHAPTER LECTURE NOTES LO 1: DEFINE ORGANIZATIONAL BEHAVIOR AND ITS IMPORTANCE IN THE MODERN WORKPLACE What Is Organizational Behavior?

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Organizational behavior (OB) is the study of individuals and groups in organizations.

Organizational behavior is a multidisciplinary field devoted to understanding individual and group behavior, interpersonal processes, and organizational dynamics.

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In this challenging era of work and organizations, the body of knowledge we call “organizational behavior” offers many insights of great value. Learning about organizational behavior is important; since it can help you develop a better work-related understanding of yourself and others.

Importance of Organizational Behavior Members of smart workforces work in shifting communities of action where knowledge and skills are shared to solve real and complex problems.

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Trends with Human Behavior in Organizations: o Importance of connections and networks o Commitment to ethical behavior o Broad views of leadership o Diversity in the workplace o Emphasis on human capital and teamwork o Demise of command-and-control o Influence of information technology o Respect for new workforce expectations o Changing concept of careers o Concern for sustainability

Why Learn About Organizational Behavior?

Learning is an enduring change in behavior that results from experience.

Lifelong learning involves learning continuously from day-to-day work experiences; conversations with colleagues and friends; counseling and advice provided by mentors, success models, training seminars, and workshops; and other daily opportunities.

Today’s knowledge-based and smart workforces place a great premium on continuous learning. Learning about OB will begin to make life and work experiences more meaningful. The experiential learning cycle of the typical OB course begins with initial experience and subsequent reflection. It grows as theorybuilding takes place to try to explain what has happened. Theory is then tested in behavior. This assigns the student a substantial responsibility for learning. The advantage of this approach is that opportunities to learn more about OB and the self abound in everyday living if students tune in.

LECTURE ENHANCEMENT Conduct a brainstorming session with students to identify recent examples of each of the preceding workplace trends. After generating a sufficient number of examples, focus class discussion on the implications of these examples for managerial and leadership activities.

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LO 2: THINK CRITICALLY ABOUT HUMAN BEHAVIOR What Is The Science of Organizational Behavior?

OB researchers use systematic observations in an attempt to isolate explanations for why people do what they do, why teams are productive, and why some organizations outperform others in order to determine how people operate in the workplace. Ultimately, researchers want to observe differences between people and groups, explain those differences, and determine ways to make improvements.

This science can start with the question: “Why do good managers make bad decisions?” Part of the reason is that rather than relying on a clearly validated set of scientific discoveries, many managers use less reliable sources of insight such a gut feel, intuition, the latest trends, what a consultant might say, or what is being done in another company.

The four primary ways people come to know what they know are: • Intuition: knowing something without any particular explanation or reason, or because of gut feel • Experience: extrapolating from our experience to a broad set of circumstances • Authority: knowledge coming from the authority of experts or facts • Science: knowing through the accumulation of reliable and valid evidence What Does It Mean to Think Critically?

Critical thinking is a systematic and comprehensive process of making objective, unbiased assessments of facts when forming judgments. It is characterized by four attributes: • Intellectual humility: willingness to admit mistakes or errors in judgment and alter opinions when evidence points in a different direction • Confidence in reason: confidence that evidence and hard facts are the most reliable guides to good judgment • Intellectual curiosity: love of exploring new topics, learning new things, and gaining knowledge in any form • Intellectual independence: willingness to question authority, challenge conventional wisdom, and honestly examine opinions different from one’s own Why Is It so Hard to Think Critically?

Some of the most common flaws in the way people think include: • Confirmation bias: the tendency to search for and interpret information in a way that confirms one’s existing opinions or preconceptions • Dichotomies: the tendency to see problems and solutions in simplistic terms rather than with the nuance present in most complex issues • Bandwagon effect: the tendency to believe things because many other people do • Selective perception: the tendency to notice or perceive only certain bits of information

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What Are Steps in the Critical Thinking Process?

Critical thinking is most often revealed in a systematic and prudent process of questioning information and data. There are several standards: clarity, accuracy, relevance, completeness, significance, fairness, precision, depth, and logic.

Evidence-based management means making managerial decisions based on facts rather than on feelings.

Contingency thinking: seeks ways to meet the needs of different management situations.

LECTURE ENHANCEMENT Ask students to think about an opinion that they hold deeply and spend two minutes writing about the different sources of knowing and the attributes that went into forming these opinions. Then have them share with a classmate who will pose questions to them based on the standards of critical thinking.

LO 3: DESCRIBE THE SKILLS NEEDED FOR GREAT LEADERSHIP AND MANAGEMENT Effective Managers Managers are persons who support the work efforts of other people. An effective manager helps others achieve high levels of both performance and satisfaction. This definition focuses on two key results in a manager’s daily work: • Task performance is the quantity and quality of work produced.

• Job satisfaction is a positive feeling about one’s work and work setting.

What Do Managers and Team Leaders Do? The jobs of managers and team leaders can be described by the four functions of management. These four functions are as follows: • Planning ⎯ defining goals, setting specific performance objectives, and identifying the actions needed to achieve them • Organizing ⎯ creating work structures and systems and arranging resources to accomplish goals and objectives • Leading ⎯ instilling enthusiasm by communicating with others, motivating them to work hard, and maintaining good interpersonal relations • Controlling ⎯ ensuring that things go well by monitoring performance and taking corrective action as necessary

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LECTURE ENHANCEMENT Divide students into discussion groups of five to six members. Have each group select a different campus organization to analyze. Each group should explore how planning, organizing, leading, and controlling are exhibited in the chosen campus organization.

Based on the work of Henry Mintzberg, Figure 1.5 from the textbook identifies the various interpersonal, informational, and decisional roles of effective managers.

Interpersonal roles involve working directly with other people and include the roles of figurehead, leader, and liaison.

Informational roles involve exchanging information with other people and include the roles of monitor, disseminator, and spokesperson.

Decisional roles involve making decisions that affect other people and include the roles of entrepreneur, disturbance handler, resource allocator, and negotiator.

LECTURE ENHANCEMENT Have students reflect on their work, educational, athletic team, or other extracurricular experiences to identify examples of how people in managerial and leadership positions enact the various interpersonal, informational, and decisional roles.

What Are The Essential Skills of Managers and Team Leaders?

A skill is an ability to translate knowledge into effective action.

Robert Katz divides essential managerial skills into three categories: technical, human, and conceptual.

1. A technical skill is the ability to perform specialized tasks.

2. A human skill is the ability to work well with other people.

3. A conceptual skill is the ability to analyze and solve complex problems.

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Technical skills are more important at entry levels of management and conceptual skills are more important for senior executives. Human skills, which are strongly grounded in the foundations of organizational behavior, are important across all managerial levels.

An important emphasis in human skills in emotional intelligence (EI), which is the ability to manage oneself and one’s relationships effectively. The core elements in emotional intelligence are: o Self-awareness—ability to understand your own moods and emotions o Self-regulation—ability to think before acting and to control bad impulses o Motivation—ability to work hard and persevere o Empathy—ability to understand the emotions of others o Social skill—ability to gain rapport with others and build good relationships

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Managers and team leaders also need to develop and maintain relationships and networks. Different types of networks include: o Task networks of specific job-related contacts o Career networks of career guidance and opportunity resources o Social networks of trustworthy friends and peers Managers must develop and maintain social capital in the form of relationships and networks that they can call upon to get work done through other people.

LECTURE ENHANCEMENT 1

Have students discuss the roles that technical skills, human skills, and conceptual skills play in their professors’ performance of their jobs. Then have the students think of their own educational pursuits as a job. What roles do technical skills, human skills, and conceptual skills play in the students’ performance of their jobs?

LECTURE ENHANCEMENT 2 Have the students spend eight to ten minutes of class time writing a brief self-assessment essay regarding the extent to which they perceive themselves as having developed each the above components of emotional intelligence. Have the students, who are willing to do so, contribute their examples as you discuss the components of emotional intelligence.

CHAPTER STUDY GUIDE What is organizational behavior and why is it important?

• Organizational behavior (OB) is the study of human behavior in organizations, focusing on individuals, teams, interpersonal processes and organizational dynamics.

• OB is a body of knowledge with real applications to everyday living and careers, particularly in respect to a smart workforce where connections and collaboration are the keys to success.

• Trends and issues of interest in OB include ethical behavior, the importance of human capital, an emphasis on teams, the growing influence of information technology, new workforce expectations, changing notions of careers, and concerns for sustainability.

• OB is an applied discipline developed through scientific methods and taking a contingency perspective that there is no single best way to handle people and the situations that develop as they work together in organizations.

How do we learn about organizational behavior?

• Learning is an enduring change in behavior that results from experience.

• Lifelong learning about organizational behavior requires a commitment to continuous learning from one’s work and everyday experiences.

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Most organizational behavior courses use a variety of instructional methods (self-assessments, experiential exercises, team projects, and case studies) to take advantage of the experiential learning cycle.

What is the science of organizational behavior?

• The science of OB involves making systematic observations in the pursuit of identifying meaningful and insightful patterns.

• Very often, rather than using insights from science and hard evidence about behavior at work, managers tend to rely on less reliable sources of information such as gut feel, intuition, the latest management trend, or their own preferences.

• There are several different sources of knowledge including intuition, experience, authority, and science. The most reliable of which is science.

• Contingency thinking recognizes that cookie-cutter solutions cannot be universally applied to solve organizational problems.

What does it mean to think critically about human behavior?

• Critical thinkers recognize that statements that may be considered common knowledge are not true for all people in all situations.

• Critical thinking is a systematic and comprehensive process of making objective, unbiased assessments of facts when forming a judgment.

• Critical thought is careful, evidence-based, mindful of context, and free from bias. It has four attributes: intellectual humility, confidence in reason, intellectual curiosity, and intellectual independence.

• It takes effort to engage in a meticulous process of critically analyzing the arguments, statements, and recommendations of others, especially those in positions of authority. It is easy to fall back on some common flaws: confirmation bias, dichotomies, the bandwagon effect, and selective perception.

• Critical thinking is most often revealed through a systematic and prudent process of questioning information and data.

• Critical thinkers actively and intentionally pursue certain standards by asking questions that advance our understanding of problems, circumstances, and potential solutions. The standards are clarity, accuracy, completeness, significance, precision, depth, and logic.

What are the challenges of management in organizations?

• Effective managers directly support and help others reach high levels of both performance and job satisfaction; they are increasingly expected to act more like “coaches” and “facilitators” than like “bosses” and “controllers.”

• The four functions of management are planning (to set directions), organizing (to assemble resources and systems), leading (to create workforce enthusiasm), and controlling (to ensure desired results).

• Managers use a combination of essential technical, human, and conceptual skills while working in networks of people to fulfill a variety of interpersonal, informational, and decisional roles.

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KEY TERMS Conceptual skill: the ability to think critically, identify patterns and trends, and analyze and solve complex, ambiguous problems.

Contingency thinking: seeks ways to meet the needs of different management situations.

Controlling: ensuring that things go well by monitoring performance and taking corrective action as necessary.

Critical thinking: a systematic and comprehensive process of making objective, unbiased assessments of facts when forming a judgment.

Effective manager/team leader: excels at helping others achieve both high performance and job satisfaction.

Evidence-based management: making managerial decisions based on facts rather than feelings.

Human skills: the ability to work well with other people.

Job satisfaction: how people feel about their work and the work environment.

Leading: instilling enthusiasm by communicating with others, motivating them to work hard, and maintaining good interpersonal relations.

Organizing: creating work structures and systems, and arranging resources to accomplish goals and objectives.

Planning: defining goals, setting specific performance objectives, and identifying the actions needed to achieve them.

Task performance: the quality and quantity of the work produced or the services provided by an individual, team, work unit, or organization as a whole.

Technical skill: the ability to perform specialized tasks using knowledge or expertise gained from education or experience.

SPECIAL FEATURES Be a Critical Thinker: Paradoxical Proverbs The world is full of clever expressions, slogans, mantras, and statements of universal wisdom that require critical thinking in order to see the cracks in the foundations on which these morsels of knowledge are built. Critical thinkers are adept at altering the questions to be asked and answered. Consider these paradoxical proverbs: “Look before you leap” vs. “He who hesitates is lost”; and “Too many cooks spoil the broth” vs. “Two heads are better than one.” This textbook is filled with exercises that will encourage the development of the critical thinking skills that employers are calling for.

Bringing OB to Life: Life Building Skills to Succeed in a Collaboration Economy Dean Sally Blount of Northwestern’s Kellogg School says that success is earned in our collaboration economy by “people and companies who connect and collaborate more effectively.” Jacob Morgan, author of The Collaborative Organization, says that there is a great opportunity for “collaboration leaders” who value and respect others as the most important assets of organizations. The collaboration economy presents a pretty stiff career test. It calls for “hard” technology skills and real job expertise to be combined with “soft” people skills and a genuine personal presence. But that’s the great opportunity of

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your course in organizational behavior – a chance to learn more about yourself and how people work together in organizations. The question is, are you ready to jump in and let OB help build your skills for success in a collaboration economy?

Checking Ethics in OB: Is Management a Profession?

In light of recent scandals and excesses by organization managers, the authors of a recent Harvard Business Review article are calling business schools to support making management a profession, governed by codes of conduct that “forge an implicit social contract with society.” One response to their call is a non-profit organization called MBA Oath. Its goal is to create a community of graduating MBA students from any university who voluntarily sign an oath that pledges them to “create value responsibly and ethically.” Ask students if professionalizing management really can make a difference in terms of ethical accountability and everyday managerial behavior.

OB in the Office: Your Future Career and How Studying OB Can Help You Succeed A degree in organizational behavior can lead to a rewarding and lucrative career in many different industries by learning skills such as how to inspire, motivate, and manage a diverse workforce. A few jobs in which OB skills are an asset include human resources, training and development, and management consulting, with average salaries ranging from $90,000 to $123,510. Ask students to consider how OB fits in with their career goals.

Research Insights: Do You Think You Have What It Takes to Be the Boss?

Although everyone thinks they have what it takes to be a powerful leader, that is not always the case.

Adam Galisnky & Maurice Schweitzer developed a test to judge who is boss material. Subjects are asked to draw a capital E on their forehead. Those who write the letter E so that it made sense to only themselves are likely more self-oriented, and this tends to increase with the seniority of the manager.

Those who draw the E so that others can read it are more likely to be other-oriented and consider multiple perspectives, and are less likely to be in powerful positions. Have your students try this activity and discuss the results.

Research Insights: In the Modern Workplace, Critical Thinking > IQ IQ tests are used to make decisions about student applications to college, and many employers, including the NFL, now apply IQ tests in assessing job candidates or high-potential employees. However, despite suggestions that general cognitive ability is the strongest predictor of overall job performance, recent research highlights the value of critical thinking as essential for a manager in a modern workplace.

Critical thinking is a skill that can be developed with training and intentional practice, and may be superior to IQ in predicting actual decision-making, the ability to defend against propaganda, and flexibility in thought. Ask students to generate ideas for developing their own critical thinking as they progress through their college careers.

Worth Considering or Best Avoided? Trouble Balancing Work and Home? Telecommuting May Be the Answer A group of Stanford University researchers wondered if allowing work to be done at home was really worth it to employers. Seeking real facts upon which to base a conclusion, they set up a field experiment using call center workers at a large Chinese travel agency. The researchers pointed out that working at

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home was in a quieter space that allowed better contact time with customers. Also, home working resulted in less break times while on shift and also fewer sick days of leave. Ask the students if the findings make sense in terms of their impressions and experience? Does this study suggest that everyone should be given the option to work from home at least part of the time?

OB IN ACTION – SUGGESTED ACTIVITIES Cases for Critical Thinking Team and Experiential Exercises

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Trader Joe’s Ice Breaker My Best Manager My Best Job

CASES FOR CRITICAL THINKING TRADER JOE’S CROSS-REFERENCE AND INTEGRATION Human resource management, organizational cultures, innovation, information technology, leadership CASE SUMMARY This case profiles Trader Joe’s, an oases of value that offers exotic, one-of-a-kind foods priced below key competitors such as Whole Foods and Dean & DeLuca. The company applies its pursuit of vale to every facet of its operations. By focusing on natural ingredients, inspiring flavors, and buying direct from the producer whenever possible, Trader Joe’s is able to keep costs down. Trader Joe’s aggressively courts friendly, customer-service oriented employees and connects with customers because of the knowledge and involvement that management cultivates.

Loyal shoppers were shocked when the environmentally friendly company fared the worst of the national chains on Greenpeace’s seafood sustainability scorecard. Trader Joe’s was quick to respond and communicate with customers, reminding them of its goals.

RELATED WEB SITES Description of Site Trader Joe’s

Web Site Address http://www.traderjoes.com/

REVIEW QUESTIONS AND SUGGESTED ANSWERS 1. How does Trader Joe's design jobs for increased job satisfaction and higher performance?

Good job design includes expanding job duties so they include intrinsic rewards such as responsibility, achievement, recognition and personal growth (job design is covered in detail in Chapter 6). Job descriptions at Trader Joe's include soft skills such as ambition, adventurousness, pleasantness, and possessing a strong sense of values that enable the employee to understand the customer-focused culture, which values both product knowledge and customer involvement.

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Employees are encouraged to both know the products and be able to share their knowledge and experience with customers. They are encouraged to develop a relationship with customers. Good job design also includes opportunities for employees to advance. Trader Joe’s has a policy of promotion from within that helps reward and recognize employee performance.

2. In what ways does Trader Joe's demonstrate the importance of each responsibility in the management process: planning, organizing, leading, and controlling?

• Planning involves goal setting and identifying actions necessary to achieve goals. Trader Joe's starts with a clear vision of providing "exotic, one-of-a-kind foods priced persuasively below any reasonable competitor."

• Organizing creates work structures and organizes resources to accomplish goals. Trader Joe's has a lean structure that minimizes expenses and designs jobs so that employees feel empowered to help the customer and make suggestions to management.

• Leading creates enthusiasm, encourages communication, motivates employees, and maintains good human relations. Trader Joe's founder and management have established a strong culture that values and reinforces friendliness, strong customer relationships, a fun atmosphere, employee empowerment, compensation that rewards performance, and promotion from within. They have been rewarded with sales that are nearly double those of other similarly sized supermarkets.

• Controlling measures performance to ensure results and takes corrective action as necessary.

Trader Joe's philosophy requires cost control and fewer products than competitors to meet lowcost goals. Corrective action was taken swiftly when it was discovered that their seafood selections included 15 out of 22 species that are on a "red-list" of fish that are over-fished and need to be conserved.

3. Describe the methods that show Trader Joe's knows the importance of human capital.

Trader Joe's considers its "responsible, knowledgeable and friendly 'crew' to be critical to its success."

They back this up with job descriptions that highlight skills necessary for success, promoting from within, training, compensation and benefits that are better than other retailers.

4. Does Trader Joe’s response to the Traitor Joe’s campaign demonstrate contingency thinking?

Why or why not?

Trader Joe’s realized that selling red-listed seafood was not in its best interest, and that this practice had to be changed to fit the situation. This demonstrates contingency thinking, which says that management practices must be tailored to fit the exact nature of each situation.

5. Research Question: What do the blogs and current news reports say? Is Trader Joe's a management benchmark for others to follow? In what areas relevant to Organizational Behavior does the firm have an edge on the competition?

Students may need to do a little digging to uncover more information on Trader Joe's. Much of the current information centers on new locations and product recalls. Students may find much positive feedback from consumers, including several entertaining YouTube videos. This would be an indicator of the company’s success in satisfying customers, which would prove to be a benchmark for competition.

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TEAM AND EXPERIENTIAL EXERCISES ICEBREAKER Since this chapter kicks off the class, an OB-style icebreaker is good way to end class on the first day (or begin the second day). An easy icebreaker that can have implications for the rest of the semester is to have students get into groups of five and introduce themselves to each other. Each person in the group must tell at least five interesting things about him or herself (For example: hometown, major, hobbies, pets, summer activities, jobs). Then have each student introduce each member of the group and tell one of the interesting things about each person. Each person is introduced four times. This exercise has two benefits. First, it helps students make connections to each other such as discovering that they live in the same residence hall. Second, it assures that each student in the class will know at least four other students from the first day of class onward.

MY BEST MANAGER CROSS-REFERENCE AND INTEGRATION Leadership INSTRUCTOR’S NOTES This exercise is designed as a class icebreaker and as a tool for prompting students to think about the attributes of a good manager. The exercise can be done informally in a small class (with groups of four or five as suggested in the exercise), or can be slightly modified and assigned as a take-home assignment in a class that has permanent student teams. In a large lecture, it is recommended that you avoid using small group discussions, and instead have all students answer the question at their seats. Then, you can ask for volunteers or randomly select students from the class to create a master list. This approach typically results in lively class discussion. As an extension of this exercise, you might also want to ask your students what the most “undesirable” attributes of managers are. This approach also results in interesting and lively class discussion.

The following is a report from one instructor’s experience with the exercise. Students formed four groups to work on the exercise. Rather than follow exact exercise procedures, the students were asked to list ten characteristics that described the best managers for whom group members have worked. The group part of the exercise worked very well and took approximately 15 minutes to complete. At the conclusion of the group brainstorming stage, spokespersons were asked to report on each group's list. The meaning of each item was discussed as it was being presented. A total of eight items was obtained from the four groups in approximately 20 minutes.

MY BEST JOB CROSS-REFERENCE AND INTEGRATION Motivation; job design; organizational cultures

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INSTRUCTOR’S NOTES The purpose of this exercise is twofold. First, the exercise prompts students to think about the characteristics of “good” or “ideal” jobs. These ideas are then given a “reality check” by the assessments that are made relative to the likelihood that the goals (or ideal job characteristics) can be achieved. The second purpose of the exercise is to introduce students to the notion that some organizations are more able to deliver on “ideal job characteristics” than are others.

At the conclusion of the exercise, talk about some of the attributes of high-performance organizations. If your students believe that high-performance organizations are more likely to be able to deliver on ideal job characteristics than lower-performance organizations, ask them the following questions: “Do you believe that high-performing organizations are able to offer more attractive job characteristics than lowerperformance organizations as a result of being high-performing organizations?” “Or, do you believe that high-performance organizations are high-performance organizations because they offer more attractive job characteristics?”

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Chapter 2 OB IN CONTEXT

CHAPTER OVERVIEW This chapter focuses on the importance of context in organizational behavior. It begins by examining the facets of context, including strategy, rewards, and structure. This includes a discussion of organizational charts and hierarchies, as well as organic, mechanistic, and matrix structures. The chapter then turns to another dimension of context: organizational culture. The elements of organizational culture are explored, including stories, rites, and rituals, as well as layers and analysis of culture. Finally, strategies for building and maintaining strong cultures are discussed.

CHAPTER OUTLINE WHY CONTEXT MATTERS IN OB Why Does Context Matter?

Strategy: What Is Important and Valued in An Organization Rewards: Why People Do What They Do Structure: How People Work (or Don’t Work) Together BUILDING EFFECTIVE ORGANIZATIONAL CULTURES What Is Organizational Culture?

How Do We Identify an Organization’s Culture?

How Do We Build Strong Cultures?

CHAPTER LECTURE NOTES LO 1: DEFINE ORGANIZATIONAL CONTEXT AND HOW IT AFFECTS BEHAVIOR Why Does Context Matter?

Context matters because it shapes behavior. Organizational context is the characteristics of a job, organization, or work situation that affect the way people in that situation act and interact. In order to read a situation, we must understand the roles of strategy, rewards, structure, and culture.

Strategy: What Is Important and Valued in An Organization Organizational strategy is the actions an organization takes to achieve long-term business goals. It represents the purpose that brings people together and is reflected in the mission, vision, and values of an

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organization. In OB, we always need to consider how what we are doing aligns with the organization’s strategy.

Rewards: Why People Do What They Do Rewards help us to understand why people do what they do. The Greek concept of hedonism states that people seek pleasure and avoid pain. An organization’s reward system is an essential aspect of the context in which work gets done. Good questions to ask in respect to rewards include: • How is success measured?

• How are individuals rewarded?

• How are incentives calculated and assigned?

• How and when are bonuses granted?

• What events are highlighted in the company newsletter, and which behaviors and activities are publicly recognized?

Structure: How People Work (or Don’t Work) Together Organizational structure is the way work is organized and coordinated and can be thought of as the skeleton of the company. The best way to know what a company’s structure is like is to look at its organization chart.

How to Read an Organization Chart •

The organization chart is a diagram that depicts the formal structures of organizations. o While an organization chart may clearly indicate who reports to whom, it is also important to recognize that it does not show how work is completed, who exercises the most power over specific issues, or how the firm will respond to its environment. o The chain of command is a listing of who reports to whom up and down the organizational hierarchy. o Unity of command. ⎯ the notion that each individual should have one boss and each unit one leader ⎯ is considered necessary to avoid confusion, to assign accountability to specific individuals, and to provide clear channels of communication up and down the organization.

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Line Versus Staff • Line units are work groups that conduct the major business of the organization whereas staff units are work groups that assist the line units by performing specialized services to the organization. o Staff units can be assigned predominantly to senior-, middle-, or lower-level managers.

When staff responsibilities are assigned predominantly to senior management, the capability of senior management to develop alternatives and make decisions is expanded.

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Tall Versus Flat • Span of control refers to the number of individuals reporting to a supervisor. o Narrower spans of control are expected when tasks are complex, when subordinates are inexperienced or poorly trained, or when tasks call for team effort.

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Narrow spans of control yield many organizational levels that are not only expensive but also make the organization unresponsive to necessary change.

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Centralization and Decentralization • Centralization is the degree to which the authority to make decisions is restricted to higher levels of management. Decentralization is the degree to which the authority to make decisions is given to lower levels in an organization’s hierarchy. o Greater centralization is often adopted when the firm faces a single major threat to its survival. o Decentralization has the following effects: 1. It provides higher subordinate satisfaction.

2. It provides a quicker response to a diverse series of unrelated problems.

3. It assists in on-the-job training of subordinates for higher-level positions.

4. Decentralization encourages participation in decision making.

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Departmentalization Since the pattern of departmentation is so visible and important in a firm, managers often refer to their pattern of departmentation as the departmental structure. The traditional types of departments are: 1. Functional Departments group individuals by skill, knowledge, and action.

Advantages of departmentation by function include the following: • Yields very clear task assignments, consistent with an individual’s training.

• Individuals within a department can easily build on one another’s knowledge, training, and experience.

• Provides an excellent training ground for new managers.

• It is easy to explain.

• Takes advantage of employee technical quality.

Disadvantages of departmentation by function include the following: • May reinforce the narrow training of individuals.

• May yield narrow, boring, and routine jobs.

• Communication across technical area is complex and difficult.

• “Top management overload” with too much attention to cross-functional problems.

• Individuals may look up the organizational hierarchy for direction and reinforcement rather than focus attention on products, services, or clients.

LECTURE ENHANCEMENT Ask students to think about how the curriculum at their college/university addresses the different functions of business. Are marketing, finance, production, and human resource management, for instance, taught as stand-alone courses, or are they taught in some integrated fashion? As stand-alone

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courses, what does this convey to students about the functional chimneys of business? What does any integrated format convey about tearing down these functional chimneys?

2. Divisional Departments group individuals and resources by products, territories, services, clients, or legal entities.

Advantages of divisional departmentation include the following: • Promotes adaptability and flexibility in meeting the demands of important external groups.

• Allows for spotting external changes as they emerge.

• Provides for the integration of specialized personnel.

• Focuses on the success or failure of particular products, services, clients, or territories.

Disadvantages of divisional departmentation include the following: • Does not provide a pool or highly trained individuals with similar expertise to solve problems and train others • Allows duplication of effort, as each division attempts to solve similar problems.

• May give priority to divisional goals over the health and welfare of the overall organization.

• Creates conflict between divisions over shared resources.

What Types of Structures Are There in Organizations?

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Mechanistic Structure • The mechanistic type (or machine bureaucracy) emphasizes vertical specialization and control.

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Mechanistic organizations stress rules, policies, and procedures; specify techniques for decision making; and emphasize developing well-documented control systems backed by a strong middle management and supported by a centralized staff. Firms often use the mechanistic design in pursuing a strategy of becoming a low cost leader.

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The prime advantage of the mechanistic type is efficiency through extensive vertical and horizontal specialization. Tied together with elaborate controls and impersonal coordination mechanisms.

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Disadvantages of the mechanistic type include the following: o Employees may not like rigid designs, which may result in motivational problems. o Unions further solidify narrow job description by demanding fixed work rules to protect employees from extensive vertical controls. o Key employees may leave. o The organization is less able to adjust to subtle external changes or new technologies.

Organic Structure • The organic type (or professional bureaucracy) is much less vertically oriented than its mechanistic counterpart and it emphasizes horizontal specialization.

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Organic organizations have minimal procedures and rely on the judgments of experts and personal means of coordination. Firms using the organic design find it easier to pursue strategies that emphasize product quality, quick response to customers, or innovation.

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Advantages of the organic type include the following: o It is better than the mechanistic type for problem solving and serving customer needs. o Centralized direction by senior management is less intense. o The organization is good at detecting external changes and adjusting to new technologies.

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Disadvantages of the organic type include the following: o It is not as efficient as the mechanistic type. o It has restricted capacity to respond to central management direction.

LECTURE ENHANCEMENT Xerox is an example of an organization that has moved back and forth between a mechanistic structure and an organic structure. Under Xerox’s founder, Joseph Wilson, the company was positioned on the organic end of the continuum as evidenced by its “loose organizational structure.” Wilson’s successor as CEO, Peter McClough moved Xerox toward the mechanistic end through the implementation of muchneeded controls. When David Kearnes took over as CEO, however, he found that slow decision making, unnecessary layers of management, and an inability to respond to face-paced market changes characterized the mechanistic structure McClough had implemented. Kearnes responded to these problems by moving Xerox back toward an organic design that included small product teams and encouraged diversification.

(Source: “Culture Shock at Xerox,” Business Week, June 22, 1987; “Remaking the American CEO,” New York Times, January 25, 1987, p. C-8.)

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Matrix Structure Advantages of matrix departmentation include the following: • Combines strengths of both functional and divisional departmentation.

• Blends technical and market emphasis.

• Provides a series of managers able to converse with both technical and marketing personnel.

Disadvantages of matrix departmentation include the following: • Very expensive.

• Unity of command is loose (individuals have more than one supervisor).

• Authority and responsibilities of managers may overlap, causing conflicts and gaps in effort across units and inconsistencies in priorities.

• It is difficult to explain to employees.

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LO 2: EXPLAIN WHAT CULTURE IS, KNOW HOW TO RECOGNIZE IT, AND LEARN HOW TO BUILD MORE EFFECTIVE ORGANIZATIONAL CULTURES What Is Organizational Culture?

Organizational culture is the shared actions, values, and beliefs in an organization that guide the behavior of its members.

Culture Influence Behavior Typically people gravitate to the kind of culture they like, but not always. Sometimes we don’t know what a culture is until we join an organization and learn the culture by experiencing it.

The process of watching and learning the expected norms and behaviors of the organization is called socialization, and is part of success in an organization. It occurs through formal processes, such as training and orientation, and informally through colleagues who explain or model expected behaviors.

Culture Builds Collective Identity Organizations with a clear identity are said to have a strong culture. They share an understanding regarding who organizational members are and what it means to be part of an organization.

Managers play an important role in building strong cultures by being clear about mission, vision, values, and purpose.

How Do We Identify an Organization’s Culture?

Layers of Cultural Analysis The three important levels of cultural analysis in organizations are observable culture, shared values, and common assumptions.

• The first level of cultural analysis is observable culture, which refers to “the way we do things around here.” The observable culture includes unique stories, ceremonies, and corporate rituals that make up the history of the firm or a group within the firm.

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The second level of cultural analysis involves the shared values that link people together and provide a powerful motivational mechanism for members of the culture. Every member may not agree with the shared values, but they have all been exposed to them and have often been told they are important.

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The deepest level of cultural analysis involves common cultural assumptions, which are the taken-forgranted truths that collections of corporate members share as a result of their joint experience. It is often extremely difficult to isolate these patterns, but doing so helps explain why culture invades every aspect of organizational life.

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LECTURE ENHANCEMENT Divide the class into groups of five or six students. Have each group focus on a different campus organization ⎯ fraternities and sororities are excellent choices ⎯ and analyze the organization’s observable culture, shared values, and common cultural assumptions.

Subcultures and Countercultures •

Subcultures are groups of individuals with a unique pattern of values and philosophy that are not inconsistent with the organization’s dominant values and philosophy.

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Countercultures are groups whose patterns of values and philosophies outwardly reject those of the larger organization or social system.

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Within an organization, mergers and acquisitions may produce adjustment problems. Employers and managers of an acquired firm may hold values and assumptions that are quite inconsistent with those of the acquiring firm. This is known as the “clash of corporate cultures.”

Reading Signs of Culture To begin understanding a corporate culture, it is often easiest to start with stories of the company’s founding, its successes and failures, and its winners and losers.

• Sagas are embellished heroic accounts of accomplishments.

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Rites are standardized and recurring activities used at special times to influence the behaviors and understanding of organizational members.

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Rituals are systems of rites. Rites and rituals may be unique to subcultures within an organization.

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A cultural symbol is any object, act, or event that serves to transmit cultural meaning.

How Do We Build Strong Cultures?

Organizations with strong cultures possess a broad and deeply shared value system, which offers strong corporate identity and collective commitment.

Culture Leaders and Roles Models Managers establish and maintain effective cultures by protecting and promoting core values, treating employees with respect, reinforcing ethical standards, and designing and implementing effective reward systems.

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CHAPTER STUDY GUIDE What is organizational context and why does it matter?

• Organizational context is the characteristics of a job, organization or work situation that affects the way people act and interact.

• It helps us read a situation and diagnose the motivation for a person’s behavior.

What are the major contexts of OB? • Strategy is the actions an organization takes to achieve long-term business goals. It helps us know what is important and values in organizations.

• Rewards help us know what drives behavior. People do what they are rewarded for.

• Structure is the way work is organized. It helps us understand how people work (or don’t work) together.

• Culture lets us know what it is like to work in an organization.

How do we know what an organization’s structure is?

• We know about structure from the organization chart, which tells us about tall/flat, centralization/decentralization, departmentalization, and line v. staff.

• The most common types of structure are mechanistic, organic, and matrix.

• Mechanistic is machine-like and offers efficiency; organic is like an organism that adapts to the environment and offers flexibility; matrix combines the two to offer efficiency and flexibility.

What is organizational culture?

• Organizational culture is the system of shared actions, values, and beliefs that develops within an organization and guides the behavior of its members.

• Employees learn culture through socialization, which occurs through interpersonal interactions and helps people in organizations learn the expected norms and behaviors of the organization.

• Culture builds a collective identity that helps people understand who is a group member, what behavior is acceptable, and who is a friend.

• A strong culture aligns and motivates everyone toward shared needs and goals.

• Subcultures are groups of individuals who exhibit a unique pattern of values and a philosophy that is consistent with the organization’s dominant values and norms, while countercultures are groups whose patterns of values and philosophies reject those of the larger organization.

How do we know what an organization’s culture is?

• The culture of an organization has several layers: observable culture – the unique stories, ceremonies, and corporate rituals that make up the history of the company shared values that link people together; and common cultural assumptions, or core values – the deeply held beliefs that members of an organization share.

How do we build more effective cultures?

• Effective cultures are often strong cultures that provide positive workplaces for employees, a unified direction toward mission and vision, and flexibility to adapt.

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The biggest determinant of organizational culture is its leadership.

Leaders, including those at lower levels, can influence what it feels like to work in the organization, in positive or negative ways, by influencing organization climate, which is the perceived work environment that affects employee motivation, morale, and productivity.

To build and maintain an effective corporate culture, what leaders do must match what they say.

Effective culture managers treat their employees with respect, reinforce ethical standards, and design effective reward systems.

KEY TERMS Bureaucratic organization: one which is highly ordered, regimented, and standardized to generate efficiency and effectiveness.

Centralization: the degree to which authority to make decisions is restricted to the highest levels of management.

Core values: the taken-for-granted truths that collections of corporate members share as a result of their joint experience.

Counterculture: groups whose patterns of values and philosophies reject those of the larger organization or social system.

Decentralization: the degree to which the authority to make decisions is shared throughout the organization’s hierarchy.

Departmentalization: a division of labor that establishes specific work units or groups within an organization.

Divisional departmentalization: groups individuals together by products, territories, services, clients, or legal entities.

Enacted values: the values and norms that are practiced.

Espoused values: the explicitly states values and norms that are preferred by an organization.

Functional departmentalization: groups individuals by skills, knowledge, and action.

Hedonism: people seek pleasure and avoid pain.

Hierarchy of authority: the listing of positions of responsibility and who reports to whom.

Line units: direct line authority for conducting the major business of the organization.

Matrix structure: uses both the functional and divisional forms simultaneously.

Mechanistic structure: emphasizes hierarchy and control based on rules, policies, and procedures.

Observable culture: the ways things are done in the organization.

Organic structure: highly fluid and adaptable, designed to change in accordance with the needs of the environment.

Organizational chart: a diagram that depicts the formal structure of an organization.

Organizational context: comprised of characteristics of a job, organization, or work situation that affect the wat people in that situation act and interact.

Organizational culture: the shared actions, values, and beliefs in an organization that guide the behavior of its members.

Organizational myths: unproven and frequently unstated beliefs that are accepted without criticism.

Organizational strategy: the mission, vision, and initiatives an organization takes to achieve long-term business goals.

Organizational structure: the way work is organized and coordinated.

Rites: standardized and recurring activities that are used at special times to influence the behaviors and understanding of organizational members.

Rituals: system of rites.

Sagas: embellished heroic accounts of accomplishments and overcoming epic challenges.

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Shared values: the commonly held beliefs about what are the important and right things to do.

Socialization: the process of learning the accepted norms or customs of the organization through formal and informal social interaction.

Span of control: the number of individuals reporting to a manager.

Staff units: serve in an advisory capacity to line units.

Strong culture: characterized by consistency of beliefs and values that align and motivate members.

Strong cultures: provide positive workplaces for employees, a unified direction toward a mission and vision, and flexibility to adapt.

Subcultures: groups of individuals who exhibit a unique pattern of values and a philosophy that is consistent with the organization’s dominant values and norms.

Symbol: an artifact, object, act, or event that serves to transmit cultural meaning.

SPECIAL FEATURES Be a Critical Thinker: Age Becomes an Issue in Job Layoffs Picture the manager – well meaning, an overall good person, but facing a real dilemma: job cuts need to be made in a bad economy. Who gets laid off? Sarah is young, single and years out of college; she is very hard working topped the performance ratings this year, and always steps forward when volunteers are needed for evening work or travel. Mary is in her mid-40s, has two children, and her husband is a pediatrician; her performance is good, always at or above average during performance reviews, but she has limited time available for evening work and out of town travel. Ask students who they would pick for the layoff and why? Ask them further what other criterion can be used to decide who gets laid off in organizations? Should organizations always make sure that lay off decisions are ethical and legal? Have students debate both sides of this question.

Bringing OB to Life: Pixie-Dusting New Employees at Disney Disney is known for its strong culture, and people come from all over the world, not just for the parks, but to work for the company. New cast members go through an orientation known as Heritage and Traditions that socializes them into the culture of Disney which teaches them the company vision and the plan to enact that vision, which is acting like the seven dwarves: 1) Be happy, 2) Be like Sneezy and spread the spirit of hospitality, 3) Don’t be Bashful, seek out Guest contact, 4) Be like Doc and provide immediate service recovery, 5) Don’t be Grumpy, 6) Be like Sleepy and create dreams, and 7) Don’t be Dopey, thank each and every Guest. Through this program, Disney ensures that everyone starts off on the same page.

Ask students what orientation experiences they had at their jobs or universities that may be similar to Disney’s strategy.

Checking Ethics in OB: Flattened into Exhaustion Flattening an organization by cutting supervisors and calling remaining employees “coaches” can mean more work coordinating subordinates and often forcing those coaches to take work home, which cuts into family and personal time, and can result in emotional exhaustion and burnout. Ask student if they feel it is ethical to restructure, cut management levels, and expect the remaining employees to do more work.

OB in the Office: Maintaining the Corporate Culture at Cousins Subs in a Time of Change

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Christine Specht is a natural…if you can think of a company president as a natural. In the summer of 2010 she unveiled the new logo and restaurant design for Cousin Subs. As the second generation to head this firm, she often stresses the importance of culture and her intention to keep stressing the key attributes her father instilled. Yet there is also the new. When she became Cousins president, Christine Specht visited all of the franchise operations and then reorganized the central office operations. Ask students what are some factors that have caused this organization to remain successful long term? Ask the students further how they think the organization could go about using social media to reinforce their original culture and values to their main stakeholders.

Research Insights: Coordination in Temporary Jobs Many individuals have jobs that take them to a number of different temporary settings, and coordinating the actions of the members is often a challenge. Recent research by Beth Bechky studied workers on a movie set to find out how individuals mesh who have only been working together for a few hours.

Bechky found that the more experienced crew may provide enthusiastic appreciation and polite admonishing to the less experienced members, using humor, sarcasm, and teasing, with displays of anger being rare and frowned upon. With these mechanisms, it only takes a few hours for the crew to emerge as an integrated unit. Have students perform a team case study with majors in different areas and observe is members negotiate distinct roles. Do they use humor, teasing or sarcasm? Do they dorm an integrated group?

Worth Considering or Best Avoided? Is It Time to Make the Workplace a Fun Place?

As a new generation enters the workplace, traditional organizational cultures with their ‘work comes first’ rules are under pressure. Could it be that allowing people to have more fun at work actually increases performance? “Goofing off” time is considered valuable time at the online retailer Zappos.com. Ask students do we need more employers that are willing to build “fun” into day-to-day work routines?

Should managers be spending time and money to remake organizational cultures so that the workplace also becomes a fun place?

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Chapter 3 INDIVIDUAL DIFFERENCES CHAPTER OVERVIEW This chapter addresses the nature of individual differences and describes why understanding and valuing these differences is increasingly important in today’s workplace. The chapter begins with a description of individual differences and awareness of self and others. It describes self-concept as the view individuals have of themselves as physical, social, and spiritual or moral beings and discusses whether individuals develop based on heredity or on the environment.

Personality captures the combination of characteristics that represents the unique nature of an individual as that individual interacts with others. The chapter describes the Big Five personality traits of extraversion, agreeableness, conscientiousness, emotional stability, and openness to experience. It also provides a useful personality framework consisting of social traits (problem-solving styles), personal conception traits (locus of control, proactive personality, authoritarianism and dogmatism, Machiavellianism, and self-monitoring), emotional adjustment traits (Type A and Type B orientations), and personality dynamics, where each category represents one or more personality dimensions.

Finally, the chapter discusses values as broad preferences concerning courses of action or outcomes.

Different models for understanding values are presented including Rokeach’s terminal values (preferences concerning ends) and instrumental values (preferences concerning means); Meglino and associates values of achievement, helping and concern for others, honesty, and fairness; and Hofstede’s dimensions of national culture (power distance, individualism–collectivism, uncertainty avoidance, masculinity–femininity, and long-term/short-term orientation).

CHAPTER OUTLINE PERSONALITY Nature or Nurture?

Are Personalities Stable?

What are Behavioral and Social Traits?

What are Personal Conception Traits?

What are Cognitive Traits?

How Can We Assess Personality?

VALUES What Are Values and Where Do They Come From?

How Do Values Differ Across Culture?

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CHAPTER LECTURE NOTES LO 1: ANALYZE INDIVIDUAL DIFFERENCES AND EXPLAIN HOW THEY AFFECT BEHAVIOR IN THE WORKPLACE? Personality is the overall combination of characteristics that capture the unique nature of a person as that person reacts and interacts with others.

LECTURE ENHANCEMENT Ask students if they have ever completed a personality inventory and what was the purpose (job, club, sports team, etc.). Further have the students discuss what they believe are the advantages and disadvantages of administering personality tests to individuals.

Nature or Nurture?

The forces of heredity and environment act in combination to form personality. Heredity sets the limits and likely nature of our growth, and environment enhances or hinders development along the way.

Are Personalities Stable?

Behavioral and social traits are formed at an early age and remain quite stable over time. This is important to remember because regardless of our intentions, the instinctive traits of people we work with are not things we can do a lot about. Therefore, the goal should be understanding the individual differences and acting constructively rather than striving for change.

What Are Behavioral and Social Traits?

The most commonly used framework for categorizing personality traits in OB if the “Big Five.”

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The Big Five personality dimensions have been distilled from extensive lists of specific personality traits. The Big Five traits are the following: o Extraversion ⎯ being outgoing, sociable, assertive. o Agreeableness ⎯ being good-natured, trusting, cooperative. o Conscientiousness ⎯ being responsible, dependable, persistent. o Emotional stability ⎯ being unworried, secure, relaxed. o Openness to experience ⎯ being imaginative, curious, broad-minded.

Social Traits •

Social traits are surface-level traits that reflect the way a person appears to others when interacting in various social settings.

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Problem-solving style, based on the work of Carl Jung, reflects the way a person gathers and evaluates information when solving problems and making decisions.

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The first component of problem solving is information gathering. Information gathering involves getting and organizing data for use. Styles of information-gathering vary from sensation to intuitive. o Sensation-type individuals prefer routine and order and emphasize well-defined details in gathering information; they would rather work with known facts than look for possibilities. o Intuitive-type individuals like new problems, dislike routine, and would rather look for possibilities than work with facts.

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The second component of problem solving is evaluation. Evaluation involves making judgments about how to deal with information once it has been collected. Styles of information evaluation vary from an emphasis on feeling to an emphasis on thinking. o Feeling-type individuals are oriented toward conformity and try to accommodate themselves to other people; they try to avoid problems that may result in disagreements. o Thinking-type individuals use reason and intellect to deal with problems and downplay emotions.

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Problem-solving styles are most frequently measured with the (typically 100-item) Myers-Briggs Type Indicator (MBTI).

A proactive personality is the disposition that identifies whether or not individuals act to influence their environments.

• Individuals with high proactive personality identify opportunities and act on them, show initiative, take action, and persevere until meaningful change occurs. In contrast, people who are not proactive fail to identify— let alone seize—opportunities to change things.

• Less proactive individuals are passive and reactive, preferring to adapt to circumstances rather than change them.

What Are Personal Conception Traits?

Personal conception traits represent individuals’ major benefits and personal orientation concerning a range of issues involving social and physical setting.

Personal conception traits include locus of control, proactive personality, authoritarianism and dogmatism, Machiavellianism, self-monitoring, and emotional adjustment.

Locus of Control Locus of control refers to the extent to which a person feels able to control his or her own life.

• Internals tend to be more introverted and are more oriented toward their own feelings and ideas. They believe that they control their own fate or destiny.

• Externals are more extraverted in their interpersonal relationships and are more oriented toward the world around them. They believe that much of what happens to them is beyond their control and is determined by environmental forces such as fate.

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Internals differ from externals regarding information processing; job satisfaction; performance; selfcontrol, risk, and anxiety; motivation, expectancies, and results; and response to others.

LECTURE ENHANCEMENT Have each student identify his or her internal/external locus of control orientation regarding information processing; job satisfaction; performance; self-control, risk, and anxiety; motivation, expectancies, and results; and response to others.

Authoritarianism/Dogmatism Authoritarianism/dogmatism: Both “authoritarianism” and “dogmatism” deal with the rigidity of a person’s beliefs.

• A person high in authoritarianism tends to adhere rigidly to conventional values and to obey recognized authority. This person is concerned with toughness and power and opposes the use of subjective feelings. Highly authoritarian individuals are so susceptible to authority that in their eagerness to comply they may behave unethically.

• An individual high in dogmatism sees the world as a threatening place. This person regards legitimate authority as absolute and accepts or rejects others according to how much they agree with accepted authority.

Machiavellianism Machiavellianism: The Machiavellian personality views and manipulates others purely for personal gain.

• A high-Mach personality approaches situations logically and thoughtfully and is even capable of lying to achieve personal goals; is rarely swayed by loyalty, friendships, past promises, or the opinions of others; is skilled at influencing others; tries to exploit loosely structured situations; and performs in a perfunctory manner in highly structured situations.

• A low-Mach personality accepts direction imposed by others in loosely structured situations; works hard to do well in highly structured situations; is guided more strongly by ethical considerations; and is less likely to lie or cheat.

Self-monitoring Self-monitoring reflects a person’s ability to adjust his or her behavior to external or situational (environmental) factors.

• High self-monitoring individuals are sensitive to external cues and tend to behave differently in different situations. High self-monitors can present a very different appearance from their true self.

• In contrast, low self-monitors, like their low-Mach counterparts, aren’t able to disguise their behaviors ⎯ “what you see is what you get.”

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Emotional Adjustment Emotional adjustment indicates how one handles emotional distress or displays unacceptable across, such as impatience, irritability, or aggression.

• A Type A orientation is characterized by impatience, desire for achievement, and perfectionism.

• A Type B orientation is characterized as more easygoing and less competitive in relation to daily events.

What Are Cognitive Traits?

Cognitive traits characterize the way one processes information, makes decisions, and thinks about the way to solve problems.

One commonly referred to cognitive trait is problem-solving style, the approach we use to gather and evaluate information in solving problems and making decisions.

Carl Jung developed a typology of problem solving styles.

• The first component is information gathering, or getting and organizing data. Sensation-type individuals emphasize well-defined details in gathering information, while intuitive-type individuals prefer the big picture.

• The second component is evaluation, or making judgments about how to deal with information once it has been collected. Feeling-type individuals are oriented toward conformity and try to accommodate themselves to other people, while thinking-type individuals use reason and intellect to deal with problems and downplay emotions.

How Can We Assess Personality?

An effective personality assessment provides information about the uniqueness of personality traits and insight into how consistently an individual will behave over time and across different situations.

There are two main types of personality assessments: • Projective Assessments: These are designed to elicit motivational needs, drives, and preferences out of one’s immediate consciousness. Common projective assessments include the Thematic Apperception Test and the Rorschach Test. These tests are used infrequently in recent years due to the complexity of administration.

• Normative Assessments: These are the most commonly used personality assessments in business settings. They rely on objective and standardized interpretation of responses, using survey questions that elicit responses to descriptive statements. The responses of an individual are then compared to a specific group of interest. The most widely used assessment for selection and development is the Caliper Profile, which assesses behavioral, social, cognitive, and personal conception traits, as well as communication, interpersonal, and decision-making preferences.

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LO 2: IDENTIFY WHAT VALUES ARE AND WHY THEY MATTER IN OB What are Values and Where Do They Come From?

Values are broad preferences concerning appropriate courses of action or outcomes. Values reflect a person’s sense of right and wrong or what “ought” to be.

Sources of values are parents, friends, teachers, and external reference groups, and all influence individual values. At the national level, cultural value dimensions, such as those identified by Hofstede, tend to influence these sources.

Terminal and Instrumental Values • •

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Terminal values reflect a person’s preferences concerning the “ends” to be achieved. They are the goals an individual would like to achieve during his or her lifetime.

Instrumental values reflect a person’s beliefs about the means for achieving desired ends. They represent how you might go about achieving your important end states, depending on the relative importance you attached to the instrumental values.

In the workplace, one may deal with intrinsic values, extrinsic values, social values, and prestige values.

LECTURE ENHANCEMENT

Have each student identify the five most important terminal values and the five most important instrumental values for him or her. Divide the class into small groups to discuss the implications of their selected sets of values for how they might work together on a long-term group project.

Value Congruence Value congruence occurs when individuals express positive feelings upon encountering others who exhibit values similar to their own. When values differ, or are incongruent, conflicts over such things as goals and the means to achieve them may result.

How Do Values Differ Across Culture?

Culture is the learned and shared way of thinking and acting among a group of people or society.

Someone’s ability to work effectively across cultures is referred to as cultural quotient.

Geert Hofstede refers to culture as the “software of the mind.”

Since culture is shared among people, it helps to define the boundaries between different groups and affects how their members relate to one another.

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LECTURE ENHANCEMENT If any of your students have lived or traveled abroad, ask them to describe their experiences and what they learned about different cultures.

A framework offered by Geert Hofstede helps in understanding how value differences across national cultures can influence human behavior at work.

The five dimensions of national culture in Hofstede’s framework are as follows: • Power distance is the willingness of a culture to accept status and power differences among its members. It reflects the degree to which people are likely to respect hierarchy and rank in organizations.

• Uncertainty avoidance is a cultural tendency toward discomfort with risk and ambiguity. It reflects the degree to which people are likely to prefer structured or unstructured organizational situations.

• Individualism-collectivism is the tendency of a culture to emphasize individual versus group interests.

It reflects the degree to which people are likely to prefer working as individuals or working together in groups.

• Masculinity-femininity is the tendency of a culture to value stereotypical masculine or feminine traits.

It reflects the degree to which organizations emphasize competition and assertiveness versus interpersonal sensitivity and concerns for relationships.

• Long-term/short-term orientation is the tendency of a culture to emphasize values associated with the future, such as thrift and persistence, versus values that focus largely on the present. It reflects the degree to which people and organizations adopt long-term or short-term performance horizons.

Ecological fallacy is acting with the mistaken assumption that a generalized cultural value applies equally to all members of the culture.

CHAPTER STUDY GUIDE What is personality and what do we mean by nature and nurture?

• Personality is the combination of characteristics that represents the unique nature of an individual as he or she interacts with others.

• Personality is reflected in personality traits, the enduring characteristics that describe a person’s behavior.

• Nature and nurture describe personality as determined by both heredity characteristics and the environment.

What are behavioral and social traits?

• Behavioral and social traits reflect how a person appears when interacting with others in both social and professional settings. We can identify these traits by observing the way people act and interact with others.

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Behavioral and social traits are often measured using the Big Five, which includes dimensions of extraversion, agreeableness, conscientiousness, emotional stability, and openness to experience.

Behavioral and social traits also include proactive personality. Individuals with high-proactive personalities identify opportunities and act on them, show initiative, and persevere.

What are personal conception and cognitive traits?

• Personal conception traits are personal beliefs and orientations toward settings and issues. They reflect a person’s self-concept – the view that individuals have of themselves as physical, social, and spiritual or moral beings.

• Personal conception traits include self-esteem, self-efficacy, locus of control, authoritarianism and dogmatism, Machiavellianism, and self-monitoring.

• Cognitive traits characterize the way one processes information, makes decisions, and thinks about the way to solve problems. A good example of a cognitive trait is problem-solving style.

• Jung’s typology of problem-solving styles includes: Sensation-Feeling, Sensation-Thinking, Intuitive-Feeling, Intuitive-Thinking.

What are values?

• Values are broad preferences concerning courses of action or outcomes. They reflect a person’s sense of right and wrong or what ought to be.

• Our values develop as a product of the learning and experience we encounter in the cultural setting in which we live. Many individual values have their roots in early childhood and the way a person has been raised.

• Rokeach identifies terminal values (preferences concerning ends) and instrumental values (preferences concerning means).

• One of the most important aspects of values in the workplace is value congruence, the extent to which one’s values are in alignment with others and with the organization.

How does Hofstede’s framework explain national culture?

• Values can be discussed at the level of national or societal culture. Cultures are known to vary in their underlying patterns of values.

• Culture is the learned and shared way of doing things in a society. It represents deeply ingrained influences on the way people from different societies think, behave, and solve problems.

• Hofstede’s five dimensions of national culture values are power distance, individualismcollectivism, uncertainty avoidance, masculinity-femininity, and long-term/short-term orientation.

• Hofstede also warns against falling prey to the ecological fallacy. This is acting with the mistaken assumption that a generalized cultural value applies equally to all members of the culture.

KEY TERMS Assertiveness: willing and able to communicate information and opinions in a calm, focused, and pleasant way, without being aggressive.

Authoritarianism: a tendency to adhere rigidly to conventional values and to obey recognized authority. .

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Awareness of others: being aware of behaviors, preferences, styles, biases, personalities, etc., of others.

Behavioral and social traits: reflect how a person appears when interacting with others in social settings.

Cognitive traits: the way a person thinks and processes information.

Culture: the learned and shared way of thinking and acting among a group of people or society.

Cultural quotient (CQ): ability to work effectively across cultures.

Dogmatism: leads a person to see the world as a threatening place and to regard authority as absolute.

Ecological fallacy is acting with the mistaken assumption that a generalized cultural value applies equally to all members of the culture.

Ego-drive: one’s desire to persuade others and earn their commitment.

Individual differences: the ways in which people are similar and dissimilar in their personal characteristics.

Individualism–collectivism: the tendency of members of a culture to emphasize individual self-interests or group relationships.

Instrumental values: reflect a person’s beliefs about the means to achieve desired ends.

Locus of control: the extent a person feels able to control his or her own life and is concerned with a person’s internal–external orientation.

Long-Term/Short-Term Orientation: the degree a culture emphasizes long-term or short-term thinking.

Machiavellianism: causes someone to view and manipulate others purely for personal gain.

Masculinity-Femininity: the degree a society values assertiveness or relationships.

Normative assessment: of a particular trait refers to the process of comparing one test taker to his or her peers.

Personal conception traits: show up as personal beliefs and orientations toward settings and issues.

Personality: the overall combination of characteristics that captures the unique nature of a person as that person reacts and interacts with others.

Personality traits: are enduring characteristics describing an individual’s behavior.

Power distance: a culture’s acceptance of the status and power differences among its members.

Problem-solving style: reflects the way a person gathers and evaluates information when solving problems and making decisions.

Self-awareness: being aware of one’s own behaviors, preferences, styles, biases, personalities, etc.

Self-concept: the view individuals have of themselves as physical, social, spiritual, or moral beings.

Self- efficacy: is an individual’s belief about the likelihood of successfully completing a specific task.

Self-esteem: is a belief about one’s own worth based on an overall self-evaluation.

Self-monitoring: a person’s ability to adjust his or her behavior to external situational (environmental) factors.

Terminal values: reflect a person’s preferences concerning the “ends” to be achieved.

Uncertainty avoidance: the cultural tendency to be uncomfortable with uncertainty and risk in everyday life.

Value congruence: the extent to which one’s values are in alignment with others and with the organization.

Values: broad preferences concerning appropriate courses of action or outcomes.

SPECIAL FEATURES Be a Critical Thinker: Three Identical Strangers Three Identical Strangers is a story of identical triplet brothers who were separated at birth and reunited 19 years later. Despite the differences in their experiences, the triplets showed remarkable similarities, such as all smoking the same brand of cigarettes, been on the wrestling team in high school, drove similar cars, and liked the same music. Many scientists cite the brothers as evidence of how the role of genetics shapes personality and how nature is often more powerful than nurture. Ask students is the scientists conclusion makes sense and in what ways they may be correct? Aside from genetics, what else might cause these similarities?

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Bringing OB to Life: How Do Values Differ Across Cultures? A Look at Vacation Habits Around The World A global survey of vacation habits shows that, on average, Americans take fewer vacation days than they are allowed, leaving anywhere from 2 to 11 days of an average yearly 12 to 14 days of vacation on the table. Conversely, Spanish and French employees tend to take all of their allocated 30 days. Japanese workers take only 4 out of 10. However, some employers are trying to discourage employees from working too much as a way to improve the quality of their work. The willingness to take vacation days is reflective of differences in how personal time and work boundaries are viewed across cultures. Ask your students what the perception of taking all of one’s vacation days is in the United States and in Europe.

Checking Ethics in OB: Personality Testing Personality tests are often used in employment screening. The U.S. Equal Employment Opportunity Commission states that personality tests should not have an adverse impact on members of protected groups based on age, gender, or ethnicity. However, lawsuits have been brought by personality tests used for employment screening that were not developed for that purpose and many people consider personality tests an invasion of privacy. Ask your students what ethical issues they see in the administration of personality assessment for hiring decisions.

OB in the Office: How to Deal with an Authoritarian Boss Many of the traits that make a person a successful leader, also manifest in an authoritarian style. If you are dealing with an authoritarian boss, the following tips may be helpful. First, do not take things personally; their feedback is about performance and not you as a person. Getting offended will not improve the situation, but learning from the feedback may be beneficial for you. You should always document your performance and take ownership of both good and bad results. Do not make excuses, but do be ready with an action plan for improvement that you can share with your boss. Try to understand why your boss is authoritarian. Stay professional and focus discussions on how to improve results, not gossip. Finally, know that if your boss crosses the line into abuse, you can use your company’s HR department and conflict-resolution services. Ask students if they have ever had an authoritarian boss and what strategies they implemented to deal with it.

OB in the Office: Connecting Your Personal Values With Your Workplace Although everyone has values, few people consider what they are. However it is increasingly important to be aware of one’s values in their careers in order to make decisions that will influence their professional lives. Some guidelines to consider when generating one’s value list include: what are the values of your family and those you were brought up by, who do you look up to and why, what choices have you made in life up to this point and what values did those choices satisfy, brainstorming different values and seeing what comes up first, and reflecting on your initial value selections after some time has past. Ask your students to engage in some of these thought exercises in order to identify their own values.

Research Insight – Twin Studies: Nature or Nurture In examining the nature vs. nurture controversy, a study of twins finds that heredity has an important link to leadership role occupancy. Family experience and work experience were also related to leadership role occupancy with work experiences being more powerful. The study concludes that while much is

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determined by our heredity, developmental experiences are also important in helping men and women move into leadership roles. Ask students to reflect on their own personalities and comment on what extent they think nature or nurture has shaped their own personality?

Worth Considering or Best Avoided: When Students Share Assignments, Is It Collaborating or Cheating?

When a Harvard professor graded a take-home exam that showed multiple similar answers across students. The professor reported the incident to the University, which prompted a debate about what is cheating and what is collaborating. Many students view working together on school assignments a collaboration due to having grown up with the internet, collaborative media, and online classes. Other students may come from collectivist cultures. Ask your students whose perspective is correct? Are professors out of date? Do exam-taking policies need further clarification? Are students taking advantage of new situations and technologies?

Suggested Group Project Assign each group a country to research and report back to the class “indicators” of the country’s Hofstede dimensions. For example, the Japanese saying “The nail that stands up gets hammered down” is an indicator of their collectivist culture. One very good source of this type of information is the International Business Center. Its web page offers tips to international business travelers about the attire and etiquette in many countries. The tips are available under links to each country on their web page: http://geert-hofstede.international-business-center.com/.

Alternatively, the instructor could print out the etiquette rules for several countries and then allow students to pick through them for indicators of cultural dimensions. For example, for countries in which the etiquette rules recommend that visitors call people by their titles such as Doctor or Professors, student might conclude that the country has high power distance.

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Chapter 4 PERCEPTION AND EMOTION CHAPTER OVERVIEW The chapter begins with a discussion of the perceptual process and the factors that influence that process.

Because people tend to perceive things differently, the same situation may be interpreted and responded to differently by different people. The roles of the perceiver, the setting, and the perceived in the perceptual process are discussed. The specific stages of the perceptual process ⎯ attention and selection, organization, interpretation, and retrieval ⎯ are examined. Perception as it relates to the world of social media is also discussed. The chapter then moves on to review common perceptual distortions, including stereotypes or prototypes, halo effects, selective perception, projection, and contrast effects. Next, it focuses on attribution theory, which is an insightful approach to understanding human behavior.

Attribution theory addresses the interpretation stage of the perception process where tendencies are to view events or behaviors as primarily the results of external causes or internal causes. The nature and importance of attributions are explored and two attribution errors ⎯ the fundamental attribution error and the self-serving bias ⎯ are discussed.

The second part of the chapter explores how emotions and moods influence behavior in organizations.

Emotional contagion and emotional labor provide the starting point for this section. Affective Events Theory ties the section together and extends understanding of people’s emotional reaction on the job and how these reactions influence those people.

The third section covers attitudes. An attitude is a predisposition to respond in a certain way to people and things. Attitudes in the workplace include job satisfaction, job involvement, organizational commitment and employee engagement. The chapter concludes with a discussion of job satisfaction and it implications. Job satisfaction is the degree to which individuals feel positively or negatively about their jobs and how rewards are related.

CHAPTER OUTLINE PERCEPTION AND ATTRIBUTION What Is Perception?

What Is Attribution?

Perception And Attribution Errors EMOTIONS AND MOODS What Are Emotions and Moods?

What Is Emotional Intelligence?

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ATTITUDES What is an Attitude?

What Are Job Attitudes?

How Do Attitudes Influence Work Behavior?

CHAPTER LECTURE NOTES LO 1: DESCRIBE HOW PERCEPTION AND ATTRIBUTION AFFECT BEHAVIOR AT WORK Perception is the way we gather, organize, and interpret information around us. It occurs because information is constantly coming at us from the environment and in order to function, we must be able to process information quickly.

The Perceptual Process The perceptual process begins with attention and selection. In the midst of incoming stimuli with must choose what to pay attention to and what to filter out. We do this through selective screening – letting in only a portion of the information available. This happens through controlled processing, consciously selecting what to pay attention to, or automatic information processing, which allows us to perform routine activities without conscious effort.

LECTURE ENHANCEMENT In order to illustrate selective screening, while in the middle of your lecture for the day insert a sentence stating that the next exam or paper has been cancelled. Discuss the students’ reaction.

Once we gather information we must organize it, which we accomplish through schemas, or cognitive frameworks that represent organized knowledge developed through experience about a concept or stimulus. A script schema describes an appropriate sequence of events in a given situation, while a selfschema contains information about a person’s own appearance, behavior, and personality. A personschema sorts people into categories based on perceived features.

Interpretation is the process we go through in applying reasoning or uncovering meaning from information. This process explains why two people can experience exactly the same thing, and yet perceive it differently.

Information that is stored in memory must be retrieved, the process of sorting through categories to match them to information from the environment.

Factors Influencing Perception

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Factors contributing to differences in perception include characteristics of the perceiver, the setting, and the perceived.

• The Perceiver: A person’s perceptual process is influenced by their past experiences, needs, motives, personality, values, and attitudes, or their frame of reference.

• The Setting: The setting includes the physical, social, and organizational context in which the perception takes place.

• The Perceived: Characteristics of the perceived include aspects of the person, object or event and can include contrast, intensity, figure-ground separation, size, motion, and repetition or novelty.

LECTURE ENHANCEMENT To generate an interesting, and perhaps quite animated, discussion of differing perceptions of the same situation, ask students to describe how they perceive one or more of the following situations: • Cutting costs by sending American jobs overseas.

• Downsizing of companies.

• Providing organizationally funded fringe benefits to same sex partners.

• Restricting trade with nations that are known for human rights abuses.

• Peer evaluations of performance.

• Self-management practices in businesses.

• Drug testing in the workplace.

• Electronic surveillance of employees.

Attribution is the assignment of meaning to others’ behaviors or events and is natural and widespread in social interactions. We make attributions based on cues we receive from the environments including distinctiveness, consensus, and consistency.

• Distinctiveness is how consistent a person’s behavior is across different situations. If the behavior is consistent across time, it is likely to receive an internal attribution which assigns the cause of the behavior to the person.

• Consensus is taking into account how others respond in the same situation. If everyone responds the same in the same situation, the behavior will likely receive an external attribution, which assigns the cause of the behavior to factors outside the person’s control.

• Consistency is looking at a person’s behavior across time. If the person performs the same across time, the behavior will likely be given an internal attribution.

Attribution Bias Attribution bias occurs when people inflate their view of self and deflate their view of others.

• Fundamental attribution error is the tendency to attribute others’ poor performance to internal causes.

• Self-serving bias is the tendency to take credit for success and blame external factors for failure.

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These biases create a natural roadblock in relational interaction because they lead people to tell themselves stories which are not necessarily true.

LECTURE ENHANCEMENT Ask students to think of a time when they experienced the fundamental attribution error or self-serving bias. Have them describe the cause of their bias and generate ideas on how they could have overcome it.

The way to overcome attribution bias is to become aware of it.

The first step in this process is to understand when emotions arise as a result of defense mechanisms that work to protect our ego, or the opinion we have of ourselves regarding our intelligence or importance as a person.

The second step is perspective-taking, or seeing the situation from all sides.

Perception and Attribution Errors Perception and attribution can lead to problems when they are biased or do not reflect objective reality. In the workplace, this is referred to as rater error. These errors include: • Stereotypes, which are groups or categories used to describe individuals.

• Selective perception, or the tendency to single out those aspects of a situation, person, or object that are consistent with one’s needs, values, or attitudes.

• Halo effect, which occurs when one attribute of a person or a situation is used to develop an overall impression of that individual or situation in a positive way. The horns effect is the same, but with a negative trait and negative impression.

• Projection is the unconscious assignment of one’s personal attributes to other individuals.

• Contrast effects occur when the meaning or interpretation of something is arrived at by contrasting it with another event or situation.

• Self-fulfilling prophecies are the tendency to make something we think will happen come true.

LECTURE ENHANCEMENT Are all stereotypes inaccurate? Are stereotypes ever useful? Have students discuss and debate these questions. If a stereotype is positive, is it still harmful?

LECTURE ENHANCEMENT Many students work while attending college. Encourage students to identify examples of the halo effect where they work or in the classroom.

LECTURE ENHANCEMENT

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Discuss the idea that as cultural diversity increases in the workplace, projection is often inappropriate.

LO 2: DESCRIBE THE ROLE OF EMOTION AND MOODS IN INFLUENCING BEHAVIOR Affect is the range of feelings in the form of emotions and moods that people experience.

The Nature of Emotions •

Emotions are strong positive or negative feelings that are directed at someone or something.

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Emotions are usually intense, not long-lasting, and always associated with a source—someone or something that makes us feel the way we do.

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Moods are less intense as compared with emotions, and frequently, although not always, lack a contextual stimulus. Moods are generalized positive and negative feelings or states of mind.

Emotional Labor •

Emotional labor is a situation where a person displays organizationally desired emotions in a job.

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Emotional dissonance is the discrepancy between the emotions we feel and emotions we project.

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Deep acting is someone tries to modify their feelings to better fit the situation.

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Surface acting is hiding your inner feelings and forgoing emotional expression as a response to display rules.

LECTURE ENHANCEMENT Ask students to generate ideas to transform surface acting to deep acting. When would this be appropriate? When is surface acting good enough?

Emotion and Mood Contagion •

Emotion and mood contagion is the spillover of one’s emotions and mood onto others.

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Evidence shows that positive and negative emotions are “contagious” in much the same ways, even though the tendency may be under-recognized in work settings.

Cultural Aspects of Emotions And Moods •

The frequency, tendency, and norms of expression of emotions vary across cultures.

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Display rules govern the degree to which it is appropriate to display emotions.

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What Is Emotional Intelligence?

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Emotional intelligence is an ability to understand emotions and manage relationships effectively.

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The concept of emotional intelligence is that we perform better when we are good at recognizing and dealing with emotions in ourselves and others.

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There are four essential emotional intelligence competencies that can and should be developed for leadership success and success more generally in all types of interpersonal situations.

1. Self-awareness is the ability to understand our emotions and their impact on us and others.

2. Social awareness is the ability to empathize and understand the emotions of others.

3. Self-management is the ability to think before acting and control disruptive impulses.

4. Relationship management is the ability to establish rapport with others to build good relationships.

LO 3: EXPLAIN WHAT ATTITUDES ARE AND WHY THEY ARE IMPORTANT FOR UNDERSTANDING WORK BEHAVIOR What is an Attitude?

•

An attitude is a predisposition to respond in a positive or negative way to someone or something in one’s environment.

Components of Attitudes •

There are three components of attitudes: cognitive, affective and behavioral •

The cognitive component reflects the beliefs, opinions, knowledge, or information a person possesses and values of an attitude.

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The affective component of an attitude is a specific feeling regarding the personal impact of the antecedents.

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The behavioral component is an intention to behave in a certain way based on you specific feelings or attitudes.

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An attitude results in an intended behavior that may or may not be carried out in a given circumstance.

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The more specific attitudes and behaviors are, the stronger the relationship.

Attitudes and Cognitive Consistency

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Cognitive dissonance describes a state of inconsistency between and individual’s attitude and behavior. It is predicted that such inconsistencies result in discomfort and a desire to reduce or eliminate them by: 1. Changing the underlying attitude 2. Changing future behavior 4. Developing new ways of explaining or rationalizing the inconsistency LECTURE ENHANCEMENT

Ask those students who smoke or have smoked in past, how cognitive dissonance plays a role and how did/do they reduced it?

What Are Job Attitudes?

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Even though attitudes do not always predict behavior, the link between attitudes and potential or intended behavior is important for managers to understand. It is not uncommon to hear concerns expressed about someone’s “bad attitude.”

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Job satisfaction is the degree to which an individual feels positive or negative about a job.

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Job involvement is the extent to which an individual is dedicated to a job.

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Organizational commitment is the loyalty of an individual to the organization.

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Employee engagement is a strong sense of connection with the organization and passion for one’s job.

How Do Attitudes Influence Work Behavior?

Physical Withdrawal •

There is a strong relationship between job satisfaction and physical withdrawal behaviors like absenteeism and turnover.

Psychological Withdrawal •

There is also a relationship between job satisfaction and psychological withdrawal behaviors.

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It shows up in such forms as daydreaming, cyber loafing by Internet surfing or personal electronic communications, excessive socializing, and even just giving the appearance of being busy when one is not.

Organizational Citizenship and Counterproductive Behavior

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Organizational citizenship behaviors are the extras people do to go the extra mile in their work.

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Counterproductive work behaviors intentionally disrupt relationships or performance at work.

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Workplace bullying is a special type of counterproductive behavior that manifests itself as one person acting abusive, demeaning, intimidating, and/or violent toward another on a continuing basis.

Work- Home Spillover Job satisfaction is also known to have positive and negative spillover influence on at home affect.

Research finds that people with higher daily job satisfaction show more positive after-work home affect.

Job Performance The importance of job satisfaction can be viewed in the context of two decisions people make about their work: a decision to belong and a decision to perform.

The decision to belong concerns an individual’s attendance and longevity at work. Satisfied workers have more regular attendance and are less likely to quit their jobs.

The decision to perform is not as clear as the decision to belong. This is due to three possible alternative relationships between job satisfaction and performance.

1. Satisfaction causes performance: This alternative suggests that managers should focus on increasing employees’ job satisfaction in order to increase their performance. Research indicates that no simple and direct link exists between individual job satisfaction at one point in time and work performance at a later point.

2. Performance causes satisfaction: This alternative suggests that managers should focus on increasing employees’ job performance and as a result job satisfaction should increase. Research indicates an empirical relationship between individual performance measured at a certain time period and later job satisfaction. Rewards that equitably distributed serve to strengthen the linkage between performance and subsequent satisfaction.

3. Rewards cause both satisfaction and performance: The proper allocation of rewards can positively influence both performance and satisfaction. Research indicates that people who receive high rewards report high job satisfaction and that performance-contingent rewards influence a person’s work performance. The size and value of the reward should vary in proportion to the level of one’s performance accomplishment.

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CHAPTER STUDY GUIDE What is perception?

• Perception is the way in which we gather, organize, and interpret information from our environments. It occurs because we are bombarded with stimuli from the environment and need a way to process all this information.

• The perceptual process has four stages: attention and selection, organization, interpretation, and retrieval.

How does attribution work?

• The attribution process is the assignment of meaning to others’ behaviors or events.

• Attributions are determined based on three cures: distinctiveness, or how consistent a person’s behavior is across different situations; consensus, or taking into account how others respond in the same situation; and consistency, considering an individual’s behavior across time.

• An attribution can be internal or external. An internal attribution assigns the cause of the behavior to the person; an external attribution assigns the cause of the behavior to factors outside the person’s control.

• Attributions are often wrong because they are heavily influenced by emotion and ego defense mechanisms. This leads to two types of errors: fundamental attribution error refers to the tendency to attribute others’ poor performance to internal causes; self-serving bias is the tendency to take credit for success and blame others for failure.

What are common perceptual biases in the workplace?

• Perception and attribution biases cause rater errors in the workplace because they affect how we rate and evaluate others.

• Rater errors include stereotypes, halo and horns errors, projection, contrast effects, and selffulfilling prophecies.

What are emotions and moods?

• Emotions are feeling states that convey information about relationships. They appear as strong positive or negative feelings or states of mind that persist for some time.

• Moods are generalized positive or negative states of mind that may persist for some time.

• Emotions are usually intense and short lived and always associated with a source or reference.

• Those who are interpersonally savvy work to avoid problems that can arise if bad moods are misunderstood. They do this by signaling to others when they are in a bad mood to let them know the mood is not directed toward them.

How do we manage emotions and moods?

• Emotional labor is the need to show certain emotions in order to perform a job. It is called labor because it takes work to manage one’s emotions.

• Deep acting occurs when a person has to change his or her feelings to fit the situation. Surface acting occurs when individuals have to display certain emotions when they might not feel them.

• Informal cultural standards called display rules govern the degree to which it is appropriate to show emotions.

• Emotional intelligence (EI) is the ability to understand and interpret emotions, and to use this understanding to effectively manage social interactions. Four essential emotional intelligence

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competencies include self-awareness, social awareness, self-management, and relationship management.

What are attitudes and how do they work?

• Attitudes are a predisposition to respond in a certain way to people and things. Though attitudes predispose individuals toward certain behaviors, they do not guarantee that such behaviors will take place.

• Individuals desire consistency between their attitudes and their behaviors, and cognitive dissonance occurs when a person’s attitude and behavior are inconsistent.

• Attitudes have three components-affective cognitive, and behavioral components.

What are key job attitudes in the workplace?

• Job involvement is a positive attitude that shows up in the extent to which an individual is dedicated to a job.

• Organizational commitment is a positive attitude that shows up in the loyalty of an individual to the organization.

• Employee engagement is a deep connection with the organization and passion for one’s job.

• Job satisfaction is an attitude toward one’s job, coworkers, and workplace. The five components of job satisfaction are the work itself, quality of supervision, relationships with coworkers, promotion opportunities, and pay.

How do attitudes drive behavior?

• Workers who are more satisfied, engaged, and committed to their jobs are absent less often and have lower turnover.

• Workers who are more satisfied, engaged, and committed to their jobs show higher levels of organizational citizenship behavior (OCB).

• A lack of job satisfaction may be reflected in counterproductive work behaviors such as purposely performing poorly, avoiding work, acting violently at work, or even engaging in workplace theft.

• Job satisfaction often spills over to influence what happens at home.

• Job satisfaction is not definitely related to performance, but three possibilities in the job satisfaction and performance relationship are: satisfaction causes performance, performance causes satisfaction, or rewards cause both performance and satisfaction.

KEY TERMS Affect: the range of feelings in the form of emotions and moods that people experience.

Attitude: is a predisposition to respond positively or negatively to someone or something in one’s environment.

Attribution: the assignment of meaning to others’ behaviors or events.

Automatic information processing: screening that takes place without conscious awareness.

Cognitive dissonance: a state of inconsistency between an individual’s attitudes and behavior.

Consensus: takes into account how others respond in the same situation.

Consistency: addresses an individual’s behavior across time. .

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Contrast effect: interpretation or meaning arrived at by contrasting someone or something with another event or situation.

Controlled processing: we consciously decide what information to pay attention to and what to ignore.

Counterproductive work behaviors: purposely disrupt relationships, processes, satisfaction and performance in the workplace.

Display rules: the degree to which it is appropriate to show emotions.

Distinctiveness: considers how consistent a person’s behavior is across different situations.

Ego: the idea or opinion one has of oneself especially as it relates to intelligence and importance as a person.

Emotion and mood contagion: the spillover of one’s emotions and mood onto others.

Emotional intelligence: the ability to understand and interpret emotions and to use this understanding to effectively manage social interactions.

Emotional labor: the need to show certain emotions in order to perform a job.

Emotions: strong positive or negative feelings directed toward someone or something.

Employee engagement: deep connection with the organization and passion for one’s job.

External attribution: assigns the cause of the behavior to factors outside the person’s control.

Frame of reference: the combination of traits, characteristics and experiences that influence how individuals perceive and respond to a stimulus or event.

Fundamental attribution error: refers to the tendency to attribute others’ poor performance to internal causes.

Halo effect: occurs when one attribute of a person or situation is used to develop an overall impression of that individual or situation.

Horns effect: occurs when a single negative trait leads to an overall negative impression of a person.

Internal attribution: assigns the cause of the behavior to the person.

Interpretation: applying reasoning or meaning to information.

Job involvement: the extent to which an individual is dedicated to a job.

Job satisfaction: an attitude reflecting a person’s positive and negative feelings toward a job, coworkers, and the work environment.

Moods: generalized positive and negative feelings or states of mind that may persist for some time.

Organizational citizenship behaviors: discretionary behaviors that represent a willingness to go above and beyond the call of duty in one’s work.

Organizational commitment: the degree of loyalty an individual feels toward the organization.

Organizational identification: the extent to which one feels personally identified with one’s membership organization to the point that it becomes part of the self-concept.

Perception: the way we gather, organize, and interpret information around us.

Perspective-taking: seeing a situation from all sides.

Prototype: a bundle of features expected to be characteristic of people in certain categories or roles.

Projection: the assignment of one’s personal attributes to other individuals.

Retrieval: sorting through categories to match them to information from the environment.

Schemas: cognitive frameworks that organize knowledge about people, objects, or events.

Selective screening: allowing only a portion of information available to enter into cognitive processing.

Selective perception: the tendency to single out those aspects of a situation, person, or object that are consistent with one’s needs, values, or attitudes.

Self-fulfilling prophecy: the tendency to make something that we think will happen come true.

Self-serving bias: the tendency to take credit for success and blame external factors for failure.

Stereotypes: groups or categories used to describe individuals.

Withdrawal: physical or psychological disconnection from the workplace.

Work-home spillovers: occur when what happens at work affects attitudes and behaviors at home.

Workplace bullying: one person acting in an abusive, demeaning, intimidating, or violent manner toward another on a continuing basis.

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SPECIAL FEATURES Be A Critical Thinker: How Satisfied Were You with Your Recent Hospital Stay?

The HCAHPS Survey is a standardized instrument for measuring patients’ perspectives of hospital experiences such as physician’s communication, compassion, and empathy, which are all common indicators of emotional intelligence. The results of this survey are used for hospital ratings, creating incentive for hospitals to improve quality of care and increase transparency and oversight. A recent study of 2,800 “star” physicians shows that 75% of their success is a function of emotional intelligence, and only 25% is technical competence. Ask students if they believe it is possible that emotional intelligence is important only for those who are technically proficient.

Bringing OB to Life: Paying a High Price for Incivility at Work The costs of incivility are the subject of research by Harvard scholars Christine Porath and Christine Pearson. They admit that most managers say they are against incivility and try to stop it whenever they can. But it’s also the case that managers don’t have a good handle on the real costs incurred when employees are rude and disrespectful toward one another. There are lots of things managers, leaders, and employers can do to improve workplace civility – from modeling positive behaviors to teaching about civility to penalizing unacceptable behavior. Ask students is incivility taking a toll on the teams and organizations in your life? Is improved civility a hidden pathway to higher performance?

Checking Ethics in OB: Workers Report Views on Ethical Workplace Conduct Data from a survey conducted for Deloitte & Touche USA finds 42 percent of workers say the behavior of their managers is a major influence on an ethical workplace. What can be done to strengthen people’s confidence in their own ethical frameworks so that even bad management won’t result in unethical practices?

OB in the Office: Procrastination – Character Flaw or Just a Bad Mood?

Situation: Your boss wants a report on absenteeism in your department by the end of the day. It is 3:30 and you only have raw data. You know you need to do it, you’re stressed, but you keep putting it off.

Situation: You have a paper due in your class and it is one hour before the deadline but you only have vague ideas roughed out. You spent the last 3 hours talking with friends instead of working on your paper and now you’re in trouble because the paper is 30% of your grade.

Why do you do this? For years procrastination was thought of as a personality difference, buy recent research suggests that it may be due to moods. Procrastination occurs when we have s negative mood toward the task – boredom, anxiety, frustration, low task efficacy, etc, and cannot manage it effectively.

The amygdala processes the unwelcome task as a threat to one’s well-being, allowing procrastination to work as a short-term mood repair. The problem is that it also results in greater stress and feelings of low self-esteem in the long-term. Ask students if they agree and what they can do to overcome procrastination.

OB in the Office: Yet Another Survey, or Is Your Employer Trying to Measure Employee Engagement?

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Since executives know that employee engagement drives performance, they commonly measure it using surveys. While it is possible to measure engagement with short surveys, employers likely need more information in order to get a complete picture. Generally, this requires approximately 50-80 questions with a number of open-ended questions. While it may be difficult to find time to complete these lengthy surveys, it is a valuable activity that should not be skipped. Employees should not be afraid to be honest and can reach out to HR with any questions or concerns. As additional relief for concerned employees, many organizations rely on a third party to administer the survey and analyze results.

Research Insights: Job Satisfaction Spillover Has Impact on Family Lives A study by Eunae Cho and Louis Tay published in the Journal of Business and Psychology asked whether the successful integration of work and family actually matter for the subjective well-being of workers.

The dataset is based on 2,588 working adults at two time periods approximately 9 years apart. Results showed that work-family spillover was related to future life satisfaction. Workers who experienced negative work-to-family spillover has lower life satisfaction 9 years later, while those with positive workto-family spillover had higher life satisfaction 9 years later. These relationships were moderated by job satisfaction, and to some extent, marital satisfaction. The first time period of collection was 1995-1996, and the second was 2002-2006. Ask students if they think these findings would hold true today? Would the effects change by occupation, worker age, family responsibility, or other factors?

Worth Considering or Best Avoided? Got a Yoga Mat? Meditation Can Be Good for You and Your Job Attitudes Is corporate attention to meditation and yoga just a passing fad? Is General Mills on to something that other employers, large and small alike, should be copying? Or, is this just a luxury item that few employers can afford and few employees really want to bother with? Just how far should organizations go in trying to make encourage people to join in these types of activities?

Suggested Group Project “Dirty workers” are those workers whose occupations are frequently perceived as disgusting or degrading but necessary to the functioning of society. The tasks these workers – such as garbage collectors – perform leads to the workers’ stigmatization by the very society that needs them. One might expect these workers to have a negative self-image, but research finds these workers have surprisingly positive selfidentities and solidarity with one another that negates the stigmatization of society.

Break students into groups and assign each group a “dirty work” profession. Then ask students to apply the text sections on attitudes and job satisfaction to their assigned profession. A few seed questions might be: How might certain attitudes lead workers to a positive self-identity in dirty work?

How do attitudes link to the behaviors required of “dirty workers?”

How do the five facets of job satisfaction apply to “dirty workers?”

How might the complex relationship between job satisfaction and performance work for “dirty workers?”

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Some “dirty work” professions to assign to groups include garbage collectors, coal miners, oil drillers, funeral directors, butchers, janitors, exterminators, prison guards, and bill collectors.

Source of dirty work research: Ashford, B.E. and Kreiner, G.E. 1999. “How Can You Do It?”: Dirty Work and the Challenge of Constructing a Positive Identity, The Academy of Management Review 24(4): 414-444.

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Chapter 5 MOTIVATION CHAPTER OVERVIEW The chapter begins with a definition of “motivation,” followed by a description of performance management and the influence of pay. The chapter then covers the different approaches of the needs theories: the hierarchy of needs theory, the ERG theory, manifest needs theory, and the emotional drives model. The equity theory of motivation is then covered through social comparisons, the predictions of the theory, and the link to organizational justice. The chapter closes by examining the expectancy theory of motivation and the goal-setting theory of motivation.

CHAPTER OUTLINE MOTIVATION AND PERFORMANCE MANAGEMENT What Is Motivation?

Pay for Performance What Is Performance Management?

How Do We Create More Motivating Environments?

NEEDS THEORIES OF MOTIVATION Maslow’s Hierarchy of Needs Alderfer’s ERG Theory Manifest Needs Theory Emotional Drives or Needs Model PROCESS THEORIES OF MOTIVATION Equity Theory Expectancy Theory Goal Setting Theory CHAPTER LECTURE NOTES LO 1: EXPLAIN WHAT MOTIVATION IS, WHERE IT COMES FROM, AND HOW IT LINKS TO PERFORMANCE. Motivation Defined Motivation refers to forces within an individual that account for the level, direction, and persistence of effort expended on a task.

• Level refers to the amount of effort a person puts forth (e.g., a lot or a little).

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Direction refers to an individual’s choice when presented with a number of possible alternatives (e.g., whether to exert effort toward product quality or toward product quantity).

Persistence refers to the length of time a person sticks with a given action (e.g., to try to achieve product quantity but to give up when it is found difficult to attain).

Intrinsic motivation is the intangible, positive feelings of satisfaction that one experiences as a result of good performance on a challenging or interesting task; one is engaged because the person wants to be, not because they have to.

Extrinsic motivation is the tangible and external inducements that drive someone to do a task, such as pay, bonuses, punishments, or benefits.

Pay for Performance • Pay is a common and often talked about extrinsic reward. It’s also an especially complex one that may not always deliver the hoped-for-results.

• Some common forms of pay for performance include merit pay (ties salary to measures of performance), bonuses (extra pay for performance accomplishments), gain sharing (the opportunity to earn more by receiving shares of productivity gains), profit sharing (rewards employees in some proportion to changes in organizational profits), stock options (right to purchase shares at a fixed price in the future), employee stock ownership plans (gives stock or allows them to purchase stock at special prices), and skill-based pay (rewards people for acquiring and developing job-relevant skills).

Performance Management • Performance management is the supervision and oversight of workers to achieve performance objectives in an efficient and effective manner. It capitalizes on the employee value proposition, what the organization offers employees in return for what employees offer the organization. The unstated agreements between employees and employers about the nature of work and expected efforts make up the psychological contract. When these needs and preferences are set, the foundation for motivation and performance management are well set.

• Why do we assess performance? Evaluation, allocation of rewards, or development.

• What is measured in performance assessment? People tend to do what they know is going to be measured, so this must be answered carefully to ensure desired behavior is being elicited.

• Rewards should be aligned with team and organizational goals and caution should be taken to avoid the unintended consequences of a reward system that encourages unwanted behavior.

• Training and development plans are often achieved using a 360-degree review that provides developmental feedback to individuals, using input from some variety of coworkers, subordinates, customers, supervisors, and self.

• A critical element of performance management is differentiating among high and low performers and assigning rewards appropriately in order to avoid demotivating employees. This can be achieved through various comparative methods such as ranking (rank ordering each individual from best to worst in overall performance on specific dimensions), paired comparison (each person is directly compared with every other one), forced distribution (forcing a set percentage of all persons being assessed into predetermined categories).

• Rating scales can be used for performance evaluation, such as graphic rating scales and the behaviorally anchored rating scale (BARS).

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How Do We Create More Motivating Environments?

• One of the primary culprits for negative attitudes about work is poor fit. Person-job fit is the extent to which an individual’s skills, interests, and personal characteristics match well with the requirements of the job. Person-organization fit is the extent to which an individual’s values, interests, and behaviors are consistent with the culture of the organization.

Common Performance Measurement Errors • Common performance measurement errors include o Halo error: occurs when a person’s rating on one particular dimension of a job affects ratings on other parts of the job, even though the dimensions are not directly related. o Leniency error: the average and poor performers get higher ratings than they might deserve. o Central tendency error: occurs when people are lumped together around the middle category or average of the rating scale. o Recency error: occurs when a rater emphasizes recent events rather than events that occurred throughout the evaluation period.

LO 2: DEFINE BASIC PSYCHOLOGICAL NEEDS AND HOW THEY AFFECT BEHAVIOR IN THE WORKPLACE. Hierarchy of Needs Theory • Abraham Maslow’s hierarchy of needs theory, as shown in Figure 5.1 in the textbook, identifies five distinct levels of individual needs: from self-actualization and esteem at the top, to social, safety, and physiological needs at the bottom. o Lower order needs include physiological, safety, and social needs. o Higher order needs include esteem and self-actualization.

• Maslow assumes that some needs are more important than others and must be satisfied before the other needs can serve as motivators.

• Maslow’s view is quite popular in U.S. firms because it appears easily implemented. Research does not support the existence of a precise five-step hierarchy of needs. The needs more likely operate in a flexible hierarchy. Some research suggests that higher-order needs become more important than lower-order needs as people move up the organizational hierarchy.

LECTURE ENHANCEMENT You can generate discussion by asking students to identify the types of rewards that could be used to satisfy the various needs.

ERG Theory • Clayton Alderfer’s ERG theory differs from Maslow’s theory. ERG theory collapses Maslow’s five need categories into three: existence needs, relatedness needs, and growth needs. o Existence needs are the desires for physiological and material well-being. o Relatedness needs refer to the desire for satisfying interpersonal relationships.

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o Growth needs refer to the desire for continued personal growth and development.

Whereas Maslow’s theory argues that individuals progress up the “needs” hierarchy, ERG theory emphasizes a unique frustration-regression component wherein an already satisfied need can be activated when a higher need level cannot be satisfied.

Unlike Maslow’s theory, ERG theory contends that more than one need may be activated at the same time.

The supporting evidence on ERG theory is encouraging, particularly with regard to the frustrationregression component.

Manifest Needs Theory • Using the Thematic Apperception Test (TAT), David McClelland identified three needs that he believed are important for understanding human behavior: need for achievement, need for affiliation, and need for power. o Need for achievement (nAch) is the desire to do something better or more efficiently, to solve problems, or to master complex tasks. o Need for affiliation (nAff) is the desire to establish and maintain friendly and warm relations with others. o Need for power (nPower) is the desire to control others, to influence their behavior, or to be responsible for others.

LECTURE ENHANCEMENT McClelland uses a Thematic Apperception Test (TAT) to measure the strengths of the needs for achievement, power, and affiliation. The Thematic Apperception Test (TAT) is based on need interpretations of descriptions of various stimulus situations. The following scenario can help students understand how this works: In one case, McClelland tested three executives using a photograph that showed a man sitting down and looking at family photos arranged on his work desk. One executive wrote of an engineer who was daydreaming about a family outing scheduled for the next day (nAff). Another described a designer who had picked up an idea for a new gadget from remarks made by his family (nPow). The third saw an engineer who was intently working on a bridge-stress problem that he seemed sure to solve because of his confident look (nAch).

McClelland posits that these three needs are acquired over time as a result of life experiences.

Managers should create work environments that are responsive to the respective need profiles.

• People with high nAch will prefer individual responsibilities, challenging goals, and performance feedback.

• People with high nAff like interpersonal relationships and opportunities for communication.

• People with high nPow seek influence over others and like attention and recognition.

LECTURE ENHANCEMENT

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Which occupations would be best suited for individuals with a high need for achievement? For individuals with a high need for affiliation? For individuals with a high need for power? Matching the motivational needs of the individual with the situation is important not only for the employer, but also for the individual.

Emotional Drives or Needs Model • Lawrence and Nohria’s model of motivation identifies four emotional drives or needs that people seek to satisfy at work and in daily living: o drive to acquire – need to obtain physical and psychological gratification; o drive to bond – need to connect with other people individually and in groups; o drive to comprehend – need to understand things and gain a sense of mastery; and o drive to defend – protect from threats and obtain justice LO 3: UNDERSTAND THE COGNITIVE PROCESSES THAT EXPLAIN MOTIVATED BEHAVIOR IN THE WORKPLACE Process theories • Focus on the thought or cognitive processes that take place within the minds of people and the influences of their behavior.

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J. Stacy Adam’s equity theory posits that people will gauge the fairness of their work outcomes relative to others, and will act to eliminate any felt inequity in the rewards they receive for their work.

Equity and Social Comparisons • The basic foundation of equity theory is social comparison.

• According to equity theory, motivation is a function of how one evaluates rewards received relative to efforts made, and as compared to the rewards received by others relative to their efforts made. A key word in this comparison is “fairness.” Any feelings of unfairness or perceived inequity are uncomfortable. They create a state of mind we are motivated to eliminate.

Equity Theory Predictions and Findings • Felt negative inequity exists when an individual feels that he or she has received relatively less than others have in proportion to work inputs.

• Felt positive inequity exists when an individual feels that he or she has received relatively more than others have.

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LECTURE ENHANCEMENT Ask students to think about a job they have held or currently hold. Next, ask them if they feel they were rewarded fairly. Many are likely to say that they were not paid enough, or that the work was not challenging enough. Be sure to ask them how they responded to the inequity. In nearly all cases, students will indicate that they exhibited one of the responses to perceived inequity that are listed below.

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When either feeling exists, the individual will likely engage in one or more of the following behaviors to restore a sense of equity. o Reduce work inputs. o Change the outcomes (rewards) received. o Leave the situation. o Change the comparison person. o Psychologically distort things. o Try to change efforts of the comparison person.

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Research indicates that people who feel they are overpaid (perceived positive inequity) increase the quantity or quality of their work, whereas those who feel they are underpaid (perceived negative inequity) decrease the quantity or quality of their work.

Equity and Organizational Justice • One of the basic elements of equity theory is the fairness with which people perceive they are being treated. This raises an issue in organizational behavior known as organizational justice—how fair and equitable people view the practices of their workplace. In respect to equity theory, justice notions may enter social comparisons in three ways: 1. Procedural justice is the degree to which rules are always properly followed to implement policies.

2. Distributive justice is the degree to which all people are treated the same under a policy.

3. Interactional justice is the degree to which the people are treated with dignity and respect in decision affecting them.

Expectancy Theory Victor Vroom’s expectancy theory posits that motivation is a result of a rational calculation reflecting the degree to which a person believes that effort will yield acceptable performance, that the performance will be rewarded, and that the value of the reward is highly positive.

Expectancy Terms and Concepts • The three beliefs of expectancy theory are identified as expectancy, instrumentality, and valence. o Expectancy is the probability assigned by an individual that a given level of achieved task performance will follow work effort. o Instrumentality is the probability assigned by the individual that a given level of achieved task performance will lead to various work outcomes. o Valence is the value attached by the individual to various work outcomes.

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Expectancy, instrumentality, and valence combine multiplicatively to determine the level of motivation (Motivation = E x I x V). Thus, for a given outcome to have a strong, positive motivational impact, expectancy and instrumentality must be high and valence must be highly positive.

LECTURE ENHANCEMENT

A useful way to help students understand the multiplier effect of expectancy theory is to relate it to their own academic experiences. Ask students to think about their motivation in their various classes. Do they believe that if they work hard, they will be able to achieve a high level of performance (expectancy)? If they succeed in performing well, do they expect to be rewarded with a high grade (instrumentality)?

Finally, do they value a high grade (valence)? If the answer to any of these questions is “no,” their motivation will suffer.

Expectancy Theory Predictions • Expectancy logic argues that a manger must try to intervene actively in work situations to maximize work expectancies, instrumentalities, and valences that support organizational objectives.

• Expectancy theory predicts that motivation to work hard to earn a reward will be low if the worker feels he or she cannot achieve the performance level necessary for the reward and/or if the worker is not confident a high level of task performance will result in the reward and/or if the worker puts little value on the reward.

Expectancy Implications and Research • To influence expectancies: select people with proper abilities, train them well, support them with needed resources, and identify clear performance goals.

• To influence instrumentality: clarify performance-reward relationships and then to confirm them when rewards are given for performance accomplishments.

• To influence valences: identify the needs that are important to each individual and then try to adjust available rewards to match.

LECTURE ENHANCEMENT A nice way to involve students in the discussion of work-related rewards is to ask them to identify as many different types of rewards as possible that managers can use to motivate subordinates. While students are typically able to quickly list a large variety of rewards, they also usually overlook some more subtle rewards such as an enriched job or training opportunities. You may want to wrap up this discussion by presenting the following table and complimenting the students on the number of rewards they named.

Intrinsic Rewards: Participation in decision making Increased responsibility Opportunities for personal growth

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Extrinsic Rewards: Performance bonuses Overtime and holiday premiums Profit sharing

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Greater job freedom and discretion More interesting work Diversity of activities Training opportunities

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Stock options Impressive titles Preferred work assignments Praise and recognition

Goal Setting Theory Motivational Properties of Goals • Goal setting is the process of developing, negotiating, and formalizing the targets or objectives that a person is responsible for accomplishing.

• The authors of goal setting theory say “Purposeful activity is the essence of living action. If the purpose is neither clear nor challenging, very little gets accomplished.”

Goal-Setting Guidelines • Difficult goals are more likely to lead to higher performance than are less difficulty ones.

• Specific goals are more likely to lead to higher performance than are no goals or vague or very general ones.

• Task feedback, or knowledge of results, is likely to motivate people toward higher performance by encouraging the setting of higher performance goals.

• Goals are most likely to lead to higher performance when people have the abilities and the feelings of self-efficacy required to accomplish them.

• Goals are most likely to motivate people toward higher performance when they are accepted and there is commitment to them.

CHAPTER STUDY GUIDE What is motivation?

• Motivation is an internal force that accounts for the level, direction, and persistence of effort expended at work.

What can we learn from the needs theories of motivation?

• Maslow’s hierarchy of needs theory views human needs as activated in a five-step hierarchy ranging from physiological (lowest), to safety, to social, to esteem, to self-actualization (highest).

• Alderfer’s ERG theory collapses the five needs into three: existence, relatedness, and growth; it maintains that more than one need can be activated at a time.

• McClelland’s acquired needs theory focuses on the needs for achievement, affiliation, and power, and it views needs as developed over time through experience and training.

• Lawrence and Nohria’s model identifies the need to acquire, bond, comprehend, and defend.

Why is the equity theory of motivation important?

• Equity theory points out that social comparison takes place when people receive rewards.

• Any felt inequity in social comparison will motivate people to behave in ways that restore a sense of perceived equity to the situation.

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When felt inequity is negative—that is, when the individual feels unfairly treated—he or she may decide to work less hard in the future or to quit a job for other, more attractive opportunities.

Organizational justice is an issue of how fair and equitable people view workplace practices; it is described in respect to distributive, procedural, or interactional justice.

What are the insights of the expectancy theory of motivation?

• Vroom’s expectancy theory describes motivation as a function of an individual’s beliefs concerning effort-performance relationships (expectancy), work-outcome relationships (instrumentality), and the desirability of various work outcomes (valence).

• Expectancy theory states that Motivation = Expectancy x Instrumentality x Valence, and argues that managers should make each factor positive in order to ensure high levels of motivation.

How does goal-setting influence motivation?

• Goal setting is the process of developing, negotiating, and formalizing performance targets or objectives.

• Research supports predictions that the most motivational goals are challenging and specific, allow for feedback on results, and create commitment and acceptance.

KEY TERMS 360-degree review: an assessment that gathers feedback from a jobholder’s supervisors, peers and subordinates, internal and external customers, and self-ratings.

Behaviorally anchored rating scale (BARS): links performance ratings to specific and observable job behaviors.

Bonuses: extra pay awards for special performance accomplishments.

Distributive justice: the perceived fairness of rewards and outcomes.

Drive to acquire: the need to obtain physical and psychological gratification.

Drive to bond: the need to connect with other people individually and in groups.

Drive to comprehend: the need to understand things and gain a sense of mastery.

Drive to defend: the need to be protected from threats and obtain justice.

Employee stock ownership plans (ESOPs): give stock to employees or allow them to purchase stock at special prices.

Employee value proposition: represents the exchange of benefits provided by an organization in return for the effort, loyalty, commitment, creativity, and performance of employees.

Esteem needs: reflect one’s desire for recognition, status, and respect from others as well as the need for self-esteem.

Equity theory: argues that people are motivated to behave in ways that restore or maintain a sense of balance – perceived equity – in their minds.

Existence needs: desires for physiological and material well-being, or the basic requirements of human life.

Expectancy: people’s belief that if they try, they will perform Expectancy theory: says that work motivation is determined by individual beliefs regarding effortperformance relationships and work outcomes.

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Extrinsic motivation: the tangible and external inducements that drive someone to do a task.

Felt negative inequity: exists when an individual believes that he or she has received relatively less than others in proportion to work efforts.

Felt positive inequity: exists when an individual believes that he or she has received relatively more than others.

Forced distribution: in performance appraisal forces a set percentage of persons into predetermined rating categories.

Gain sharing: rewards employees in some proportion to changes in organizational profits.

Graphic rating scales: in performance appraisal assign scores to specific performance dimensions.

Goal Setting: is the process of developing, negotiating, and formalizing the targets or objectives that a person is responsible for accomplishing.

Growth needs: desires for continued personal growth and development.

Higher order needs: the esteem and self-actualization needs of Maslow’s hierarchy.

Instrumentality: the belief that if one performs, one will receive the outcome.

Interactional justice: the extent to which people feel they are treated fairly, e.g., with dignity and respect.

Intrinsic motivation: the intangible, positive feelings of satisfaction and contentment that one experiences as a result of good performance.

Lower-order needs: the physiological, safety and social needs of Maslow’s need hierarchy.

Merit pay: links an individual’s salary or wage increase directly to measures of performance accomplishment.

Needs theories: focus on individual needs – physiological, social, or psychological deficiencies – that we want to reduce or eliminate.

Motivation: forces within an individual that account for the level and persistence of effort expended on a task.

Need for achievement (nAch): an individual’s desire to set and achieve challenging goals.

Need for affiliation (nAff): one’s desire for close personal relationships and a sense of belonging.

Need for power (nPower): one’s desire for power either to control other people or to achieve important goals.

Organizational justice: how fair and equitable people view the practices and outcomes of their workplace.

Paired comparison: in performance appraisal compares each person with every other one.

Performance-contingent pay: you can earn more when you produce more and earn less when you produce less.

Performance management: the supervision and oversight of employees to achieve objectives in an efficient and effective manner.

Person-job fit: the extent to which an individual’s skills, interests, and personal characteristics match well with the requirements of the job.

Person-organization fit: the extent to which an individual’s values, interests, and behaviors are consistent with the culture of the organization.

Physiological needs: the physical requirements for human survival such as air, water, food, sleep, and warmth.

Perceived inequity: occurs when someone believes that he or she has been under-rewarded or overrewarded for work contributions in comparison to other people.

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Procedural justice: the degree to which the process for making decisions is properly followed.

Process theories: examine how thought processes affect decisions people make about the direction, level, and persistence of their efforts.

Profit sharing: rewards employees in some proportion to changes in organizational profits.

Psychological contract: the implicit agreement about the exchange of value between the individual and the organization.

Relatedness needs: desires for satisfying interpersonal relationships.

Ranking: in performance appraisal orders each person from best to worst.

Safety needs: include an innate desire for security and safety in all aspects of life, be it personal safety, financial security, or physical well-being.

Self-actualization: Maslow’s theory refers to the need and desire of a person to realize his or her full potential. It is the desire to accomplish all that one can be.

Skill-based pay: rewards people for acquiring and developing job-relevant skills.

Social needs: reflect one’s desire for relationships, friendships, intimacy, and sense of belonging.

Stock options: give the right to purchase shares at a fixed price in the future.

Valence: the value attached by the individual to various work outcomes.

SPECIAL FEATURES Be a Critical Thinker: Paying for Degrees Fifty people, including famous actresses and business leaders, were charged by the Justice Department for bribing and misleading colleges to get their kids into elite universities. It became clear that this scandal compromised the integrity of the admissions process and cost otherwise deserving students the opportunity to attend a particular university. The scandal also revealed the desire and motivation of parents and students to attain the high social status that comes with attendance at elite universities. Ask students what they would do if they found out their parents had misled admissions to gain access to their university? What pressures did students face to get admitted into certain schools? What can society do to shift motivation toward true achievement?

Bringing OB to Life: Hitting the Snooze Button to Improve Performance About one-third of American workers don’t get enough sleep to perform at high levels on the job. And “chronic exhaustion,” meaning employees who don’t get enough rest, comes at high cost to not just the individual but also the organization. It is estimated to cost U.S. companies $60 billion a year in lost productivity. If we made the quick nap acceptable in the organizational culture, everyone might gain.

That’s part of the message in a book, Sleep for Success, by Psychologist James Maas. Ask students whether they see this as loafing or actually helpful. How would they react if they were employees versus managers?

Checking Ethics in OB: Information Goldmine Creates a Dilemma A worker opens the top of the office photocopier and finds a document someone has left behind. It is a list of performance evaluations, pay and bonuses for 80 co-workers. She reads the document. Lo and behold, someone considered a “nonstarter” is getting paid more than others regarded as “super workers.”

New hires are brought in at substantially higher pay and bonuses than are paid to existing staff. To make matters worse, the worker who finds the document is in the middle of the field and not at the top, where

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she thought she should be. Ask students what they would do if they were this worker. Students should analyze the legal and ethical implications of the action they are proposing. Finally, students should be asked to address what punishment (if any) should the employee who left the document on the printer receive.

OB in the Office: 360-Degree Assessments Motivate Employees by Including Their Perspective in Performance Goals and Objectives Managers and supervisors need to understand what motivated their employees because positively motivated team members are more likely to reach for more aggressive goals that result in greater ownership over the results. 360-degree feedback assists with that understanding. In order to maximize benefits, managers and employees must view the process as a positive one, with feedback used to encourage rather than punish. Rather than first focusing on problems, motivating feedback must focus on strengths first and then weaknesses. A development plan should be created to identify desired competencies, specific plans for attaining success, and an outline of responsibilities for each team member. Ask students who they would choose to provide a 360-degree assessment on them in their role as college students and why. How can they prepare themselves to positively receive the feedback? How can they help prepare others for the same?

Research Insights: Interactional Justice Perceptions Affect Intent to Leave Research has shown that the perceived use of negotiation pressure by recruiters has a negative impact on perceived interactional justice by job applicants and that perceived interactional injustice during recruiting negotiations has a positive long-term impact on later intentions to leave by newly hired employees. Ask students what steps can be taken by recruiters to avoid perceptions of interactional injustice during a hiring process.

Worth Considering or Best Avoided? Hiring Hourly Workers? Does Paying More Lead to More Motivated Workers?

More and more Americans are finding themselves in hourly paid jobs, and they don’t pay well on average. Whole Foods takes a different approach. It views business as a balancing act between owner/shareholders, customers, and employees as key stakeholders. Although the interest of each stakeholder is important, balance among all three is the goal. At Whole Foods, this concept is described as “conscious capitalism,” and one of its characteristics is paying employees more than the law or market conditions require. At the moment, this is about $15.00 per hour, often with benefits. Ask students whether more employers should be adopting this philosophy on hourly pay. Or, is this just an interesting case that probably wouldn’t apply in most other settings? What would be their position if they were employees versus small business owners?

OB IN ACTION: SUGGESTED ACTIVITIES Case for Critical Thinking Team and Experiential Exercises

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It Isn’t Fair…

What Do You Value in Work?

CASES FOR CRITICAL THINKING

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IT ISN’T FAIR… CROSS-REFERENCE AND INTEGRATION Perception and attribution; performance management and rewards; communication; ethics and decision making CASE SUMMARY Mary Jones accepts a job with a salary of $25,000 per year. She is happy with this salary and during her first year of work spends a significant amount of time working extra hours after work, on the weekends, and while on assignment in Costa Rica. She received no extra money for working these hours; however, after one year she is rewarded with the highest performance evaluation that her manager has ever given.

As a result, she receives a ten percent increase in salary effective immediately. After her review, she finds out that Sue (another employee with similar qualifications who has just been hired) is making $28,000 per year. She is obviously upset about this and responds by saying, “It isn’t fair!”

[There are no web sites that directly pertain to this case.]

REVIEW QUESTIONS AND SUGGESTED ANSWERS 1. Indicate Mary’s attitude before and after meeting Sue. If there was a change, why?

Before the meeting with Sue, Mary was very satisfied with her job. She enjoyed the challenges and working with the people at Universal Products. The review process and the increase in salary provided Mary with positive feedback that would motivate her to continue working hard and to do a good job as before. After the meeting with Sue, the positive feedback that Mary had received from her manager was overshadowed by the fact that, even with the ten percent increase, Sue (who had no experience) was still making more money than Mary was.

2. What do you think Mary will do now? Later?

Mary will become less interested in working hard now that it has been demonstrated that she will not be fairly rewarded for the extra effort. If the situation really annoys her, she may approach her manager about the issue or even begin to look for a new job.

3. What motivational theory applies best to this scenario? Explain.

The motivational theory that best applies here is equity theory. Before the meeting, Mary would have been happy to continue working hard as before. Unfortunately in this situation, the reward system lacked fairness and consistency.

TEAM AND EXPERIENTIAL EXERCISES WHAT DO YOU VALUE IN WORK? CROSS-REFERENCE AND INTEGRATION Diversity and individual differences, performance management and rewards; motivation; job design; decision making INSTRUCTOR’S NOTES This exercise should stimulate considerable interest among your students. The exercise not only highlights the differences in work-related values between men and women, but it also illustrates potential misconceptions that one gender may have about the other. Caution your students at the beginning of the

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exercise that there are no “right answers” to the questions and that the point of the exercise is not to be judgmental regarding what one gender prefers over another. Instead, the point of the exercise is to illustrate gender-based differences and how “misperceptions” often represent reality until we stop and listen to what people really feel is important to them and what they value.

Also, during or after the exercise, you might consider asking students to volunteer to share their feelings about why certain work-related outcomes are important to them. Often, the importance of a particular jobrelated outcome to a person hinges on his or her past experiences. For example, if a person was in a job that provided very little job security and that made the individual feel insecure, then the variable “job security” will probably be very salient to the person and rank high in his or her categorization of desirable job outcomes.

The experience of many instructors is that men tend to underestimate the importance of intrinsic rewards for women and are often wrong about their top-rated dimensions. This exercise is most engaging when you emphasize gender-role issues. However, you may choose to play down this aspect in order to focus more clearly on the issue of motivation.

You may wish to conclude the exercise by posing the following thought-provoking questions to the class: • Where do we get our ideas of what people want from work?

• Why is it important for managers to know what people want from work?

• To what extent do our personal expectations enter into our managerial decision-making?

In addition, after the exercise in concluded, you might want to share the following information with your students. The table shown below reports the results of a study conducted by Beutell and Brenner (1986).

In the study, men and women agreed on the most important characteristics of work; however, the biggest difference for the five highest-ranked dimensions occurred in the “high income” dimension, with men ranking it higher.

Results of the Beutell and Brenner (1986) Study (1 is the strongest ranking) Item Provides job security Provides the opportunity to earn a high income Permits advancement/responsibility Is respected by other people Provides comfortable working conditions Rewards good performance with recognition Encourages continued development/skills Is intellectually stimulating

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Men (rank) 2.5 2.5 4.0 5.5 7.0 5.5 8.0 9.0

Women (rank) 2.0 5.0 6.5 3.0 4.0 8.5 6.5 8.5

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SUGGESTED TED TALKS Dan Pink – The Puzzle of Motivation (18:36); https://www.ted.com/talks/dan_pink_on_motivation Dan Ariela – What Makes Us Feel Good About Our Work? (20:15); https://www.ted.com/talks/dan_ariely_what_makes_us_feel_good_about_our_work Derel Sivers – Keep Your Goals To Yourself (3:01); https://www.ted.com/talks/derek_sivers_keep_your_goals_to_yourself Philip Krinks – Finding Your Personal Mission in Life (7:29); https://www.ted.com/talks/philip_krinks_finding_your_personal_mission_in_life Erez Yoeli – How to Motivate People to Do Good For Others (12:15); https://www.ted.com/talks/erez_yoeli_how_to_motivate_people_to_do_good_for_others Alexander Wagner – What Really Motivates People to Be Honest in Business (13:21); https://www.ted.com/talks/alexander_wagner_what_really_motivates_people_to_be_honest_in_business

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Organizational Behavior, 2e

Chapter 6 WORK WELL IN TEAMS CHAPTER OVERVIEW This chapter focuses on the nature of teams in organizations and how to achieve high performance in teams. The chapter begins by defining the term “team,” as a group of people working together to achieve a common purpose for which they hold themselves collectively accountable. The chapter also focuses on ways to overcome issues in team processes including entry problems, task leadership, role difficulties and norms. The importance of good team communication is emphasized through a discussion of networks, information technology and proxemics. The chapter then discusses when a team is effective by achieving high levels of task accomplishment, member satisfaction, and viability to perform successfully over the long term. Teams help organizations through synergy in task performance, the creation of a whole that is greater than the sum of its parts. Teams help satisfy important needs for their members by providing them with things like job support and social interactions. The stages of team development – forming, storming, forming, performing, adjourning – and their somewhat distinct management problems are covered followed by a description of how teams work. The chapter concludes with a section on group decision making, its problem areas and techniques for improving creativity.

CHAPTER OUTLINE UNDERSTANDING TEAM EFFECTIVENESS What Makes a Team Effective?

How Can We Set Teams up for Success?

How Does Member Diversity Affect Team Performance?

UNDERSTANDING TEAM DYNAMICS What Are Roles and Role Dynamics?

What Are Norms?

What Are Other Important Team Dynamics?

BUILDING A HIGH-PERFORMANCE TEAM How Do We Build a High-Performance Team?

What Are the Stages of Team Development?

What Is the Role of Team Cohesiveness?

How Can We Improve Team Decision Making?

CHAPTER LECTURE NOTES

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LO 1: OUTLINE WHAT MAKES TEAMS MORE AND LESS EFFECTIVE What Makes a Team Effective?

Satisfying Task and Maintenance Needs o

The achievement of sustained high performance by groups requires that both “task needs” and “maintenance needs” be met. Although anyone who is formally appointed as a group leader should help fulfill these needs, all members should also contribute. o Distributive leadership is the sharing among team members of the responsibilities for task and maintenance contributions that move a group forward.

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The factors that are involved in leading by task activities and leading by maintenance activities include: o Task activities refer to the various things members do that directly contribute to the performance of important tasks. o Maintenance activities refer to the various things members do to support the group’s social and interpersonal relationships.

LECTURE ENHANCEMENT Ask students to describe examples of task activities, maintenance activities, and dysfunctional activities that they have encountered in their group experiences.

Developing Synergy Effective groups offer the potential for synergy ⎯ the creation of a whole that is greater than the sum of the parts.

Teams often have performance advantages over individuals acting alone in following situations: 1. When there is no clear expert in a particular task or problem.

2. When problems are complex, requiring a division of labor and the sharing of information.

3. Teams can be more creative and innovative because of their tendencies to make riskier decisions.

Potential benefits for team members include the following: • People learn from each other and share job skills and knowledge.

• Groups are important sources of need satisfaction for their members.

• Members can provide emotional support for each other in times of crisis or pressure.

• Members’ contributions can help them experience self-esteem and personal involvement.

How Can We Set Teams up for Success?

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Team effectiveness is influenced by both inputs—“right players in the right seats,” and by processes— “on the same bus, headed in the same direction.”

LECTURE ENHANCEMENT If you have assigned group projects to your students, be sure to ask students to indicate how the various group inputs (i.e., tasks; goals, rewards, and resources; technology; membership diversity; and group size) and group processes (i.e., group and intergroup dynamics) affected their group performance, satisfaction, and future viability.

Provide Appropriate Resources and Setting • •

Appropriate goals, well-designed reward systems, adequate resources, and appropriate technology are all essential to support the work of teams.

Team performance can suffer when resources—information, budgets, work space, deadlines, rules and procedures, technologies, and the like—are insufficient to accomplish the task. By contrast, having a supportive organizational setting within which to work can be a strong launching pad for team success.

Clarify the Team Task Tasks place different demands on groups, with varying implications for group effectiveness.

• The technical demands of a group’s task include its routineness, difficulty, and information requirements.

• The social demands of a task involve relationships, ego involvement, controversies over ends and means, and the like.

• Tasks that are complex in technical demands require unique solutions and more information processing.

• Tasks that are complex in social demands involve difficulties reaching agreement on goals or methods for accomplishing them.

Be Careful about Team Size The size of a team, as measured by the number of its members, can make a difference in a team’s effectiveness.

• As a team becomes larger, more people are available to divide up the work and accomplish needed tasks, which can increase performance and member satisfaction, but only up to a point.

• As a team size continues to grow, communication and coordination problems often set in, and in turn satisfaction may decline while turnover, absenteeism, social loafing, and team logistical problems may increase.

• A good size for problem-solving teams is between five and seven members.

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Consider Who’s on the Team Team composition is the mix of abilities, skills, backgrounds, and experiences that the members bring to the team.

• FIRO-B theory (with “FIRO” standing for fundamental interpersonal orientation) identifies differences in how people relate to one another in teams based on their needs to express and receive feelings of inclusion, control, and affection.

• In homogeneous teams, members may find it very easy to work together but they may also suffer performance limitations if their collective skills, experiences and perspectives are not a good match for complex skills.

• In heterogeneous teams, a wide pool of talent and viewpoints is available for problem solving but this diversity may also create difficulties as members try to define problems, share information, and handle interpersonal conflicts.

• Status congruence occurs when a person’s position within the group is equivalent in status to positions held outside of the group. Status is a person’s relative rank, prestige, or standing in a group.

How Does Member Diversity Affect Team Performance?

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Team diversity in the form of different values, personalities, experiences, demographics, and cultures among the members, is an important team input.

In homogeneous teams where members are very similar to one another, teamwork usually isn’t much of a problem. The members typically find it quite easy to work together and enjoy the team experience.

In heterogeneous teams where members are very dissimilar, teamwork problems are more likely. The mix of diverse personalities, experiences, backgrounds, ages, and other personal characteristics may create difficulties as members try to define problems, share information, mobilize talents, and deal with obstacles or opportunities.

Diverse teams have more resources and viewpoints available to engage in problem solving, especially when tasks are complex and demanding. Yet these advantages are not automatic; the diversity must be tapped if the team is to realize the performance benefits.

Diversity–consensus dilemma is the tendency for diversity in groups to create process difficulties even as it offers improved potential for problem solving.

This diversity and performance relationship is apparent in interesting research newly reported in the area of collective intelligence – the ability of a group or team to perform well across a range of tasks.

Group dynamics refer to the forces operating in groups that affect the way members relate to and work with one another.

LO 2: EXPLAIN HOW TO RECOGNIZE AND MANAGE TEAM DYNAMICS What Are Roles and Role Dynamics?

A role is a set of expectations associated with a job or position on a team. When team members are unclear about their roles or experience conflicting role demands, performance problems can occur.

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Role ambiguity occurs when someone is uncertain about what is expected in his/her role.

Role overload occurs when too much is expected and the individual feels overwhelmed with work.

Role underload occurs when too little is expected and the individual feels underutilized.

Role conflict occurs when someone is unable to respond to role expectations that conflict with one another. Four common types of role conflict are the following:

LECTURE ENHANCEMENT Divide the class into seven groups. Assign a different one of the following types of conflicting role demands to each group: role ambiguity, role overload. In a five-minute period, have each group come up with as many examples of its assigned type as possible. Have each group share some of its examples with the rest of the class.

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There are four common forms of role conflict that people at work and in teams can experience.

1. Intrasender role conflict occurs when the same person sends conflicting expectations.

2. Intersender role conflict occurs when different people signal conflicting and mutually exclusive expectations.

3. Person-role conflict occurs when a person’s values and needs come into conflict with role expectations.

4. Inter-role conflict occurs when the expectations of two or more roles held by the same individual become incompatible, such as the conflict between work and family demands.

Role negotiation is a process for discussing and agreeing upon what team members expect of one another.

What Are Norms?

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Norms represent beliefs about how members of a group or team are expected to behave; they are rules or standards of conduct.

Types of Team Norms •

A key norm in any setting is the performance norm, which conveys expectations about how hard group members should work.

Other norms that operate with positive and negative implications for groups and organizations include the following: • Ethics norms • Organizational and personal pride norms • High-achievement norms • Support and helpfulness norms • Improvement and change norms How to Influence Team Norms

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There are several things managers and team leaders can do to help their teams develop and operate with positive norms, ones that foster high performance as well as membership satisfaction: 1. Act as a positive role model.

2. Hold meetings to discuss team goals and also discuss team norms 3. Select members who can and will live up to the desired norms 4. Provide training and support 5. Reward and positively reinforce desired behaviors 6. Hold regular meetings to discuss team performance and plan how to improve it

LECTURE ENHANCEMENT Ask students to provide examples of both positive and negative performance norms that they have encountered in the different groups of which they were members. Discuss how these norms influenced the members’ behavior.

What Are Other Important Team Dynamics?

Social Facilitation Social facilitation is the tendency for one’s behavior to be influenced by the presence of others in a group or social setting.

Social facilitation theory indicates that working in the presence of others creates an emotional arousal or excitement that stimulates behavior and therefore affects performance.

• Arousal tends to work positively when a person is proficient with the task.

• Arousal tends to work negatively when the task is not well learned.

Social Loafing Social loafing, also known as the Ringelmann effect, is the tendency of people to work less hard in a group than they would individually.

People may not work hard in groups for the following reasons: • Their individual contributions are less noticeable in the group context.

• They prefer to see others carry the workload.

Social loafing may be diminished or prevented by doing the following: • Define roles and tasks to maximize individual interests.

• Raise accountability by making individual performance expectations clear and identifiable.

• Tie individual rewards to their performance contribution to the group.

Inter-Team Dynamics

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Inter-team dynamics are relationships between groups cooperating and competing with one another.

On the positive side, competition among teams can stimulate them to become more cohesive, work harder, become more focused on key tasks, develop more internal loyalty and satisfaction, or achieve a higher level of creativity in problem solving.

On the negative side between-team dynamics may drain and divert energies because members spend too much time focusing on their animosities or conflicts with another team than on the performance of their own.

Avoiding the negative side: o Teams can be refocused on a common enemy or a common goal o Direct negotiations can be held among the teams o Members can be engaged in intergroup team-building o Reward systems can also be refocused on team contributions

Communication Challenges •

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Proxemics ⎯ the study of how space is utilized ⎯ is also important to team communication.

Architects and consultants specializing in office design help executives build spaces conducive to the intense communication and teamwork needed today.

Virtual communication networks link team members through electronic communication. o Technology, such as an online discussion forum, acts as the “hub member” in the centralized communication network; simultaneously, through chats and tweets and more, it acts as an ever-present “electronic router” that links members of decentralized networks on an as-needed and always-ready basis.

LO 3: DESCRIBE HOW TO BUILD A HIGH-PERFORMANCE TEAM How Do We Build a High-Performance Team?

Use Team Building • When newly founded, work groups and teams must master challenges as members come together and begin the process of growing and working together as they pass through the various stages of group development.

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Team building is a sequence of planned activities designed to gather and analyze data on the functioning of a group and to initiate changes designed to improve teamwork and increase group effectiveness.

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The process begins when someone notices that a problem exists or may develop with team effectiveness. Members then work together to gather data relating to the problem, analyze these data, plan for improvements, implement the action plan, and evaluate the results.

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The goal of team building is to get good answers to such questions as: 1. “How well are we doing in terms of task accomplishment.”

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2. “How satisfied are we as individual members with the group and the way it operates?”

Capitalize on Collective Intelligence High-performance teams excel by capitalizing on collective intelligence – the shared or group intelligence that emerges when a collection of individuals works together in a collaborative way. Collective intelligence is higher in teams where one or a few members do not dominate processes and allows a team to perform beyond what any individual can do working alone.

Carefully Onboard New Members •

Special difficulties are likely to occur when members first get together in a new group or work team, or when new members join an existing one.

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New members may worry about the following factors: o Participation ⎯ “Will I be allowed to participate?” o Goals ⎯ “Do I share the same goals as others?” o Control ⎯ “Will I be able to influence what takes place?” o Relationships ⎯ “How close do people get?” o Processes ⎯ “Are conflicts likely to be upsetting?”

LECTURE ENHANCEMENT Identify individuals in the class who have started a new job recently. Have them discuss their experiences in terms of new member problems.

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According to Edgar Schein, following three behavior profiles describe how people may cope with individual entry problems in self-serving ways that might hinder group operations o The tough battler is frustrated by a lack of identity in the new group and may act aggressively or reject authority. o The friendly helper is insecure, suffering uncertainties of intimacy and control. o The objective thinker is anxious about how personal needs will be met in the group.

What Are the Stages of Team Development?

The five stages of team development are forming, storming, norming, performing, and adjourning.

Forming Stage • •

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In the forming stage of group development, a primary concern is the initial entry of members to a group.

Members are interested in getting to know each other and discovering what is considered acceptable behavior, in determining the real task of the group, and in defining group rules.

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Storming Stage • • • • •

The storming stage of group development is a period of high emotionality and tension among the group members.

Hostility and infighting may occur, the group typically experiences many changes, and coalitions or cliques may form Members’ expectations tend to be clarified, and attention shifts toward obstacles standing in the way of group goals.

Individuals begin to understand one another’s interpersonal styles.

Efforts are made to find ways to accomplish group goals while satisfying individual needs.

Norming Stage • • • •

The norming stage of group development, sometimes called initial integration, is the point at which the group begins to come together as a coordinated unit.

The turmoil of the storming stage gives way to a precarious balancing of forces.

Group members strive to maintain a positive balance and the desire for group harmony may obscure group problems.

Some members may mistake norming as the stage of ultimate maturity.

Performing Stage • • • • •

The performing stage, sometimes called total integration, marks the emergence of a mature, organized, and well-functioning group.

Complex tasks and internal disagreements are handled in creative ways.

Members are motivated by group goals and are generally satisfied.

The primary challenges are continued efforts to improve relationships and performance.

Group members are able to adapt successfully to changing opportunities and demands.

Adjourning Stage • • •

In the adjourning stage, a well-integrated group is able to disband, if required, with its work is accomplished.

The adjourning stage is especially important for temporary groups.

The willingness to disband when the job is done and to work well together in future responsibilities, group or otherwise, is an important long-run test of group success.

LECTURE ENHANCEMENT

Ask students to describe their experiences with different teams within the context of stages of group development. What happened for them at each stage? How do the students’ experiences compare to the

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ideas presented above? Did anyone have an experience wherein the group seemed to get stuck at one particular stage ⎯ say, the storming stage? What happened, and what insights does it provide?

What Is the Role of Team Cohesiveness?

Group or team cohesiveness is the degree to which members are attracted to and motivated to remain part of it.

Team Cohesiveness Affects Performance The basic rule of conformity in group dynamics states that the more cohesive the group, the greater the conformity of members to group norms. Cohesiveness and conformity to performance norms affect group performance.

• When cohesiveness is high and performance norms are positive, performance will be high.

• When cohesiveness is low and performance norms are positive, performance will be moderate.

• When cohesiveness is low and performance norms are negative, performance will be low to moderate.

• When cohesiveness is high and performance norms are negative, performance will be low.

How to Influence Team Cohesiveness •

Team leaders and managers must be aware of the steps they can take to build cohesiveness. Group cohesiveness can be increased or decreased by making changes in group goals, membership composition, interactions, size, rewards, competition, location, and duration.

LECTURE ENHANCEMENT Ask students to look at ways to increase and decrease team cohesiveness. Have them apply these to their various real life team experiences. Later, have the students share their examples with the rest of the class.

How Can We Improve Team Decision Making?

Decision making is the process of choosing among alternative courses of action.

Consider the Ways Teams Make Decisions 1. Decision by lack of response ⎯ one idea after another is suggested without any discussion-taking place; when the group finally accepts the idea, all others have been bypassed and discarded by simple lack of response rather than by critical evaluation.

2. Decision by authority rule ⎯ the chairperson, manager, or leader makes a decision for the group.

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3. Decision by minority rule ⎯ two or three people are able to dominate or “railroad” the group into making a decision to which they agree.

4. Decision by majority rule ⎯ formal voting may take place, or members may be polled to find the majority viewpoint.

5. Decision by consensus ⎯ discussion leads to one alternative being favored by most members and the other members agree to support it.

6. Decision by unanimity ⎯ all group members agree totally on the course of action to be taken.

LECTURE ENHANCEMENT Give a group “pop” quiz on the text material. Form groups of five or six members. Only one copy of the quiz should be given to each group. Students are permitted to talk to each other, but must arrive at one answer to each of the quiz questions. Grade the quizzes. Discuss how the different groups made their decisions regarding the correct answers. Consider how their different decision-making approaches affected the results.

Understand and Avoid Groupthink •

Groupthink is the tendency of cohesive group members to lose their critical evaluative capabilities.

Groupthink can result in poor decisions being made.

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Symptoms of groupthink include: o Illusions of invulnerability o Rationalizing unpleasant and disconfirming data o Belief in inherent group morality o Stereotyping competitors as weak, evil, and stupid o Applying direct pressure to deviants to conform to group wishes o Self-censorship by members o Illusions of unanimity o Mind guarding

LECTURE ENHANCEMENT Ask the students whether they have ever been in a group that succumbed to groupthink. If so, have them describe what happened and how they attempted to deal with groupthink.

CHAPTER STUDY GUIDE What makes a team effective?

• An effective team is one that achieves high levels of task performance, member satisfaction, and team viability.

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Effective teams successfully meet task and maintenance needs. Task needs support the performance and operational requirements of a team; maintenance needs support the social and interpersonal relationships among team members.

Effective teams offer the benefit of synergy: the creation of a whole that is greater than the sum of its parts. Teams that achieve synergy unlock member talents and rally enthusiasm for creativity and high performance.

What factors contribute to group success?

• Team success comes from team inputs – “right players in the right seats” – and team processes – “on the same bus, headed in the same direction.” This can be remembered as: Quality of Inputs x (Process Gains – Process Losses) = Team Output • Team inputs establish the initial foundations for team performance. To set teams up for success we need to provide appropriate resources and setting, clarify the team task, be careful about any team size, and pay attention to team composition.

• Team processes include things like communication, conflict, and decision making. The stronger the team inputs, the more likely process gains will be greater than losses.

• Team output represents team effectiveness, measured in things like performance, productivity, and innovation.

How does member diversity affect team performance?

• Homogenous teams may perform better, but risks of homogeneity include lack of thought diversity or diverse skills needed to perform well.

• Heterogeneous teams may be more difficulty defining problems, sharing information, mobilizing talents, and dealing with obstacles or opportunities, but if the differences can be managed, diversity can be a source of advantage and enhanced performance potential.

• The diversity-consensus dilemma can make it harder for team members to work together in the early stages of the team, but if it can be worked through, teams can benefit from expanded skills and perspectives of team members.

What are roles and role dynamics?

• Roles are sets of expectations associated with a particular job or position on a team.

• Role ambiguity occurs when a person is uncertain about his or her role or job on a team.

• Role conflict occurs when a person is unable to meet the expectations of others. Four common forms of role conflict are: intra-sender role conflict, inter-sender role conflict, person-role conflict, and inter-role conflict.

• Role overload occurs when expectations are too high, leading to a feeling of being overwhelmed; role underload occurs when expectations are too low, leading to a feeling of being underused.

Both cause stress, dissatisfaction, and performance problems.

• Role negotiation is a process whereby team members meet to discuss, clarify, and agree on role expectations they hold for each other.

What are norms?

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Norms are beliefs about how members are expected to behave that operate as social rules or standards for team conduct.

Norms help members guide their own behavior and predict what others will do. When members violate norms others will bring their behavior back into alignment with team expectations.

The more directly norms are discussed and confronted in the early stages of team development, the better. It’s best to select, train, support, and reward normative (positively directed) behaviors.

What are other common team dynamics?

• Social facilitation is the tendency for behavior to be influence by the presence of others in a group or social setting. It can enhance or detract from an individual member’s performance contributions.

• Social loafing is a common problem in teams. It occurs when people work less hard in a group than they would individually.

• Inter-team dynamics are challenges that happen between teams, not just within them. On the positive side, competition can stimulate positive outcomes; on the negative side, rivalries can reduce team and organizational performance.

• Many companies are working to improve teamwork by arranging physical space to best support communication.

What is team building and how is it achieved?

• Team building is a sequence of planned activities designed to gather and analyze data on the functioning of a team and to initiate changes designed to improve teamwork and build highperformance teams.

• High-performance teams set standards for taking action, measuring results, and gathering performance feedback. They provide a clear focus for team members to find common ground in soling problems and resolving conflicts.

• High-performance teams capitalize on collective intelligence and on-board new members effectively. Three team members types to consider in the onboarding process are the tough battler, the friendly helper, and the objective thinker.

What are the stages of team development?

• The forming stage is concerned with the initial entry of members to a group. Members are interested in getting to know each other and discovering what is considered acceptable behavior, the real task of the team, and the defining rules of the group.

• The storming stage is a period of high emotionality and tension among the group members. Durig this stage, coalitions or cliques may form, premature performance expectations may create uncomfortable pressures, membership expectations tend to be clarified, and attention shifts toward obstacles standing in the way of team goals.

• The norming stage is the point at which the members begin to come together as a coordinated unit. The turmoil of the storming stage gives way to a precarious balancing of forces as team members strive to maintain positive balance.

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The performing stage marks the emergence of a mature, organized, and well-functioning team.

Team members are able to deal with complex tasks and handle internal conflicts, the structure is stable, and members are motivated by team goals and are generally satisfied.

The adjourning stage is disbanding when work is accomplished. Temporary teams must often be able to convene quickly, do their jobs on a tight schedule, and then adjourn – often to reconvene later if needed.

Why is cohesiveness important in teams?

• Cohesiveness is the degree to which members are attracted to and motivated to remain part of the group. It is the feel-good factor or gel that brings a group together.

• Because cohesive teams are a source of personal satisfaction, their members tend to be energetic when working on team activities, less likely to be absent, and less likely to quit the team.

• The rule of conformity states that the greater the cohesiveness of a team, the greater the conformity of members to team norms. When performance norms are positive, conformity has a positive effect; when performance norms are negative, teams suffer from conforming to the negative norm.

• Cohesiveness can be increased or decreased by making changes in goals, membership composition, interactions, size, rewards, competition, location, and duration.

How can we improve team decision making?

• Teams may make decisions through six methods: unanimity, lack of response, authority rule, minority rule, majority rule, and consensus. The best teams don’t limit themselves to any particular decision method; rather, they move back and forth among them.

• Team decisions made by consensus and unanimity offer the advantages of bringing more information, knowledge, and expertise to bear on a problem.

• Groupthink is the tendency of members in highly cohesive groups to lose their critical evaluative capabilities. To avoid groupthink, team leaders and members must stay alert to groupthink symptoms and be quick to take action when they are spotted.

KEY TERMS Adjourning stage: where teams disband when their work is finished.

Cohesiveness: the degree to which members are attracted to a group and motivated to remain a part of it.

Collective intelligence: shared intelligence that emerges when a group of people work together in a collaborative way.

Consensus: is a group decision that has the expressed support of most members.

Decision making: the process of choosing among alternative courses of action.

Disruptive behaviors: behavior in teams that harm the group process and limit team effectiveness.

Diversity-consensus dilemma: is the tendency for diversity in groups to create process difficulties even as it offers improved potential for problem solving.

Effective team: team that achieves high levels of task performance, member satisfaction, and team viability.

FIRO-B theory: examines differences in how people relate to one another based on their needs to express and receive feelings of inclusion, control, and affection.

Forming stage: focuses around the initial entry of members to a team.

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Friendly helper: insecure, suffering from uncertainties of intimacy and control.

Groupthink: the tendency of cohesive group to lose their critical evaluative capabilities.

Heterogeneous teams: members differ in many characteristics.

Homogeneous teams: teams in which members may find it very easy to work together but they may also suffer performance limitations if their collective skills, experiences and perspectives are not a good match for complex skills.

Inter-team dynamics: relationships between groups cooperating and competing with one another.

Maintenance needs: activities that support the social and interpersonal relationships among team members.

Norms: rules or standards for the behavior of group members.

Norming stage: where members start to work together as a coordinated team.

Objective thinker: anxious about how personal needs will be met in the group.

Proxemics: the use of space as people interact.

Performance norm: sets expectations for how hard team members work and what the team should accomplish.

Performing stage: marks the emergence of a mature and well-functioning team.

Roles: sets of expectations for a team members or person in a job.

Role ambiguity: occurs when someone is uncertain about what is expected of him or her.

Role conflict: occurs when someone is unable to respond to role expectations that conflict with one another.

Role negotiation: is a process for discussing and agreeing upon what team members expect of one another.

Role overload: occurs when too much work is expected of the individual.

Rule of conformity: the greater the cohesiveness the greater the conformity of members to team norms.

Social demands: (of a task), involve the degree to which issues of interpersonal relationships, egos, controversies over goals, and the like come into play.

Social facilitation: the tendency of one’s behavior to be influenced by the presence of others in a group.

Social loafing: when people work less hard in groups than they would individually.

Status congruence: involves consistency between a person’s status within and outside a group.

Storming stage: is one of high emotionality and tension among team members.

Synergy: the creation of a whole that is greater than the sum of its parts.

Task needs: activities that directly contribute to the performance of the group.

Team: a group of people brought together to use their complementary skills to achieve a common purpose for which they are collectively accountable.

Team building: a collaborative way to gather and analyze data to improve teamwork.

Team composition: is the mix of abilities, skills, personalities and experiences that the members bring to the team.

Teamwork: occurs when team members accept and live up to their collective accountability by actively working together so that all their respective skills are best used to achieve important goals.

Technical demands: (of a task), include the degree to which it is routine or not, the level of difficulty involved, and the nature of the information requirements.

Tough battler: frustrated by a lack of identity in the new group and may act aggressively or reject authority.

Viability: members work well together on an ongoing basis.

SPECIAL FEATURES Be a Critical Thinker: Teammates May Know You Best: Should They Pay You as Well?

A San Francisco start-up called Coffee & Power was initiated by entrepreneur and co-founder Philip Rosedale. His notion is that workers should be allowed to invest in their co-workers and financially reward them for performance and contributions. Becky Neil, a marketing employee at the firm, says the approach “lets me reward people that management may not always recognize.” Ask students what is your

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gut reaction to this approach to pay – positive or negative or in between? In what types of situations might this practice work best? When should it be avoided altogether?

Bringing OB to Life: Welcoming the Elephant to the Conference Room It’s called “passive aggression.” An example is walking away from a disagreement with a friend or colleague only to turn around and attack them via e-mail. The impersonal e-mail seems to be a more comfortable medium for engaging conflict than face-to-face confrontation. But the price may be bad problem-solving, lost creativity, and poor interpersonal and team dynamics. The insights of OB don’t only apply to training people to better deal with motives, emotions, and interpersonal relations. It also reminds us that sometimes the best approach to difficult situations is to give people a better opportunity to do the right things. Ask student have they engaged in or faced similar behaviors? Who did they face these behaviors from? How did they manage them?

Checking Ethics in OB: Social Loafing May Be Closer Than You Think Whether you call it “social loafing,” “free-riding” or just plain old “slacking off,” the issue is the same: What right do some people have to sit back in team situations and let other people do all the work? Is this ethical? Does everyone on a team have an ethical obligation to do his or her fair share of the work? Ask students how often they face similar situation in teamwork for different classes? How do they deal with them?

OB In the Office: How You Deal with Diversity Can Enhance or Derail Your Career James Damore was a senior software engineer at Google whose internal memo titled “Google’s Ideological Echo Chamber” was leaked to the press. In the memo, he argued that women are underrepresented in the tech industry because of biological differences, not organizational biases. Within a few days of the leak, Google fired James for “perpetuating gender stereotypes.” Have strong feelings is natural, and others hold different strong feelings that we do. We need to deal with diverse team members without becoming frustrated and ruining our careers. We can do this through acknowledging individual differences and finding similarities, getting to know our colleagues, communicating with respect and getting educated through diversity trainings and consultations with human resources.

Research Insights: Demographic Faultlines Pose Implications for Leading Teams in Organizations A study of the increasing diversity of organizational teams finds that strong “faultlines” occur in groups when demographic diversity results in the formation of two or more subgroups whose members are similar to and strongly identify with one another within the subgroup. The result can be that strong faultline groups experience more conflict, less psychological safety and less satisfaction than weak faultline groups. Ask students to share their experiences in strong faultline groups. What techniques did they use to overcome the faultline? This could be a place to tie in the Mastering Management breakout on harnessing team diversity.

Worth Considering or Best Avoided? Would You Please Move Over? We’re Making Room for Millennials and Generation Z Employers find a lot to like in the skills that Millennials and Generation Z bring to the workplace. But, these groups can also demand some special handling and can be spoiled, self-centered, expectant of moving quickly into positions of leadership, and apt to complaining. Some employers go to great lengths

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to keep their Millennial and Gen Z employees happy, even to the point where older employees feel a bit put upon. Ask your students if Millennial and Gen Z employees deserve special treatment. If they were to get it, should it come at the expense of their more senior coworkers? What are the best ways to blend everyone’s needs?

SUGGESTED GROUP PROJECT Assign students randomly to groups of four. Hopefully, the students will end up with classmates with whom they do not usually do group work. Next, have the students meet as a group and come up with a name that reflects something they all have in common. For example: “The snowboarders” or “The middle children” or “The pasta lovers.” Students should have to exchange a great deal of information to find this common ground. (Tell them they cannot choose and easy name like “The university students” or “The residents of your city.”

Next, reassign the students to new random groups and have them do the same thing on-line before the next class period. In the following class, discuss the differences in their communication network and their effectiveness in each medium.

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Chapter 7 BE AN EFFECTIVE LEADER AND FOLLOWER

CHAPTER OVERVIEW The chapter begins by examining leadership and the leadership process which includes leadership as social and identity construction, and collective leadership concepts including distributed and shared leadership. Next, the chapter discusses the traits and behaviors of successful leader, including transformational and transactional leadership styles, authentic leadership, charismatic leadership, and ethical leadership. The chapter concludes with followership including how followers view their roles and how leaders view follower’s roles, and follower behaviors including ethics and organizational citizenship behaviors.

CHAPTER OUTLINE UNDERSTANDING LEADERSHIP What Is Leadership?

How Does Leadership Work?

LEADERS IN ACTION What Makes Leaders Successful?

Why We Act (or Not) as Leaders UNDERSTANDING FOLLOWERSHIP What Is Followership?

Why We Act (Or Not) as Followers

CHAPTER LECTURE NOTES LO 1: DEFINE LEADERSHIP AS AN INFLUENCE RELATIONSHIP BETWEEN LEADERS AND FOLLOWERS What Is Leadership?

Leadership is generated when two or more people who depend on one another work together in an influence relationship to get things done.

A Relational Process

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Leadership depends on what others do. In organizations, leadership and followership are typically tied to the formal hierarchy, with managers as leaders and employees as followers. Despite this, being a manager does not automatically mean you will lead, and being a subordinate can also involve leading.

Shared Leadership •

Shared leadership is a dynamic, interactive influence process among team members working to achieve goal

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The key element to successful shared leadership and team performance is to create and maintain conditions for that performance

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Five important characteristics have been identified: (1) efficient, goal-directed effort; (2) adequate resources; (3) competent, motivated performance; (4) a productive, supportive climate; and (5) a commitment to continuous improvement.

Distributed Leadership •

One of the first areas to recognize leadership as a collective process was distributed leadership approaches, distinguishing between “focused” and “distributed” forms of leadership.

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Distributed leadership sees leadership as a group phenomenon that is distributed among individuals.

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Distributed leadership is based on three main premises: o First, leadership is an emergent property of a group or network of interacting individuals. It is coconstructed in interactions among people. o Second, distributed leadership is not clearly bounded. It occurs in context, and therefore is affected by local and historical influences. o Third, distributed leadership draws from the variety of expertise across the many, rather than relying on the limited expertise of one or a few leaders.

Co-Leadership •

Co-leadership occurs when leadership is divided so that no one person has unilateral power to lead.

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Co-leadership can be found in professional organizations (e.g., law firms that have partnerships), the arts (the artistic side and administrative side), and healthcare (where power is divided between community, administration and medical).

How Does Leadership Work?

Leadership Relationships Relationships are the foundation for leadership. The relationship development process beings with rolefinding, or getting to know one another and evaluating another’s needs, motivation, and capabilities to

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perform a role. The second stage of relationship development is role-making, which involves developing a set of understandings regarding how individuals will work together in performing a role. The final stage is role implementation, where the negotiated roles lock in and govern how the individuals will interact with each other.

Leadership Identities Identity is the way one views oneself. Identities come from our experiences and influence how we behave and interact with others. When someone has a leader identity, they see themselves as having the traits, drive, and experience to fulfill the role, they are more likely to claim the position. If someone has a follower identity, they believe the best way to contribute is to defer to a leader’s direction, and will likely claim a follower role.

For identity claims to be granted, they must be aligned with identity grants. That is, a leadership claim will only work if followers grant that claim and claim a follower role.

Leadership Prototypes •

How individuals make identity claims and grants is influenced by the implicit theories, or prototypes they hold about leadership and followership; the images we have in our heads anout what leaders and followers do and how they do it.

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The most common prototypes include: o Sensitivity o Dedication o Tyranny o Charisma o Attractiveness o Intelligence o Strength

Leadership is Situational •

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Interpersonal Context reflects the social and emotional dynamics among those who are working together, including the personalities, emotions, perceptions, motivations, and attributions that people bring to relationships.

Environmental Context o Task Environment involves the nature and type of work being addressed. o Organizational Environment is the internal environment of the organization, including strategy, structure, organizational culture, politics, and so on. o Macro Environment is the external environment and includes social and market forces an trends, as well as competitors, technology, innovation, and economic policies and regulation.

Complexity Views of Context

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Administrative leadership occurs in formal, managerial roles and focuses on alignment and control aimed at driving business results

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Entrepreneurial leadership fuels innovation, adaptability, and change.

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Adaptive leadership operates in the interface between the administrative and entrepreneurial systems and fosters conditions for emergence.

LO 2: DESCRIBE THE VARIOUS STYLES LEADERS CAN USE AND HOW THEY ARE ASSOCIATED WITH LEADERSHIP EFFECTIVENESS What Makes Leaders Successful?

• Self-awareness involves making assessments about ourselves and detecting how others perceive us.

• Once we have self-awareness, we need to then pair it with self-regulation by making sure we monitor and manage out behavior in accordance with others and the situation.

Leader Traits •

The Trait Approach to leadership study assumes that leaders are endowed with certain traits or qualities that explain their leadership status and success.

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The failure to find a pattern of significant correlations caused trait approaches to fall out of favor.

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Trait approaches have experienced a comeback.

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Many scholars are using the Big Five dimensions of personality in an attempt to predict leader emergence (who is recognized as leader of a group) and leader effectiveness (how well a leader performs in the role).

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Other scholars are pulling from evolutionary psychology to identify genetic factors associated with leadership that have evolved through natural selection.

Leader Behaviors •

When the early trait approaches failed to produce meaningful results, researchers began considering other types of leader characteristics, such as what leaders did, or how they behaved.

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The Behavioral Leadership Approach to leadership study focuses on identifying categories of relevant leadership behavior and examining their effects on performance and other outcomes.

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Relations-oriented behavior, also known as consideration, involves concern for relationships and socioemotional support.

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Task-oriented behavior, also known as initiating structure, involves providing direction and enforcing performance standards needed to drive production.

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• LECTURE ENHANCEMENT What do you think? Do you think anyone can be made into a leader? Or do you think individuals who are effective at leadership have to have some set of qualities and skills to be a leader?

Leader-Situation Matches The most effective leader behaviors depend on the situation and the needs of those being led. In general, relations-oriented behavior is effective when direction is clear; while task-oriented behavior is more effective when the situation is ambiguous and followers want guidance and direction.

Ways We Act (or Not) as Leaders Transformational Leadership •

Transformational leaders transform followers use inspirational relationships and influence to motivate performance beyond expectations, while transactional leaders exchange valued goods in exchange for something they want.

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Transformational leaders are identified by their use of: o Idealized influence and inspirational leadership, which is done through envisioning a desirable future, articulating how that future can be reached, acting as a role model, setting high standards of performance, and conveying determination and confidence. o Intellectual stimulation and individualized consideration, which focus on helping followers become more innovative and creative on caring about the developmental needs of followers be providing support, encouragement, and coaching.

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Transactional leaders can use: o Active management by exception, watching for deviations from rules and standards and taking corrective action. o Passive leadership styles, only acting when there are problems or standards are not met. o Laissez-faire leadership, which is a hands-off style in which they abdicate responsibilities.

Charismatic Leadership •

Charisma is a special personal quality or attractiveness that enables an individual to influence others.

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Although charisma is often considered an individual trait, it is more aptly described as a relational process involving a leader, followers, and a situation.

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Katherine Klein and Robert House describe charisma as “a fire” produced by three elements: (1) a “spark”—a leader with charismatic qualities, (2) “flammable material”—followers who are open or susceptible to charisma, and (3) “oxygen”—an environment, such as a crisis or a situation of unrest among followers, that is conducive to charisma.

Characteristics of Charismatic Leaders • Novel and appealing vision • Emotional appeals to values • Use strong and expressive forms of communication when articulating the vision • Unconventional behavior • Personal risk and self-sacrifice to attain the vision • Communicating high expectations • Confidence and optimism LECTURE ENHANCEMENT Have students think of different historical figures that they are able to identify with these charismatic characteristics. Which individual has which of these characteristics? How about current leaders in the religious, political, or corporate world?

Authentic Leadership •

Authentic leaders are motivated by a desire to be true to themselves. They engage with others in a transparent and non-defensive way.

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Authentic leaders are characterized by: o Relational transparency: maintaining openness and clarity about who they are o Balanced processing: analyzing relevant data in an objective way, avoiding attribution errors that could come from ego defensiveness o Internalized moral perspective: being aware of and acting on one’s values

Servant Leadership •

Servant Leadership is a view in which servant leaders selflessly serve others first

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Characteristics of Servant Leadership 1. Empowerment: fostering a proactive, self-confident attitude among followers 2. Accountability: showing confidence in followers by giving them responsibility and then holding them accountable for performance; allows them control and ensures they know what is expected

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of them Standing back: giving priority to the interest of others first and giving them necessary support and credit Humility: the ability to put one’s own accomplishments and talents in a proper perspective and remain modest Authenticity: being true to oneself, adherence to a generally perceived moral code, keeping professional role secondary to whom the individual is as a person Courage: daring to take risks and try new approaches; challenging conventional modes of working and using values and convictions to govern one’s actions Forgiveness: having the ability to understand and experience the feelings of others, let go of perceived wrongdoings, and not carry a grudge into other situations Stewardship: demonstrating the willingness to take responsibility for the larger institution sense of obligation to a common good that includes the self but that stretches beyond one’s own selfinterest

Ethical Leadership •

Ethical leadership considers right, wrong, good, evil, virtue, duty, rights, and justice as they apply to leadership relationships.

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Ethical leaders focus on being role models of appropriate behavior, such as openness, honesty, and trustworthiness.

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Perhaps the most important thing ethical leaders do is foster ethical climates, that is, ethical values, norms, attitudes, feelings, and behaviors of employees in an organization or work unit.

LO 3: EXPLAIN THE ROLE AND IMPORTANCE OF FOLLOWERSHIP TO LEADERSHIP What Is Followership?

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Followership is the capacity or willingness to follow a leader. It represents a process through which individuals choose how they will engage with leaders to co-produce leadership and its outcomes.

Follower Identities •

Some followers hold passive identities, viewing their roles in the classic sense of following, i.e., passive, deferential, and obedient to authority. Others hold proactive identities, viewing their role as expressing opinions, taking initiative, and constructively questioning and challenging leaders.

Follower Roles •

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Follower role orientation is defined as the beliefs followers hold about the way they should engage and interact with leaders to meet the needs of the work unit.

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Passive follower identities are associated with a passive orientation, the belief that leaders are in a better position than followers to make decisions and determine direction.

Proactive follower identities are associated with a co-production orientation, the belief that the follower role is to partner with leaders to get the job done.

Lecture Enhancement Ask students to reflect on their job experiences and evaluate themselves as followers. Have students explain their roles.

Ways We Act (Or Not) as Followers Obedience • Obedience is compliance with an order or submission to authority. There is a zone of acceptance, the set of orders and instructions an organizational member will not challenge.

Voice • Voice is expressing ideas, opinions, suggestions, or alternative approaches with the intent of changing the status quo.

Resistance • Resistance is not conforming to a leader’s influence attempt and can take two forms.

Dysfunctional resistance is ignoring or dismissing a request from a leader. Constructive resistance is requesting clarification or negotiating in an attempt to open a meaningful dialogue with a leader.

Proactivity • Proactivity is self-initiated, anticipatory action a follower takes to impact self or others within and outside the organization. Proactivity is more effective when followers bring a prosocial motivation: the desire to expend effort to help other people.

Citizenship • Organizational citizenship behaviors are discretionary behaviors used by employees to be helpful in work settings. Followers engage in OCBs through five categories of behaviors: helping, voice, civic virtue, employee sustainability, and social participation.

Ethical Followership • Ethical followership is the role of followers in the ethical conduct of leadership, underscoring that ethics are not only the responsibility of leaders; they are also the responsibility of followers.

Follower complicity is a problem if it leads to crimes of obedience, acts performed in response to orders from authority that are considered illegal or immoral by the larger community.

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STUDY GUIDE What is leadership?

• Leadership occurs when two or more people work together, in an influence relationship, to attain goals. In this relationship someone leads and someone follows.

• Shared leadership is a dynamic, interactive influence process in which individuals lead together to achieve group and organizational goals.

• Distributed leadership helps us to see that leadership is not just the purview of formal managers; rather, it is distributed throughout the organization as informal leaders work in conjunction with formal leaders to drive positive outcomes.

• Co-leadership occurs when leadership roles are structured in ways such that no single individual is vested with the power to unilaterally lead.

How does leadership work?

• Leadership works through relationships.

• Leadership relationships are formed through a role-making process in which leaders and followers negotiate their roles and how they will work together. Because relationships tend to be stable and difficult to chance, it is critical to build effective relationships early on.

• The leadership process begins when individuals start to claim identities as leaders or followers and grant these identities to others.

• Implicit leadership theories are the images people have in the heads about effective leaders.

What is the role of context?

• Context creates the conditions that determine whether leadership actions will be effective. They include interpersonal and situational contexts.

• The interpersonal context reflects the social and emotional dynamics occurring among those who are working together.

• The situational context is the task plus organizational and environmental factors that influence leadership.

• The two contexts are intertwined in a complex interplay of human and nonhuman entities that influence leadership and its effectiveness. Complexity view of leadership shows how brining complexity to leadership helps us to see the ways we need to engage leadership differently when we place it in context.

What makes leaders successful?

• Trait and behavioral approaches help us understand how characteristics of leaders are associated with their effectiveness.

• Trait approaches describe the individual characteristics of a leader in a position of formal authority. This perspective assumes that if we can identify particular socially desirable traits, we can select individuals for leadership based on their natural tendencies.

• Behavioral approaches show that the most important leader behaviors can be divided into two main categories: relations oriented and task oriented. Which behavior is the most effective depends on the situation and on the needs of those being led.

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What are leader styles?

• Leader styles represent different ways leaders can enact their role. For leaders to be effective, they need to be self-aware of their traits and behavioral styles and then self-regulate to manage their behavior effectively according to the situation.

• Transformational leaders transform followers by raising human conduct and enhancing moral aspirations; transactional leaders exchange valued goods in return for something they want.

• Personalized charismatics use charisma to keep followers weak and dependent on the leader; socialized charismatics inspire followers and empower them toward collective interests and the greater good.

• Authentic leaders express their true selves in an open way, using a transparent and nondefensive style.

• Servant leaders are stewards who work for the good of the whole. They see their responsibility as increasing the autonomy of followers and encouraging them to think for themselves.

• Ethical leaders foster and support ethical climates. They do this by being role models and enforcers of appropriate behavior (e.g., openness, honesty, trustworthiness).

What is followership?

• Followership is how individuals choose to engage with leaders in the leadership process. It represents and individual’s willingness or capacity to follow a leader.

• Follower identities represent the beliefs one holds about the self as a follower. These can be a passive follower identity or a proactive follower identity.

• Follower role orientations are the beliefs about how one should enact a follower role. They include passive orientation and co-production orientation.

What are effective follower behaviors?

• Followership effectiveness is how well a follower works with a leader to co-produce effective outcomes. They include obedience, voice, resistance, proactivity, and organizational citizenship behaviors (OCBs).

• Implicit followership theories describe how leaders view followership effectiveness. Prototypical (effective) characteristics include positive attitude, hard-working team player, and loyalty. Antiprototypical (ineffective) characteristics include incompetence, conforming, and not willing to speak up.

• Ethical followership involves being willing to speak up against a leader’s inappropriate request and not blindly complying with unethical actions or behaviors of leaders.

KEY TERMS Active management by exception: monitors performance and takes corrective action when needed.

Actor-network theory: suggests that leaders need to consider not only their interactions with people, but also with nonhuman agents, including ideas, information, resources, technology, events, physical structures, and the like.

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Authentic leadership: the ability to express one’s true self in an open way, through words and deeds, while adapting to relational demands.

Balanced processing: the ability to analyze relevant data in an objective way, avoiding attribution errors that could come from ego defensiveness.

Charisma: a special personal quality or attractiveness that enables an individual to influence others.

Constructive resistance: requesting clarification or negotiating in an attempt to open a meaningful dialogue with a leader.

Co-production orientation: the belief that followers should partner with leaders to get the job done.

Co-leadership: occurs when leadership roles are structures in ways such that no single individual is vested with the power to lead unilaterally.

Complex leadership theory: focuses on leadership as a complex interactive dynamic based on emergence.

Contingent rewards: exchanging rewards for mutually agreed-upon goal accomplishment.

Crimes of obedience: acts performed in response to ordered from authority that are considered illegal or immoral by the larger community.

Dissonance: the tension we feel when something has not matched our expectations.

Distributed leadership: describes leadership as distributed throughout the organization rather than being located solely in the formal hierarchy.

Dysfunctional resistance: ignoring or dismissing a request from a leader.

Emergence: the unpredictable unfolding of events that occurs when people, activities, and events link up in ways that drive unexpected outcomes.

Ethical climates: the ethical values, norms, attitudes, feelings, and behaviors of employees in an organization or work unit.

Ethical followership: the role of followers in the ethical conduct of leadership.

Ethical leaders: foster and support ethical climates by being role models for appropriate behavior.

Followership: represents an individual’s capacity or willingness to follow a leader.

Follower effectiveness: how well a follower works with a leader to co-produce successful leadership outcomes.

Follower identity: represents the belief one holds about oneself as a follower.

Follower role orientation: represents the beliefs individuals have about how they should enact a follower role.

Following: accepting another’s influence by deferring to or going along with a proposed idea or direction.

Formal leadership: leadership exerted by individuals appointed or elected to positions of formal authority.

Idealized influence: focuses on increasing followers’ identification with the leader.

Identity: the way one views oneself – for example, as members of a particular society, culture, ethnicity, religion, organization, or group.

Identity claims: actions people take to assert their identity as a leader or follower.

Identity grants: actions people take to bestow a leader or follower identity onto another person.

Implicit followership theories: represent the characteristics that leaders associate with effective and ineffective followers.

Implicit theories: the schema or attributes we associate with leaders and followers and our beliefs about what makes them effective.

Individualized consideration: provides personalized attention, coaching, and advice to followers.

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Informal leadership: occurs outside formal positions among leaders due to their ability to be influential in the organizations or among peers.

Inspirational leadership: communicates high expectations using symbols and simple, expressive language.

Intellectual stimulation: encourages followers to look for creative solutions.

Internalized moral perspective: being aware of and acting on one’s values.

Interpersonal context: reflects the social and emotional dynamics surrounding leadership.

Laissez-faire leadership: hands-off leadership.

Leadership: when two or more people who depend on one another work together in an influence relationship to get things done.

Leading: influencing another to act in a certain way or go in a particular direction.

Obedience: compliance with an order or request or submission to authority.

Organizational citizenship behaviors (OCBs): discretionary behaviors used by employees to be helpful in work contexts.

Passive follower identity: passive, deferential, and obedient to authority.

Passive leadership: waits for problems to arise before taking action.

Passive orientation: reflects the belief that leaders are in a better position than followers to determine direction and make decisions.

Personalized charismatics: use their charisma to dominate followers and keep them weak and dependent on the leader.

Proactive follower identity: expressing opinions, taking initiative, and constructively questioning and challenging leaders.

Proactivity: self-initiated, anticipatory action a follower takes to impact self or others within and outside the organization.

Prosocial motivation: the desire to expend effort to help other people.

Prototypes: characteristics and behaviors believed to be representative of leaders and followers.

Relational transparency: the ability to engage with others, while maintaining openness and clarity about who you are.

Relations-oriented behavior: focuses on being interpersonally supportive.

Resistance: not conforming to a leader’s influence attempt.

Role-finding: getting to know one another and evaluating another’s needs, motivations, and capabilities to perform a role.

Role implementation: when negotiated roles are locked in and then govern how the individuals will work together.

Role-making: developing a set of understandings regarding how individuals will work together in performing a role.

Self-awareness: involves knowing oneself and how you are perceived by others.

Self-regulation: monitoring and managing one’s own behavior to consider the reactions of others.

Servant leaders: use power not for self-interest but for the growth of employees, survival of the organization, and positive impact on the community.

Shared leadership: defines leadership as a dynamic, interactive influence process in which individuals lead together to achieve group and organizational goals.

Socialized charismatics: use their charisma to inspire followers and empower them toward collective interests.

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Task-oriented behavior: focuses on performance and productivity.

Trait approach: focuses on identifying personality, needs, motives, values, or physical characteristics of leaders.

Transactional leaders: use simple give-and-take exchanges to attain desired outcomes.

Transformational leaders: use inspirational relationships and influence to motivate performance beyond expectations.

Voice: expressing ideas, opinions, suggestions, or alternative approaches with the intent of changing the status quo.

Zone of acceptance: a set of orders and instructions an organizational member will not challenge.

SPECIAL FEATURES Be a Critical Thinker: Leading in the Age of Twitter When Mary Barra, CEO of General Motors closed five underutilized auto facilities, she was heavily criticized on Twitter, which negatively affected the company’s stock price. Elon Muck, founder and CEO of Tesla regularly uses Twitter to brand his companies and communicate directly with customers, but has been accused by the Securities and Exchange Commission of violation of public trust, In the age of social media platforms, lines between business decision making, government regulation, and public opinion have been blurred. Ask your students what are the things that executives must consider when making and publicizing decisions about their firms. To what extent is criticism on Twitter adequately reflective of the entire population? What in today’s politically charged culture makes the use of social media especially challenging for leaders?

Bringing OB to Life: Improvisational Theater: Where Actors are Both Leaders and Followers Improvisation is a form of live theater in which the plot, characters, and dialogue of a scene are made up right on the spot. What makes improv especially interesting to watch is the dynamic that exists among actors. The actors play off one another, sometimes leading, other times supporting. They listen to each other and negotiate roles as the story demands. In other words, they share leadership. Ask your students if they believe leadership skills could be improved by practicing improvisation. How? Bringing OB to Life: Staying Thin to Gain a Leadership Edge A good workout may return more than good health and body image; it may also boost your leadership potential. Recent research shows that a leader’s weight has a strong correlation with how good he or she is perceived as a leader by peers, bosses, and subordinates. A BMI of 25 appears to be the dividing line.

Below it, and you score well as a leader; above it, you score more poorly. Ask your students what they think about the results of this study. Do they think that leaders should actively manage perceptions of them, including of their weight?

Bringing OB to Life: What Type of Follower Are You? If have a co-production follower role orientation, you probably agree that follower should proactively identify problems, be on the lookout for suggestions they can offer, communicate their opinions, be proactive in thinking about things that could go wrong, and be willing to challenge superiors’ assumptions. Research shows that you are more likely to engage in constructive resistance. This can be

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great if you have a high-quality relationship with your leader, but if you are unsure of the relationship or it is not a supportive once, this behavior may not be welcome. If you have a passive follower role orientation, you probably agree that followers should not be held accountable for the performance of a unit, not have to think about changing the way work gets done, not have to take on much responsibility for thinking about how things get done, and not have to worry about being involved in decision making.

Research shows that you may find it hard to work with an empowering leader and will prefer more structured environments with more hierarchical reporting relationships. Ask your students which types of follower role orientations they have and how it has affected their comfort or performance in different settings.

Checking Ethics in OB: Tackling Unethical Leadership in the Workplace A 2013 report by the Institute of Leadership and Management in the United Kingdom revealed that unethical practices are common in the workplaces. Nearly half of managers surveyed indicated that they have been expected to engage in unethical behavior at work, with nine percent reporting they have been asked to break the law. Similar findings were reported in 2016 by the National Business Ethics Survey of major U.S. employers conducted by the Ethics Research Center. In the ILM study, over 90 percent of respondents said their organizations have values statements, but 43 percent of respondents said they were pressured to act in direct violation of it. The researchers recommend that businesses have a clear policy to encourage staff to report concerns of ethical breaches and violations and need ethical leadership from the top. Ask your students what can be done to stop the problem of organizations asking employees to engage in unethical behavior and how they would design a more ethical workplace with ethical leadership.

OB in the Office: How to Become More Self-aware at Work The greatest leaders understand and know themselves, and whether you are a leader or a follower, increasing your self-awareness can be beneficial. You can start this process by asking others (i.e., superiors, peers, assistants) for informal feedback and listening without getting defensive and objectively trying to implement the suggestions. You can also take just fifteen minutes a day to create a journal noting your thoughts, feelings, and experiences. Many people also find mindfulness or meditation to be helpful. It’s not easy to develop self-awareness, but few investments pay better dividends than investing in understanding yourself. Ask students to share practices they engage in to increase self-awareness in their own lives.

Research Insights: Leadership Behaviors and Employee Voice: Is the Door Really Open?

In a study of employee voice, James Detert and Ethan Burris found that leaders positivity toward openness isn’t enough to make followers feel safe providing thoughts and ideas about organizational functioning. Leaders must themselves be open, which provides a safe environment. Ask students if they think the findings are applicable to their work or team situation, and how they would conduct a study to find out.

Worth Considering or Best Avoided? Bosses Are to Be Obeyed and My Job Is to Comply. Or Is It? At Yale University in 1963, Stanley Milgram ran an experiment with collaborators posing as “learners” being taught word association tasks by their “teachers” – the real subjects. When the learners missed a word, the teachers were instructed to shock them. Twenty-six of the teachers kept administering shocks until the final level was reached – one that would be of danger to human life. In 2004 in a McDonald’s

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restaurant, a telephone caller told an assistant store manager that he was a police officer investigating employee theft and ordered her to take a female employee in the back room and interrogate her while he is on the line. The assistant manager did this for three hours until the eighteen-year-old employee was naked and doing jumping jacks. These incidents suggest that even though we may have a tendency to obey apparent authority figures, it isn’t always the right thing to do. If what you are being asked to do is wrong but you still comply, you share the blame. Ask your students how them know when it’s time to disobey and invite them to share examples from personal experience.

Worth Considering or Best Avoided? Newly Promoted to Manager? “Do Nothing” May Be Your Key to Success Keith Murnighan of Northwestern University advocates a “do nothing” approach to new leadership that involves not trying to do other people’s jobs for them and continuing to do the tasks you excelled at before getting the promotion. Murnighan identifies micromanaging as one of a leader’s most common and costly mistakes. This is a natural human tendency, linked in part to the desire to be in control of things, but good leaders guard against it. Instead, they work on the big picture and putting resources and support systems in place to support the environments needed for strong leadership and followership. Ask your students if they agree with the notion of “doing nothing” and if it would be difficult for them.

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Chapter 8 UNDERSTAND AND MANAGE POWER AND POLITICS

CHAPTER OVERVIEW The chapter begins by examining power and its importance. It goes on to explain the difference between power, force, and social power. The chapter delves into dependencies and how to manage them along with the problem of powerlessness. Further the chapter talks about empowerment and how to restore power balances. The next section of the chapter talks about sources of power and influence including position and personal power and the five bases of power under them as well as other forms of power that play important roles in organizations. Next, the chapter focuses on responses to power and influence. The section talks about the two main responses of conformity and resistance then goes on to explain the way power can be harmful. The chapter goes on to talk about understanding organizational politics; why we have them and why they are important. Then political climates and perceptions of organizational politics are explained. The chapter concludes by examining the political landscape which includes building power bases and developing political skills.

CHAPTER OUTLINE UNDERSTANDING POWER What Is Power?

Where Does Power Come From?

How Is Power Gained and Lost?

BUILD YOUR POWER BASES What Is Position Power?

What Are Responses to Position Power?

What Is Personal Power?

Connection Power How Can I Build My Power Bases?

NAVIGATE THE POLITICAL LANDSCAPE Why Do We Have Organizational Politics?

How Can I Develop My Political Skills?

CHAPTER LECTURE NOTES

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LO 1: EXPLAIN WHAT POWER IS AND WHERE IT COMES FROM •

Power is the potential to influence others or the capacity to change the behavior or attitude of another in a desired fashion. Influence is the capacity to be a compelling force on events, actions, opinions, or behaviors. It is often viewed as getting someone to do what they would not do otherwise, which gets a negative connotation. However, power used in positive ways is called “leadership,” “strength,” and “inspiration.”

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Power is the capacity to influence others; it does not have to be used to have an effect.

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Power is an asymmetrical influence relationship, meaning that some people have more influence than others. However, having more power can come with problems such as those with less power filtering information selectively and deferring responsibility. This can be dealt with by reducing power distance, or the degree to which people see power as distributed unequally.

Where Does Power Come From?

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First, power is given by others. Social power is a term used to recognize that power comes from the ability to influence another in a social relation. Force is power made operative against another’s will.

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Second, power is associated with control over resources others need, such as money, information, decisions, and work assignments. This means that power is situational and changes.

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Third, power is based on dependencies. A dependency means that one person or group relies on another person or group to get what they want or need. If a dependency can be easily removed, an individual has power only as long as the other is willing to give it to him or her. In organizations dependencies are most often associated with control over access to information, people, resources, and decisions

How Is Power Gained and Lost?

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Recognizing that power is based on dependencies means that to manage power, we need to manage our dependencies. We do this by: (a) increasing others’ dependence on us, and (b) reducing our dependence on others.

The Problem of Powerlessness •

Powerlessness is defined as a lack of autonomy and participation.

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Perceptions of powerlessness create spirals of helplessness and alienation. When people feel powerless they often try to regain some sense of control over themselves and their work environment.

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The resulting behaviors can be extremely detrimental to organizations, e.g., absenteeism, tardiness, theft, vandalism, grievances, shoddy workmanship, and counter-productive behavior.

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Therefore, the problem in organizations is not power, but powerlessness.

Empower Others •

Empowerment involves sharing power, information, and rewards with employees to make decisions and solve problems in their work.

LECTURE ENHANCEMENT Ask the students to describe examples of empowerment in different situations that they have observed.

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Although many firms want empowerment, it is extremely difficult to accomplish. It requires individuals to change their understanding of power away from it being a zero sum game.

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Zero sum game describes a situation in which one person’s gain is equal to another person’s loss.

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Viewing power as a zero sum game is likely to cause a loss of power in the long run. When power imbalances get bad enough they trigger forces that rise up to take power away (to restore the balance).

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The Iron Law of Responsibility states that when power imbalances get bad enough, forces are triggered that will rise up and take the power away (to restore power balances).

LO 2: DESCRIBE HOW TO BUILD YOUR POWER BASES French and Raven identified a typology of five bases of power that is still used today. These bases are classified into two main categories: position power and personal power.

Position Power •

Position power stems from the formal hierarchy or authority vested in a particular role or position.

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There are three main types of position power in organizations: 1. Legitimate power, or formal hierarchical authority, is the extent to which a manager can use subordinates’ internalized values or beliefs that the boss has the “right of command” to control other people.

2. Reward power is the extent to which a manager can use extrinsic and intrinsic rewards to control other people.

3. Coercive power is the extent to which a manager can deny desired rewards and administer punishment to control other people.

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LECTURE ENHANCEMENT Ask the students if they have encountered any leaders who have had a truly significant impact on their lives. Have the students describe the types of power these leaders used and the impacts that were achieved.

What Are Responses to Position Power?

Conformity •

Herbert Kelman identified three levels of conformity: compliance, identification, and internalization 1. Compliance occurs when individuals accept another’s influence because of the positive or negative outcomes tied to it. o Instrumental—it is done to obtain the specific reward or avoid the punishment associated with not complying. o Commitment occurs when individuals accept an influence attempt out of duty or obligation.

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Identification occurs when individuals accept an influence attempt because they want to maintain a positive relationship with the person or group making the influence request.

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Internalization occurs when an individual accepts influence because the induced behavior is congruent with their value system.

Resistance •

Resistance involves individuals saying no, making excuses, stalling or even arguing against the initiative. Two types of resistance strategies used by individuals: 1. Constructive resistance is characterized by thoughtful dissent aimed at constructively challenging the manager to rethink the issue.

2. Dysfunctional resistance involves a more passive form of non-compliance in which individuals ignore or dismiss the request of the influencing agent

What Is Personal Power?

Personal Power •

Personal power resides in the individual, and is independent of position; it is generated in relationships with others.

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Sources of personal power include: 1. Expert power is the ability to control another’s behavior through the possession of knowledge, experience, or judgment that the other person does not have but needs.

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2. Referent power is the ability to control another’s behavior because the person wants to identify with the power source.

Connection Power •

Connection power is the ability to call on connections and networks both inside and outside the organization for support in getting things done and in meeting one’s goals.

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Two forms of connection power are: 1. Association power arises from influence with a powerful person on whom others depend.

2. Because relationships are built through social exchange, reciprocity plays a key role in social power. Reciprocal alliances describe a form of power arising from alliances with others developed through reciprocity.

Information Power •

Information power is possession of or access to information that is valuable to others

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In today’s interconnected society and knowledge-based organizations, connection power from networks and relationships is becoming increasingly important.

A key to navigating power and politics is managing one’s own attitude and behavior. People who are nonpolitical or cynical about power may find themselves not getting promoted and being left out of key decisions and activities in the organization.

Building Power Bases •

At the core of managing power and politics is establishing one’s power bases.

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Power bases are the sources of power (position, personal, information, connection) individuals and subunits develop in organizations. Building power bases helps prepare one for navigating organizational political climates.

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Without established power bases, individuals are more susceptible to experiencing powerlessness.

There are two main ways to build power bases in organizations: (1) establishing competence and value added to the organization (position and personal power), and (2) building organizational and professional networks (information and connection power).

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High levels of competence and added value make an individual or work unit non-substitutable, thereby increasing the dependency on (and hence the power of) that individual or unit.

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Information power is derived from formal access to information (e.g., meetings, task forces, emails, policy documents), informal access to information (e.g., grapevine, hall talk), and the opportunity to distribute or disseminate information to others (e.g., being the first to tell others about an organizational change)

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Connection power is built through internal networks, external networks, and being central in a network. It comes from aligning oneself with others who can provide advice, friendship, alliances, collaborations, information flows, and access to job opportunities.

LO 3: NAVIGATE THE POLITICAL LANDSCAPE IN ORGANIZED Why Do We Have Organizational Politics?

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Formal systems dictate what is to be done in organizations and how work processes are to be coordinated and structured.

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Informal systems are patterns of activity and relationships that arise in everyday activities as individuals and groups work to get things done.

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Organizational politics occur because of these informal aspects of social systems. They involve efforts by organizational members to seek resources and achieve desired goals through informal systems and structures.

The Role of Self-Interest •

Like power, organizational politics are neutral: Whether they are good or bad depends on how they are used.

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Self-interested politics occur when individuals or groups work to shift otherwise ambiguous outcomes to their personal advantage without consideration of the organization or coworkers.

Political Climates •

Organizational political climates are the shared perceptions about the political nature of the organization.

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Political climates involve people building and using power bases in the service of decision-making, resource allocation and achievement of goals

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Consistent with the idea that politics manifest in and through informal systems, organizational political climates are seen in the extent to which people engage in workarounds: working around the system to accomplish a task or goal when the normal process or method isn’t producing the desired result

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Perception of organizational politics is the perception that political activities in the organization are self-serving, illegitimate, and harmful to organizational members.

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Developing Political Skills •

Political savvy—skill and adroitness at reading political environments and understanding how to influence effectively in these environments

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Another term for political savvy is political skill. Political skill is “the ability to effectively understand others at work, and to use such knowledge to influence others to act in ways that enhance one’s personal and/or organizational objectives.”

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One must be able to read situations and have social astuteness, or the ability to accurately understand social interactions and interpret one’s behavior and that of others, as well as be keenly attuned to diverse social situations.

Framing the Message •

Those who decide to act need to know how to frame their messages. Framing means tailoring communication to the audience. A good rule of thumb is that the best way to frame a message is to align it with organizational and managerial goals.

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Framing helps individuals gain interpersonal influence – the ability to exert a powerful infouence on others in a subtle and convincing manner.

How Power Corrupts •

The Bathsheba Syndrome is when men and women of otherwise strong personal integrity and intelligence engage in unethical and selfish behavior in the pinnacle of power because they mistakenly believe they are above the law.

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The lesson from the Bathsheba Syndrome is that power can have potentially intoxicating and corruptive effects that, if not prepared for, may lead to destructive outcomes.

CHAPTER STUDY GUIDE What is power?

• Power is the potential to influence others or the capacity to change the behavior or attitude of another in a desired fashion.

• Although power has a negative connotation, power itself is neutral. Whether it is perceived as positive or negative depends on how it is used.

• Power is an asymmetrical influence relation in which some people have more power than others. Those without it are at a disadvantage not only in leading change, but also in being able to influence what happens to them in their jobs.

Where does power come from?

• Power is given by others, which means it can also be taken away. Those who do not .

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understand the relational and dynamic nature of power are at risk of losing it.

Power is situational – it is fluid and dynamic. Having power in one context does not mean you will have it in another.

Power comes from dependencies, that is, the reliance we have on another person or group to get what we want or need. The more dependent we are on others, the greater the potential power they have over us.

How is power gained and lost?

• A key to managing power is managing dependence. To gain power we want to reduce our dependence on others and increase their dependence on is.

• Power is lost when it creates feelings of powerlessness that trigger others to want to take our power away. For this reason we say that the problem in organizations is not power but powerlessness. Powerlessness creates many of the dysfunctional dynamics and behaviors that give power a bad name.

• The most sustainable way to gain and use power is to make sure others do not feel powerless as a result of our power. We do this by empowering those around us as we gain power ourselves.

What are the primary bases of power?

• Position power comes from the formal hierarchy or authority vested in a particular role; sources include legitimate power, reward power, and coercive power.

• Personal power is generated in relationships with others; sources include expert power and referent power.

• Information power can be either positional or personal, and comes from access to information that is valuable to others.

• Connection power is the ability to call on connections and networks both inside and outside the organization for support in getting things done and meeting one’s goals; sources include association power and reciprocal alliances.

How do people respond to power and influence?

• When individuals go along with power and authority they are conforming; three levels of conformity include compliance, identification, and internalization.

• Individuals can also resist power. Research has distinguished two types of resistance strategies used by individuals when they perceive an impractical request from their supervisor: constructive resistance and dysfunctional resistance.

• People tend to respond to position power with conformity, compliance, and resistance; they tend to respond to personal and connection power with intrinsic motivation, meaning they do it because they want to and not because they have to.

How do I effectively establish and maintain my power bases?

• It is important to establish power bases before you need them. The best way to do this is to demonstrate that you do good work, get along well with others, and can effectively engage in problem solving while maintaining good relations with others.

• Personal and position power are established and maintained by demonstrating competence .

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and added value; information and connection power are established and maintained by building strong relationships and networks.

What are organizational politics and why do we have them?

• Organizational politics represent efforts by organizational members to seek resources and achieve desired goals through informal systems and structures.

• Politics represent how people get ahead, how they gain and use power, and how they get things done (for good and bad) in organizations.

• Political behaviors are positive when they advance the interests of the organization and do not intentionally harm individuals; they are negative when they involve self-interested behaviors of individuals and groups who work to benefit themselves in ways that disadvantage others and the organization.

• An organization’s political climate represents the shared perceptions about the political nature of the organization; when individuals hold negative perceptions of the political climate they experience greater job stress, lower job satisfaction and increased turnover.

How do individuals navigate politics in organizations?

• A moderate amount of prudent political behavior is a survival tool; it involves understanding how to establish power bases, develop political skills, and build strong and effective networks.

• Individuals high in political skill have the ability to read and understand people, frame messages, and act in influential ways. They are socially astute in that they are keenly attuned to the dynamics of social situations in organizations.

• Individuals effectively navigate politics by looking for motives behind actions and testing and verifying information before acting on it. They are careful to not succumb to the corrupting effects of power; they have support systems and coaches that keep a check on their ego and power.

KEY TERMS Association power: represents the power derived from relations with others.

Asymmetrical influence relation: some people have more influence than others.

Bathsheba Syndrome: occurs when people of otherwise strong integrity and intelligence engage in unethical and selfish behavior because they believe they are above the law.

Coercive power: the use of threat or punishment.

Commitment: accepting influence out of duty or obligation.

Compliance: accepting influence to receive outcomes tied to it.

Connection power: the ability to use connections inside and outside the organization to get things done.

Constructive resistance: thoughtful dissent intended to help the manager rethink the issue.

Dependencies: come from a reliance on another one person or group to get what one wants or needs.

Dysfunctional resistance: ignoring or dismissing a request.

Empowerment: the sharing of power, information, decision-making authority, or rewards with others.

Expert power: comes from special skills and abilities that others need but do not possess themselves.

Fight-or-flight response: the desire to fight back or withdraw from a perceived threat or stressor.

Force: action that occurs against another’s will.

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Formal systems: prescribe how work processes are coordinated and structured.

Framing: tailoring the communication appropriately to the audience.

Identification: accepting influence in order to be associated with an individual or group.

Influence: the capacity to be a compelling force on events, actions, opinions, or behaviors of others.

Informal systems: patterns of personal relationships and activity generated through everyday interactions.

Information power: possession of information that is valuable to others.

Internalization: accepting influence because it is congruent with one’s value system.

Interpersonal influence: the ability to exert a powerful influence on others in a subtle and convincing manner.

Legitimate power: the formal authority that comes from holding a position or title.

Motives: represent the desired intent behind an action Non-substitutability: not easily replaced.

Organizational politics: involve efforts by organizational members to seek resources and achieve desired goals through informal systems and structures.

Personal power- resides in the individual and is generated through interpersonal relationships.

Political climate: the extent to which people in organizations work within or around formal policies and procedures to get things done.

Political savvy: skill and adroitness at reading political environments and understanding how to influence effectively in these environments Political skill: the ability to understand and influence others to act in ways that enhance personal or organizational objectives.

Position power: resides in the formal authority vested in a hierarchical position or role.

Power: the potential to influence others or the capacity to change the behavior or attitude of another in a desired fashion.

Power distance: the degree to which people see power as being distributed unequally.

Powerlessness: a feeling of lack of control or autonomy over one’s self or one’s work processes.

Psychological reactance theory: people rebel against constraints and dominating control.

Reciprocity power: comes from reciprocal alliances with others.

Referent power: comes from identification others have with you that creates a feeling of oneness.

Reputation: an overall quality or character as seen or judged by people in general.

Resistance: occurs when people say no, make excuses, argue against the initiative, or stall in taking action.

Reward power: comes from the ability to deliver outcomes that have positive value (i.e., positive rewards) or increase outcomes with negative value (i.e., negative rewards).

Self-interested politics: occur when people work to shift outcomes to their personal advantage.

Social astuteness: the ability to accurately understand social interactions and interpret one’s behavior and that of others, as well as be keenly attuned to diverse social situations.

Social power: the ability to influence another in a social relation.

Verify: checking the accuracy of the information before acting on it.

Workarounds: occur when people go around rules to accomplish a task or goal because the normal process or method isn’t producing the desired result.

Zero sum: the idea that one person’s gain is another person’s loss.

Zone of acceptance: a set of orders and instructions an organizational member will not challenge.

SPECIAL FEATURES Be a Critical Thinker: Women Might Make Better Leaders

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Meta-analytic research by Eagley et al. shows that women use leadership styles described as inspiring, exciting, mentoring, and use attentive listening and empathy more often than male counterparts. These are traits of transformational leadership, often considered the gold standard of leadership. Ask you students what they think about the results of the study and in what situations women or men may be more effective leaders.

Bringing OB to Life: The Danger of Viewing Power as Zero Sum The “Iron Law of Responsibility” coined by Keith Davis in the 1960s posits that the social responsibilities of business need to be commensurate with their social power, because those who do not use power responsibly will lose it. We see this in today’s society with social media providing vehicles for single individuals to create powerful movements in a climate of social unrest. Power can be thought of as a balancing scale, where when one person gets enough power to make another feel powerless, the dynamic to restore the balance is triggered. However, zero sum thinking can actually cause one to lose power. Ask your students to generate examples of the Iron Law of Responsibility. What advice would they give to leaders involved?

Bringing OB to Life: Perception Alert! Is Wealth Due to Good Connections or Hard Work?

Forty-six percent of respondents asked reported that they believed wealth mainly comes from knowing the right people or being born into wealthy families, while forty-two percent reported a belief that it came from hard work, ambition, or education. Interestingly, when divided by socio-economic class, 56 percent of uppers attribute their success to hard work, while 53 percent of the lowers attributed uppers’ success to connections. Ask your students which they believe is true. Ask them how they can increase their connections as well.

Checking Ethics in OB: The Devil Wears Prada and the Use of Reward and Coercive Power The film The Devil Wears Prada is an excellent example of reward and coercive power with the boss, Miranda, constantly berating the employee, Andy, for how she dresses to how she does her job and pitting her against other employees. Ask your students if they believe Miranda’s use of coercive and negative reward power is acceptable? How does the zone of acceptance apply in this situation?

OB in the Office: Open Offices Are All the Rage Many technology innovators such as Apple, Google, and Facebook have torn down the physical walls that separate people by cubicles and offices in order to increase communication, teamwork, and collaboration.

While this does shift power dynamics away from the status hierarchy created by private offices, is does raise an issue of privacy. Despite this, most who have implemented open offices report the positives outweigh the negatives. Ask your students what their feelings are regarding working in an open office.

Research Insights: Racial Bias May Exist in Supervisor Ratings of Workers Stauffer & Buckley published a study in the Journal of Applied Psychology showing that white raters tend to rate white employees more favorably than black raters, whereas black raters rate black workers more favorably then white. A second study by Sackett & DuBois argued that raters do not tend to favor members of their own racial groups. Stauffer & Buckley reanalyzed these data to explain the discrepancy and showed than the interactions between the race of raters and ratees were affecting results. Ask students how they would design a study that would overcome issue that may have affected the results of the study.

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Worth Considering or Best Avoided? Struggling to Gain Influence? Tap into the Science of Persuading Influencing is complicated in any setting. It requires thinking about how others will respond. The examples in the feature are successful persuasion from the book Yes! 50 Scientifically Proven Ways to be Persuasive (Free Press, 2009), by Noah J. Goldstein, Steve J. Martin, and Robert B. Cialdini. Ask students to what extent is “persuasion” part of their skill portfolio? How about others they work with?

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Chapter 9 BUILDING STRONG RELATIONSHIPS AND NETWORKS

CHAPTER OVERVIEW This chapter focuses on relationships and networks. The chapter begins by discussing various types of relationships one may find in the workplace, why they matter, how they develop, and how they can be built and maintained. The chapter then turns to networks and how they work. Different characteristics of networks, both structural and relational are explored. The chapter concludes with a discussion of leveraging networks, using social capital and achieving career advancement.

CHAPTER OUTLINE BUILDING STRONG RELATIONSHIPS What Kinds of Relationships Matter?

How Are Relationships Developed?

How Do We Built and Maintain Good Relationships?

BUILDING STRONG NETWORKS What Are Networks?

How Do Networks Work?

LEVERAGING YOUR NETWORK Networks and Social Capital How Do We Leverage a Network?

Using Your Network to Advance Your Career

CHAPTER LECTURE NOTES LO 1: LIST METHODS FOR DEVELOPING AND MAINTAINING STRONG WORK RELATIONSHIPS Leader-Member Exchange (LMX) Theory • The underlying premise of leader-member exchange (LMX) theory is that leaders have differentiated relationships with followers.

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Leader-member exchange (LMX) is the study of manager-subordinate relationship quality.

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With some subordinates managers have high quality LMX relationships, characterized by trust, respect, liking, and loyalty. With other subordinates managers have low quality LMX relationships.

Lecture Enhancement Ask students to reflect on their job experiences and offer an example of leader member exchange.

Coworker Relationships •

Team-member exchange (TMX) represents the extent to which team members contribute ideas, feedback, and assistance to one another. o If TMX is high, members have a strong identity as a team rather than as individuals working separately. o If TMX is low, team members feel less satisfied in their jobs.

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TMX relationships may be influenced by personality. Extraverts tend to feel more engaged when TMX is high. Conscientious individuals may have a high need to demonstrate personal dependability and reliability to their team members.

Boundary-Spanning Relationships •

Boundary spanning is developing relationships that cross boundaries within or outside the organization. Early in one’s career boundary spanning will be lower. As people gain experience and grow in their roles, they can take on more boundary spanning activities to extend their connections beyond their local network.

Social Exchange Theory •

Social exchange theory helps us understand the social dynamics behind relationship building.

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According to social exchange theory, relationships develop through exchanges—actions contingent upon rewarding reactions. We engage in exchanges every day when we say something or do something for another, and those actions are either rewarded or not rewarded. Relationships develop when exchanges are mutually rewarding and reinforcing. When exchanges are one-sided or not satisfactory, relationships will not develop effectively.

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Social exchange theory describes how relationships initiate and develop through processes of exchange and reciprocity

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At the core of social exchange is the norm of reciprocity—the idea that when one party does something for another an obligation is generated, and that party is now indebted to the other until the obligation is repaid.

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The norm of reciprocity can be seen as involving three components: o Equivalence is whether the amount given back is roughly the same as what was received. o Immediacy is how quickly the repayment is made. o Interest is the motive behind the exchange.

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Trust in social exchange is based on the firm reliance in the intention and ability of the other to repay.

Lecture Enhancement Ask students to describe their personal example of social exchange theory.

How Do We Build and Maintain Good Relationship?

Relational Testing •

How the process of relational testing works depends on where you are in the stages of relationship development. o In the early stages, relational testing involves scorekeeping, or watching for what is exchanged and whether it is paid back. o After a relationship is formed, relational testing switches to maintenance evaluation, which is watching for relational violations that go outside the boundary of expectations in established relationships. A violation occirs when a behavior or action crosses the boundary of what is acceptable in a relationship.

Relational Repair • We can attempt to fix bad relationships through relational repair. This involves taking action to return the relationship to a positive state.

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While there is no guarantee, it is better to attempt relational repair than not, and the earlier the better.

To do this requires using the skills we have been learning in OB.

Lecture Enhancement Ask students to share a time they had to repair a relationship. What did they do? What was the result?

What might they have done differently?

Hollander’s Idiosyncracy Credits •

Idiosyncracy credits refer to our ability to violate norms with others based on whether we have enough “credits” to cover the violation.

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If we have enough credits, we can get away with idiosyncracies (i.e., deviations from expected norms) as long as the violation does not exceed the amount of credits. If we do not have enough credits, the violation will create a deficit. When deficits become large enough, or go on for too long,

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our account becomes “bankrupt,” and the deviations will no longer be tolerated, resulting in deterioration of relationships.

LO 2: EXPLAIN WHAT NETWORKS ARE AND HOW THEY WORK What Are Networks?

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The number, nature, and strength of your relationship is called your network. These relationships can occur across various domains both personal and professional.

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The larger your network more people with whom you have a relationship, and these are very important for success at work and in life.

LECTURE ENHANCEMENT Have students try making a map of their own network in order to personalize the discussion of the functions and dimensions of networks.

How Do Networks Work?

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A social network perspective recognized that relationships exist between two people (dyad), three people (triad), or among three or more people all connected with each other (clique), and that these relationships do not exist in isolation but are part of a complex system.

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The individuals in each relationship are called actors and connections between them are called ties.

Structural Network Characteristics •

A person or actor is considered to be central in a network if he or she has ties with many other actors.

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Networks can also be characterized in terms of their density or concertation of direct ties. o A network in which most actors are not directly ties to each other is considered sparsely knit. o The higher a person’s network density, the greater his or her responsibility or opportunity to share information for the network as a whole. o The density of a network might serve to constrain unusual behavior by actors in the network.

Relational Network Characteristics •

Tie strength is the closeness or emotional intensity of the relationship represented by the tie. The more time, emotional energy, and effort you put into a relationship, the stronger the tie is likely to be.

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An additional way of characterizing ties between actors is considering the kinds of resources that are shared between actors, or sorting based on content. o Instrumental ties are also known as professional ties and describe relationships that involve exchange and cooperation for the achievement of some goal or particular purpose. o Expressive ties, or personal ties, are characterized by friendship, kinship, and social support.

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A Simmelian tie is concerned not only with the strength of relationships between two actors, but also with the number of strong ties within a subgroup of the network. A Simmelian tie is considered eve stronger than a regular strong tie.

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Homophily is the tendency for actors in a network to form connections with and share the opinions and behaviors of others who are similar in terms of demographics or other attributes. On one hand, networks with high homophily are safe, predictable, comfortable, and natural. On the other hand, homogenous networks limit the members’ social circle and minimize the information they receive, the interactions they experience, or the resources to which they have access.

LECTURE ENHANCEMENT Ask students how the idea of structural and relational network characteristics maps on to social media and what considerations they may wish to keep in mind with their behavior on these platforms as a result of their knowledge of network characteristics.

LO 3: DESCRIBE HOW TO LEVERAGE THE POWER OF NETWORKS FOR PROFESSIONAL AND ORGANIZATIONAL SUCCESS

Networks and Social Capital Social capital is the network of social connections that exist between people that lead to mutually advantageous cooperation and collaboration. In the workplace, it is generated in informal networks that serve as a source of power outside the formal hierarchy.

How Do We Leverage a Network?

Whether we benefit from a network depends on where we are positioned in it and how it relates.to information and resource flows.

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A cohesive network is one in which the people you are connected to are connected to one another.

These are beneficial for stable environments and those involving incremental change.

A bridging network is one in which you are connected to people who aren’t connected to one another. These are beneficial for radical change.

A brokering network is one connecting disparate groups of people so that access to goods, services, or information is enabled. Brokering is needed to bridge across clusters, or subgroups

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who are tied together because they have similar traits or characteristics. Brokers also help bridge structural holes by linking independent clusters together.

Small world theory states that we are all linked by short chains of acquaintances. This is also known as six degrees of separation.

Common network traps include: • The self-similarity principle, or the tendency to choose people who are like you, which creates an echo chamber, or a situation where the same beliefs or perspectives get reinforced and amplified across a group.

• The proximity principle is the tendency to populate a network with those closest in proximity.

Energizing Network An energizing network is one in which connections to others are fulfilling, fun, and motivating, contributing to personal and organizational success. Energizing ties increase employee thriving, making people feel more vital and improving learning.

The opposite is a de-energizing tie, which leaves people feeling drained, unhappy, and demotivated. It doesn’t take many de-energizing ties to negatively affect a person or network. A big problem with these ties is their contagion effect, or the spread of emotion across a group or network.

LECTURE ENHANCEMENT Ask students to think about their network ties and reflect on the number of energizing vs. de-energizing ties they have. How do these ties affect the students? Which are more powerful: energizing or deenergizing?

Using Your Network to Advance Your Career The most significant and tangible value of a social network is its contribution to career development and advancement. A study in Forbes online suggested that nearly 80 percent of job placement came directly through a company’s network of existing employees or close industry partners.

CHAPTER STUDY GUIDE What kinds of relationships matter?

• The workplace is full of relationships, one of the most important of which is the LMX relationship, or the relationship you have with your boss. The LMX relationship can be high quality, based on trust and partnership, or low quality, based on the requirements of the job.

• The relationships among coworkers or TMX are also important, as they contribute to how much an individual feels like part of a team.

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Relationships across and outside the organization are known as boundary-spanning relationships.

How are relationships developed?

• Relationship development occurs through social exchange and trust-building.

• At the core of a social exchange is the norm of reciprocity, or the idea that when one person does something for another, an obligation is generated and continues until that person repays the obligation.

• As relationships develop and trust is built. Equivalence reduces (we don’t expect exact repayment), the time span of reciprocity extends (we aren’t concerned about payback – we may bank it for when we need it at some time in the future), and exchanges become more mutually or other (rather than self) interested.

How do we build and maintain good relationships?

• We build and maintain good relationships through relational testing. In early stages relational testing involves scorekeeping, but as the relationship matures it becomes a process of maintenance evaluation meaning watching for violations.

• A relational violation is a behavior or action that crosses the boundary of what is acceptable in a relationship. When a violation occurs we must take steps to repair it or it will deteriorate.

• Relational repair is a testing process with the intention to rebuild or reestablish relationship quality. We do it by having crucial conversations based on supportive communication skills and starting the testing process over again to rebuild trust.

• Idiosyncrasy credits represent our ability to violate norms with others based on whether we have enough credits to cover the violation. Like a bank account we can spend down these credits, but then we need to replenish as needed to not go into a deficit.

What are networks?

• Networks are the number, nature, and strength of your relationships. They include your circle of friends, acquaintances, mentors, and peers.

• The people in your network may not know each other directly but are loosely tied to each other through you.

• The larger your network, the more people with whom you have a relationship.

What are the structural characteristic of networks?

• Networks can also be characterized in terms of their density or concentration of direct ties – the extent to which the members of a network are directly connected with each other.

• Network ties can also be characterized by their content or strength, whether they are personal or professional and whether there is one or more strong tie within a group.

• Network centrality means that a person is central to a particular network – has ties with many of the other people in that network.

• A network is said to be dense if all actors in the network are directly connected with each other.

• A network is sparsely knit if most of the actors in the network are not directly tied to each other.

• All the people you know are part of many possible networks, though some ties are much stronger and tighter than others.

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What is the impact of networks on individual and team functioning?

• The ties in a network can be either personal or professional.

• A social network perspective emphasizes the importance of relationships and recognizes that relationships exist between two, three, or many people.

• In a network approach to understanding the workplace, power is a relational concept that is best understood in terms of connections and interactions between people. Those who have connections and access to many other people also have power to integrate new and fresh ideas, develop their careers, discover nee opportunities, and get things done.

How do networks serve as social capital?

• Networks provide access to information and resources – both tangible and intangible.

• Social capital is the network of social connections that exist between people that lead to mutually advantageous cooperation and collaboration. It is represented by the number of people who provide support to a person and the value of the resources they provide.

• People with strong and well-developed relationships have a greater degree of social capital and access to resources that are valuable in different domains.

How and why does the shape of networks matter?

• Whether we benefit from a network depends on where we are positioned in it and how it relates to information and resource flows.

• Cohesive networks are ones in which people in the network are connected to one another. These networks build trust and mutual support, facilitating communication and coordination.

• Bridging networks connect between disparate individuals and groups, giving one control over when and how information is communicated across a network.

• Brokering is a particularly valuable form of a bridging network. Brokers bridge structural holes and help a network attain network closure in which more members of network clusters have access to information.

• Energizing networks are ones in which connections to others are fulfilling, fun, and motivating.

They are associated with positive individual and organizational outcomes, while de-energizing ties leave people feeling drained, unhappy and demotivated, spreading contagion and harming morale.

What are the benefits of a strong network?

• Individuals who are embedded in a network enjoy social support, reliable information, referral options, and other resources that help achieve health goals, among many other benefits.

• The most significant and tangible value of a social network is its contribution to career development and advancement.

• Many career development opportunities come from “friends of friends” – not your inner circle.

KEY TERMS

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Actors: in a network analysis, individuals who form social relations with others.

Boundary spanning: developing relationships that cross boundaries within or outside the organization.

Bridging network: one in which you are connected to people who aren’t connected to one another.

Brokering network: one connecting disparate groups of people so that access to goods, services or information is enabled.

Clique: comprised of three or more actors all connected to each other.

Clusters: subgroups of actors who are tied together because they have similar traits or characteristics.

Cohesive network: one in which the people you are connected to are connected to one another.

Disclosure: an opening up or revelation about oneself.

Dyad: the connection or tie between two people in a network.

Equivalence: the extent to which the amount of what is given back is roughly the same as what was received.

Exchange: an action contingent upon a rewarding reaction.

Expressive ties: characterized by friendship, kinship, and social support.

High-quality LMX relationships: characterized by high levels of trust, respect, and loyalty.

Homophily: the tendency to form networks with those who are similar to you.

Idiosyncrasy credits: our ability to violate norms with others based on whether we have enough credits to cover the violation.

Incremental change: change that builds on rather than disrupts existing norms and patterns.

Immediacy: the time span of reciprocity, that is, how quickly the repayment is made.

Instrumental ties: formed for the achievement of some goal or purpose.

Interest: the motive the person has in making the exchange.

Leader-member exchange (LMX): the theory that studies manager-subordinate relationship quality.

Low-quality LMX relationships: characterized by low trust, little respect, and contractual exchanges.

Maintenance evaluation: watching for relational violations that go outside the boundary of expectations in established relationships.

Network: a system of interconnected relationships.

Network centrality: when an actor has ties with many other actors in a network.

Network closure: when all members have access to information in the network.

Network density: the extent to which all actors in a network are connected with each other.

Network maximum: reached when all actors are connected to all other actors.

Norm of reciprocity: when a person does something for another an expectation is created that the other will pay them back .

Psychological safety: the ability to speak openly and freely with one another without fear of reprimand or negative consequences.

Radical change: change that diverges from status quo and disrupts existing norms and patterns.

Reciprocity: the practice of exchanging things with others for mutual benefit.

Relational repair: a testing process with the intention to rebuild or reestablish relationship quality.

Relational violation: occurs when a behavior or action crosses the boundary of what is acceptable in a relationship.

Relationship building: a process that occurs through social exchange.

Scorekeeping: watching for what is exchanged and whether it is paid back.

Self Simmelian ties: when there are three or more reciprocal strong ties in a group.

Small world theory: the idea that we are all linked by short chains of acquaintances.

Social capital: the network of social connections that exist between people that lead to mutually advantageous cooperation and collaboration.

Social exchange: the process of building relationships through reciprocal interactions between people.

Social structure: the configuration of interactions and ties among actors in a social network.

Sparsely knit network: a network in which most actors are not directly tied to each other.

Structural holes: gaps or a lack of connection among actors in a social structure.

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Team-member exchange (TMX): the extent to which team members contribute ideas, feedback, and assistance to one another.

Ties: connections between individuals.

Tie strength: the closeness or emotional intensity of the relationship represented by the tie.

Triad: when three actors in a network are connected.

Trust: the belief regarding the intention and ability of the other to repay.

SPECIAL FEATURES Be A Critical Thinker: Social Networks at Work Research conducted by Prasad Balkundi and David Harrison has shown that dense social networks encourage high levels of cooperation and a willingness to share task-relevant information, which leads to confidence in the team and higher performance. However, there are also downsides to being part of dense networks. When many of the actors in the network are connected, you may find it challenging to keep up with the demands of these relationships. It can also be hard to develop confidential relationships with any one particular person in the network. Ask students under what conditions dense social networks can be productive and under what conditions they may compromise individual and team performance.

Bringing OB to Life: Relational Testing in Netflix’s “Dating Around” The ups and downs of the relationship-building process are revealed in Netflix’s Dating Around. The show is based on one person who goes on six blind dates in the same week, and they all occur in the same restaurant with the person wearing the same clothes allowing the producers to weave the dates together.

This shows highlights the real-life challenges of “relational testing” and you see that some tests fail right from the start and some fail later in the process. Fortunately, relationship building in the workplace can be easier and less painful than in Dating Around. Yet in many ways, relationship testing with bosses or coworkers is more like dating than people realize. Unlike dating, we don’t often get to choose who we work with and when relationships are bad, they can have long-lasting negative consequences for individuals and organizations. Ask your students to generate similarities and dissimilarities between dating and workplace relationship building.

Checking Ethics in OB: Fired for Social Media Posts Ashley Payne, a high school English teacher was fired for a Facebook picture of her holding a glass of wine and a glass of beer. James Cobo, an employee of a tire company was fired for commenting that ne would like to drive his truck into a crowd of political protesters. Social media sites blur the lines between personal and professional networks. Ask your students if they think posts on social media should be held against employees in the workplace.

OB in the Office: Most Job Openings are a Secret Prior to social media, job seekers would wait for a position opening in the newspaper or online and submit their resume, hoping it got through the initial screening. However, today effective networkers are learning about job opportunities before they are posted and planting seeds with potential employers for jobs they could take in 3 or 4 years. Some companies hesitate to post job openings online to avoid the flood of resumes, and so rely on referrals. Ask students what they can do to effectively build a network for future job referrals now.

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Research Insights: Social Networks and Power in Organizations A study by H. Cenk Sozen published in Personnel Review shows that administrative assistants might have more power than you may think. These individuals have unique power bases due to their central positions in organizational networks, allowing them to control information flows. In many cases in the study, the admins had higher network centrality than their bosses. The key is how they use the power. They can serve as gatekeepers, choosing what type of information they want to share and whether to speed up or slow down the spread of information. Ask your students, if they wanted to find out more about how administrative assistants use their power, how would they go about doing it and what research questions would they explore?

Worth Considering or Best Avoided: Should Employees Complain about their Jobs Online?

Social media can serve as a powerful support network. These sites make it easy to complain about all things in people’s lives, including their employers. Many people have openly criticized their colleagues, supervisors, and companies. In some cases, these posts highlight legitimate complaints, such as violations of the law. In other cases, insider information such as new product launch dates are shared with the public. Still other cases are merely airing of petty grievances. The National Labor Relations Act protects the rights of employees to address conditions at work, with or without a union and extends to certain conversations on social media. However, if employees aren’t engaging in a conversation with coworkers, they can be fired for their online behavior. Ask your students is they believe employees should complain about their jobs online and when it might make sense.

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Chapter 10 DEVELOP COMMUNICATION SKILLS

CHAPTER OVERVIEW This chapter focuses on the important topics of information and communication. The chapter begins by describing communication used for influence, examining strategies such as framing, charisma, stories, and nonverbal communication. The next section of the chapter focuses on supportive communication principles and how to handle difficult conversations. The chapter concludes with a further examination of the role of feedback in communication such as developmental feedback, feedback seeking and finally feedback orientation.

CHAPTER OUTLINE COMMUNICATING FOR INFLUENCE What Is Framing?

How Can We Communicate with Charisma?

Why Are Stories so Persuasive?

Don’t Forget the Nonverbals?

HANDLE DIFFICULT CONVERSATIONS USING SUPPORTIVE COMMUNICATION What Is a Difficult Conversation?

What Are Supportive Communication Principles?

DEVELOP YOUR FEEDBACK AND LISTENING SKILLS What Is Developmental Feedback?

What Are Active Listening Skills?

CHAPTER LECTURE NOTES LO 1: DESCRIBE TOOLS AND TECHNIQUES WE CAN USE TO BE MORE EFFECTIVE COMMUNICATORS What Is Framing?

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Denotation is the translation of a word to its literal meaning, more or less as dictionaries define it.

Connotation is a commonly understood cultural or emotional association that some word or phrase carries in addition to its explicit or literal meaning.

The framing effect occurs the choice between two alternatives reverses depending on whether the scenario focuses on the potential gains or the potential loss associated with each alternative. Emphasizing the gains associated with a choice and you might unwittingly discourage people from trying something new.

How Can We Communicate with Charisma?

In leadership and in our day-to-day relationships, the ability to communicate for influence is essential in building credibility, collaborating effectively, and persuading others to take action. This ability is often associated with charisma, a compelling attractiveness or charm that can inspire devotion in others.

Metaphors Metaphors are figures of speech in which a word or phrase is applied to an object or action to which it is not actually applicable. They help people visualize a concept or idea by making it accessible and understandable.

Rhetorical Questions Rhetorical questions are figures of speech in the form of questions that are asked to make a particular point, elicit an emotional response, or start a discussion, rather than to get a specific answer in response.

Contrasts and Comparisons Contrast and comparison are effective communication tactics that allow listeners to visualize an idea in context.

Repetition and Use of Lists Repetition serves to embed particular words and their underlying meanings into the minds of those listening. In addition, especially effective communications use lists of related words to extend and elaborate on key themes.

Moral Conviction Moral conviction in language emphasizes commitment to one’s core moral beliefs, or higher order ideals concerning right and wrong for which there can be little disagreement. Effective speakers are skilled at using language to connect ideas and suggestions to a higher purpose and to emphasize their own core beliefs by invoking high ideals.

Invoking the Collective

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To encourage participation and commitment, some communications try to create common ground between the persuader and those being persuaded, or common ground. This highlights the idea that all those listening are in this together and tries to encourage people to action by showing that others are already acting.

Ambitious Goals Charismatic communication is effective, in part, because it articulates ambitious goals for the future.

Why Are Stories so Persuasive?

Stories are effective ways to explain critical topics in part because people are more likely to remember interesting characters, tense moments, and pleasant endings.

Premise Premise is the starting point for a story and could be a particular location, time, or the baseline of social, cultural, or cognitive conditions that set the story’s context.

Character Development All stories have at least one main character and usually several supporting characters. You will likely see the main characters in different settings, reacting to different circumstances in order to subtly introduce their strengths, instincts, tendencies, preferences, and limitations.

Foreshadowing Foreshadowing is used to give a hint of what is to happen later and is an effective method to create tension or conflict.

Tension Tension is realized as a crystallizing feature in the arc of a story’s plot; this gives the story its essential purpose or trajectory.

Resolution Resolution occurs when the story’s fundamental tension has been resolved. Our brains produce cortisol during moments of threat, tension, and stress, and this initiates a survival instinct by heightening focus and attention. Oxytocin is produced when we see or experience kindness, and this enhances our sense of empathy and liking. Dopamine is released when a story ends happily. This research suggests that great stories do indeed affect the way our brains function.

LECTURE ENHANCEMENT Ask students to generate a story of 50 words or less that uses the different elements discussed in this chapter.

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Don’t Forget the Nonverbals Nonverbal Communication Nonverbal communication takes place through facial expressions, body motions, eye contact, and other physical gestures.

Nonverbal communication affects the impressions we make on others. The way we choose to design or arrange physical space also has powerful effects on how we interpret one another (See Figure 11.2).

Presence is the act of speaking without using words.

LECTURE ENHANCEMENT A fun way to illustrate the power of nonverbal communication is to call on volunteers to “act out” various emotions without speaking verbally. Specifically, you may whisper to one volunteer to “act angry,” another to “be sad,” another to “be happy,” etc. Alternatively, you may ask one student to portray all of these emotions, plus any others that you choose. Then you can ask the students’ classmates to guess which emotion is being portrayed.

LO 2: EXPLAIN HOW TO USE SUPPORTIVE COMMUNICATION TO COLLABORATE MORE EFFECTIVELY WITH OTHERS What Is a Difficult Conversation?

What Are Supportive Communication Principles?

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A set of tools known as supportive communication principles can help focus conversations on joint problem solving to address communication breakdowns and change problematic behaviors before they lead to larger relational problems.

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Supportive Communication Principles o Focus on the problem and not the person. o Be specific, not global and objective, not judgmental. o Own, rather than disown, the communication. o Be congruent—match the words with the body language.

Joint Problem Solving Joint problem solving involves framing a problem in an objective rather than accusatory or confrontational manner. Individuals should consider the following questions: • What do I really want to get out of this conversation?

• What behaviors need to be changed to benefit both of us?

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What can each of us realistically do to make the situation better?

Defensiveness and Disconfirmation •

The primary emphasis of supportive communication is to avoid defensiveness and disconfirmation. o Defensiveness occurs when individuals feel they are being attacked and they need to protect themselves. o Disconfirmation occurs when an individual feels his self-worth is being questioned. A person shows he is feeling disconfirmed when he withdraws from the conversation or starts engaging in show-off behaviors to try to make himself look good.

Remember That Word Choice Counts Analyze the situation to identify specific and nonjudgmental examples you can use to start a difficult conversation. Be careful to avoid dangerous words such as never or always. Instead, think about statements that are factual and objective.

LECTURE ENHANCEMENT Ask students to generate a list of words that they believe should be avoided in difficult conversation and explain why they chose each word.

Plan Carefully, but Be Open to New Information All difficult conversations need some planning, but even best-laid plan go awry because the conversations open individuals to previously unknown information that sheds new perspectives on the situation. Have opening comments prepared that focus on joint problem-solving, but then do not overly specify what you think the solution should be.

Manage Your Own Behavior There are two techniques for self-management and acceptance of one’s own contribution to the problem situation: • Owning the communication means taking responsibility for what you say rather than placing it on a third party. When we do not do this, we reduce our credibility and allow the receiver to write off the message as one that can be ignored.

• Being congruent means matching the verbal with the nonverbal. To avoid being incongruent, carefully manage your body language and be honest about what you are feeling.

LO 3: UNDERSTAND THE IMPORTANCE OF FEEDBACK AND LISTENING SKILLS What Is Developmental Feedback?

Feedback Giving

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Developmental feedback is giving feedback in an honest and constructive way that helps another to improve.

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Johari Window is a tool that helps people understand their relationship with self and others o There are some things we know about ourselves that others know (“open”) o Some things they don’t know (“hidden”). o But there are also some things others know about us that we don’t know. This is our “blind spot.” The only way to reduce blind spots is through feedback from others

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Important techniques you should keep in mind when giving feedback o Make Sure It Is Developmental: Be positive and focus on improvement. o Be Timely: Provide feedback soon after the issue occurs so it is fresh in mind. o Prepare Ahead of Time: Be clear about what you want to say so you stick to the issue. o Be Specific: Don’t use generalities, as that will just leave them wondering. o Do it in Private: Have the discussion in a safe and comfortable place for the other. o Limit the Focus: Stick to a behavior the person can do something about. o Reinforce: Don’t bring the person down…make sure they know there are good things about them too! o Show Caring: Convey a sense of caring, and that you are trying to help.

LECTURE ENHANCEMENT

Divide the class into groups of four or five students. Using the techniques for giving feedback in the chapter, have each group devise a plan for how they would go about providing feedback to a fellow group member who is not carrying his/her fair share of the group’s work load. Select two or three of the groups to share their feedback plans with the entire class.

Feedback Seeking •

Feedback-seeking is feedback about yourself from others o To gather information for increasing performance o To learn what others think about them o To regulate one’s behavior

Feedback Orientation •

Feedback orientation is a person’s overall receptivity to feedback o Accountability is the feeling that one is accountable to act on feedback he or she receives o Feedback self- efficacy is an individuals perceived competence in interpreting and responding to feedback

What Are Active Listening Skills?

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Active Listening •

Active listening involves listening to another person with the purpose of helping him or her think through a problem they are having

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The most important thing to remember is that to counsel someone, you want to use “reflecting” and “probing” more often than “advising” or “deflecting.” o Reflecting means paraphrasing back what the other has said o Probing means asking for additional information o Deflecting mean shifting to another topic o Advising means telling someone what to do LECTURE ENHANCEMENT

Active listening and effective listening are closely related topics Simple rules for effective listening include the following: (1) Stop talking. (2) Help the speaker feel at ease. (3) Have an attitude that shows you want to listen. (4) Avoid distractions. (5) Have empathy for the speaker. (6) Be patient.

Listening Strategies • Reflecting means paraphrasing back what the other said. This can help draw out information rather than seeking agreement or advice too early. Inserting your own opinion or crafting a solution before really understanding a concern is risky.

• Probing means asking for additional information. Its purpose is to help the speaker dig more deeply into understanding the feelings, facts, and meanings of the issue they are trying to explore. This flows from what was previously said and asks for elaboration, clarification, and repetition. Ideally, probes are gentle, thoughtful, and courteous to avoid threatening the person or putting another on the spot.

• Deflecting means shifting to a different topic or countering with a revised version of the issue. It moves the conversation away from its original starting point and comes with a risk of coming across as uninterested or too preoccupied to listen.

• Advising means telling someone what to do in order to offer suggestions for overcoming a problem in a meaningful or satisfying way. One problem is that it may be a closed response, and end a vibrant conversation.

Applying the Strategies A general rule of thumb for active listening is to use reflecting and probing more than advising or deflecting. Active listening combined with supportive communication principles provides the tools needed to approach difficult conversations in a way that builds, rather than breaks down, relationships and trust.

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CHAPTER STUDY GUIDE What is framing?

• The framing effect occurs when the choice between two alternatives reverses depending on whether the scenario focuses on the potential gain or the potential loss associated with each alternative.

• When decision options are framed with emphasis on the possible gains (i.e., the gains are made salient), in general, people are less willing to take a risk.

• When decision options are framed with emphasis on the possible losses (i.e., the losses are made salient), in general, people are more willing to take a risk.

• The framing effect highlights the power of words to alter the way information is interpreted.

What is charismatic communication?

• Charismatic communication is especially persuasive in that it uses specific tactics to arouse excitement and anchor essential ideas into the minds of an audience.

• Charismatic communications often employ combinations of seven persuasive communication tactics: 1. Metaphors 2. Rhetorical questions 3. Contrasts and comparison 4. Repetition and the use of lists 5. Moral conviction 6. Invoking the collective 7. Ambitious goals • Although some people are more naturally charismatic than others, we can all learn to use communication tactics that are especially persuasive.

What is effective storytelling?

• The use of story is often an effective way to convey complex information and to do so in a way that is memorable.

• Recent research identifies chemical reactions in the brain to fundamental elements of compelling stories, such as moments of threat, tension, stress, kindness, and happy endings.

• Most stories have essential elements and a predictable arc: o Premise o Character development o Foreshadowing o Tension o Resolution How important is nonverbal communication?

• Nonverbals communicate without words and are most often expressed through observable behaviors such as eye contact, fidgeting, sweating, posture, or facial expressions.

• Instinctive, subconscious forms of nonverbal communication often reveal what one is really thinking or feeling, through not expressed directly or explicitly in words.

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What is the problem of avoidance in communication?

• Avoidance is not engaging with another person about a situation due to fear of what will be said or the inability to handle a difficult conversation.

• It is a problem because it doesn’t mean the conflict goes away; rather, it can escalate.

• Avoidance harms relationships and reduces the potential for collaboration.

• Avoidance can be overcome by being willing to engage in a difficult conversation.

What is a difficult conversation?

• A difficult conversation is characterized by strong emotion and potential conflict where there is a consequence at stake.

• It is typically a situation in which we have a problem with another person that causes each of us to be angry or upset with one another, and the result is damaged relationships.

• Difficult conversations require a particular kind of approach based on careful preparation and emotional self-regulation.

• To handle difficult conversations, we have to think carefully about what is going on and apply supportive communication skills.

What are supportive communication principles?

• Supportive communication principles are techniques designed to navigate difficult conversations.

• They are based on a set of techniques that teach us how to take charge of ourselves in situations that could otherwise spin out of control.

• They work by focusing on joint problem solving while reducing defensiveness and disconfirmation.

They consist of focusing on the problem, not the person; being specific, not global; being objective, not evaluative; owning, not disowning; and being congruent.

What is developmental feedback and why is it so important?

• Developmental feedback lets us know what we are doing well and not so well, and what we can do to improve. It is important because it lets us know how we can improve.

• The Johari Window reveals the nature of blind spots—things others know about us that we don’t know; feedback helps individuals reduce their blind spots.

• When done properly, giving feedback can be a rewarding experience because it helps build relationships and strengthen trust.

• Feedback-seeking is seeking feedback about yourself from others.

• Feedback orientation describes one’s overall receptivity to feedback.

How can I be a more effective listener?

• Active listening provides a set of techniques for listening more effectively. It is designed to help you serve as a sounding board for someone else to help facilitate self-reflection and problem solving.

• To be more effective listener you need to learn active listening techniques. These include reflecting, probing, advising, and deflecting. Each technique does different things, so you need to learn the purpose of each and when to use them.

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KEY TERMS Active listening skills: focus on mindfully hearing and providing feedback that helps the speaker work through a problem or issue.

Advising: telling someone what to do.

Attribution bias: the tendency to attribute causes of problems to others rather than ourselves.

Avoidance: ignoring or not mentioning unpleasant topics because of fear of what will be said or the inability to handle it.

Blind spot: something we don’t know about ourselves but others do.

Charisma: compelling attractiveness or charm that can inspire devotion in others.

Congruent: the verbal (words) matches with the nonverbal (body language).

Connotation: a commonly understood cultural or emotional association that some word or phrase carries in addition to its explicit or literal meaning.

Defensiveness: occurs when we feel attacked and need to protect ourselves.

Deflecting: shifting to another topic.

Denotation: the translation of a word to its literal meaning, more or less as dictionaries define it.

Developmental feedback: provides information about what we are doing well and what could use improvement.

Difficult conversation: one in which there is strong emotion, potential conflict, and a consequence at stake.

Disconfirmation: occurs when we feel we are being put down or our self-worth is being questioned.

Feedback giving: providing information to others about outcomes of their performance, behavior, or actions.

Feedback orientation: one’s overall receptivity to feedback Feedback seeking: pursuing feedback to learn more about ourselves, our performance, and how others perceive us.

Framing effect: occurs when the choice between two alternatives reverses depending on whether the scenario focuses on the potential gain or the potential loss associated with each alternative.

Johari Window: a tool for helping us understand when we need feedback.

Metaphors: figures of speech in which a word or phrase is applied to an object or action to which it is not actually applicable.

Nonverbal communication: communication through means other than words.

Owning the communication: taking responsibility for what you say rather than placing it on a third party.

Presence: is the act of speaking without words.

Probing: asking for additional information.

Problem-oriented, not person-oriented: focusing on the behavior and not the person (or emotion).

Reflecting: paraphrasing back what the other has said.

Rhetorical questions: questions that are asked to make a point, elicit an emotional response, or start a discussion, rather than get a specific answer.

Supportive communication principles: techniques for navigating difficult conversations.

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SPECIAL FEATURES Be a Critical Thinker: Everyone on the Team Seems Really Happy. Is It Time to Create Some Disharmony?

Cambridge scholar Mark de Rond examined the way that sports metaphors were used heavily in the workplace, such as “heavy hitters” and “stepping up to the plate” even though the real world of teamwork is dominated by the quest for cooperation, perhaps at the cost of healthy tension, functional conflict, and perhaps a little friction. It is possible for harmony among teammates, rather than high performance, to become the unstated team goal. Instead of trying to make everyone happy, perhaps it’s time for managers and team leaders to intentionally create a little disharmony and tension, a small price to pay to elevate the team’s energy. Ask students what factors make communication about team conflict a difficult challenge.

Bringing OB to Life: Raising Expectations and Getting Better Feedback Wine tasting test: does a glass of wine taste better if you have never heard of the vintage before or if you have previously read a positive review of it? As you might expect it will most often be the one that you taste after reading the positive review. The reason traces to a common OB understanding of perception and expectations. We basically end up perceiving things – the glass of wine, a test drive of a new BMW, or a new teammate, as we expect them to be. Ask students how this notion of raising expectations for positive feedback can be tested in everyday experience.

Bringing OB to Life: Removing Doubts by Embracing Open Information Transparency is in and secrecy is falling by the wayside in more organizations. But is there a limit to how much coworkers should know about each other? But what about salary? From the OB side of things, such openness about financials, pay, and other matters is supposed to be a good thing – motivating employees and removing concerns about equity. But what about possible downsides? Ask your students if they would prefer their salaries to be public knowledge or to be kept confidential and why.

Checking Ethics in OB: Blogging Can Be Fun, but Bloggers Beware Catherine Sanderson, a British citizen living and working in Paris began a blog about her life, including her employer. Even though she was blogging anonymously, her identity was eventually discovered and she was fired from her job. She sued for financial damages and confirmation of her rights and was awarded a year’s salary by the court. Ask students what rights they have to a private life versus a work life. Do they agree with the court’s decision?

OB in the Office: Building Charisma through Polished Rhetoric One of the ways that leadership claims get granted is through framing and requesting things in a way that cause others to respond positively. Recent OB thinking suggests that there is more to this skill than a charismatic quality you are or are not born with. If charisma is thought of as an ability to inspire, persuade, and motivate others, then it is done through dropping bland business speech and practicing more emotive language. John Antonakis of the University of Lausanne believes that everyone can and should learn charismatic communication skills. Some leadership techniques he teaches include breaking things down into basic components, using metaphors and telling stories, asking rhetorical questions, taking a more stand, setting high goals, and using voice modulations, gestures and facial expressions. Ask students if they believe that charisma cam be learned.

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OB in the Office: Nonverbals Are More Important Than You May Think According to Susanne Jones of the University of Minnesota, approximately 65 to 75 percent of all communication is nonverbal. Emotions such as anger, happiness, hurt, disgust, confusion, and boredom are all easily expressed with facial movements using the eyes, eyebrows, mouth, and other features. Body language is expressed through the way people sit, stand, or cross their arms, hands, and feet. Your posture reveals a lot about you, and people can make snap judgments based simply on the way you are sitting or standing. Maintaining eye contact tells people you are trust-worthy and honest. Hand gestures can be used to convey a point and express sincerity. Ask students to generate messages and try to convey them using only nonverbals.

Research Insights: Words Affect Outcomes in Online Dispute Resolution As more people buy and sell online disputes are becoming more common. Jeanne Brett et al. conducted research to examine the words used in the first social interchange in 386 online disputes. Their findings showed that using words that give face were more likely to result in the settlement of disputes than words that attack face. Examples of negative words include agitated, angry, apprehensive, despise, disgusted, frustrated, furious, and hate. Findings also showed that it is best to get through a dispute quickly. Ask students to consider the suggestions for a successful online dispute resolution and to design a study that would test the premise of face theory.

Worth Considering or Best Avoided: Encouraging a Free Flow of Ideas at IDEO IDEO has built a business based on design thinking – an approach that brings diverse people into heated dialogue in the hopes of generating breakthrough ideas and creative solutions. Design thinking requires a certain kind of leader, so IDEO is careful in the selection process. They seek out individuals who are smart and willing to engage in collaborative work. IDEO promotes a “democracy of ideas.” It discourages formal titles, does not have a dress code, and encourages employees to move around, especially during mental blocks. Stimulating interactions are encouraged by making bikes available to go from building to building and by designing lobbies to foster movement between buildings. Designers are encouraged to talk to one another, in whatever forum possible, and experts commingle in offices that look like “cacophonous kindergarten classrooms.” Ask students what are the advantages and disadvantages of employing these methods of communication in an organization?

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Chapter 11 HANDLE CONFLICT, NEGOTIATION, AND DECISION MAKING

CHAPTER OVERVIEW This chapter focuses on conflict, negotiation, and decision making which are important topics in organizational behavior. The chapter begins by defining conflict, identifying different types of conflict, and differentiating between functional and dysfunctional conflict. The next section of the chapter focuses on various aspects of managing conflict. Included among the topics in this section are lose-lose conflict, win-lose conflict, and win-win conflict. The middle of the chapter focuses on negotiation. It defines negotiation and then discusses negotiation goals and outcomes, negotiation strategies, and pitfalls in negotiation, contrasting distributive negotiation with integrative negotiation. Emphasis is placed on how to gain integrative agreements and how to avoid common negotiation pitfalls. The chapter concludes with a discussion of decision making, including common approaches and strategies for decision making, and identifying and avoiding many of the heuristics that cause decision making errors.

CHAPTER OUTLINE MANAGE CONFLICT Why Do We Have Conflict?

What Conflict Management Strategy Should I Use? How Can I Guard Against Conflict Management Pitfalls?

LEARN HOW TO NEGOTIATE Why Should I Negotiate?

How Do I Negotiate?

How Can I Guard Against Common Negotiation Pitfalls?

BE A MORE EFFECTIVE DECISION MAKER What Are Common Approaches to Decision Making?

How Can I Be a Better Decision Maker?

How Can I Guard Against Common Decision-Making Pitfalls?

CHAPTER LECTURE NOTES

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LO 1: UNDERSTAND WHAT CONFLICT IS, WHY IS OCCURS, AND HOW WE CAN MANAGE IT MORE EFFECTIVELY Why Do We Have Conflict?

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Conflict occurs whenever disagreements exist in a social situation over issues of substance or whenever emotional antagonisms create frictions between individuals or groups.

LECTURE ENHANCEMENT One way to get students involved in your discussion of conflict is to ask them to note on a piece of paper a situation where they were involved in a conflict at work or at school. You can either (a) collect and sort through these papers to find good conflict examples [in which case you may suggest that students write their names on their papers], or (b) simply ask students to share their experiences with the class.

Regardless of the option you choose, you can count on this approach to supply you with numerous examples that you can then refer back to in discussing substantive and emotional conflicts or functional and dysfunctional conflicts.

Functional and Dysfunctional Conflict •

Functional conflict, also called constructive conflict, results in benefits to individuals, the team, or the organization.

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The potential benefits of functional conflict the following: o Conflict can bring important problems to the surface so that they can be addressed. o Conflict can cause decisions to be considered carefully and perhaps reconsidered to ensure that the right path of action is being followed. o Conflict can increase the amount of information used for decision making. o Conflict can offer opportunities for creativity that can improve individual, team, or organizational performance.

LECTURE ENHANCEMENT Ask the students to provide examples of functional conflict that they have personally experienced.

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Dysfunctional conflict, or destructive conflict, works to the disadvantage of an individual or group.

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The potential disadvantages of dysfunctional conflict include the following: o Dysfunctional conflict diverts energies. o Dysfunctional conflict hurts group cohesion. o Dysfunctional conflict promotes interpersonal hostilities. o Dysfunctional conflict creates a negative environment for workers. o Dysfunctional conflict can decrease performance and job satisfaction. o Dysfunctional conflict can contribute to absenteeism and job turnover.

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LECTURE ENHANCEMENT Ask the students to provide examples of dysfunctional conflict that they have personally experienced.

Types of Conflict •

Substantive conflict is a fundamental disagreement over ends or goals to be pursued and the means for their accomplishment.

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Emotional conflict involves interpersonal difficulties that arise over feelings of anger, mistrust, dislike, fear, resentment, and the like. This type of conflict is commonly known as a “clash of personalities.”

What Conflict Management Strategy Should I Use? Most conflict management strategies focus on resolution, an attempt to eliminate the underlying reasons for conflict. However, if the conflict is functional, we don’t want to eliminate it, we want to stimulate it to generate positive outcomes. We can use to general approaches: • Reducing differences which focuses on conflict resolution and is appropriate for dysfunctional conflict.

• Tolerating differences which focuses on conflict management and is appropriate for functional conflict.

LECTURE ENHANCEMENT To introduce the material on direct conflict management approaches, ask the students the following questions: (1) To what extent do you attempt to satisfy your own concerns when you’re trying to resolve a conflict? (2) To what extent do you attempt to satisfy the other party’ concerns when you’re trying to resolve a conflict? Select several students to share their self-assessments with respect to these two questions, and ask them to describe how they typically go about trying to resolve a conflict. Relate this discussion to the different conflict resolution strategies.

Strategies for Handling Dysfunctional Conflict •

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Relational Conflict is emotional conflict that comes from incompatibility in identity, ideology, interpersonal style, and values. Several strategies exist for overcoming relational conflict, including: o The ladder of inference in which members critically analyze why they have a particular ideological belief. o Superordinate identity, which focuses on a higher order identity that unites across groups. o Upward referral, which makes use of the chain of command for conflict resolution.

Problems are simply referred up the hierarchy for more senior managers to reconcile.

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Status Conflict occurs when individuals or groups attempt to establish hierarchical differentiation or undermine the authority of others.

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Process Conflict is a disagreement in how roles and responsibilities should be assigned.

Strategies for Handling Functional Conflict Functional conflict is also referred to as task conflict, and is disagreement among members about the content and outcomes of the tasks being performed.

Functional conflict can be handled through cooking the conflict, or creating conditions for people to engage their differences to generate creative tension. If the tension is too low you turn up the heat by injecting tension to pull out the differences. If the tension is too high, you reduce the heat by finding commonality across differences.

How Can I Guard Against Conflict Management Pitfalls?

The key to understanding conflict management approaches is recognizing that not all of them focus on win-win. When some parties lose, the potential for conflict remains, and might even escalate.

Avoid Lose-Lose Strategies Lose-Lose Strategies occurs when nobody really gets what he or she wants. Lose-lose conflicts often result when there is little or no assertiveness and conflict management takes the following forms.

• Avoidance is an extreme form of inattention; everyone simply pretends that the conflict does not really exist and hopes that it will go away. This is a low-assertiveness and low-cooperativeness situation. Avoidance may be used when an issue is trivial or more important issues are pressing, or when people need to cool down temporarily and regain perspective.

• Accommodation, or smoothing as it is sometimes called, involves playing down differences among the conflicting parties and highlighting similarities and areas of agreement. This is a lowassertiveness and high-cooperativeness situation. Accommodation may be used when issues are more important to others than to yourself or when you want to build “credits” for use in later issues.

• Compromise occurs when each party gives up something of value to the other; but with no one’s desires being fully satisfied, the antecedent conditions for future conflicts are established. This is a moderate-assertiveness and moderate-cooperativeness situation. Compromise may be used for temporary settlements to complex issues or to arrive at expedient solutions when time is limited.

Minimize Win-Lose Strategies In Win-Lose Strategies, one party achieves its desires at the expense and to the exclusion of the other party’s desires. This is a high-assertiveness and low-cooperativeness situation.

• Competition occurs when one party achieves a victory through the use of force, superior skills, or domination. This is a high-assertiveness and low-cooperativeness situation.

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Authoritative command refers to the use of formal authority to dictate a solution and specify who gains what and who loses what. This is a high-assertiveness and low-cooperativeness situation.

Authoritative command may be used when quick and decisive action is vital or when unpopular actions must be taken.

Aim for Win-Win Strategies Win-Win Strategies is achieved by a blend of both high cooperativeness and high assertiveness.

Collaboration or problem solving involves recognition by all conflicting parties that something is wrong and needs attention, and it stresses gathering and evaluating information in solving disputes and making choices. Collaboration and problem solving are preferred to gain true conflict resolution when time and cost permit.

The ultimate test for collaboration and problem solving is whether or not the conflicting parties see that the solution to the conflict: 1. Achieves each party’s goals.

2. Is acceptable to both parties.

3. Establishes a process whereby all parties involved see a responsibility to be open and honest about facts and feelings.

Potential disadvantages of collaboration include the following: • Collaboration requires time and energy.

• Both parties to the conflict need to be assertive and cooperative.

• Collaboration may not be feasible if the organization’s culture does not value cooperation.

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LECTURE ENHANCEMENT Note that each of the conflict management styles has some value; each is appropriately utilized in different situations. For example, avoidance is appropriate when an issue is trivial or there is no chance of resolution. Accommodation or has merit when issues are more important to others than yourself or when you realize you are wrong. Competition or is useful in situations where quick, decisive action is vital.

Compromise is helpful in achieving a temporary solution to a complex issue or when conflicting parties have equal power but are committed to mutually exclusive goals. Collaboration or is appropriate when an integrative solution needs to be found without sacrificing either party’s concerns, both of which are very important.

Ask students if they have ever seen examples of the previously mentioned conflict management styles at work, school or other aspects of their lives.

(Additional information can be found in D. Tjosvold, The Conflict Positive Organization, Boston: Addison-Wesley Publishing Company, Inc. 1991.)

LO 2: DESCRIBE METHODS FOR EFFECTIVE NEGOTIATIONS Why Should I Negotiate?

Negotiation is the process of making joint decisions when the parties involved have different preferences.

It is an essential skill and has special significance in many workplaces today where work is less structures, more collaborative and highly dynamic.

The Need to Negotiate When we don’t negotiate or do so well, we lose out on important opportunities and rewards. To negotiate effectively, we need to have bargaining power, which is the strength of the position we bring to a negotiation situation.

Negotiation Goals and Outcomes •

Substance goals deal with outcomes that relate to the “content” issues under negotiation.

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Relationship goals deal with outcomes that relate to how well people involved in the negotiation and any constituencies they may represent are able to work with one another once the process is concluded.

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LECTURE ENHANCEMENT Have students describe any experience they have had with any negotiations – whether as an active participant (involved in the negotiations) or as an observer.

An excellent article on negotiation, entitled “Consider Both Relationships and Substance When Negotiating Strategically,” by G.T. Savage, J.D. Blair, and R.L. Sorenson is available in the Academy of Management Executive, 1989, 3(1): 37-48.

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Effective negotiation occurs when substance issues are resolved and working relationships are maintained or even improved. Two criterion for an effective negotiation:

1. Quality—the negotiation results in a “quality” agreement that is wise and satisfactory to all sides.

2. Harmony in relationships—the negotiation is “harmonious” and fosters rather than inhibits good interpersonal relations.

LECTURE ENHANCEMENT Consider the following scenario: Suppose that you have given the class a complex project assignment which has a due date four weeks in the future, will count for 40 percent of their course grade, and must be done in groups. Some students complain that project, with its short time line, will overload their schedules. Other students are concerned about their grades, wanting to receive as much guidance and feedback as possible.

Divide the class into groups of four or five students. Have each group devise a plan for negotiating among themselves and with you regarding the above scenario. Select two or three of the teams to share their negotiation plans with the entire class.

After the plans are presented, discuss how the plan reflects negotiation goals and the three criteria for effective negotiations. Also discuss how well the plan follows the negotiation rules for integrative agreements. To what extent is each plan likely to result in a win-win situation for the students and the instructor?

How Do I Negotiate?

Understand Negotiation Strategies •

Distributive negotiation focuses on positions staked out or declared by the parties involved, and each party is trying to claim certain portions of the available pie.

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Integrative negotiation ⎯ also called principled negotiation ⎯ focuses on the merits of the issues, and everyone involved tries to enlarge the available pie rather than stake claims to certain portions of it.

LECTURE ENHANCEMENT There are many books, videos, and web-based resources available on how to negotiate effectively. The Web site entitled at http://top7business.com/archives/negotiation/ provides access to a sample of this material.

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Ask students to think about their own negotiation strategies, how they themselves negotiate. Have them share this with the rest of the class.

Approaches to Distributive Negotiation Participants in distributive negotiation usually approach it as a “win–lose” episode: • “Hard” distributive negotiation takes place when each party holds out to get its own.

• “Soft” distributive negotiation takes place when one party is willing to make concessions to the other to resolve things.

The bargaining zone is the range between one party’s minimum reservation point and the other party’s maximum reservation point.

The foundations for gaining truly integrative agreements include supportive attitudes, constructive behaviors, and good information.

The Attitudinal Foundations of integrative agreements include the following: • Willingness to trust the other party.

• Willingness to share information with the other party.

• Willingness to ask concrete questions of the other party.

The Behavioral Foundations of integrative agreements include the following: • Separate people from the problem.

• Don’t allow emotional considerations to affect the negotiation.

• Focus on interests rather than positions.

• Avoid premature judgments.

• Keep the identification of alternatives separate from their evaluation.

• Judge possible agreements by set criteria or standards.

The Information Foundations of integrative agreements include the following: • Each party must know what he or she will do if an agreement can’t be reached. In other words, each party must become familiar with his/her BATNA, or “best alternative to a negotiated agreement.”

• Each party must determine what is personally important in the situation.

• Each party must achieve an understanding of what the other party values, even to the point of determining the other party’s BANTA. Engage the Negotiation Process •

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Step 1: Assess o Think about the situation and decide if negotiating is appropriate. Keep your mind open and be creative when determining if negotiation would be beneficial to both sides.

Step 2: Prepare

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o

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This is one of the most crucial stages in negotiation. They keys are getting as much information as possible and knowing what your bargaining power is.

Step 3: Engage o Don’t be afraid to make the first ask as long as you are okay with that outcome. You can also wait and see what is offered and then use that information to make a counteroffer.

How Can I Guard Against Common Negotiation Pitfalls?

Negotiators need to guard against some common negotiation pitfalls.

• Myth of the fixed pie: the tendency in negotiation to stake out your position based on the assumption that in order to gain your way, something must be subtracted from that of the other party.

• Escalating commitment: once demands have been stated, people become committed to them and are reluctant to back down.

• Overconfidence: negotiators often develop overconfidence that their positions are the only correct ones, consequently leading them to ignore the other party’s needs.

• Communication problems: “Negotiation is the process of communicating back and forth for the purpose of reaching a joint decision.”

• Telling problem: the parties don’t really talk to one another, at least not in the sense of making themselves truly understood.

• Hearing problem: the parties are unable or unwilling to listen well enough to understand what each other is saying.

Third-Party Roles in Negotiation Negotiation may sometimes be accomplished through the intervention of third parties, such as when stalemates occur and matters appear irresolvable under current circumstance.

• Alternative dispute resolution occurs when a neutral third party works with persons involved in a negotiation to help them resolve impasses and settle disputes. o Arbitration occurs when a neutral third party acts as a “judge” with the power to issue a decision that is binding on all parties. o Mediation occurs when a neutral third party tries to engage the parties in a negotiated solution through persuasion and rational argument.

LECTURE ENHANCEMENT The Negotiation Institute Web site at http://www.negotiation.com/ provides materials that may be used to support and amplify on your discussion of negotiation.

Students should work with their group members and discuss the advantages and disadvantages of using a third party negotiator in organizations. After which, each group should share their discussion with the rest of the class.

LO 3: BE A MORE EFFECTIVE DECISION MAKER What Are Common Approaches to Decision Making?

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Decision making is the process of choosing a course of action for dealing with a problem or opportunity.

LECTURE ENHANCEMENT Prior to introducing the steps of the decision-making process, ask students to describe how they have gone about making a major decision, such as which college or university to attend. Make sure they describe the sequence of steps they went through, and then relate their discussion to the five basic steps involved in systematic decision making.

Classical Decision Making •

Classical decision theory assumes that the manager faces a clearly defined problem, knows all possible action alternatives and their consequences, and then chooses the alternative that offers the best, or “optimum,” solution to the problem.

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An optimizing decision gives the absolute best solution to a problem.

Behavioral Decision Making •

Behavioral decision model views decision makers as acting only in terms of what they perceive about a given situation.

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Bounded rationality is a shorthand term suggesting that, while individuals are reasoned and logical, humans have their limits. Individuals interpret and make sense of things within the context of situations. They engage in decision making “within the box” of a simplified view of a more complex reality. This ultimately leads to satisficing.

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Satisficing decisions choose the first alternative that appears to give an acceptable or satisfactory resolution of the problem.

LECTURE ENHANCEMENT Ask students to provide examples of when they have used optimizing decision making and examples of when they have used satisficing decision making. These examples should help students to understand the conditions under which these two approaches usually occur.

Systematic and Intuitive Decision Making •

Systematic thinking approaches problems in a rational and analytical fashion.

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Intuitive thinking approaches problems in a flexible and spontaneous fashion.

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In the intuitive decision model decision makers tend to deal with many aspects of a problem at once, jump quickly from one issue to another, and act on hunches from experience or on spontaneous ideas.

This approach is common under conditions of risk and uncertainty.

LECTURE ENHANCEMENT Ask students to raise their hands if they think that they rely predominantly on a systematic step-by-step approach to decision making. Make a note of these students. Do the same for those who believe that they use an intuitive approach to decision making most often. From here, several avenues to generating discussion of these alternative ways of making decision are available. For example, you may ask students who believe that they rely more on the systematic (or intuitive) approach to elaborate on the ways in which they typically make decisions. What do they consider to be the advantages of their approach? The disadvantages? Another option is to create panels of users of the intuitive and systematic approaches to engage each other in a debate on the relative merits of their decision-making styles. Or you could create panels of intuitive and systematic decision makers, but instead of having them debate one another, you could instruct them to ask the students with alternative styles questions about the ways in which they typically approach various problems. Any of these options can be used to generate a lively discussion of the relative strengths and weaknesses of the systematic and intuitive decision-making approaches.

How Can I Be a Better Decision Maker?

Judgment, or the use of one’s intellect, is important in all aspects of decision making. Heuristics are simplifying strategies or “rules of thumb” used to make decisions. Hueristics make it easier to deal with uncertainty and limited information in problem situations.

Avoid Decision Traps •

The availability heuristic involves assessing a current event based on past occurrences that are easily available in one’s memory.

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The representativeness heuristic involves assessing the likelihood that an event will occur based on its similarity to one’s stereotypes of similar occurrences.

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The anchoring and adjustment heuristic involves assessing an event by taking an initial value determined by historical precedent or an outside source, and then incrementally adjusting this value to make a current assessment.

Recognize Decision Biases •

The confirmation trap is the tendency for the decision maker to seek confirmation for what is already thought to be true and to not search for disconfirming information.

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The hindsight trap is the tendency for the decision maker to overestimate the degree to which an event that has already taken place could have been predicted.

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Framing error is solving a problem in the context perceived.

How Can I Guard Against Common Decision-Making Pitfalls?

Watch for Escalating Commitment •

The organization’s natural desire to continue on a selected course of action reinforces some natural tendencies among decision makers.

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Escalating commitment is the tendency to continue and renew effort on a previously chosen course of action, even though it is not working. The tendency to escalate commitments often outweighs the willingness to disengage from them.

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Good decision makers are willing to reverse previous decisions and stop investing time and other resources in unsuccessful courses of action.

Know Whom to Involve Good organizational decisions are made by individuals acting alone, by individuals consulting with others, and by groups of people working together.

Individual decisions, or authority decisions, are made by one person in behalf of the team.

Consultative decisions are made by one individual after seeking input from or consulting with members of a group.

Team decisions are made by all members of the team.

Who participates and how decisions are made should reflect the issues at hand. Figure 9.4 from the textbook shows a model developed by Victor Vroom, Philip Yetton, and Arthur Jago that helps managers choose the decision-making method that is most appropriate for various problem situations. The model seeks to sequentially array the key factors that should guide participation choices. The key problem attributes are the following: 1. The required quality of the decision.

2. The commitment needed from subordinates.

3. The amount of information the leader has.

4. The structured/unstructured problem.

5. Commitment probability (i.e., the chances subordinates would be committed if the leader made the choice).

6. Goal congruence (i.e., the degree to which subordinates share the goals to be obtained by the choice).

7. Subordinate conflict.

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8. Subordinate information.

The key to effectively managing participation in decision making is first knowing when to use each decision method and then knowing how to implement each of them well.

LECTURE ENHANCEMENT Explain to students that escalating commitment is encouraged by the popular saying, “If at first you don’t succeed, try, try again.” Current wisdom supports an alternative view, illustrated in this quote by the late W.C. Fields: “If at first you don’t succeed, try, try again. Then quit. No use being a damn fool about it.”

Know How to Make Decisions in Crises One mistake people make in crisis situations is turning to a knee jerk reaction because the brain is wires to focus on self-protection. We can train on the three stages of decision making in a crisis: • Stalling • Deciding what to do • Acting

CHAPTER STUDY GUIDE Why do we have conflict?

• Conflict appears as a disagreement over issues of substance or emotional antagonisms that create friction between individuals or teams.

• Moderate levels of conflict can be functional for performance, stimulating effort and creativity.

• Too little conflict is dysfunctional when it leads to complacency, too much conflict is dysfunctional when it overwhelms us.

What conflict management strategy should I use?

• Conflict management strategies differ depending on whether the situation involves functional or dysfunctional conflict. Dysfunctional conflict should be eliminated through conflict resolution; functional conflict should be stimulated to generate creative solutions.

• Two broad conflict management strategies are reducing differences and tolerating differences.

Reducing differences works for dysfunctional conflict; tolerating conflict works for both functional and dysfunctional conflict.

How can I guard against common conflict management pitfalls?

• Avoid lose-lose conflict, which results from avoidance, accommodation (smoothing), and compromise.

• Minimize win-lose conflict associated with competition and authoritative command.

• Aim for win-win conflict, which is achieved through collaboration and problem solving.

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Why should I negotiate?

• Negotiation is the process of making decisions and reaching agreement in situations in which the participants have different preferences.

• Managers may find themselves involved in various types of negotiation situations, including twoparty, group, intergroup, and constituency negotiation.

• Effective negotiation occurs when both substance goals (dealing with outcomes) and relationship goals (dealing with processes) are achieved.

• Ethical problems in negotiation can arise when people become manipulative and dishonest in trying to satisfy their self-interests at any cost.

How do I negotiate?

• The distributive approach to negotiation emphasizes win-lose outcomes; the integrative or principled approach to negotiation emphasizes win-win outcomes.

• In distributive negotiation the focus of each party is on stalking out positions in the attempt to claim desired portions of a fixed pie.

• In integrative negotiation, sometimes called principled negotiation, the focus is on determining the merits of the issues and finding ways to satisfy one another’s needs.

• The negotiation process consists of three steps: assess, prepare, and engage. All three steps involve thinking through the situation in a creative manner to identify ways by which all parties involved can come out of the negotiation better off.

How can I guard against common negotiation pitfalls?

• The success of negotiations often depends on avoiding common pitfalls such as the myth of the fixed pie, escalating commitment, overconfidence, and both the telling and hearing problems.

• When negotiations are at an impasse, third party approaches such as mediation and arbitration offer alternative and structured ways for dispute resolution.

What are the different approaches to decision making?

• In the classical decision model, optimum decisions identifying the absolute best choice are made after analyzing with full information all possible alternatives and their consequences.

• In the behavioral decision model, satisficing decisions that choose the first acceptable alternative are made with limited information and bounded rationality.

• In the intuitive model, decision makers deal with many aspects of a problem at once, jump quickly from one issue to another, and act on hunches from experience or on spontaneous ideas.

What are common decision traps and biases?

• Common decision traps include the use of judgmental heuristics. Such heuristics include availability decisions based on recent events, representativeness decisions based on similar events, and anchoring and adjustment decisions based on historical precedents.

• Common decision biases include confirmation error, seeking information to justify a decision already made; the hindsight trap, overestimating the extent to which current events could have been predicted; and framing error, or viewing a problem in a limited context.

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How can I guard against common decision-making pitfalls?

• Individuals and teams must know who should be involved in making decisions, making use of individual, consultative, and team decisions as needed to best fit the problems and opportunities being faced.

• Individuals and teams must be able to counteract tendencies toward escalating commitment to previously chosen courses of action that are not working; they must know when to quit and abandon a course of action.

• Understand how to make decisions under crisis.

KEY TERMS Accommodation (or smoothing): involves playing down differences among the conflicting parties and highlighting similarities and areas of agreement.

Alternative dispute resolution: occurs when a neutral third party works with persons involved in a negotiation to help them resolve impasses and settle disputes.

Anchoring and adjustment heuristic: bases a decision on incremental adjustments to an individual value determined by historical precedent or some reference point.

Arbitration: the neutral third party acts as a judge and has the power to issue a decision that is binding on all parties.

Availability heuristic: bases a decision on recent events relating to the situation at hand.

Avoidance: the extreme where no one acts assertively and everyone simply pretends the conflict doesn’t exist and hopes it will go away.

Bargaining power: the strength of the position we bring to a negotiation situation.

Bargaining zone: the range between one party’s minimum reservation point and the other party’s maximum reservation point.

BATNA: the best alternative to a negotiated agreement.

Behavioral decision model: views decision makers as acting only in terms of what they perceive about a give situation.

Bounded rationality: incomplete information and time and resource constraints that limit the ability to be rational.

Classical decision model: views decision makers as acting in a world of complete certainty.

Cognitive limitations: restrictions on what a person is able to know at any given point in time.

Compromise: occurs when each party shows moderate assertiveness and cooperation and is ultimately willing to give up something of value to the other.

Confirmation error: the tendency to seek confirmation for what is already thought to be true and not search for disconfirming information.

Conflict: occurs when substantive or emotional disagreements create friction among individuals or groups.

Conflict resolution: eliminating the underlying reasons for conflict.

Consultative decisions: made by one individual after seeking input or consulting with members of a group.

Cooking the conflict: creating conditions for people to engage their differences to generate creative tension.

Decision making: the process of choosing a course of action for dealing with a problem or an opportunity.

Distributive negotiation: focuses on positions staked out or declared by the parties involved, and each party is trying to claim certain portions of the available pie.

Dysfunctional conflict: conflict that works to the disadvantage of an individual or group.

Effective negotiation: occurs when substance issues are resolved and working relationships are maintained or improved.

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Emotional conflict: involves interpersonal difficulties that arise over feelings of anger, mistrust, dislike, fear, resentment, and the like.

Escalating commitment: occurs when parties lock in to their demands and are reluctant to back down.

Escalating commitment: the tendency to continue a previously chosen course of action even when feedback suggests that it is failing.

Framing error: solving a problem in the context in which they perceive it.

Functional conflict: conflict that results in positive benefits to individuals, the group, or the organization.

Hearing problem: occurs when the parties are unable or unwilling to listen to what the other is really saying.

Heuristics: simplifying strategies or rules of thumb used to make decisions.

Hindsight trap: a tendency to overestimate the degree to which an event that has already taken place could have been predicted.

Individual decisions: (or authority decisions), are made by one person on behalf of the team.

Integrative negotiation: (also called principled negotiation) focuses on the merits of the issues, and everyone involved tries to enlarge the available pie rather than stake claims to certain portions of it.

Intuition: the ability to know or recognize quickly the possibilities of a given situation.

Intuitive decision making: approaches problems in a flexible and spontaneous fashion.

Ladder of inference: members critically analyze why they have a particular ideological belief.

Lose-lose conflict: occurs when nobody fully gets what they want in a conflict situation.

Mediation: the neutral third party tries to engage the parties in a negotiated solution through persuasion and rational argument.

Myth of the fixed pie: assumes that to make a gain, something must be subtracted from the gains of the other party.

Negotiation: the process of making joint decisions when the parties involved have different preferences.

Optimizing: in decision making, gives the absolute best solution to a problem.

Overconfidence: assumes that one’s positions are the only correct ones.

Process conflict: disagreement in how roles and responsibilities should be assigned.

Rational decision model: the five-step model of decision making beginning with defining the problem and ending with implementation and evaluation.

Relational conflict: emotional conflict that comes from incompatibility in identity, ideology, interpersonal style, and values.

Relationship goals: deal with the outcomes being negotiated.

Representativeness heuristic: bases a decision on similarities between the situation at hand and stereotypes of similar occurrences.

Satisficing: choosing the first alternative to give an acceptable or satisfactory resolution of the problem.

Soft Bargaining: one or both parties make concessions just to get things over with.

Status conflict: occurs when individuals or groups attempt to establish hierarchical differentiation or undermine the authority of others.

Substance goals: deal with the outcomes being negotiated.

Substantive conflict: a fundamental disagreement over ends or goals to be pursued and the means for their accomplishment.

Superordinate identity: focuses on a higher order identity that unites across groups.

Systematic decision making: approached problems in a rational and analytical fashion.

Task conflict: disagreements among group members about the content and outcomes of the tasks being performed.

Telling problem: occurs when parties don’t talk to one another in a way that allows for true understanding.

Upward referral: uses the chain of command for conflict resolution.

Win-lose conflict: one party achieves its desires at the expense and to the exclusion of the other party’s desires.

Win-lose stance: one party wins and the other party loses.

Win-win conflict: achieved by a blend of both high cooperativeness and high assertiveness.

Win-win stance: we both gain.

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SPECIAL FEATURES Be a Critical Thinker: Dealing with Deception at the Bargaining Table The NFL draft is a critical event for eligible players and teams. The stakes are high, and the weeks leading up to it offer conditions rife for trickery, dishonesty, and misdirection. Researchers at Harvard University have detailed four ethical challenges to honesty and integrity in the negotiations process: 1) Human nature is such that we are lured by temptation and our focus on the reward could lead us down the path of deception; 2) Although we know that there are no guarantees in life, humans strive for certainty and security and when faced with uncertainty, ethics are often compromised; 3) Power, or lack thereof, can affect how we conduct ourselves in negotiations and when we feel powerless, ethical standards could slip; and 4) If the likely victims of our deception are anonymous or impersonal, we are more likely to lie.

Ask students if they believe there should be a penalty for lying at the negotiating table. If so, what should be penalty be and how should it be applied?

Bringing OB to Life: Intuition and US Airway Flight 1549 During the afternoon of January 15, 2009, television news anchors began reporting about a plane in the Hudson river. The natural first reaction is “not another tragic plane crash.” This incident was different.

Captain Chesley “Sully” Sullenberger was able to successfully crash land U.S. Air Flight 1549 in the river and save the lives of all the passengers and crew. When interviewed, Captain Sully indicated that his decision to land the plane in the river was an intuitive one, indicating “It was sort of an instinctive move based upon my experience and my initial read of the situation.” Have students recall and share with the class if they have ever had to make an intuitive decision that required quick thing on their part? What was the end result of the decision they made?

Checking Ethics in OB: Is a Two-Tiered Wage System Ever Justified?

In the early 2000s when the big three automotive manufacturers are struggling because of legacy pension costs and competition from the foreign market, America’s big firms decided to use a two-tiered wage system that paid new workers substantially less than existing workers doing the same job and put a ceiling on the new workers’ wages. This system saves thousands of jobs, so the unions went along with it, and it seemed like a wise plan when the 2008 recession hit. However, discontent grew among the new workers and in 2015, the UAW and General Motors negotiated a new contract that ended the two-tier system. Ask students if saving thousands of jobs was a sufficient justification the two-tier system. What are the pros and cons of such a system?

OB in the Office: What to Do When Face-to-Face Negotiations Are Not Possible: Tips for Negotiating via Email Negotiations are almost always challenging, and these challenges can be exacerbated when negotiations take place via email instead of face-to-face. So how can we improve our email negotiations? First, whenever possible, make sure that email is one forum for negotiating and not the only forum. Utilize video conferencing options to build rapport and telephone to iron out details. Make sure your emails are concise and have clear objectives. Ream them our loud before pressing the send button to make sure they convey the proper tone and avoid innuendo. To encourage back-and-forth communication, make sure to ask specific questions via email and state what your intended goals are. Pay specific attention to the

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subject lines of your emails because those few words are the first impression each party has. Ask your students if they have ever had to navigate a complex situation via email and what they found helpful.

OB in the Office: Sooner or Later You’ll Know How to Negotiate a Better Raise During your career, the time will most assuredly come for you to negotiate a pay raise. A compilation of thoughts and tips follows: 1) Prepare. Do the research to find out what others make for a similar position inside and outside the organization; 2) Document and communicate. Identify and communicate your value; 3) Advocate and ask. In salary negotiation, the rule is “Don’t ask, don’t get.”; 4) Stay focused on the goal. The goal is to satisfy your interests to the maximum extent possible; 5) View the details from the other side. Test your requests against the employer’s point of view; 6) Don’t overreact to bad news. Never quit on the spot if you don’t get what you want.

Research Insights: Analytical and Intuitive Decisions: When to Trust Your Gut Traditionally, managers have often been advised not to use intuitive decision making because it is often biased and thus may yield poor decisions. Managers have been advised by decisions experts to use analytical decision making. However, Dane and his colleagues noted recent work suggesting that this traditional recommendation might not hold for very experienced decision makers. For these individuals intuitive heuristics might foster effective decision making. Reading the research done by Dane and his colleagues, ask students how much expertise do they think is necessary for intuition to be superior? How comfortable do they feel using it?

Worth Considering or Best Avoided? Labor and Management Sides Disagree. Is a Strike the Answer?

It’s hard to find a person who isn’t in favor of good quality schools. But when it comes time to change schools in search of a better future, teachers, administrators, and school boards sometimes have a hard time reaching agreement. In contrast to the school situation, Ford and the Canadian Auto Workers Union negotiated a new labor contract without a strike. Ask students who wins and who loses when strikes occur? When conflicts occur, does having the threat of a strike on the table make management more willing to listen? What skills and conditions make reaching agreements more likely in high conflict situations?

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