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    Chapter 4:

    Why Were Emotions Ignored in OB?

    The Myth of Rationality

    Emotions were seen as irrational

    Managers worked to make emotion-free

    environments

    View of Emotionality

    Emotions were believed to be disruptive

    Emotions interfered with productivity

    Only negative emotions were observed

    Now we know emotions cant be separated from the

    workplace4-1

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    What are emotions and Moods

    Affect: A broad range of emotions that people

    experience

    Emotions

    Intense feelings that are directed at someone orsomething

    Moods

    Feelings that tend to be less intense than

    emotions and that lack a contextual stimulus

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    The Basic Emotions

    While not universally accepted, there appear to be sixbasic emotions:

    1. Anger

    2. Fear

    3. Sadness

    4. Happiness

    5. Disgust

    6. Surprise

    All other emotions are subsumed under these six

    May even be placed in a spectrum of emotion:

    Happiness surprise fear sadness angerdisgust4-3

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    Basic Moods: Positive and Negative Affect

    Emotions cannot be neutral.

    Emotions (markers) are grouped into general moodstates.

    Mood states affect perception and therefore perceived

    reality.

    4-4

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    What Is the Function of Emotion?

    Emotions can aid in our decision-making process.Many researchers have shown that emotions are

    necessary for rational decisions

    Thinking + Feelings Decision making

    4-5

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    Sources of Emotion and Mood

    Personality

    There is a trait component affect intensity

    Day and Time of the Week

    There is a common pattern for all of us

    Happier in the midpoint of the daily awakeperiod

    Happier toward the end of the week

    Weather

    Illusory correlation no effect Stress

    Even low levels of constant stress can worsenmoods

    Social Activities 4-6

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    More Sources of Emotion and Mood

    Sleep Poor sleep quality increases negative affect

    Exercise

    Does somewhat improve mood, especially for

    depressed people

    Age

    Older folks experience fewer negative emotions

    Gender Women tend to be more emotionally expressive, feel

    emotions more intensely, have longer-lasting moods,

    and express emotions more frequently than do men

    Due more to socialization than to biology4-7

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    Emotional Labor

    An employees expression of organizationally desiredemotions during interpersonal transactions at work.

    Emotional Dissonance:

    Employees have to project one emotion while

    simultaneously feeling another Can be very damaging and lead to burnout

    Types of Emotions:

    Felt: the individuals actual emotions

    Displayed: required or appropriate emotions Surface Acting: displaying appropriately but not

    feeling those emotions internally

    Deep Acting: changing internal feelings to

    match display rules - very stressful4-8

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    Affective Events Theory (AET)

    An event in the work environment triggers positive or

    negative emotional reactions

    Personality and mood determine response intensity

    Emotions can influence a broad range of work variables

    4-9

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    Implications of AET

    1. An emotional episode is actually the result of a series of

    emotional experiences triggered by a single event2. Current and past emotions affect job satisfaction

    3. Emotional fluctuations over time create variations in jobperformance

    4. Emotion-driven behaviors are typically brief and variable

    5. Both negative and positive emotions can distractworkers and reduce job performance

    Emotions provide valuable insights about behavior

    Emotions, and the minor events that cause them, should

    not be ignored at work; they accumulate4-10

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    Emotional Intelligence (EI)

    A persons ability to:

    Be self-aware Recognizing own emotions when experienced

    Detect emotions in others

    Manage emotional cues and information

    EI plays an important role in job performance

    EI is controversial and not wholly accepted

    Case for EI:

    Intuitive appeal; predicts criteria that matter; isbiologically-based.

    Case against EI:

    Too vague a concept; cant be measured; its validity is

    suspect.4-11

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    OB Applications of Emotions and Moods

    Selection

    EI should be a hiring factor, especially for social jobs. Decision Making

    Positive emotions can lead to better decisions.

    Creativity

    Positive mood increases flexibility, openness, andcreativity.

    Motivation

    Positive mood affects expectations of success;

    feedback amplifies this effect. Leadership

    Emotions are important to acceptance of messagesfrom organizational leaders.

    4-12

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    More OB Applications of Emotions and Moods

    Negotiation

    Emotions, skillfully displayed, can affect negotiations Customer Services

    Emotions affect service quality delivered to customerswhich, in turn, affects customer relationships

    Emotional Contagion: catching emotions from others Job Attitudes

    Can carry over to home, but dissipate overnight

    Deviant Workplace Behaviors

    Negative emotions lead to employee deviance (actions thatviolate norms and threaten the organization)

    Managers Influence

    Leaders who are in a good mood, use humor, and praise

    employees increase positive moods in the workplace.4-13

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    Global Implications

    Do people experience emotions equally?

    No. Culture can determine type, frequency, and depthof experienced emotions

    Do people interpret emotions the same way?

    Yes. Negative emotions are seen as undesirable and

    positive emotions are desirable

    However, value of each emotion varies across cultures

    Do norms of emotional expression vary?

    Yes. Some cultures have a bias against emotionalexpression; others demand some display of emotion

    How the emotions are expressed may make

    interpretation outside of ones culture difficult4-14

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    Summary and Managerial Implications

    Moods are more general than emotions and less contextual

    Emotions and moods impact all areas of OB

    Managers cannot and should not attempt to completely

    control the emotions of their employees

    Managers must not ignore the emotions of their co-workers

    and employees

    Behavior predictions will be less accurate if emotions are

    not taken into account

    4-15

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    Chapter 5: Personality and Values

    What is Personality?

    Personality: The sum total of ways in which an individualreacts and interacts with others.

    Personality Traits: Enduring characteristics that describe an

    individuals behavior.

    Personality

    DeterminantsHeredity

    Environment

    Situation

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    The Myers-Briggs Type Indicator

    Personality Types

    Extroverted vs. Introverted (E or I)

    Sensing vs. Intuitive (S or N)

    Thinking vs. Feeling (T or F)

    Judging vs. Perceiving (P or J)

    Myers-Briggs Type Indicator (MBTI)

    A personality test that taps four characteristics and

    classifies people into 1 of 16 personality types.

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    Myers-Briggs

    Sixteen

    Primary

    Traits

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    The Big Five Model of Personality Dimensions

    -Extroversion: Sociable, gregarious, and assertive

    -Agreeableness: Good-natured, cooperative, and

    trusting.

    -Conscientiousness: Responsible, dependable, persistent,

    and organized.

    -Openness to Experience

    Imaginativeness, artistic, sensitivity, and intellectualism.

    -Emotional Stability: Calm, self-confident, secure (positive)

    versus nervous, depressed, and insecure (negative).

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    Major Personality Attributes Influencing OB

    Locus of control (master of own fate)

    Machiavellianism (ends justify means)

    Self-esteem (like yourself)

    Self-monitoring (adjust actions to fit-in)

    Risk taking (ability to overcome fear)

    Type A personality (I, Now, Do)

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    Locus of Control

    Locus of Control: The degree to whichpeople believe they are masters oftheir own fate.

    Internals: Individuals who believe that

    they control what happens to them.

    Externals: Individuals who believe that

    what happens to them is controlled byoutside forces such as luck or chance.

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    Machiavellianism

    Conditions Favoring High Machs

    Direct interaction

    Minimal rules and regulations

    Emotions distract

    Machiavellianism (Mach)

    Degree to which an individual is pragmatic

    (realistic), maintains emotional distance, and

    believes that ends can justify means.

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    Self-Esteem and Self-Monitoring

    Self-Esteem (SE): Individuals degree ofliking or disliking themselves.

    Self-Monitoring:A personality trait that measuresan individuals ability to adjust his or her behaviorto external, situational factors.

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    Risk-Taking

    High Risk-taking Managers

    Make quicker decisions

    Use less information to make decisions

    Operate in smaller and more entrepreneurial

    organizations Low Risk-taking Managers

    Are slower to make decisions

    Require more information before making decisions

    Exist in larger organizations with stable environments

    Risk Propensity

    Aligning managers risk-taking propensity to job

    requirements should be beneficial to organizations.

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    Personality Types

    Type As

    1. are always moving, walking, and eating rapidly;

    2. feel impatient with the rate at which most events take place;

    3. strive to think or do two or more things at once;

    4. cannot cope with leisure time;

    5. are obsessed with numbers, measuring their success in termsof how many or how much of everything they acquire.

    Type Bs

    1. never suffer from a sense of time urgency with itsaccompanying impatience;

    2. feel no need to display or discuss either their achievements or

    accomplishments;

    3. play for fun and relaxation, rather than to exhibit their

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    Personality Types

    Proactive Personality

    Identifies opportunities, shows initiative, takes action,

    and perseveres until meaningful change occurs.

    Creates positive change in the environment,regardless or even in spite of constraints or obstacles.

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    Achieving Person-Job Fit

    Personality Types

    Realistic

    Investigative

    Social

    Conventional

    Enterprising

    Artistic

    Personality-Job Fit Theory(Holland)

    Identifies six personality types

    and proposes that the fit

    between personality type andoccupational environment

    determines satisfaction and

    turnover.

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    HollandsTypology of

    PersonalityandCongruentOccupations

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    Relationships among

    OccupationalPersonality Types

    The closer twofields are in thehexagon, the

    more compatible

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    VALUES

    What are VALUES?

    Where do Values and attitudes originate?

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    Values

    Values

    Basic belief that a specific mode of conduct will

    lead to a desired end state (Life, life after death)

    Do Values change with time?

    Value System

    A hierarchy based on a ranking of an individuals values

    in terms of their intensity.

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    Importance of Values

    Provide understanding of the attitudes, motivation,

    and behaviors of individuals and cultures.

    Influence our perception of the world around us.

    Represent interpretations of right and wrong.

    Imply that some behaviors or outcomes are preferred

    over others.

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    Types of Values- Rokeach Value Survey

    Terminal Values

    Desirable end-states of existence; the goals that a

    person would like to achieve during his or her

    lifetime.

    Instrumental ValuesPreferable modes of behavior or means of

    achieving ones terminal values.

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    Mean Value Rankings of

    Executives, Union

    Members, and Activists

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    Dominant Work Values in Todays Workforce

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    Values, Loyalty, and Ethical Behavior

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    Hofstedes Framework for Assessing Cultures

    Power Distance: The extent to which a society accepts that

    power in institutions and organizations is distributed unequally.

    Individualism: The degree to which people prefer to act as

    individuals rather than a member of groups.

    Collectivism: A tight social framework in which people

    expect others in groups of which they are a part to look

    after them and protect them.

    Achievement: The extent to which societal values are

    characterized by assertiveness, materialism and competition.

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    HofstedesFramework (contd)

    Nurturing: The extent to which societal values

    emphasize relationships and concern for others.

    Uncertainty Avoidance: The extent to which a society

    feels threatened by uncertain and ambiguous

    situations and tries to avoid them.

    Hofstedes Research Highlights

    China and West Africa - High on power distance

    S and Netherlands scored lowMost Asian Countries were high on collectivism

    US ranked highest on individualism.

    China and Hong Kong had long term orientation

    France and US had short term orientation.

    Chapter 6: Perception and Individual Decision Making

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    Chapter 6: Perception and Individual Decision Making

    What Is Perception, and Why Is It Important?

    Peoples behavior is

    based on their

    perception of whatreality is, not on reality

    itself.

    The world as it is

    perceived is the world

    that is behaviorally

    important.

    Perception

    A process by whichindividuals organize and

    interpret their sensory

    impressions in order to

    give meaning to theirenvironment.

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    Factors That

    Influence

    Perception

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    Person Perception: Making Judgments About Others

    Distinctiveness: shows different behaviors in differentsituations.

    Consensus: response is the same as others to same situation.

    Consistency: responds in the same way over time.

    Attribution Theory: When individuals observe behavior, theyattempt to determine whether it is internally or externally

    caused.

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    Errors and Biases in Attributions

    Fundamental Attribution ErrorThe tendency to underestimate the influence of external

    factors and overestimate the influence of internal factors

    when making judgments about the behavior of others.Self-Serving Bias

    The tendency for individuals to attribute their own

    successes to internal factors while putting the blame for

    failures on external factors.When judging themselves

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    Frequently Used Shortcuts in Judging Others

    -Selective Perception: People selectively interpret what

    they see on the basis of their interests, background,experience, and attitudes.

    -Halo Effect: Drawing a general impression about an

    individual on the basis of a single characteristic-Contrast Effects: Our evaluation of a persons characteristics

    that are influenced by other persons in a similar situation

    (public speakers)

    -Projection: Attributing ones own characteristics toother people.

    -Stereotyping: Judging someone on the basis of ones

    perception of the group to which that person belongs.

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    Specific Applications in Organizations

    Employment Interview

    People are hired based on the perception of theinterviewer.

    Performance Expectations

    Self-fulfilling prophecy (Pygmalion effect): People

    tend to meet leaders expectation

    Ethnic Profiling

    A form of stereotyping in which a group of

    individuals is singled outtypically on the basis ofrace or ethnicity. (Usually for a negative cause)

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    Performance Evaluations

    Appraisals are often the subjective (judgmental)

    perceptions of the employees job performance by

    the supervisor. Appraisals may be Subjective or Objective.

    Objective appraisals meting a measurable goal

    Employee Effort

    Assessment of individual effort is a subjective

    judgment subject to perceptual distortion and bias.

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    The Link Between Perceptions and Individual

    Decision Making

    Perception

    of thedecisionmaker

    Outcomes

    Problem

    Aperceiveddiscrepancy

    between the current state of

    affairs and a desired state.

    Decisions

    Choices made from among

    alternatives developedfrom data perceivedasrelevant.

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    Assumptions of the Rational Decision-Making Model

    Rational Decision- Making Model

    Describes how individuals should behave in order to maximize

    some outcome.

    1. Define the problem.

    2. Identify the decision criteria.

    3. Allocate weights to the criteria.

    4. Develop the alternatives.

    5. Evaluate the alternatives.

    6. Select the best alternative.

    Steps in the Rational Decision-Making Model

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    The Three Components of Creativity

    Creativity

    The ability to produce

    novel and useful ideas.

    Three-Component

    Model of Creativity

    Proposition that individual

    creativity requires expertise,creative-thinking skills, and

    intrinsic task motivation.

    How Are Decisions Actually Made in Organizations

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    How Are Decisions Actually Made in Organizations

    -Bounded Rationality: Individuals make decisions by

    constructing simplified models that extract the essentialfeatures from problems without capturing all their

    complexity. (Hiring process- matching job description to

    resume) Using short cuts, rule of thumb, gut feeling

    How problems are identified

    Visibility over importance of problem

    Attention-catching, high profile problems

    Desire to solve problems

    Self-interest (if problem concerns decision maker)

    Most significant decisions are made by judgment

    Decision Tree

    C Bi d E

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    Common Biases and Errors

    Overconfidence Bias

    Believing too much in our own decision competencies.

    Anchoring Bias

    Fixating on early, first received information.

    Confirmation Bias

    Using only the facts that support our decision (failureanalysis w/o customer input)

    Availability Bias

    Using information that is most readily at hand. (Car vs.Air)

    Representative Bias

    Assessing the likelihood of an occurrence by trying tomatch it with a preexisting category. (Coke Classic &New)

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    Common Biases and Errors (cont)

    Escalation of Commitment (How could I bewrong?) Increasing commitment to a previous decision in spite

    of negative information.

    Randomness Error Trying to create meaning out of random events by

    falling prey to a false sense of control or superstitions.

    Hindsight Bias

    Falsely believing to have accurately predicted theoutcome of an event, after that outcome is actuallyknown.

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    Intuition

    Intuitive Decision Making

    An unconscious process created out of distilledexperience.

    Conditions Favoring Intuitive Decision Making

    A high level of uncertainty exists

    There is little precedent to draw on

    Variables are less scientifically predictable

    Facts are limited

    Facts dont clearly point the way

    Analytical data are of little use

    Several plausible alternative solutions exist

    Time is limited and pressing for the right decision

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    Decision-Style Model

    Analytical = Higher

    tolerance

    Directive = Low

    tolerance

    Conceptual = creativesolutions

    Behavioral = Avoid

    conflict & seek

    acceptance

    The more rational your

    thinking the lower your

    tolerance for

    ambiguous info

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    Organizational Constraints on Decision Makers

    Performance Evaluation (what gets measured gets done)

    Evaluation criteria influence the choice of actions. Reward Systems (PAC)

    Decision makers make action choices that are favored by

    the organization.

    Formal Regulations

    Organizational rules and policies limit the alternative

    choices of decision makers.

    System-imposed Time Constraints

    Organizations require decisions by specific deadlines.

    Historical Precedents

    Past decisions influence current decisions.

    Selection of Problems Time orientation

    Importance of logic and rationality

    Belief in the ability of people to solve problems

    Preference for collective decision making

    (decision making by Japanese managers is more group oriented)

    Cultural Differences in Decision Making

    Ethics in Decision Making

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    Ethical Decision Criteria

    Utilitarianism

    Seeking the greatest good for the greatest number-based on outcome.

    Rights

    Respecting and protecting basic rights of individuals

    such as whistleblowers.

    Justice

    Imposing and enforcing rules fairly and impartially.

    Ethics and National Culture There are no global ethical standards.

    The ethical principles of global organizations must reflect

    and respect local cultural norms to maintain high standards

    and consistent practices.

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    Ways to Improve Decision Making

    1. Analyze the situation and adjust your decision making

    style to fit the situation.

    2. Be aware of biases and try to limit their impact.3. Combine rational analysis with intuition to increase

    decision-making effectiveness.

    4. Dont assume that your specific decision style isappropriate to every situation.

    5. Enhance personal creativity by looking for novel

    solutions or seeing problems in new ways, and using

    analogies.

    d d i i d

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    Toward Reducing Bias and Errors

    Focus on goals. Clear goals make decision making easier and help to

    eliminate options inconsistent with your interests.

    Look for information that disconfirms beliefs.

    Overtly considering ways we could be wrong

    challenges our tendencies to think were smarter than

    we actually are.

    Dont try to create meaning out of random events.

    Dont attempt to create meaning out of coincidence.

    Increase your options.

    The number and diversity of alternatives generated

    increases the chance of finding an outstanding one.

    Chapter 7: Basic Motivation Concepts

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    p p

    Defining Motivation

    58

    Key Elements

    1. Intensity: how hard a person tries

    2. Direction: toward beneficial goal

    3. Persistence: how long a person tries

    Motivation

    The processes that account for an individuals

    intensity, direction, and persistence of efforttoward attaining a goal.

    Hi h f N d Th (M l )

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    Hierarchy of Needs Theory (Maslow)

    59

    Hierarchy of Needs Theory

    There is a hierarchy of five needsphysiological,safety, social, esteem, and self-actualization; aseach need is substantially satisfied, the next needbecomes dominant.

    Self-Actualization: The drive to become what one iscapable of becoming.

    Lower-Order Needs

    Needs that are satisfied

    externally; physiological

    and safety needs.

    Higher-Order NeedsNeeds that are satisfied

    internally; social, esteem,

    and self-actualization needs.

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    Theory X and Theory Y (Douglas McGregor)

    60

    Theory X

    Assumes that employees dislike work, lackambition, avoid responsibility, and must bedirected and pushed to perform.

    Theory Y

    Assumes that employees like work, seek

    responsibility, are capable of makingdecisions, and exercise self-direction and self-control when committed to a goal.

    h ( d i k b )

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    Two-Factor Theory (Frederick Herzberg)

    61

    Two-Factor (Motivation-Hygiene) TheoryIntrinsic factors are related to job satisfaction, whileextrinsic factors are associated with dissatisfaction.

    Hygiene Factors

    Factorssuch as company policy and administration,supervision, and salarythat, when factors are adequate,people will not be dissatisfied.

    Satisfaction and dissatisfaction are independentthereforeif you remove a dissatisfaction factor, you cannot conclude

    that the person is satisfied.

    Satisfiers and

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    Dissatisfiers

    62

    Factors characterizing

    events on the job that led toextreme job dissatisfactionFactors characterizing

    events on the job that

    led to extreme job

    satisfaction

    ERG Th (Cl Ald f )

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    ERG Theory (Clayton Alderfer)

    63

    Core Needs

    Existence: provision ofbasic materialrequirements.

    Relatedness: desire forrelationships.

    Growth: desire forpersonal development.

    Concepts:

    More than one needcan be operative at thesame time.

    If a higher-level needcannot be fulfilled, thedesire to satisfy alower-level need

    increases.

    ERG Theory

    There are three groups of core needs: existence,relatedness, and growth.

    David McClellands Theory of Needs

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    David McClellands Theory of Needs

    64

    nAch

    nPow

    nAff

    Need for Achievement

    The drive to excel, toachieve in relation to aset of standards, to

    strive to succeed.

    Need for Affiliation

    The desire forfriendly and closepersonal

    relationships.

    Need for Power

    The need to makeothers behave in away that they wouldnot have behaved

    otherwise.

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    Matching High Achievers and Jobs

    65

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    Cognitive Evaluation Theory

    66

    Cognitive Evaluation Theory

    Providing an extrinsic reward for behavior that had been

    previously only intrinsically rewarding tends to decrease theoverall level of motivation.

    The theory may only be relevant to

    jobs that are neither extremely

    dull nor extremely interesting.

    G l S i Th (Ed i L k )

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    Goal-Setting Theory (Edwin Locke)

    67

    Goal-Setting Theory

    The theory that specific and difficult goals, with

    feedback, lead to higher performance.

    Self-Efficacy

    The individuals belief that he or she is capable

    of performing a task.

    Factors influencing the goalsperformance

    relationship: Goal commitment, adequate self-efficacy,

    task characteristics, and national culture.

    R i f t Th

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    Reinforcement Theory

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    Concepts:Bevior is environmentally caused.

    Behavior can be modified (reinforced) by providing(controlling) consequences.

    Reinforced behavior tends to be repeated.

    The assumption that behavior is a function of its

    consequences. (Operant Conditioning)

    Job Design Theory

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    Job Design Theory

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    Characteristics:

    1. Skill variety

    2. Task identity

    3. Task significance

    4. Autonomy

    5. Feedback

    Job Characteristics Model

    Identifies five job

    characteristics and their

    relationship to personal and

    work outcomes.

    Social Information Processing

    (SIP) ModelThe fact that people respond to

    their jobs as they perceive them

    rather than to the objective jobs

    themselves.

    Concept:

    Employee attitudes and

    behaviors are responses

    to social cues by others.

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    Job Characteristics Model

    Any job can be described in terms of 5 core dimensions:

    Skill variety (use number of skills)

    Task identity (identifiable whole or part)

    Task Significance (importance) Autonomy (freedom to do)

    Feedback (results)

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    -Distributive Justice

    Perceived fairness of the amount and allocation of rewardsamong individuals.

    Equity Theory (fairness)

    Individuals compare their job inputs and outcomes with those of others andthen respond to eliminate any inequities.

    -Procedural Justice

    The perceived fairness of the process to determine thedistribution of rewards.

    Equity Theory (contd)

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    Choices for dealing with inequity:

    1. Change inputs (slack off)

    2. Change outcomes (increase output)

    3. Distort/change perceptions of self

    4. Distort/change perceptions of others

    5. Choose a different referent person

    6. Leave the field (quit the job)

    Propositions relating to inequitable pay:

    1. Overrewarded hourly employees produce more than equitablyrewarded employees.

    2. Overrewarded piece-work employees produce less, but do higherquality piece work.

    3. Underrewarded hourly employees produce lower quality work.

    4. Underrewarded employees produce larger quantities of lower-quality piece work than equitably rewarded employees

    Expectancy Theory

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    Expectancy Theory

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    Expectancy Theory (Victor Vroom)Your willingness to act in a certain way depends on:

    1. the strength of an expectation that the act will be

    followed by a given outcome and2. on how attractive that outcome is to the individual.

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    Is Money the ultimate motivator or is it the root of all evil?

    Value of Money