Understanding Organizational Behavior: Key Concepts and Theories
School
University of Windsor**We aren't endorsed by this school
Course
MGMT 2400
Subject
Management
Date
Dec 10, 2024
Pages
35
Uploaded by CorporalBookMole37
Chapter 1 –What is Organizational Behaviour Main Reasons for Studying OB -Understand the attitudes and behaviours of individuals and groups in organizations. -Explain the attitudes and behaviours of individuals and groups in organizations. -Improve the attitudes and behaviours of individuals and groups in organizations. Primary Outcomes in OB Studies Job Performance -Employee behaviours that contribute either positively or negatively to the accomplishment of organizational goals Organizational Commitment -An employee’s desire to remain a member of an organizationCommon Levels of Analysis Team -Multiple people working together over a period of time to accomplish common goals related to a task-oriented purpose Individual -Focuses on understanding the behavior, attitudes, and performance of individual employees within an organization. Organizational -Involves examining the structures, processes, and behaviors within an organization to identify how they affect overall performance and goals. Theories Scientific Management -Using scientific methods to design optimal and efficient work processes and tasks Resource-Based View -A model that argues that rare and inimitable resources help firms maintain competitive advantage Rational-Legal Model
-A step-by-step approach to making decisions that is designed to maximize outcome by examining all available alternatives. Correlations Strong: Equal to or greater than 0.5 Moderate: Between 0.11-0.49 Weak: Equal to or less than 0.1 Hypotheses -Written predictions that specify relationships between variables Chapter 2 –Job Performance
Results Based Job Performance Pros- Easy to assess- Objective and comparableCons- Don’t capture “beyond bottom line”- Problematic conduct- Not always controllable- No info for improvement / no “why”Task Performance -Behaviours that are involved in the transformation of resources into goods or services Routine -Habitual responses to predictable tasks Adaptive -Thoughtful responses to unpredictable tasks Creative -Novel and useful ideas Citizenship Behaviours Voluntary behaviours that contribute to achieving organizational goals by improving the context in which work takes place Helping -Assisting co-workers who have heavy workloads, aiding them with personal matters, and showing new employees the ropes Courtesy -Sharing important information with co-workers Sportsmanship -Maintaining a positive attitude with co-workers through good and bad times Voice
-Speaking up to offer constructive suggestions for change, often in reaction to a negative work event Civic Virtue -Participating in company operations at a deeper-than-normal level through voluntary meetings, reading and keeping up with organizational announcements and news that affects the company Boosterism -Positively representing the organization when in public Counterproductive Behaviours Intentional behaviours which hinder the achievement of organizational goals Organizational Minor -Production Deviance (Ex. wasting resources or wubstance abuse) Organizational Serious -Property Damage (Ex. sabotage or theft) Interpersonal Minor -Political Deviance (Ex. gossiping or incivility) Interpersonal Serious -Personal Aggression (Ex. harassment or abuse) Performance Management Tools Performance management is a continuous process of identifying, measuring, and developing the performance of individuals and teams and aligning performance with the strategic goals of the organization Management by Objectives- Proper application of goal-setting theory - Changes, environmental pressures MBO = Results based performance BARS- “Behaviourally Anchored Rating Scales”- Assesses behaviours- ‘Quantification’ of subjective acts- Strength: Can capture the “how”
360 Degree Feedback- Multiple stakeholders- Limitations (not to be taken lightly) Forced Ranking- A performance management system that forces managers to rank each of their people into one of three categories: top 20 percent, middle 70 percent, bottom 10 percent Chapter 3 - Organizational Commitment Organizational Commitment The desire to remain a member of the organization Affective Commitment
-Means staying because you want to -Attachment and/or emotion-based reasons Continuance Commitment -Means staying because you need to -Cost-based reasons Normative Commitment -Means staying because you ought to -Feeling of obligation reasons Responses to Negative Work Events Physical Withdrawal (Exit) -Active; Destructive -Ex. Tardiness, missing meetings, quitting, long breaks, absenteeism Psychological Withdrawal (Neglect) -Passive; Destructive -Ex. Daydreaming, looking busy, cyberloafing, socializing, moonlighting Voice -Active; Constructive -Ex. Making suggestions, providing feedback, taking initiative Loyalty -Passive; Constructive -Ex. Patience, commitment, support, trust Chapter 4 –Personality, Cultural Values, and Ability Personality The structures and propensities inside a person that explain their characteristic patterns of thought, emotion, and behaviour; personality reflects what people are like and creates their social reputation. The “Big Five” Taxonomy (CANOE or OCEAN)
Conscientiousness -Dimension of personality-reflecting traits like being dependable, organized, reliable, ambitious, hard-working, and persevering Agreeableness -Dimension of personality-reflecting traits like being kind, cooperative, sympathetic, helpful, courteous, and warm Neuroticism -Dimension of personality-reflecting traits like being nervous, moody, emotional, insecure, jealous, and unstable Openness to Experience -Dimension of personality-reflecting traits like being curious, imaginative, creative, complex, refined, and sophisticated Extraversion -Dimension of personality-reflecting traits like being talkative, sociable, passionate, assertive, bold, and dominant Other Personality Traits Self-Monitoring -Observing and regulating behaviour in social settings Self-Esteem -Degree to which a person has a positive self-evaluation Positive Affectivity -A dispositional tendency to experience pleasant, engaging moods such as enthusiasm, excitement, and elation Negative Affectivity -A dispositional tendency to experience unpleasant moods such as hostility, nervousness, and annoyance Hofstede’s Cultural DimensionsIndividualism-Collectivism The degree to which a culture has a loosely knit social framework (individualism) or a tight social framework (collectivism)
Power Distance -The degree to which a culture prefers equal power distribution (low power distance) or an unequal power distribution (high power distance) Uncertainty Avoidance -The degree to which a culture tolerates ambiguous situations (low uncertainty avoidance) or feels threatened by them (high uncertainty avoidance) Masculinity-Femineity -The degree to which a culture values stereotypically male traits (masculinity) or stereotypically female traits (femininity) Short-Term vs Long-Term Orientation -The degree to which a culture stresses values that are past-oriented and present-oriented (short-term orientation) or future-oriented (long-term orientation) Employee to be “Able”Cognitive Ability -Capabilities related to the use of knowledge to make decisions and solve problems Emotional Ability -Capabilities related to the use of feelings to make decisions and solve problems Physical Ability -Capabilities related to the use of physical work to solve problems Chapter 5 –Job Satisfaction What is Job Satisfaction A pleasurable emotional state resulting from the appraisal of one’s job or job experiences; represents how a person thinks and feels about their job What Determines Job Satisfaction Disposition -Some people are predisposed to be more satisfied
Value Fulfillment -The extent to which an individual’s values are met or satisfiedValue-Percept Theory -Suggests that job satisfaction depends on the perceived difference between what an employee wants from their job. Job Characteristics Theory Knowledge and Skill -The degree to which employees hav the aptitude and competence needed to succeed on their job Growth Need Strength -The degree to which employees desire to develop themselves further Negative Emotions -Employees’ feelings of fear, guilt, shame, sadness, envy, and disgustPositive Emotions -Employees’ feelings of joy, pride, relief, hope, love, and compassionChapter 6 - Stress What is Stress? -Psychological response to demands -When something is at stake -When demands > capacity to cope The Stress Process Stressor -“Work-related vs nonwork-related," “Hindrance vs challenge”
Primary Appraisal -What's at stake? (no coping needed) Secondary Appraisal -When people determine how to cope with the various stressors they face Choice of Coping Strategies -“Problem vs emotion-focused", “behavioural vs cognitive”Outcomes (Strain) -Negative consequences of the stress response (physiological, psychological, and/or behavioural) Stressors Hindrance Challenge Work -Role conflict -Role ambiguity -Role overload -Daily hassles -Time pressure -Work complexity -Work responsibility Non-work -Work-family conflict -Neglective life events -Financial uncertainty -Family time demands -Personal development -Positive life events Daily Hassles -Minor day-to-day demands that interfere with work accomplishment Role Ambiguity -A lack of direction and information about what needs to be done in a role Role Overload -An excess of demands on an employee preventing them from working effectively Role Conflict -Others having differing expectations of what an individual needs to do in a role Benign Job Demands -Job demands that are not appraised as being stressful Coping Problem-Focused Emotion-Focused
Behavioural Coping Seeking support to reduce workload; approaching boss Talking to friends and family; drinks after work Cognitive Coping Strategizing; Reprioritizing Psychological withdrawal; think on the bright-side Strains Psychological -Anger, anxiety, frustration, depression, job dissatisfaction, reduced affective commitment, difficulty concentrating Physiological -Dizziness, headaches, tight muscles, pounding heart, stomach distress, difficulty sleeping, shortness of breath, illness, death Behavioural -Accidents at work, performance changes, substance abuse, absenteeism, turnover, aggression Type Personality Type A -Behaviour exhibited by people who tend to experience more stressors, to appraise more demands as stressful, and to be prone to experiencing more strains than most others. Type B -Behaviour exhibited by people who tend to be easygoing and laid-back, these people approach tasks with less urgency How Organizations can Help Their Employees Manage Stress Work Planning -Decreased workweek, flextime, flexplace/telecommuting, personal days, job sharing, part-time work Practices that Improve Resources -Employee assistance programs, on-site daycares or daycare subsidies, gym memberships, connection to health specialists Work Training -Knowledge, skills, interactions
Chapter 7 –Motivation What is Motivation -A set of energetic forces that determine the direction, intensity and persistence of an employee’s work effortDirection -Are you working on what you should be working on? Intensity -Are you working hard or hardly working? Persistence
-Will you keep working even when things get tough? Till you're done? ...etc. Motivation Broadly Extrinsic Motivation -Desire to put forth work effort due to some contingency that depends on task performance (Ex. Pay, bigger office, public recognition, bragging rights) Intrinsic Motivation -Desire to put forth work effort due to the sense that task performance serves as its own reward (Ex. Personally meaningful work, work provides autonomy, work allows me to display competence, work allows me to have impact) Theories of Motivation Expectancy Theory -A theory that describes the cognitive process employees go through to make choices among different voluntary responses -Believe their actions will result in a certain desired outcome -Belief 1: Effort [Expectancy (E ---> P)] -Belief 2: Performance [Instrumentality (P ---> O)] -Belief 3: Outcome [Valence] Goal-Setting Theory -A theory that views goals as the primary drivers of the intensity and persistence of effort -Make “SMART” goals: Specific, Measurable, Achievable, Results-based, Time-sensitive -Goals must be difficult but not impossible Equity Theory -A theory that suggests that employees create a mental ledger of the outcome they receive for their job inputs, relative to some comparison -Equity Distress = tension as a result of inequity Psychological Empowerment -An energy rooted in the belief that tasks are contributing to some larger purpose How to Motivate Employes need: -To see clear links between effort, performance, and desirable outcomes -Goals -To be treated fairly
-Feel psychologically empowered Chapter 8 –Trust, Justice, and Ethics Trust The willingness to be vulnerable to authority because of positive expectations about the authority’s actions and intentionsAffect-based Trust Trust dependent on feelings toward the authority that go beyond any rational assessment of trustworthiness Cognition-based Trust Trust rooted in a rational assessment of the authority’s trustworthinessDisposition-based Trust
Trust rooted in one’s own personality, as opposed to a careful assessment of the trustee’s trustworthiness Justice The perceived fairness of an authority’s decision makingDistributive Perceived fairness of the divvying up of outcomes or resources -Equity = Effort/Input -Equality = Same -Need = Necessity Procedural Perceived fairness of how decisions are made -Voice, correctability, consistency, bias suppression, representativeness, accuracy Informational Justice The perceived fairness of communications provided to employees from authorities Interpersonal Justice The perceived fairness of interpersonal treatment received by employees from authorities Ethics The degree to which the behaviours of an authority are in accordance with generally accepted moral norms 4-Component Model A model that argues that ethical behaviours result from the multistage sequence of moral awareness, moral judgment, moral intent, and ethical behaviour Moral Awareness –Recognition by an authority that a moral issue exists in a situation Moral Judgement –The process people use to determine whether a particular course of action is ethical or unethical Moral Intent –An authority’s degree of commitment to the moral course of action Ethical Behaviour –Turning “intention” into actual moral behaviour
Criticisms of the 4-Component Model -Strict emphasis on rational processes -Undervalues situational factors -Weak links between the components Chapter 9 –Learning and Decision Making Learning A relatively permanent change in an employee’s knowledge or skill that results from experienceExplicit Knowledge Knowledge that is easily communicated and available to everyone Tactic Knowledge Knowledge that employees can only learn through experience How do Employees Learn Operant Learning -Antecedent --> Behaviour --> Consequences
-Consequences either increase probability of behaviour OR decrease the probability of behaviour Observation Social Learning Theory –Theory that argues that people in organizations learn by observing others -[Learner focuses attention on the critical behaviours exhibited by the model] --> [Learner must remember the behaviours of the model once the model is no longer present] --> [Learner must have the appropriate skill set and be able to reproduce the behaviour] --> [The learner must view the model receiving reinforcement for the behaviour and then receive it himself or herself] Goal Orientation Learning Goal Orientation –Focus on acquiring new skills/knowledge over demonstrating competence Performance Goal Orientation –Performance-prove and Performance-avoid Decision Making The process of generating and choosing from a set of alternatives to solve a problem Programmed Decisions Decisions that are somewhat automatic because the decision maker’s knowledge allows them to recognize the situation and the course of action to be taken Intuition An emotional judgement based on quick, nonconscious gut feelings Non-Programmed Decisions Decisions made by employees when a problem is new, complex, or not recognized Rationality The quality of being based on or in accordance with reason or logic Decision-Making Problems Information Problems -Bounded rationality -Searching for too little information -Searching for too much information
Faulty Perceptions Perception –A process of selecting, organizing, story, and retrieving information Can cause –Projection bias, stereotypes, availability bias, primacy and recency bias Faulty Attributions Attributions –How motives are assigned to explain people’s behaviourEscalation of Commitment The decision to continue to follow a failing course of action Chapter 10 –Communication Communication is the imparting or exchanging of information or news The Communication Process Information --> Sender --> Encoding --> Message --> Decoding --> Receiver --> Understanding Types of Communication Upward Communication Communication that flows from the bottom to the top of the vertical channel Downward Communication Communication that flows from the top to the bottom of the vertical channel Horizontal Communication
Communication that flows among members of work groups, teams, or functional units who reside at the same level in the organization Verbal Communication A form of communication in which messages are sent and received using written and spoken language Nonverbal Communication Any form of information exchange that doesn’t involve spoken or written wordsComputer-Mediated Communication The exchange of information and meaning using an electronic, digital medium Face-to-Face Communication The exchange of information and meaning when one or more individuals are physically present, and where communication occurs without the aid of any mediating technology Communication Networks -Who speaks to whom -Formal = determined by organizational roles -Informal = determined by friendship networks Informal Communication Networks Spontaneous and emergent patterns of communication that result from the choices individuals make on their own Grapevine The primary informal communication network within an organization Gossip Rumours about other people
Chapter 11 –Team Characteristics and Processes Team vs Group Team Two or more people who work interdependently over some time period to accomplish common goals related to some task-oriented purpose Group A number of people that are located close together or are considered or classed together Interdependence Extent to which individuals are mutually reliant on one another Pooled Interdependence
Sequential Interdependence Reciprocal Interdependence Comprehensive Interdependence The Power of Teams Are Teams Better Than a Group of Individuals It depends, -Highly complex tasks -Creative output -Problem-solving
How Large Should a Team be? “If you can’t feed a team with two pizzas, it’s too big”It depends, -The more complex the task --> the bigger the team it can support Process Gain vs Process Loss Process Gain Team output --> expected individual output Threats to Process Gain -Coordination loss -Motivational loss Process Loss Team output <-- expected individual output FSNPA Forming Get to know one another and learn boundaries of team Storming Remain committed to ideas, triggers conflict Norming Realize that they need to work together to accomplish team goals Performing Members are comfortable working within their roles, and the team makes progress toward goals Adjourning Members experience anxiety and other emotions as they disengage and ultimately seperate from the team 4 Elements of Successful Teams -Team members have complementary skills that each contribute to different tasks -Can balance cohesion and potency, with conflict -Members take on diversity of “good” (and complementary) roles-Teams become a Gestalt–bigger than the sum of their parts
Chapter 12 –Power, Influence and Negotiation Power The ability to influence the behavior of others AND be resistant to unwanted influence from others Sources of Power Legitimate Power -Authority, formal position Reward Power -Ability to control resources or benefits that others desireCoercive Power Control over punishment or circumstances that others do not desire*The 3 above sources generally stem from a person’s position or role in the organization (ORGANIZATIONAL)*
Expert Power Power based on expertise or knowledge Referent Power Attractiveness or charisma of the leader *The 2 above sources generally stem from within a person (PERSONAL) Contingences of a Leader’s PowerSubstitutability Degree to which there are equally valued alternatives available through other channels Discretion Degree to which leader has decision-making freedom Centrality Degree to which leader is important to others Visibility Degree to which others are aware of the leader’s power and positionInfluence The use of behaviours to cause behavioural or attitudinal changes in others Influence Tactics -Rational Persuasion (logic) -Consultation (ask input) -Inspirational Appeal (values) -Collaboration (offer help) -Ingratiation (flattery) -Personal Appeals (based on friendship) -Exchange Tactic (reciprocity) -Apprising (why will it benefit them) -Pressure (threats & demands) -Coalitions Power and Influence in Action -Navigating the political environmentin the organization -Resolving conflictswithin the organization
-Negotiation within and between organizations Negotiation A process in which two or more interdependent individuals discuss and attempt to come to an agreement about their different preferences Negotiation Strategies Distributive Bargaining (Win-Lose) A situation in which whatever gains one person makes, the other person must lose Integrative (Win-Win) A situation in which both parties can achieve their interests Chapter 13 –Leadership Styles and Behaviours What Does it Mean to Lead? -Using power and influence-To direct the activities of followers-Toward goal achievement Are Leaders Born or Made Leaders can be both born OR made Qualities Someone is Born with that Makes them a Leader -High conscientiousness -ow agreeableness -High openness to experience -High extraversion -High general cognitive ability -High energy levels -High stress tolerance -High self-confidence Factors Which Make Someone into a Leader
-Environmental factors (Socioeconomic status, family, neighborhood, education) -Confidence required to inspire and influence others -Skills to learn (Technical, people, strategic skills, written and oral communication skills) -Social adeptness Leadership Behaviours Leader Decision-Making Styles Initiation Structure Initiation –Originating, facilitating and sometimes resisting new ideas Organization –Structuring work, roles and tasks; who does what? Production –Setting goals; incentives Consideration Membership –Feel part of team; informal interactions Integration –Harmony; reducing relationship conflict; promoting adjustment Communication - Aid info transfer; seeking info Recognition –Approve; disapprove Representation –Boundary spanning; defending team Life Cycle Theory of Leadership Telling Give a lot of structure with low consideration -Assign roles to team members -Give deadlines and timelines -Clarify the purpose of the group’s goals; individuals’ goals-Autocratic Selling Continue to give structure and offer more consideration -Work with team to solve ‘task’ conflicts
-Empower team to feel more confident with handling things on their own -Re-evaluate team goals and timeline with team and get input -Consultative Participating Start to remove structure and continue to offer consideration -Encourage team members to come up with new initiatives -Let team re-evaluate roles –expand or change? Help with negotiation of changes. -Facilitative Delegating Let team self-manage -Take a hands-off approach, be available for feedback, help in unique circumstances, etc. But ultimately team leads itself -Delegative Dominant Leadership Theories Transactional Leadership Pattern of behaviour where the leader rewards or disciplines the follower based on performance -Management by exception (Passive: wait for mistakes, Active: monitor for mistakes) -Contingent reward Transformational Leadership A pattern of behaviour in which the leader inspires followers to commit to a shared vision that provides meaning to their work while also serving as a role model who helps followers develop their own potential and view problems from new perspectives -Inspires followers towards a shared vision -Referent power -Idealized influence/charisma -Inspirational motivation -Intellectual stimulation -Individualized consideration Leader-Member Exchange A theory describing how leader-member relationships develop over time on a dyadic basis LMX Theory
A Theory describing how leader-member relationships develop over time on a dyadic basis The Dark Side of Leadership: Abusive Supervision The sustained display of hostile verbal and nonverbal behaviours, excluding physical contact, by a supervisor Responding to Abusive Supervision (Fight) -Gain advice if possible -Weigh the odds and decide whether this is a fight that can be won -Keep a detailed record of all available facts -Familiarize oneself with relevant disciplinary procedures and legal rights -Keep to verifiable facts Responding to Abusive Supervision (Flight) -If the organization is aware of the abusive leaders’ record but still does nothing to address, it –it’s not wise to hang aroundChapter 14 –Organizational Structure Organizational Structure Formally dictates how jobs and tasks are divided and coordinated between individuals and groups within an organization Simple Structure An organizational form that features one person as the central decision-making figure Geographic Structure An organizational form in which employees are grouped around the different locations where the company does business Product Structure An organizational form in which employees are grouped around different products that the company produces Client-based Structure An organizational form that foccuses on meeting the needs of a company’s target customers Matrix Structure
A complex form of organizational structure that combines a functional and multi-divisional grouping -Advantages: Flow of information, decision making, resource coordination -Disadvantages: Chaotic and stressful, power struggles, expensive, complex incentives Elements of Organizational Structure Work Specialization The degree to which tasks in an organization are divided into separate jobs Chain of Command Specifies who reports to whom; signifies formal authority relationships Span of Control Represents how many employees each manager in the organization has responsibility for Centralization Aspect of structure that dictates where decisions are formally made in organizations Formalization The degree to which rules and procedures are used to standardize behaviours and decisions in an organization
Chapter 15 –Organizational Culture and Change Organizational Culture The shared social knowledge within an organization regarding the rules, norms, and values that shape the attitudes and behaviours of employees Shared Social Knowledge -Learn from one another -Consensus Informs Employees of Rules, Norms, and Values -Social means and control Shapes and Reinforces Attitudes and Behaviours -Self-fulfilling Why Does Culture Matter? Functions of Organizational Culture -Identity: provides shared sense of “who we are”
-Boundary: distinguishes “us” versus “them”-Commitment: attachment to something beyond self interest -Stability provides cohesion -Control: shapes attitudes and behaviours Key: Person-Organization Fit -The degree to which organizational culture matches an employee’s personality and values Organizational Culture Components Observable Artifacts Aspects of an organization’s culture that employees and outsiders can easily see or talk about Espoused Values The beliefs, philosophies, and norms that a company explicitly states Basic Underlying Assumptions The ingrained beliefs and philosophies of employees Culture Strength Level of Consensus and Behaviour Impact -High consensus: Agree about the way things are supposed to happen -High intensity: Engage in behaviours consistent with those expectations Strong Cultures -PROS: Identification, stability, facilitates desired behaviours -CONS: Inability to adapt Attraction-Selection-Attrition Model -“People make the place”-“Weed out” employees who do not fitAttraction Organizations attract people whose personalities and/or values fit the culture Selection
Organizations select candidates based on whether their personalities and/or values match the culture Attrition Employees whose personalities and/or values don’t fit leave/are let goSocialization Model Organizations shape/mold individuals to fit culture Prearrival Stage / Anticipatory The period of learning in the socialization process that occurs before a new employee joins the organization Encounter Stage / Reality Shock may Occur The stage in the socialization process in which a new employee sees what the organization is really like and confronts the possibility that expectations and reality may diverge Metamorphosis Stage / Understanding and Adaptation The stage in the socialization process in which a new employee changes and adjusts to the work, work group, and organization Organizational Culture Change Unfreeze Ensures that employees are ready for change Change Execute the intended change Refreeze Ensures that the change becomes permanent OCAI Organizational culture assessment instrument (OCAI), a structured diagnostic tool used to describe and categorize corporate cultures
Chapter 1-7 Review Chapter 1 -How do we “know” what we know in OB?-What is the scientific method? - What are the different processes involved? - How is a theory tested? Chapter 2 -The behavioural school of thoughts on job performance -Broad categories of job performance- Sub-categories -Performance management tools- Development & applications Chapter 3 -Different forms of organizational commitment -Different forms of withdrawal Chapter 4 -The Big Five -Why is it important to understand cultural differences? What happens if individuals, groups, or organizations fail to do so? Chapter 5 -Value fulfillment / value percept theory -Job characteristics theory- Many groups made mistakes in case analyses -Affect events theory- Mood & emotions Chapter 6 -Different types of stressors -Different coping strategies Chapter 7 -Equity theory -Psychological empowerment