Organizational Behavior, 10

1. Organizational Behavior, 10/ESchermerhorn, Hunt, and Osborn John Wiley & Sons, Inc.

2. Chapter 1 Learning Objectives Define organizational behavior (OB) Get acquainted with basic OB terminology Describe what managers do Understand why managers must know about OB Identify the three levels of analysis in OB My Best Manager ex

3. What is an Organization?

4. ORGANIZATIONAL PERFORMANCE Depends on the organizations’ ability to attain organizational goals in an effective and efficient manner. Effectiveness : the degree to which the organization achieves a stated goal Efficiency : the use of minimal resources to produce a desired volume of output.

6. What is Management? Management is the process of planning, organizing, leading, and controlling an organization’s resources to attain organizational goals in an effective and efficient manner .

7. Prentice Hall, 2001 Chapter 1 7 In the 1960s, Henry Mintzberg concluded that managers perform ten roles that can be grouped around three themes: interpersonal relationships, information transfer, and decision making. Managers perform three types of interpersonal roles: • Figureheads perform ceremonial or symbolic roles. • Leaders train, motivate, and discipline employees. • Liaisons contact external information sources. Managers perform three types of informational roles: • Monitors collect marketplace information from outside sources. • Disseminators transmit information to organizational members. • Spokespersons represent their organizations to outsiders. Managers perform four types of decisional roles: • Entrepreneurs initiate and oversee new projects to improve organizational performance. • Disturbance handlers take action to respond to unforeseen problems. • Resource allocators control human, mechanical, and monetary resources. • Negotiators bargain with others to gain advantage for their own units.In the 1960s, Henry Mintzberg concluded that managers perform ten roles that can be grouped around three themes: interpersonal relationships, information transfer, and decision making. Managers perform three types of interpersonal roles: • Figureheads perform ceremonial or symbolic roles. • Leaders train, motivate, and discipline employees. • Liaisons contact external information sources. Managers perform three types of informational roles: • Monitors collect marketplace information from outside sources. • Disseminators transmit information to organizational members. • Spokespersons represent their organizations to outsiders. Managers perform four types of decisional roles: • Entrepreneurs initiate and oversee new projects to improve organizational performance. • Disturbance handlers take action to respond to unforeseen problems. • Resource allocators control human, mechanical, and monetary resources. • Negotiators bargain with others to gain advantage for their own units.

8. The monitor = seeking current information from many sources. The disseminator = transmits information to others both inside and outside the organization. The spokesperson = to provide official statements to people outside the organization about company policies, actions, or plans. Informational roles = maintain & develop information network

9. The figurehead = ceremonial activities The leader = motivation, communication, and influence of subordinates. The liaison = development of a web of relationships both inside and outside the organization. Interpersonal roles pertain to relationships with others

10. The entrepreneurial = initiation of change. The resource allocator = how to allocate resources to achieve outcomes. The negotiator = negotiating and bargaining for unit of responsibility. The disturbance handler = resolving conflicts between subordinates or other departments. Decisional roles = make choice requiring conceptual & human skills.

11. http://www.ba.metu.edu.tr/user/pinar

12. My Best Manager Make a list of the attributes that describe the best manager you ever worked for. In groups of 4-5, share your lists. As a group create one list that combines all the unique attributes. Each group will read its list to class.

13. Managerial Skills Conceptual Skills: The ability to analyze and diagnose a situation and distinguish between cause and effect. Human Skills: The ability to understand, work with, lead, and control the behavior of other people and groups. Technical Skills: Job-specific knowledge and techniques.

14. The Management Pyramid The organizing function will be discussed in detail in Chapter 7. In this chapter, however, we will discuss the three levels of a corporate hierarchy--top, middle, bottom--commonly known as the management pyramid. In general, top managers are the upper-level managers who have the most power and who take overall responsibility for the organization. An example is the chief executive officer (CEO). Top managers establish the structure for the organization as a whole, and they select the people who fill the upper-level positions. Top managers also make long-range plans, establish major policies, and represent the company to the outside world at official functions and fund-raisers. The organizing function will be discussed in detail in Chapter 7. In this chapter, however, we will discuss the three levels of a corporate hierarchy--top, middle, bottom--commonly known as the management pyramid. In general, top managers are the upper-level managers who have the most power and who take overall responsibility for the organization. An example is the chief executive officer (CEO). Top managers establish the structure for the organization as a whole, and they select the people who fill the upper-level positions. Top managers also make long-range plans, establish major policies, and represent the company to the outside world at official functions and fund-raisers.

15. What is Organizational Behavior? Organizational behavior (OB) is the study of factors that affect how individuals and groups act in organizations and how organizations manage their environments.

17. Organizational Behavior Terminology Dependent Variables: Factors that you want to explain and that are affected by other factors.

18. Prentice Hall, 2001 Chapter 1 18

19. Organizational Behavior Terminology Independent Variables: Determinants of dependent factors Individual level Group level Organization level

20. Prentice Hall, 2001 Chapter 1 20 Independent Variables

21. OB Formula Behavior, Attitudes = f( person, environment)

22. Chapter 2 Values, Personality, and Individual differences

23. Agenda Explain role of nature and nurture in determining personality Discuss the Big Five Personality Model Explain individual personality factors Explain role of the situation Identify three types of ability Discuss values Discuss 3 components of attitudes Discuss attitude-behavior relationship

24. The Individual Performance Equation Job performance = Individual attributes X Work effort X Organizational support This equation views performance as the result of the personal attributes of individuals, the work effort they make and the organizational support they receive.This equation views performance as the result of the personal attributes of individuals, the work effort they make and the organizational support they receive.

25. Individual Performance Factors Individual attributes Work effort Organizational support Notice that individual attributes relate to a capacity to perform. Work effort relates to a willingness to perform. Organizational support relates to the opportunity to perform. Even people whose individual characteristics satisfy job requirements and who are highly motivated to exert work effort may not be good performers because they do not receive adequate support in the workplace. Situational constraints include: lack of time inadequate budgets inadequate tools, equipment, supplies unclear instructions unfair levels of expected performance a lack of required services and help from others inflexibility of procedures a poorly designed work environment Notice that individual attributes relate to a capacity to perform. Work effort relates to a willingness to perform. Organizational support relates to the opportunity to perform. Even people whose individual characteristics satisfy job requirements and who are highly motivated to exert work effort may not be good performers because they do not receive adequate support in the workplace. Situational constraints include: lack of time inadequate budgets inadequate tools, equipment, supplies unclear instructions unfair levels of expected performance a lack of required services and help from others inflexibility of procedures a poorly designed work environment

26. Demographic Differences Gender Age Ethnic background Stereotyping Prejudice in our lives ex on page W91 Demographic characteristics are background variables, e.g. age and gender, that help shape what a person becomes over time.Demographic characteristics are background variables, e.g. age and gender, that help shape what a person becomes over time.

27. Differences in Abilities Cognitive abilities Physical abilities Emotional intelligence A competency is a broad concept relating to the aptitudes and abilities of people at work. Aptitude is the capability to learn something. Ability is the capacity to perform the various tasks needed for a given job. Cognitive abilities refer to our mental capacity to process information and solve problems. Physical abilities refer to our natural and developed motor capacities for speed, strength, flexibility and so on, as well as our use of the five senses. Emotional intelligence is a form of social intelligence that allows us to monitor and shape our emotions and those of others.A competency is a broad concept relating to the aptitudes and abilities of people at work. Aptitude is the capability to learn something. Ability is the capacity to perform the various tasks needed for a given job. Cognitive abilities refer to our mental capacity to process information and solve problems. Physical abilities refer to our natural and developed motor capacities for speed, strength, flexibility and so on, as well as our use of the five senses. Emotional intelligence is a form of social intelligence that allows us to monitor and shape our emotions and those of others.

28. Prentice Hall, 2001 Chapter 2 28 The Ability-Job Fit Abilities of the employee Requirements of the job

29. EQ test Strongly disagree 1 Disagree 2 Neither agree nor disagree 3 Agree 4 Strongly agree 5 For question 2 & 3: deduct your response from 6 Then calculate the sum of your responses

30. Personality Differences Personality is the overall profile or combination of traits that characterize the unique nature of a person. Personality combines a set of physical and mental characteristics that reflect how a person looks, thinks, acts and feels. Understanding personality contributes to an understanding of organisational behaviour by helping us see what shapes individuals, what they can do (competency) and what they will do (motivation).Personality combines a set of physical and mental characteristics that reflect how a person looks, thinks, acts and feels. Understanding personality contributes to an understanding of organisational behaviour by helping us see what shapes individuals, what they can do (competency) and what they will do (motivation).

31. Personality Determinants The nature/nurture controversy is the argument over whether personality is determined by heredity, or genetic endowment, or by one’s environment. Is personality inherited or genetically determined? Or are personality attributes determined by experience? These two factors actually operate in combination. Heredity consists of those factors that are determined at conception, and includes physical characteristics and gender in addition to personality factors. Environment consists of cultural, social and situational factors.Is personality inherited or genetically determined? Or are personality attributes determined by experience? These two factors actually operate in combination. Heredity consists of those factors that are determined at conception, and includes physical characteristics and gender in addition to personality factors. Environment consists of cultural, social and situational factors.

32. Personality Development Chris Argyris Model Argyris notes that people pass through several stages on their journey from immaturity to maturity. He believes the nature of the mature adult personality can sometimes be inconsistent with work opportunities; in particular, organisations and their managers may neglect the ‘adult’ sides of people. They may use close supervision and control that is more typically needed by infants whose personalities are still immature.Argyris notes that people pass through several stages on their journey from immaturity to maturity. He believes the nature of the mature adult personality can sometimes be inconsistent with work opportunities; in particular, organisations and their managers may neglect the ‘adult’ sides of people. They may use close supervision and control that is more typically needed by infants whose personalities are still immature.

33. Personality DevelopmentDaniel Levinson Model Levinson sees an individual’s personality in relation to the following key life stages and transitions: Age 30 Mid-life Age 50 Late adult Levinson sees an individual’s personality in relation to key life stages and transitions. For Levinson, there are four key transitions: age 30, mid-life, age 50, and late adult. He sees the stages as having a crucial impact on a worker’s job and career, and on the employing organisation. The point of both Argyris and Levinson is that personalities develop in predictable ways over time, and that these developments require quite different managerial responses. Levinson sees an individual’s personality in relation to key life stages and transitions. For Levinson, there are four key transitions: age 30, mid-life, age 50, and late adult. He sees the stages as having a crucial impact on a worker’s job and career, and on the employing organisation. The point of both Argyris and Levinson is that personalities develop in predictable ways over time, and that these developments require quite different managerial responses.

34. Key Dimensions of Personality Extroversion – introversion Conscientiousness Agreeableness Emotional stability Openness to experience Extroversion – introversion: the degree to which individuals are oriented to the social world of people, relationships and events, as opposed to the inner world. Conscientiousness: the extent to which individuals are organised, dependable and detail focused, vs. disorganised, less reliable and lacking perseverance. Agreeableness: the extent to which individuals are compliant, friendly, reliable and helpful vs. disagreeable, argumentative and uncooperative. Emotional stability: the degree to which individuals are secure, resilient and calm, vs anxious, reactive and tending to mood swings. Openness to experience: the extent to which individuals are curious, open, adaptable and interested in a wide range of things, vs resistant to change and new experiences, less open to new ideas and preferring routine. Extroversion – introversion: the degree to which individuals are oriented to the social world of people, relationships and events, as opposed to the inner world. Conscientiousness: the extent to which individuals are organised, dependable and detail focused, vs. disorganised, less reliable and lacking perseverance. Agreeableness: the extent to which individuals are compliant, friendly, reliable and helpful vs. disagreeable, argumentative and uncooperative. Emotional stability: the degree to which individuals are secure, resilient and calm, vs anxious, reactive and tending to mood swings. Openness to experience: the extent to which individuals are curious, open, adaptable and interested in a wide range of things, vs resistant to change and new experiences, less open to new ideas and preferring routine.

35. Surgency means extroversion Adjustment means emotional stability

36. Problem-Solving Styles Sensation type Intuitive type Feeling type Thinking type Problem-solving styles reflect the way in which a person gathers and evaluates information in solving problems and making decisions. Sensation type: people who prefer routine and order and emphasise well-defined details in gathering information. Intuitive type: people who prefer the big picture, like solving new problems, dislike routine and prefer to look for possibilities than work with facts. Feeling type: are oriented towards conformity and try to accommodate themselves to other people. Thinking type: are people who use reason and intellect to deal with problems. Problem-solving styles reflect the way in which a person gathers and evaluates information in solving problems and making decisions. Sensation type: people who prefer routine and order and emphasise well-defined details in gathering information. Intuitive type: people who prefer the big picture, like solving new problems, dislike routine and prefer to look for possibilities than work with facts. Feeling type: are oriented towards conformity and try to accommodate themselves to other people. Thinking type: are people who use reason and intellect to deal with problems.

37. Occupational Matches This table contains descriptions of four basic problem solving styles, together with various occupational pairings. Research indicates that there is a fit between individuals styles and the kind of decisions they prefer.This table contains descriptions of four basic problem solving styles, together with various occupational pairings. Research indicates that there is a fit between individuals styles and the kind of decisions they prefer.

38. Locus of Control The extent to which people feel able to affect their lives Internal locus of control External locus of control People have general conceptions about whether events are controlled by themselves primarily, which indicates an internal orientation, or by outside forces or their social and physical environment, which indicates an external orientation. Internals are persons with an internal locus of control, who believe they control their own fate or destiny. Externals are people with an external locus of control, who believe what happens to them is beyond their control.People have general conceptions about whether events are controlled by themselves primarily, which indicates an internal orientation, or by outside forces or their social and physical environment, which indicates an external orientation. Internals are persons with an internal locus of control, who believe they control their own fate or destiny. Externals are people with an external locus of control, who believe what happens to them is beyond their control.

39. 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 recognised authority. This person is concerned with toughness and power. People high in dogmatism see the world as a threatening place. They often regard legitimate authority as absolute, and accept or reject others according to how much they agree with accepted authority. Authoritarianism: is a personality trait that focuses on the rigidity of a person’s beliefs. Dogmatism is a personality trait that regards legitimate authority as absolute.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 recognised authority. This person is concerned with toughness and power. People high in dogmatism see the world as a threatening place. They often regard legitimate authority as absolute, and accept or reject others according to how much they agree with accepted authority. Authoritarianism: is a personality trait that focuses on the rigidity of a person’s beliefs. Dogmatism is a personality trait that regards legitimate authority as absolute.

40. Type A vs. Type B Personality

41. Machiavellianism Machiavellians are people who view and manipulate others for purely personal gain. A high mach person is someone: with tendencies to approach situations logically and thoughtfully, and with the ability to lie to achieve personal goals with a reluctance to be swayed by loyalty, friendships, past promises or the opinions of others who is skilled at influencing others.A high mach person is someone: with tendencies to approach situations logically and thoughtfully, and with the ability to lie to achieve personal goals with a reluctance to be swayed by loyalty, friendships, past promises or the opinions of others who is skilled at influencing others.

42. Self-Concept The concept individuals have of themselves as physical, social and spiritual or moral beings. It is a way of recognising oneself as a distinct human being. The self-concept is influenced by culture. One crucial aspect of the self-concept, regardless of culture, is self-esteem. Self-esteem is a belief about one’s own worth based on an overall self-evaluation. People high in self-esteem see themselves as capable, worthwhile and acceptable, and tend to have few doubts about themselves. The opposite is true of a person low in self-esteem.It is a way of recognising oneself as a distinct human being. The self-concept is influenced by culture. One crucial aspect of the self-concept, regardless of culture, is self-esteem. Self-esteem is a belief about one’s own worth based on an overall self-evaluation. People high in self-esteem see themselves as capable, worthwhile and acceptable, and tend to have few doubts about themselves. The opposite is true of a person low in self-esteem.

43. Self-Esteem The extent to which people have pride in themselves and their capabilities. Can be high or low Not situation specific

44. Self-Monitoring The extent to which people try to control the way they present themselves to others. Can be high or low

45. Individual Differences Recruitment and employment conditions Education, training and development Rewards and promotions See pageSee page

46. Personality-Job Fit Personalities among individuals differ Demands of jobs differ Matching personality and job leads to higher satisfaction and lower turnover.

47. Advice to Managers Realize and accept that some workers are more likely than others to be positive and enthusiastic because of their personalities. Similarly, realize and accept that some workers are more likely than others to complain and experience stress because of their personalities. Provide an extra measure of direct supervision to workers who don’t take the initiative to solve problems on their own and always seem to blame someone or something else when things go wrong. Provide additional encouragement and support to workers with low self-esteem who tend to belittle themselves and question their abilities. Realize and accept that Type A individuals can be difficult to get along with and sometimes have a hard time working in teams. Let subordinates who seem overly concerned about other people liking them know that sometimes it is necessary to give honest feedback and be constructively critical (such as when supervising others).

48. Values Values are global beliefs that guide actions and judgments across a variety of situations. As such, they reflect a person's sense of right and wrong, or what ‘ought’ to be. Values tend to influence attitudes and behaviour.As such, they reflect a person's sense of right and wrong, or what ‘ought’ to be. Values tend to influence attitudes and behaviour.

49. Classification Schemes Rokeach Terminal Instrumental Allport Theoretical Economic Aesthetic Social Political Religious Meglino & Associates Achievement Helping and concern for others Honesty Fairness

50. Work Values A worker’s personal convictions about what outcomes one should expect from work and how one should behave at work. Values can be intrinsic (i.e., related to the nature of work itself) or extrinsic (i.e., related to the consequences of work).

51. Intrinsic vs. Extrinsic Work Values Intrinsic Values Interesting work Challenging work Learning new things Making important contributions Responsibility and autonomy Being creative Extrinsic Values High pay Job security Job benefits Status in wider community Social contacts Time with family Time for hobbies

52. Results of the Beutell and Brenner (1986) Study (1 is the strongest ranking) Item Men Women Provides job security 2.5 2.0 Provides the opportunity to earn a high income 2.5 5.0 Permits advancement/responsibility 4.0 6.5 Is respected by other people 5.5 3.0 Provides comfortable working conditions 7.0 4.0 Rewards good performance with recognition 5.5 8.5 Encourages continued development… 8.0 6.5 Is intellectually stimulating 9.0 8.5

53. Advice to Managers Do not assume that most workers have strong intrinsic work values just because you do. Realize that any attempt you make to improve attitudes, motivation, or performance will be most effective when the change you implement is consistent with workers’ values.

54. Values and national culture. Cultures vary in underlying patterns of values and attitudes. Hofstede’s five dimensions of national culture: Power distance. Uncertainty avoidance. Individualism-collectivism. Masculinity-femininity. Long-term/short-term orientation.

55. Values and national culture. Power distance. The willingness of a culture to accept status and power differences among members. Respect for hierarchy and rank in organizations. Example of a high power distance culture — Indonesia. Example of a low power distance culture — Sweden.

56. Values and national culture. Uncertainty avoidance. The cultural tendency toward discomfort with risk and ambiguity. Preference for structured versus unstructured organizational situations. Example of a high uncertainty avoidance culture — France. Example of a low uncertainty avoidance culture — Hong Kong.

57.  Values and national culture.  Individualism-collectivism. The cultural tendency to emphasize individual or group interests. Preferences for working individually or in groups. Example of an individualistic culture — United States. Example of a collectivist culture — Mexico.

58.  Values and national culture. Masculinity-femininity. The tendency of a culture to value stereotypical masculine or feminine traits. Emphasizes competition/assertiveness versus interpersonal sensitivity/relationships. Example of a masculine culture — Japan. Example of a feminine culture — Thailand.

59.  Values and national culture.  Long-term/short-term orientation. The tendency of a culture to emphasize future-oriented values versus present-oriented values. Adoption of long-term or short-term performance horizons. Example of a long-term orientation culture — South Korea. Example of a short-term orientation culture — United States.

60.  Values and national culture

61. Chapter 3 Emotions, Attitudes, and Job Satisfaction

62. Attitudes A predisposition to respond in a positive or negative way to someone or something in your environment. Like values, attitudes are an important component of organisational behaviour. Attitudes are influenced by values, but they focus on specific people or objects, while values have a more general focus. Regardless of the specific attitude considered, it is important to remember that an attitude, like a value, is a concept or construct; that is, one never sees, touches or actually isolates an attitude. Rather, attitudes are inferred from the things people say or do.Like values, attitudes are an important component of organisational behaviour. Attitudes are influenced by values, but they focus on specific people or objects, while values have a more general focus. Regardless of the specific attitude considered, it is important to remember that an attitude, like a value, is a concept or construct; that is, one never sees, touches or actually isolates an attitude. Rather, attitudes are inferred from the things people say or do.

63. Components of Attitudes Cognitive components Affective components Behavioral components The cognitive components: are the beliefs, opinions, knowledge or information a person possesses. Beliefs represent ideas about someone or something and the conclusions people draw about them. The affective components: are the specific feelings regarding the personal impact of the antecedents. The behavioural components: are the intentions to behave in a certain way based on a person's specific feelings or attitude. The cognitive components: are the beliefs, opinions, knowledge or information a person possesses. Beliefs represent ideas about someone or something and the conclusions people draw about them. The affective components: are the specific feelings regarding the personal impact of the antecedents. The behavioural components: are the intentions to behave in a certain way based on a person's specific feelings or attitude.

64. Components of Attitudes

65. Individuals seek consistency. Cognitive dissonance occurs when there are inconsistencies between two or more of a person’s attitudes or between a person’s attitudes and behaviors. The theory of cognitive dissonance suggests that people try to minimize dissonance and the discomfort it causes. Several moderating factors suggest that individuals who are experiencing dissonance will not necessarily move directly toward a reduction of the dissonance (consistency). If the elements creating the dissonance are relatively unimportant, the pressure to correct the imbalance will be low. Also, the degree of influence that one has over the elements involved will affect how he or she reacts to dissonance. Rewards also influence the degree to which individuals are motivated to reduce dissonance. Individuals seek consistency. Cognitive dissonance occurs when there are inconsistencies between two or more of a person’s attitudes or between a person’s attitudes and behaviors. The theory of cognitive dissonance suggests that people try to minimize dissonance and the discomfort it causes. Several moderating factors suggest that individuals who are experiencing dissonance will not necessarily move directly toward a reduction of the dissonance (consistency). If the elements creating the dissonance are relatively unimportant, the pressure to correct the imbalance will be low. Also, the degree of influence that one has over the elements involved will affect how he or she reacts to dissonance. Rewards also influence the degree to which individuals are motivated to reduce dissonance.

66. Types of Attitudes Job satisfaction: General attitude toward one’s job Organizational commitment: a state in which one identifies with a particular organization and its goals and wishes to maintain membership

68. Attitudes and Behavior Attitudes and behavior Attitudes and cognitive consistency Job satisfaction as an attitude Attitudes and behaviour: an attitude results in intended behaviour. This intention may or may not be carried out in a given circumstance. Even though attitudes do not always predict behaviour, the link between attitudes and potential or intended behaviour is important for managers to understand. Unfavourable attitudes in the form of low job satisfaction can result in costly labour turnover. Unfavourable attitudes may also result in absenteeism, tardiness and even impaired physical or mental health. Attitudes and cognitive consistency: Cognitive dissonance is the state of perceived inconsistency between a person’s expressed attitudes and actual behaviour. Job satisfaction as an attitude: Two attitudes closely related to job satisfaction are organisational commitment – the degree to which a person strongly identifies with and feels a part of the organisation, and job involvement - the degree to which a person is willing to work hard and apply effort beyond normal job expectations. Attitudes and behaviour: an attitude results in intended behaviour. This intention may or may not be carried out in a given circumstance. Even though attitudes do not always predict behaviour, the link between attitudes and potential or intended behaviour is important for managers to understand. Unfavourable attitudes in the form of low job satisfaction can result in costly labour turnover. Unfavourable attitudes may also result in absenteeism, tardiness and even impaired physical or mental health. Attitudes and cognitive consistency: Cognitive dissonance is the state of perceived inconsistency between a person’s expressed attitudes and actual behaviour. Job satisfaction as an attitude: Two attitudes closely related to job satisfaction are organisational commitment – the degree to which a person strongly identifies with and feels a part of the organisation, and job involvement - the degree to which a person is willing to work hard and apply effort beyond normal job expectations.

69. Facets of Job Satisfaction The work Quality of supervision Relationship with co-workers Promotion opportunities Pay See The Effective Manager page 116.See The Effective Manager page 116.

70. Job Satisfaction and Workplace Behavior Performance Absenteeism Turnover Job satisfaction influences absenteeism, or the failure of people to attend work. In general, satisfied workers are more regular in attendance and are less likely to be absent for unexplained reasons. Job satisfaction can also affect turnover, or decisions by people to terminate their employment: satisfied workers are less likely to leave, while dissatisfied workers are more likely to leave when they can. In addition to job satisfaction, both absenteeism and turnover are of major concern to managers as a part of their human resource maintenance responsibility. When people fail to show up for work or quit their jobs, valuable human resources are wasted. The costs of turnover are especially high.Job satisfaction influences absenteeism, or the failure of people to attend work. In general, satisfied workers are more regular in attendance and are less likely to be absent for unexplained reasons. Job satisfaction can also affect turnover, or decisions by people to terminate their employment: satisfied workers are less likely to leave, while dissatisfied workers are more likely to leave when they can. In addition to job satisfaction, both absenteeism and turnover are of major concern to managers as a part of their human resource maintenance responsibility. When people fail to show up for work or quit their jobs, valuable human resources are wasted. The costs of turnover are especially high.

71. Relationship between Satisfaction and Performance Satisfaction causes performance? Performance causes satisfaction? Rewards cause both performance and satisfaction Performance is defined as the quantity and quality of individual, group or organisational accomplishments. What is the relationship between job satisfaction and performance? This question assumes that satisfaction and performance may be related but does not say how. There is considerable debate on this issue – sometimes called the job satisfaction-performance controversy. See explanation of three arguments on page 118.Performance is defined as the quantity and quality of individual, group or organisational accomplishments. What is the relationship between job satisfaction and performance? This question assumes that satisfaction and performance may be related but does not say how. There is considerable debate on this issue – sometimes called the job satisfaction-performance controversy. See explanation of three arguments on page 118.

72. Potential Consequencesof Job Satisfaction Performance: Satisfied workers are only slightly more likely to perform at a higher level than dissatisfied workers. Satisfaction is most likely to affect work behaviors when workers are free to vary their behaviors and when a worker’s attitude is relevant to the behavior in question. Absenteeism: Satisfied workers are less likely to be absent than dissatisfied workers. Turnover: Satisfied workers are less likely to leave the organization than dissatisfied workers.

73. Potential Consequencesof Job Satisfaction Organizational citizenship behavior (OCB): Satisfied workers are more likely to engage in this behavior than dissatisfied workers. OCB: Behavior that is above and beyond the call of duty but is nonetheless necessary for organizational survival and effectiveness Helping coworkers, spreading goodwill Worker well-being: Satisfied workers are more likely to have strong well-being than dissatisfied workers. Worker well-being: How happy, healthy, and prosperous workers are

74. Advice to Managers Realize that some workers are going to be more satisfied than others with the same job simply because they have different personalities and work values. Also realize that you can take steps to increase levels of job satisfaction because it is determined not only by personality but also by the work situation. Try to place newcomers in work groups whose members are satisfied with their jobs. Ask workers what facets of their jobs are important to them, and do what you can to ensure that they are satisfied with these facets. Because job satisfaction has the potential to impact workers’ behaviors in organizations and their well-being, use existing measurement scales to periodically survey your subordinates’ levels of job satisfaction. When levels of job satisfaction are low, follow the advice in the preceding step. Recognize that workers’ evaluations of job facets, not what you think about them, determine how satisfied workers are and that changing some facets may have longer-lasting effects on job satisfaction than changing others.

75. Advice to Managers Do not assume that poor performers are dissatisfied with their jobs or that good performers are satisfied with their jobs. Do not assume that workers who are absent are dissatisfied or that they were not motivated to come to work. Absence is also a function of ability to attend. Manage absenteeism. Don’t try to eliminate it, and keep in mind that a certain level of absence is often functional for workers and organizations. Realize that turnover has both costs and benefits for an organization and that you need to evaluate both. In particular, before becoming concerned about worker turnover, examine the performance levels of those who quit. If workers do only what they are told and rarely, if ever, exhibit organizational citizenship behavior, measure their levels of job satisfaction, identify the job facets they are dissatisfied with, and make changes where possible. Even if job satisfaction does not seem to have an effect on important behaviors in your organization, keep in mind that it is an important factor in worker well-being.

76. Doc Marten’s Case What specific things does Doc Marten’s do to raise levels of Job satisfaction Organizational commitment? Notice how Doc Marten’s manages differences in values.

77. Chapter 4 Perception, Attribution, and Learning

78. Agenda Define perception Identify factors that affect perception Discuss perceptual distortions Discuss attribution Discuss impression management

79. Perception Perception is the process through which people receive, organise and interpret information from their environment.Perception is the process through which people receive, organise and interpret information from their environment.

80. Perception People are not entirely objective information processors Perception not necessarily the same as reality Perceptions of two people are not necessarily the same when describing the same event Perception is biased in a number of predictable ways

81. Factors Influencing Perception The perceiver The setting The perceived

82. Factors Influencing Perception

83. Stages of Perception Attention and selection Organization Interpretation Retrieval The perception process consists of four stages – Attention and selection: Selective filtering lets in only a tiny proportion of all of the information available. Organisation: Even though selective filtering takes place in the attention stage, it is still necessary to find ways in which to organise the information efficiently. Schemas help us do this. Schemas are cognitive frameworks that represent organised knowledge about a given concept or stimulus developed through experience. Interpretation: Once your attention has been drawn to certain stimuli and you have grouped or organised information, you try to interpret its meaning. This interpretation stage is strongly influenced by causal attribution – that is, an attempt to explain why something happened the way it did. Retrieval: The information stored in our memory must be retrieved if it is to be used.The perception process consists of four stages – Attention and selection: Selective filtering lets in only a tiny proportion of all of the information available. Organisation: Even though selective filtering takes place in the attention stage, it is still necessary to find ways in which to organise the information efficiently. Schemas help us do this. Schemas are cognitive frameworks that represent organised knowledge about a given concept or stimulus developed through experience. Interpretation: Once your attention has been drawn to certain stimuli and you have grouped or organised information, you try to interpret its meaning. This interpretation stage is strongly influenced by causal attribution – that is, an attempt to explain why something happened the way it did. Retrieval: The information stored in our memory must be retrieved if it is to be used.

84. Perceptual Distortions Stereotypes Halo effects Selective perception Projection Stereotypes: both managers and employees need to be sensitive to stereotyping and attempt to overcome it and recognise that an increasingly diverse workforce can be a true competitive advantage. Halo effects: occur when one attribute of a person or situation is used to develop an overall impression of the person or situation. Selective perception: is the tendency to single out for attention those aspects of a situation or person that reinforce existing beliefs, values and needs. Projection: is the assignment of personal attributes to other individuals.Stereotypes: both managers and employees need to be sensitive to stereotyping and attempt to overcome it and recognise that an increasingly diverse workforce can be a true competitive advantage. Halo effects: occur when one attribute of a person or situation is used to develop an overall impression of the person or situation. Selective perception: is the tendency to single out for attention those aspects of a situation or person that reinforce existing beliefs, values and needs. Projection: is the assignment of personal attributes to other individuals.

85. Advice to Managers Be careful not to jump to conclusions about coworkers, superiors, and subordinates simply because they appear to fit your preexisting thoughts and opinions. Wait to form your opinions until you have gathered enough information to make a fair judgment. Make sure your perceptions of workers are based on their skills, capabilities, accomplishments, on-the-job behaviors, and levels of job performance. Do not allow your perceptions to be influenced by characteristics of a target (such as race, age, and gender) that are unrelated to job behaviors and performance. Try to treat organizational members who stand out from others the same as you treat those who do not stand out.

86. Advice to Managers Be careful not to let your first impressions have too strong an effect on your perceptions of others. Avoid categorizing workers until you have sufficient information to form an accurate perception. When evaluating or interviewing a series of individuals, do not let your evaluations of preceding individuals influence your ratings of those that follow. Be careful not to be lenient in your perceptions of people who are similar to you and overly harsh to those who are dissimilar to you.

87. Attribution Theory This theory attempts to understand: the cause of an event assess responsibility for outcomes of the event, and assess the personal qualities of people involved. Attribution theory suggests that three factors influence the internal or external determination: Distinctiveness: considers how consistent a person’s behaviour is across different situations. Consensus: is concerned with how likely all those facing a similar situation are to respond in the same way. Consistency: is concerned with whether an individual responds the same way across time.This theory attempts to understand: the cause of an event assess responsibility for outcomes of the event, and assess the personal qualities of people involved. Attribution theory suggests that three factors influence the internal or external determination: Distinctiveness: considers how consistent a person’s behaviour is across different situations. Consensus: is concerned with how likely all those facing a similar situation are to respond in the same way. Consistency: is concerned with whether an individual responds the same way across time.

88. Prentice Hall, 2001 Chapter 5 88

89. Fundamental Attribution Error Tendency to explain other people’s behavior with internal attributions and to underemphasize plausible situational causes of the behavior in question Inhibits managers from fixing situational problems

90. Self-Serving Bias The tendency to deny personal responsibility for poor performance but to accept personal responsibility for high performance when explaining our own behavior

91. Advice to Managers Make sure your attributions for other people’s behavior are as accurate as possible. Consider external factors that may be responsible for other people’s behavior, such as inadequate resources or supplies, an exceptionally difficult task, or chance occurrences. Consider internal factors that may be responsible for your own behavior, such as your personality, your strengths and weaknesses, and your level of motivation. Be aware of the tendency in yourself and in others to take credit for successes and avoid blame for errors.

92. Managing Perceptions Self-awareness Seek information Be empathic Avoid common perceptual distortions A manager who is skilled in influencing the perceptual process will try to: have a high level of self-awareness seek information from various sources to confirm or contradict personal impressions of a decision situation be empathic; that is, be able to see a situation as it is perceived by other people avoid common perceptual distortions that bias our views of people and situations be aware of various kinds of schemas and their possible impact be aware of attribution theory and its implications avoid inappropriate actions influence the perceptions of other peopleA manager who is skilled in influencing the perceptual process will try to: have a high level of self-awareness seek information from various sources to confirm or contradict personal impressions of a decision situation be empathic; that is, be able to see a situation as it is perceived by other people avoid common perceptual distortions that bias our views of people and situations be aware of various kinds of schemas and their possible impact be aware of attribution theory and its implications avoid inappropriate actions influence the perceptions of other people

93. Impression Management Tactics

94. Reinforcement Theory Present behavior can be explained by past environmental responses B = F(C). Thorndike’s Law of Effect: Behavior that results in a pleasant outcome is likely to be repeated; behavior that results in an unpleasant outcome is not likely to be repeated. Behavior can be controlled by manipulating its consequences (called operant conditioning) Organizational Behavior Modification

95. OB Mod Strategies Positive reinforcement Negative reinforcement Punishment Extinction

96. Reinforcement Positive Reinforcement: The administration of positive consequences to workers who perform desired behaviors. Pay, promotions, interesting work, praise, awards Negative Reinforcement: The removal of negative consequences when workers perform desired behaviors. Nagging, complaining

97. Advice to Managers: Reinforcement

98. Extinction and Punishment Extinction: Removing a consequence that is currently reinforcing an undesirable behavior in an effort to decrease the probability that the behavior will occur again in the future. Punishment: Administering negative consequences to workers who perform undesirable behaviors in an effort to decrease the probability that the behavior will occur again in the future. Verbal reprimands, docking pay, loss of privileges

99. Negative Reinforcement vs. Punishment These two concepts are often confused; however, they differ from each other in two important ways. First difference: Punishment reduces the probability of an undesired behavior. Negative reinforcement increases the probability of a desired behavior. Second difference: Punishment involves administering a negative consequence when an undesired behavior occurs. Negative reinforcement entails removing a negative consequence when a desired behavior occurs.

100. Advice to Managers: Punishment

101. Chapter 5 Motivation theories

102. Agenda Define motivation Discuss link between motivation & performance Discuss link between motivation & rewards Content/Need theories of motivation Process theories of motivation Reinforcement theory

103. Motivating the Workforce Motivation to work refers to forces within an individual that account for the level, direction and persistence of effort expended at work. Level refers to the amount of effort a person puts forth. Direction refers to what the person chooses when presented with a number of possible alternatives. Persistence refers to how long a person sticks with a given action.Level refers to the amount of effort a person puts forth. Direction refers to what the person chooses when presented with a number of possible alternatives. Persistence refers to how long a person sticks with a given action.

104. What are the determinants of an individual’s performance? Individual attributes - capacity to perform Organizational support - opportunity to perform Work effort Motivation & Performance

106. Motivation Theories Content Theories: Focus on understanding individual needs - what motivates an individual. Process Theories: Focus on the thought processes that give meaning to rewards and influence behavior - how a person becomes motivated. Reinforcement Theory: Focuses on learning.

107. Content Perspectives (Need Theory) Assumption: People are motivated to satisfy their needs; if we know what they need, we’ll know how to motivate them. Needs: Physiological or psychological deficiencies that people feel some compulsion to eliminate. Maslow’s Hierarchy of Needs Theory Alderfer’s ERG Theory Acquired Needs Theory Two Factor Theory

108. Maslow’s Hierarchy of Needs Theory Higher order needs Lower order needs Higher order needs include: esteem and self-actualisation. Lower order needs include: physiological, safety and social needs. Maslow’s formulation suggests a prepotency of these needs, that is, some needs are assumed to be more important than others and must be satisfied before the other needs can serve as motivators. Thus, physiological needs must be satisfied before the safety needs are activated, and the safety needs must be satisfied before the social needs are activated, etc.Higher order needs include: esteem and self-actualisation. Lower order needs include: physiological, safety and social needs. Maslow’s formulation suggests a prepotency of these needs, that is, some needs are assumed to be more important than others and must be satisfied before the other needs can serve as motivators. Thus, physiological needs must be satisfied before the safety needs are activated, and the safety needs must be satisfied before the social needs are activated, etc.

109. Maslow’s Hierarchy of Needs Some research suggests that there is a tendency for higher-order needs to increase in importance over lower-order needs as individuals move up the managerial hierarchy. Other studies report that needs vary according to a person’s career stage, the size of the organisation and even geographic location. There is no consistent evidence that the satisfaction of a need at one level will decrease its importance and increase the importance of the next higher need.Some research suggests that there is a tendency for higher-order needs to increase in importance over lower-order needs as individuals move up the managerial hierarchy. Other studies report that needs vary according to a person’s career stage, the size of the organisation and even geographic location. There is no consistent evidence that the satisfaction of a need at one level will decrease its importance and increase the importance of the next higher need.

110. Alderfer’s ERG Theory Existence Needs: Basic needs for human survival such as the need for food, water, clothing, shelter, and a secure and safe environment. Relatedness Needs: The needs to have good interpersonal relations, to share thoughts and feelings, and to have open two-way communication. Growth Needs: The needs for self-development and creative and productive work.

111. Advice to Managers ?Do not assume that all workers are motivated by the same needs or desires. ?To determine what will motivate any given worker, determine what needs that worker is trying to satisfy on the job. ?Make sure you have the ability to administer or withhold consequences that will satisfy a worker’s needs. ?Structure work situations so that workers can satisfy their needs by performing behaviors that enable the organization to achieve its goals.

112. McClelland’s Acquired Needs Theory Need for achievement Need for affiliation Need for power In the late 1940s, McClelland identified three types of acquired needs - Need for achievement: the desire to do something better, solve problems or master complex tasks. Need for affiliation: the desire to establish and maintain friendly and warm relations with others. Need for power: the desire to control others, influence their behaviour and be responsible for others.In the late 1940s, McClelland identified three types of acquired needs - Need for achievement: the desire to do something better, solve problems or master complex tasks. Need for affiliation: the desire to establish and maintain friendly and warm relations with others. Need for power: the desire to control others, influence their behaviour and be responsible for others.

113. Acquired Needs Theory There are two especially relevant managerial applications of McClelland’s theory. The theory is particularly useful when each need is linked with a set of work preferences. If these needs are truly acquired, it may be possible to acquaint people with the need profiles required to succeed in various types of jobs.There are two especially relevant managerial applications of McClelland’s theory. The theory is particularly useful when each need is linked with a set of work preferences. If these needs are truly acquired, it may be possible to acquaint people with the need profiles required to succeed in various types of jobs.

114. Herzberg’s Two-factor Theory Hygiene factors Motivator factors The motivator-hygiene theory distinguishes between sources of work dissatisfaction (hygiene factors) and satisfaction (motivators). Frederick Herzberg researched motivation by asking workers to comment on two statements: Tell me about a time when you felt exceptionally good about your job. Tell me about a time when you felt exceptionally bad about your job. After analysing 4,000 responses he developed the two-factor theory. Hygiene Factors: are dissatisfiers that are associated with aspects of a person’s work setting. Motivators are satisfiers that are associated with what people do in their work. The motivator-hygiene theory distinguishes between sources of work dissatisfaction (hygiene factors) and satisfaction (motivators). Frederick Herzberg researched motivation by asking workers to comment on two statements: Tell me about a time when you felt exceptionally good about your job. Tell me about a time when you felt exceptionally bad about your job. After analysing 4,000 responses he developed the two-factor theory. Hygiene Factors: are dissatisfiers that are associated with aspects of a person’s work setting. Motivators are satisfiers that are associated with what people do in their work.

115. Hygiene Factors found in work settings Hygiene factors are associated with job context. That is, they are factors related to a person’s work setting. To improve satisfaction, a manager must use motivator factors as shown on the right side of Fig. 4.4 on page 149. These factors are related to job content – that is, what people do in their work. Adding these motivators to people’s jobs is Herzberg’s link to performance. According to Herzberg’s theory, an individual employee could be simultaneously both satisfied and dissatisfied because each of these two factors has a different set of drivers. Effective managers have to achieve two distinct outcomes: maximise satisfaction by improving job content variables and, simultaneously, minimise job dissatisfaction by improving job content variables.Hygiene factors are associated with job context. That is, they are factors related to a person’s work setting. To improve satisfaction, a manager must use motivator factors as shown on the right side of Fig. 4.4 on page 149. These factors are related to job content – that is, what people do in their work. Adding these motivators to people’s jobs is Herzberg’s link to performance. According to Herzberg’s theory, an individual employee could be simultaneously both satisfied and dissatisfied because each of these two factors has a different set of drivers. Effective managers have to achieve two distinct outcomes: maximise satisfaction by improving job content variables and, simultaneously, minimise job dissatisfaction by improving job content variables.

116. Comparison of Content Theories There is a common theme in content theories: Individual needs…activate… tensions… that influence… attitudes and behaviour. Questions to address: - see answers on page 153 How many different individual needs are there? Can one work outcome satisfy more than one need? Is there a hierarchy of needs? How important are the various needs? What is the manager’s responsibility, as defined by the content theories? There is a common theme in content theories: Individual needs…activate… tensions… that influence… attitudes and behaviour. Questions to address: - see answers on page 153 How many different individual needs are there? Can one work outcome satisfy more than one need? Is there a hierarchy of needs? How important are the various needs? What is the manager’s responsibility, as defined by the content theories?

117. Process Theories Focus on thought processes that underlie individual responses to work situations. Equity Theory Expectancy Theory

118. Equity Theory Negative inequity Positive inequity Equity theory is based on the phenomenon of social comparison and posits, because people gauge the fairness of their work outcomes compared with others, the inequity they then may feel is a motivating state of mind. Felt negative inequity exists when individuals feel they have received relatively less than others have in proportion to work inputs. Felt positive inequity exists when individuals feel they have received relatively more than others have.Equity theory is based on the phenomenon of social comparison and posits, because people gauge the fairness of their work outcomes compared with others, the inequity they then may feel is a motivating state of mind. Felt negative inequity exists when individuals feel they have received relatively less than others have in proportion to work inputs. Felt positive inequity exists when individuals feel they have received relatively more than others have.

119. The Equity Dynamic This figure shows that the equity comparison intervenes between a manager’s allocation of rewards and their impact on the work behaviour of staff. Feelings of inequity are determined solely by the individual’s interpretation of the situation. Rewards that are received with feelings of equity can foster job satisfaction and performance. In contrast, rewards that are received with feelings of negative inequity can damage these key work results. The burden lies with the manager to take control of the situation and make sure that any negative consequences of the equity comparisons are avoided, or at least, minimised, when rewards are allocated. Refer also to ‘The effective manager 4.1’ p. 156.This figure shows that the equity comparison intervenes between a manager’s allocation of rewards and their impact on the work behaviour of staff. Feelings of inequity are determined solely by the individual’s interpretation of the situation. Rewards that are received with feelings of equity can foster job satisfaction and performance. In contrast, rewards that are received with feelings of negative inequity can damage these key work results. The burden lies with the manager to take control of the situation and make sure that any negative consequences of the equity comparisons are avoided, or at least, minimised, when rewards are allocated. Refer also to ‘The effective manager 4.1’ p. 156.

120. Advice to Managers Because inputs are likely to vary across workers, outcomes should also vary. Do not give all workers at a given level or holding the same job title the same level of outcomes unless their inputs are identical. Distribute outcomes to workers based on their inputs to their jobs and the organization. Because underpayment inequity or overpayment inequity can have negative organizational consequences, strive to maintain equity for maximum motivation. Because it is the perception of equity or inequity that drives motivation, frequently monitor and assess workers’ perceptions about relevant outcomes and inputs, as well as their own standing on these outcomes and inputs. Correct any inaccurate perceptions workers may have. Realize that failure to recognize above-average levels of inputs has major motivational implications.

121. Expectancy Theory People will do…. …..what they can do…. …..when they want to. Developed in 1964, Victor Vroom’s theory seeks to predict or explain the task-related effort expended by a person. The theory’s central question is ‘what determines the willingness of an individual to exert personal effort to work at tasks that contribute to the performance of the work ‘unit’. To answer this question, managers need to know three things: The person’s belief that working hard will enable various levels of task performance to be achieved. The person’s belief that various work outcomes or rewards will result form the achievement of the various levels of work performance. The value the individual assigns to these work outcomes. Developed in 1964, Victor Vroom’s theory seeks to predict or explain the task-related effort expended by a person. The theory’s central question is ‘what determines the willingness of an individual to exert personal effort to work at tasks that contribute to the performance of the work ‘unit’. To answer this question, managers need to know three things: The person’s belief that working hard will enable various levels of task performance to be achieved. The person’s belief that various work outcomes or rewards will result form the achievement of the various levels of work performance. The value the individual assigns to these work outcomes.

122. Managerial Foundations of Expectancy Theory Expectancy is the probability that the individual assigns to work effort being followed by a given level of achieved task performance. Instrumentality is the probability that the individual assigns to a level of achieved task performance leading to various work outcomes. Valence represents the values that the individual attaches to various work outcomes. Expectancy is the probability that the individual assigns to work effort being followed by a given level of achieved task performance. Instrumentality is the probability that the individual assigns to a level of achieved task performance leading to various work outcomes. Valence represents the values that the individual attaches to various work outcomes.

123. Managerial Implications of Expectancy Theory A manager must try to understand individual thought processes, then actively intervene in the work situation to influence them. Refer to Table 4.3 – Managerial implications of expectancy theory, on page 159Refer to Table 4.3 – Managerial implications of expectancy theory, on page 159

124. Advice to Managers Determine what outcomes your subordinates desire. More specifically, identify outcomes that have high positive valence for your subordinates in order to motivate them to perform at a high level. Once you have identified desired outcomes, make sure that you have control over them and can give them to subordinates or take them away when warranted. Let subordinates know that obtaining their desired outcomes depends on their performing at a high level (raise instrumentalities). Administer the highly valent outcomes only when subordinates perform at a high level (or engage in desired organizational behaviors). Do whatever you can to encourage workers to have high expectancies: Express confidence in subordinates’ abilities, let them know that others like themselves have been able to perform at a high level, and give them guidance in terms of how to perform at a high level. Periodically assess workers’ beliefs concerning expectancies and instrumentalities and their valences for different outcomes by directly asking them or administering a survey. Using these assessments, make different outcomes available to workers, and clarify instrumentalities, or boost expectancies when necessary.

125. Goal Setting The process of developing, negotiating and formalizing objectives. Locke’s research Edwin Locke developed a set of arguments and predictions concerning the link between goals and performance: Difficult goals are more likely to lead to higher performance than less difficult ones. Specific goals are more likely to lead to higher performance than no goals or vague or general goals. Task feedback is likely to motivate people towards 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. Goals are most likely to motivate people towards higher performance when they are accepted and there is a commitment to them.Edwin Locke developed a set of arguments and predictions concerning the link between goals and performance: Difficult goals are more likely to lead to higher performance than less difficult ones. Specific goals are more likely to lead to higher performance than no goals or vague or general goals. Task feedback is likely to motivate people towards 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. Goals are most likely to motivate people towards higher performance when they are accepted and there is a commitment to them.

126. A Goal-setting Framework See explanation on page 232See explanation on page 232

127. The MBO Process Management by Objectives involves managers working with their subordinates to establish performance goals and plans that are consistent with higher-level work unit and organisational objectives. In the diagram, notice how joint supervisor-employee discussions are designed to extend participation from the point of initial goal establishment to the point of evaluating results in terms of goal attainment.Management by Objectives involves managers working with their subordinates to establish performance goals and plans that are consistent with higher-level work unit and organisational objectives. In the diagram, notice how joint supervisor-employee discussions are designed to extend participation from the point of initial goal establishment to the point of evaluating results in terms of goal attainment.

128. Chapter 6 Motivation & Job Design

129. Job Design Job Design involves the planning and specification of job tasks, and the work setting designated for their accomplishment. The objective of job design is to help make jobs meaningful, interesting and challenging. Goal setting involves building challenging and specific goals into jobs and providing appropriate performance feedback. Alternative work arrangements focus on the wide variety of innovative work time options that emerged in the last two decades of the twentieth century. The objective of job design is to help make jobs meaningful, interesting and challenging. Goal setting involves building challenging and specific goals into jobs and providing appropriate performance feedback. Alternative work arrangements focus on the wide variety of innovative work time options that emerged in the last two decades of the twentieth century.

130. Alternative Job Design Strategies Job simplification Job enlargement Job rotation Job enrichment The study of job design strategies is regarded as having commenced with the work of Frederick Taylor in the early 1900s. His research into the ‘science of work’ and the study of human efficiency in job performance employed techniques such as time-and-motion studies. Over the 50-year period between 1900 and 1950, four major approaches to job design were identified. Each approach was prescriptive in nature and assumed that all workers would respond to the strategies in the same manner. None of these approaches made allowance for variation in the motivational potential of the individual worker.The study of job design strategies is regarded as having commenced with the work of Frederick Taylor in the early 1900s. His research into the ‘science of work’ and the study of human efficiency in job performance employed techniques such as time-and-motion studies. Over the 50-year period between 1900 and 1950, four major approaches to job design were identified. Each approach was prescriptive in nature and assumed that all workers would respond to the strategies in the same manner. None of these approaches made allowance for variation in the motivational potential of the individual worker.

131. Job Simplification Job simplification is standardizing work procedures and employing people in clearly defined and specialized tasks. Job automation Often termed job engineering. Simplified jobs are highly specialised and usually require an individual to perform a narrow set of tasks repetitively. Advantages: Increased operating efficiency Low-skill and low cost labour Minimal training requirements Controlled production quantity Disadvantages: Loss of efficiency due to low quality work High rates of absenteeism and turnover May need to pay high wages to get people to do unattractive jobs Natural extensions of job simplification are complete Job automation - a job design that allows machines to do work previously accomplished by human effort.Often termed job engineering. Simplified jobs are highly specialised and usually require an individual to perform a narrow set of tasks repetitively. Advantages: Increased operating efficiency Low-skill and low cost labour Minimal training requirements Controlled production quantity Disadvantages: Loss of efficiency due to low quality work High rates of absenteeism and turnover May need to pay high wages to get people to do unattractive jobs Natural extensions of job simplification are complete Job automation - a job design that allows machines to do work previously accomplished by human effort.

132. Job Enlargement and Job Rotation Job Enlargement: combining two or more tasks into one job Job Rotation: periodically shifting workers among jobs Job enlargement and job rotation strategies aim to increase the breadth of a job by adding to the variety of tasks performed by a worker. Job rotation can be arranged around almost any time period, such as hourly, daily or weekly schedules. Job rotation may decrease efficiency, but it can add to workforce flexibility because staff can be moved from one job to another. Job enlargement and job rotation strategies aim to increase the breadth of a job by adding to the variety of tasks performed by a worker. Job rotation can be arranged around almost any time period, such as hourly, daily or weekly schedules. Job rotation may decrease efficiency, but it can add to workforce flexibility because staff can be moved from one job to another.

133. Job Enrichment The practice of building motivating factors into job content Vertical loading Horizontal loading Vertical loading involves increasing job depth by adding responsibilities, like planning and controlling, previously held by supervisors. Horizontal loading involves increasing the breadth of a job by adding to the variety of tasks that the worker performs.Vertical loading involves increasing job depth by adding responsibilities, like planning and controlling, previously held by supervisors. Horizontal loading involves increasing the breadth of a job by adding to the variety of tasks that the worker performs.

134. A Continuum of Job Design Strategies This figure shows how the strategies differ in their degree of task specialisation and as sources of intrinsic work rewards. The availability of intrinsic rewards is lowest for task attributes associated with simplified jobs, and highest for enriched jobs. Task specialisation is higher for simplified jobs and lower for enriched jobs.This figure shows how the strategies differ in their degree of task specialisation and as sources of intrinsic work rewards. The availability of intrinsic rewards is lowest for task attributes associated with simplified jobs, and highest for enriched jobs. Task specialisation is higher for simplified jobs and lower for enriched jobs.

135. Job Characteristics Theory Skill variety Task identity Task significance Autonomy Job feedback Job characteristics theory identifies five core characteristics as having special importance to job designs. Skill variety: the degree to which a job requires a variety of different activities. Task identity: the degree to which a job requires completion of a ‘whole’ and identifiable piece of work. Task significance: the degree to which a job is important and involves a meaningful contribution. Autonomy: the degree to which a job gives substantial freedom. Job feedback: carrying out work activities results in obtaining direct and clear feedback.Job characteristics theory identifies five core characteristics as having special importance to job designs. Skill variety: the degree to which a job requires a variety of different activities. Task identity: the degree to which a job requires completion of a ‘whole’ and identifiable piece of work. Task significance: the degree to which a job is important and involves a meaningful contribution. Autonomy: the degree to which a job gives substantial freedom. Job feedback: carrying out work activities results in obtaining direct and clear feedback.

136. Individual differences: moderators of job characteristics theory The five core job characteristics do not affect all people in the same way. There are three important individual difference moderators: Growth-need strength Knowledge and skill Context satisfaction Three important individual difference moderators: Growth-need strength: the degree to which a person desires the opportunity for self-direction, learning and personal accomplishment at work Knowledge and skill: those with knowledge and skill needed for performance in an enriched job are predicted to respond positively to the enrichment Context satisfaction: the extent to which an employee is satisfied with contextual factors. e.g. salary levels, supervision, working conditions.Three important individual difference moderators: Growth-need strength: the degree to which a person desires the opportunity for self-direction, learning and personal accomplishment at work Knowledge and skill: those with knowledge and skill needed for performance in an enriched job are predicted to respond positively to the enrichment Context satisfaction: the extent to which an employee is satisfied with contextual factors. e.g. salary levels, supervision, working conditions.

137. Growth Needs and Core Job Characteristics In general, people whose capabilities match the requirements of an enriched job are likely to experience positive feelings and to perform well. People who are inadequate or who feel inadequate in this regard are likely to have difficulties. See also TABLE 6.2 for samples of core job characteristics for enriched and unenriched jobs.In general, people whose capabilities match the requirements of an enriched job are likely to experience positive feelings and to perform well. People who are inadequate or who feel inadequate in this regard are likely to have difficulties. See also TABLE 6.2 for samples of core job characteristics for enriched and unenriched jobs.

138. Socio-technical Job Design The design of jobs to optimize the relationship between the technology system and the social system. Technology can sometimes constrain the ability to enrich jobs. Socio-technical job design recognises this problem and seeks to optimise the relationship between the technology system and the social system. This is achieved by designing work roles to integrate with the technology system. e.g. semi-autonomous work group approach Social information processing approach argues that individual needs, task perceptions and reactions are a result of socially constructed realities. Thus, social information in the workplace influences workers’ perceptions of the job and their responses to it.Technology can sometimes constrain the ability to enrich jobs. Socio-technical job design recognises this problem and seeks to optimise the relationship between the technology system and the social system. This is achieved by designing work roles to integrate with the technology system. e.g. semi-autonomous work group approach Social information processing approach argues that individual needs, task perceptions and reactions are a result of socially constructed realities. Thus, social information in the workplace influences workers’ perceptions of the job and their responses to it.

139. Q & A – Job Enrichment Is it expensive? Can it be applied to groups and individuals? Will people demand more pay? What do the unions say? Should everyone’s job be enriched? See page 229 See also The Effective Manager page 230: guidelines for implementing job enrichment.See page 229 See also The Effective Manager page 230: guidelines for implementing job enrichment.

140. Chapters 8 & 9 Groups & Teamwork

141. What is a Group? Groups are collections of two or more people who work with one another regularly to achieve one or more common goals. In a true group, members consider themselves mutually dependent to achieve common goals, and they interact with one another regularly to pursue those goals over a sustained period of time.In a true group, members consider themselves mutually dependent to achieve common goals, and they interact with one another regularly to pursue those goals over a sustained period of time.

142. Purpose of Groups in Organizations Meeting organizational needs Meeting individual needs Benefiting organizations and individuals Groups can benefit: the organisation by improving collective member contributions to effective performance group members by satisfying their needs because groups can help foster innovation and creativity because they sometimes make better decisions than individuals do because they provide social interaction and interpersonal fulfillment because they provide individual security because they provide emotional support because they help organisations accomplish important tasks. Groups can benefit: the organisation by improving collective member contributions to effective performance group members by satisfying their needs because groups can help foster innovation and creativity because they sometimes make better decisions than individuals do because they provide social interaction and interpersonal fulfillment because they provide individual security because they provide emotional support because they help organisations accomplish important tasks.

143. Key Concerns for Managing Groups Advantages of groups Disadvantages of groups Refer Table 7.1 page 268/9Refer Table 7.1 page 268/9

144. Formal Groups Permanent formal work groups Temporary work groups Formal groups are official groups that are designated by formal authority to serve a specific purpose. Permanent formal work groups perform a specific function on an ongoing basis, for example, command groups. Temporary formal work groups are created for a specific purpose and typically disband once that purpose has been accomplished, for example, task groups.Formal groups are official groups that are designated by formal authority to serve a specific purpose. Permanent formal work groups perform a specific function on an ongoing basis, for example, command groups. Temporary formal work groups are created for a specific purpose and typically disband once that purpose has been accomplished, for example, task groups.

145. Informal Groups Friendship groups Interest groups Informal groups are groups that emerge unofficially and are not formally designated as parts of the organisation. Friendship groups consist of people with natural affinities for one another who may do things together inside or outside the workplace. Interest groups consist of people who share common interests, whether those interests are work or non-work related.Informal groups are groups that emerge unofficially and are not formally designated as parts of the organisation. Friendship groups consist of people with natural affinities for one another who may do things together inside or outside the workplace. Interest groups consist of people who share common interests, whether those interests are work or non-work related.

146. Groups and Task Performance Synergy The whole is different than the sum of its parts. Groups can make 2+2=5 or 2+2=3 Synergy is the creation of a whole that is greater than the sum of its parts. Social loafing is the tendency of people not to work as hard in groups as they would individually. Disruptive behaviour is any behaviour that harms the group process. For example: being overly aggressive towards other members withdrawing and refusing to cooperate with others.Synergy is the creation of a whole that is greater than the sum of its parts. Social loafing is the tendency of people not to work as hard in groups as they would individually. Disruptive behaviour is any behaviour that harms the group process. For example: being overly aggressive towards other members withdrawing and refusing to cooperate with others.

147. Positive Synergy – “Two heads are better than one.” The creation of whole greater than sum of its parts. Groups accomplish more than the total of their members’ individual capabilities. Occurs when: A diverse set of skills is required. Division of labor and sharing of information are required. Creativity and innovation are required.

148. Negative Synergy – “Too many cooks spoil the broth.” The creation of whole less than sum of its parts. Social loafing (Ringelmann effect): The tendency of group members to do less that they are capable of as individuals. Ringlemann’s experiments – compared the results of individual and group performance on a rope-pulling task. Groups of 3 people – 2.5 times the solo rate. Groups of 8 people – less than 4 times the solo rate. Average productivity dropped as more people joined. Replications of Ringelmann’s experiments – People tend not to work hard as in groups as they would individually. Why? The relationship between an individual’s input and the group’s output is unclear. In such situations individuals are tempted become “free riders”. Belief of inequity – individuals reduce their efforts to reestablish equity.

149. Characteristics of Group Effectiveness Effective groups are groups that achieve high levels of both task performance and human resource maintenance. See “The Effective Manager” page 273 for characteristics of effective groups.See “The Effective Manager” page 273 for characteristics of effective groups.

150. Foundations of Group Effectiveness The better the group inputs, the better the chance of group effectiveness. Inputs are the initial ‘givens’ in a group situation. They set the stage for all group action. If all group inputs are satisfactory, the group has a strong foundation for pursuing effectiveness. If some of the inputs are unsatisfactory, efforts to achieve effectiveness will suffer from the problems and shortcomings tracing back to the input insufficiencies. An informed manager can avoid many of these difficulties by remaining aware of how these major categories of group input factors – organisational setting, nature of the task, membership characteristics and group size – may influence group operations and outcomes.Inputs are the initial ‘givens’ in a group situation. They set the stage for all group action. If all group inputs are satisfactory, the group has a strong foundation for pursuing effectiveness. If some of the inputs are unsatisfactory, efforts to achieve effectiveness will suffer from the problems and shortcomings tracing back to the input insufficiencies. An informed manager can avoid many of these difficulties by remaining aware of how these major categories of group input factors – organisational setting, nature of the task, membership characteristics and group size – may influence group operations and outcomes.

151. Organizational Setting Goals, reward systems and technologies Cultures and structures Other things being equal, the best setting for a group includes: goals that emphasise group accomplishments rewards that recognise group accomplishments the resources needed to accomplish the goals the technologies needed to accomplish the goals spatial arrangements that encourage effective group member interaction cultures that make effective group work an important value structures that support group work and group interaction.Other things being equal, the best setting for a group includes: goals that emphasise group accomplishments rewards that recognise group accomplishments the resources needed to accomplish the goals the technologies needed to accomplish the goals spatial arrangements that encourage effective group member interaction cultures that make effective group work an important value structures that support group work and group interaction.

152. General Membership Characteristics Membership homogeneity/heterogeneity Interpersonal compatibilities The need for inclusion The need for control The need for affection Homogeneous groups are groups whose members have similar backgrounds, interests, values, attitudes. Heterogeneous groups are groups whose members have diverse backgrounds, interests, values, attitudes, etc.The need for inclusion The need for control The need for affection Homogeneous groups are groups whose members have similar backgrounds, interests, values, attitudes. Heterogeneous groups are groups whose members have diverse backgrounds, interests, values, attitudes, etc.

153. Group size Although it is difficult to pinpoint an ideal group size, a few general guidelines regarding the relationship between size and performance are recognised. This figure depicts some of the possible tradeoffs. As a group becomes larger, more potential human resources are available to divide up the work and accomplish needed tasks. This relationship can boost performance, and member satisfaction also tends to increase.Although it is difficult to pinpoint an ideal group size, a few general guidelines regarding the relationship between size and performance are recognised. This figure depicts some of the possible tradeoffs. As a group becomes larger, more potential human resources are available to divide up the work and accomplish needed tasks. This relationship can boost performance, and member satisfaction also tends to increase.

154. Stages of Group Development Forming Storming Norming Performing Adjourning

155. The Forming Stage The first stage of group development, in which the primary concern is the initial entry of members to the group.

156. The Storming Stage The second stage of group development which is marked by a period of high emotion and tension among group members.

157. The Norming Stage The third stage of group development, at which the group begins to come together as a coordinated unit. Also referred to as the “norming” stageAlso referred to as the “norming” stage

158. The Performing Stage The fourth stage of group development which sees the emergence of a mature, organized and well-functioning group. Also referred to as the ‘performing’ stage.Also referred to as the ‘performing’ stage.

159. The Adjourning Stage The last stage, in which members of the group disband when the job is done.

160. Groupthink The tendency of members in highly cohesive groups to lose their critical, evaluative capabilities. See action guidelines for best dealing with groupthink on page 290.See action guidelines for best dealing with groupthink on page 290.

161. Symptoms of Groupthink Illusions of group invulnerability Rationalizing unpleasant data Belief in inherent group morality Negative stereotyping of outsiders See ‘The Effective Manager’ page 290See ‘The Effective Manager’ page 290

162. Symptoms of Groupthink Applying pressure to deviants Self-censorship of members Illusions of unanimity Mind guarding

163. Definition: A role is a set of expectations associated with a position. What is expected of the members and what they can expect from others. Difficulties in defining and managing roles cause problems in groups: Role ambiguity: The members are uncertain about their roles. Role overload/underload: Too much/little is expected from members. Role conflict: Member is unable to comply with his/her role. Conflicting expectations from a supervisor Conflicting expectations from different people. One’s values and needs conflict with role expectations. Expectations of two or more roles conflict.

164. Norms Norms are acceptable standards of behavior that are shared by members of a group. All groups have norms. Typical group norms: Norms that regulate social interaction, resource allocation, punctuality, dressing, so on. Performance norms: Specify acceptable production behavior. How hard should group members work? What is the acceptable level of output? How should the work be done? Can be significantly different than management expectations. Managerial Implication: Help groups adopt positive norms that support organizational goals.

165. Norms Characteristics of Norms: Developed only for things that have significance for the group. Known by all group members. Accepted by group members. Enforced by group members. Deviations lead to punishments. Influence the behavior of group members. i.e. members conform to group norms.

166. Conformity to Norms Asch studies: Conclusion: Groups can place strong pressures on individual members to change their attitudes and behaviors to conform to group standards. Conformity: Why do employees conform to group norms? Desire for acceptance Personal characteristics Cohesiveness of the group

167. Team Cohesiveness The degree to which members are attracted to and motivated to remain a part of a team. Determinants of Cohesiveness; Time spent together and physical proximity Group size Homogeneity Charismatic leader Standards for being a member Previous successes External threats Cohesiveness tends to be high when: team members are homogeneous in age, attitudes, needs and backgrounds team members respect one another's competencies team members agree on common goals team tasks require interdependent efforts the team is relatively small the team is physically isolated from other groups the team experiences performance success. Cohesiveness tends to be high when: team members are homogeneous in age, attitudes, needs and backgrounds team members respect one another's competencies team members agree on common goals team tasks require interdependent efforts the team is relatively small the team is physically isolated from other groups the team experiences performance success.

168. Is cohesiveness related to productivity? Generally, highly cohesive groups display the following qualities: Members have positive relationships Members more energetic Members participate more Members are more involved with the success/failure of the group Such groups have low turnover, higher satisfaction and loyalty. Members’ level of conformity to group norms is higher. Whether or not cohesiveness leads to productivity depends on the prevailing performance norms in the group.

169. Influencing Team Performance Here the performance implications for various combinations of cohesiveness and norms are displayed. Performance is highest in a very cohesive team with positive performance norms. In this situation, members encourage one another to work hard on behalf of the team.Here the performance implications for various combinations of cohesiveness and norms are displayed. Performance is highest in a very cohesive team with positive performance norms. In this situation, members encourage one another to work hard on behalf of the team.

170. Influencing Team Cohesiveness Managers can take steps to increase or decrease team cohesiveness. These include making changes in: team goals membership composition interactions size rewards competition location duration. Managers can take steps to increase or decrease team cohesiveness. These include making changes in: team goals membership composition interactions size rewards competition location duration.

171. Chapters 10 & 11 Power & Leadership

172. What is Leadership? A special case of interpersonal influence that gets an individual or group to do what the leader wants done.

173. Trait Theory The earliest approach to the study of leadership Identified traits that differentiated the ‘great person’ from the masses Dates back to the turn of the twentieth century. This approach led to a research emphasis that tried to separate leaders from non-leaders, or more effective leaders from less effective leaders. The argument was that certain traits are related to success and that these traits, once identified, could be used to select leaders. For various reasons, including inadequate theorising, inadequate measurement of many traits and failure to recognise possible differences in organisations and situations, the studies were not successful. Dates back to the turn of the twentieth century. This approach led to a research emphasis that tried to separate leaders from non-leaders, or more effective leaders from less effective leaders. The argument was that certain traits are related to success and that these traits, once identified, could be used to select leaders. For various reasons, including inadequate theorising, inadequate measurement of many traits and failure to recognise possible differences in organisations and situations, the studies were not successful.

174. Behavioral Theories The Michigan studies The Ohio State studies The Leadership Grid By the 1940s, attention had turned towards a behavioural position about leadership. The focus changed from attempting to identify the inner traits of leaders to one of examining their behaviour.By the 1940s, attention had turned towards a behavioural position about leadership. The focus changed from attempting to identify the inner traits of leaders to one of examining their behaviour.

175. The Leadership Grid Developed by Blake and Mouton . It measures a manager’s concern for people and concern for production then plots the results on a nine-position grid that places these concerns on the vertical axis and horizontal axis respectively. Developed by Blake and Mouton . It measures a manager’s concern for people and concern for production then plots the results on a nine-position grid that places these concerns on the vertical axis and horizontal axis respectively.

176. Situational Contingency Theories Situational control is the extent to which leaders can determine what their group is going to do and what the outcomes of their actions will be. Leader traits and / or behaviours act in conjunction with situational contingencies (other important aspects of the leadership situation) to determine outputs. Where control is high leaders can predict with a good deal of certainty what will happen when they want something done.Leader traits and / or behaviours act in conjunction with situational contingencies (other important aspects of the leadership situation) to determine outputs. Where control is high leaders can predict with a good deal of certainty what will happen when they want something done.

177. Fiedler’s Contingency Theory Fiedler uses an instrument called the ‘least preferred co-worker’ scale (LPC Scale) to determine a person’s leadership style. Respondents are asked to describe the person with whom they are able to work least well, using a series of adjectives such as: unfriendly vs friendly, or pleasant vs unpleasant. Fiedler argues that high LPC leaders have a relationship-motivated style, while low LPC leaders have a task-oriented style. Fiedler considers this task or relationship motivation to be a trait that leads to either directive or nondirective behaviour, depending on whether the leader has high, moderate or low situational control. Fiedler uses an instrument called the ‘least preferred co-worker’ scale (LPC Scale) to determine a person’s leadership style. Respondents are asked to describe the person with whom they are able to work least well, using a series of adjectives such as: unfriendly vs friendly, or pleasant vs unpleasant. Fiedler argues that high LPC leaders have a relationship-motivated style, while low LPC leaders have a task-oriented style. Fiedler considers this task or relationship motivation to be a trait that leads to either directive or nondirective behaviour, depending on whether the leader has high, moderate or low situational control.

178. Predictions from Fiedler’s Theory The figure shows that Fiedler measures high, moderate and low control with the following three variables: Leader-member relations Task structure Position power The figure shows that Fiedler measures high, moderate and low control with the following three variables: Leader-member relations Task structure Position power

179. Fiedler’s Cognitive Resource Theory Use of directive or nondirective behaviour depends on situational contingencies. Cognitive resources are abilities or competencies. Whether a leader should use directive or nondirective behaviour depends on these situational contingencies: The leader’s or subordinate group member’s ability / competency Stress Experience Group support of the leader Basically, cognitive resource theory is most useful because it directs us to leader or subordinate group member ability, which other leadership approaches typically do not consider. The theory views directiveness as most helpful for performance when the leader is competent, relaxed and supported. When leaders feel stressed, they are diverted. Cognitive resources are abilities or competencies. Whether a leader should use directive or nondirective behaviour depends on these situational contingencies: The leader’s or subordinate group member’s ability / competency Stress Experience Group support of the leader Basically, cognitive resource theory is most useful because it directs us to leader or subordinate group member ability, which other leadership approaches typically do not consider. The theory views directiveness as most helpful for performance when the leader is competent, relaxed and supported. When leaders feel stressed, they are diverted.

180. Fiedler’s Theory Evaluation Application The roots of Fiedler’s contingency approach date back to the 1960s and have elicited both positive and negative reactions. The biggest controversy concerns exactly what Fiedler’s LPC instrument measures. In terms of application, Fiedler has developed leader match training. Leaders are trained to diagnose the situation to match their high and low LPC scores with situational control, as measured by leader–member relations, task structure and leader position power. Although there are still unanswered questions concerning Fiedler’s theory it has received relatively strong support.The roots of Fiedler’s contingency approach date back to the 1960s and have elicited both positive and negative reactions. The biggest controversy concerns exactly what Fiedler’s LPC instrument measures. In terms of application, Fiedler has developed leader match training. Leaders are trained to diagnose the situation to match their high and low LPC scores with situational control, as measured by leader–member relations, task structure and leader position power. Although there are still unanswered questions concerning Fiedler’s theory it has received relatively strong support.

181. Path-goal Theory Directive leadership Supportive leadership Achievement-oriented leadership Participative leadership This theory has its roots in the expectancy model of motivation. The term ‘path-goal’ is used because it emphasises how a leader influences subordinates’ perceptions of both work goals and personal goals and the links or paths found between these two set of goals. House’s model represents a process approach to leadership that takes into account three interrelated variables: Leadership style Context factors Employee motivation The leadership behaviours are adjusted to complement the situational contingency variables to influence subordinate satisfaction, acceptance of the leader and motivation for task performance. This theory has its roots in the expectancy model of motivation. The term ‘path-goal’ is used because it emphasises how a leader influences subordinates’ perceptions of both work goals and personal goals and the links or paths found between these two set of goals. House’s model represents a process approach to leadership that takes into account three interrelated variables: Leadership style Context factors Employee motivation The leadership behaviours are adjusted to complement the situational contingency variables to influence subordinate satisfaction, acceptance of the leader and motivation for task performance.

182. Path-goal Relationships

183. Path-goal Theory Evaluation Application There is support for the theory in general. The path-goal approach lends itself to at least a couple of possibilities: First, training could be used to change leadership behaviour to fit the situational contingencies. Second, the leader could be taught to diagnose the situation and to learn how to change the contingencies. There is support for the theory in general. The path-goal approach lends itself to at least a couple of possibilities: First, training could be used to change leadership behaviour to fit the situational contingencies. Second, the leader could be taught to diagnose the situation and to learn how to change the contingencies.

184. Situational Leadership Focus is on the readiness of followers. Readiness: the extent to which people have the ability and willingness to accomplish tasks. Hersey and Blanchard’s model. Hersey and Blanchard argue that situational leadership requires adjusting the leader’s emphasis on task behaviours, e.g. giving guidance and direction, and relationship behaviours, e.g. providing socioemotional support, according to the readiness of followers to perform their tasks. There are four leadership styles: Delegating – best for high readiness Participating – best for moderate to high follower readiness Selling – best for low to moderate follower readiness Telling – best for low follower readiness Each emphasises a different combination of task and relationship behaviours by the leader.Hersey and Blanchard’s model. Hersey and Blanchard argue that situational leadership requires adjusting the leader’s emphasis on task behaviours, e.g. giving guidance and direction, and relationship behaviours, e.g. providing socioemotional support, according to the readiness of followers to perform their tasks. There are four leadership styles: Delegating – best for high readiness Participating – best for moderate to high follower readiness Selling – best for low to moderate follower readiness Telling – best for low follower readiness Each emphasises a different combination of task and relationship behaviours by the leader.

185. Situational Leadership Evaluation Application This model has a great deal of intuitive appeal for managers but little systematic research support. The research support that is available is not very strong, and the theory still needs systematic empirical evaluation. The approach does include an elaborate training program that has been developed to train leaders to diagnose and emphasise appropriate behaviours. Program is popular in Europe.This model has a great deal of intuitive appeal for managers but little systematic research support. The research support that is available is not very strong, and the theory still needs systematic empirical evaluation. The approach does include an elaborate training program that has been developed to train leaders to diagnose and emphasise appropriate behaviours. Program is popular in Europe.

186. Substitutes for Leadership Organization, individual or task-situational variables that substitute for leadership In contrast to previous approaches, the substitutes for leadership perspective argues that sometimes hierarchical leadership makes essentially no difference. Certain individual, job and organisational variables can either serve as substitutes for leadership or neutralise a leader’s impact on subordinates. Use Figure 13.7 on page 524. Individual variables: Experience, ability, training Professional orientation Job variables: High structures Intrinsically satisfying Organisational variables: Cohesive work group Low leader position power Leader physically separatedIn contrast to previous approaches, the substitutes for leadership perspective argues that sometimes hierarchical leadership makes essentially no difference. Certain individual, job and organisational variables can either serve as substitutes for leadership or neutralise a leader’s impact on subordinates. Use Figure 13.7 on page 524. Individual variables: Experience, ability, training Professional orientation Job variables: High structures Intrinsically satisfying Organisational variables: Cohesive work group Low leader position power Leader physically separated

187. Charismatic Leadership Charismatic leaders are those leaders who, by force of their personal abilities, are capable of having a profound and extraordinary effect on followers. Essentially these leaders are high in need for power and have high feelings of self-efficacy and conviction in the moral rightness of their beliefs. The need for power motivates these people to want to be leaders. This need is then reinforced by their conviction of the moral rightness of their beliefs. The feeling of self-efficacy, in turn, makes people feel that they are capable of being leaders. These traits then influence such charismatic behaviours as role modelling, image building, articulating goals, emphasising high expectations, showing confidence and arousing follower motives.Essentially these leaders are high in need for power and have high feelings of self-efficacy and conviction in the moral rightness of their beliefs. The need for power motivates these people to want to be leaders. This need is then reinforced by their conviction of the moral rightness of their beliefs. The feeling of self-efficacy, in turn, makes people feel that they are capable of being leaders. These traits then influence such charismatic behaviours as role modelling, image building, articulating goals, emphasising high expectations, showing confidence and arousing follower motives.

188. Transformational Leadership A leadership style by which the followers’ goals are broadened and elevated, and confidence is gained to go beyond expectations.

189. Transactional Leadership A leadership style by which the leader exerts influence during daily leader-subordinate exchanges without much emotion.

190. Transformational vs. Transactional Leadership Transactional leaders guide subordinates in their tasks towards the achievement of pre-stated goals, whereas transformational leaders inspire their subordinates to transcend individual interest for the sake of their organisation. Transactional leaders guide subordinates in their tasks towards the achievement of pre-stated goals, whereas transformational leaders inspire their subordinates to transcend individual interest for the sake of their organisation.

191. Transformational Leadership Individual consideration Intellectual stimulation Inspirational motivation Idealised influence Leadership of the 21st century. Individual consideration: paying attention to individual employees Intellectual stimulation: being concerned with helping people to think through new ways Inspirational motivation: inspiring people to give their best Idealised influence: engendering respect and trust Leadership of the 21st century. Individual consideration: paying attention to individual employees Intellectual stimulation: being concerned with helping people to think through new ways Inspirational motivation: inspiring people to give their best Idealised influence: engendering respect and trust

192. Developing Charismatic Skills Sensitivity to charisma Visioning Communication Impression management Empowering See The effective manager page 531. See also Table 13.1 on page 533. Themes in the new leadership literature.See The effective manager page 531. See also Table 13.1 on page 533. Themes in the new leadership literature.

193. Leadership and Power Power: The ability to get someone else to do something you want done. Two sources of Power: Position Power: based in the manager’s position of authority. Personal Power: based in the personal qualities of manager Managerial Power = Position Power + Personal Power.

194. Sources of Position Power Stems from the official position of the manager in the chain of command. Anyone holding a managerial position has this power. Reward Power - influence through rewards. Offer something of value. Coercive Power - influence through punishment. Verbal reprimands, pay penalties, termination, etc. Legitimate Power - influence through authority. Managers have the legal right to exercise control over persons in subordinate positions.

195. Sources of Personal Power Stems from the unique personal qualities of the individual manager. Expert Power - influence through special expertise and/or valuable information. Acquire relevant skills, competencies. Gain a central position in relevant information networks. Referent Power - influence through charisma and interpersonal attractiveness. Develop and maintain good interpersonal relations