MGT201 Chapter 13

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MGT 201: Principles of Management

Chapter 13

Foundations of Behavior

Farzana Chowdhury

SPRING 2012

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Why look at Individual Behavior?

Focus of Organizational Behavior (OB)

Goals of OB

Five important employee behaviors

Attitudes

Components of attitude

Job satisfaction

What affect does job satisfaction have on employee behavior?

Satisfaction and productivity

Satisfaction and absenteeismSatisfaction and turn-over

Job satisfaction and customer satisfaction

Job involvement

Organizational commitment

Objectives

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Attitudes (Contd)

Perceived organizational support

Attitudes and consistency

Attitude surveys

Implication for managers

Personality

Myers Briggs Type Indicator (MBTI)

The Big Five Model

Additional Personality Insights

Emotional Intelligence Personality types in different cultures

Implication for Managers

Objectives

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Perception

Factors that influence perception

Shortcuts used in judging others

Implication for managers

Learning

Shaping


Objectives

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Organizational Behavior (OB)

Actions of people at work

OB addresses issues that arent obvious

OB is like an iceberg. It has visible dimensions and much larger

hidden portions

OB provides managers with considerable insights into theseimportant but hidden aspects of organization


Focus of OB

Individual behavior attitudes, personality, perception, learning and

motivation Group behavior norms, roles, team-building, leadership and

conflict

Individuals in a group setting behave differently from individuals

acting alone

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Organization as an iceberg


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Goals of OB

To explain, predict and influence behavior

Managers need to do this to manage their employees behavior

Managers success depends on getting things done through people

To do this, managers need to be able to

Explain why employees engage in some behavior Predict how employees will respond to various actions taken

Influence how employee behave


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Five important employee behaviors Managers are specifically concerned about five important employee

behaviors

Employee productivity a performance measure of both efficiency and

effectiveness.

Managers want to know what will influence efficiency and effectiveness

Absenteeism the failure to report to work

Difficult to get things done if employees do not show up

Can never be eliminated but excessive level will have direct impact on

organizations functioning

Turn-over the voluntary and involuntary permanent withdrawal from an

organization

Can become a problem with increased recruiting, selection, training

cost and work disruption

Can never be eliminated but something managers want to minimize

Organization wants to keep high performing employees

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Five important employee behaviors (Contd) Organizational Citizenship Behavior (OCB) discretionary behavior that

is not part of an employees formal job requirement but which promotes the

effective functioning of the organization

Eg. Helping others in the team, volunteering in the extended job

activities, avoid unnecessary conflicts, make constructive suggestions

about work-group Organizations need employees who will do more than their job duties

Organizations with such employees will outperform

Job Satisfaction an employees general attitude toward his/her job

It is an attitude rather than a behavior

It is an outcome that concerns managers because satisfied employeesare more likely to show up for work and stay with the organization

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Psychological factors affecting employee behavior

AttitudesAttitudes

PersonalityPersonality

PerceptionPerception

LearningLearning

EmployeeEmployee

ProductivityProductivity

AbsenteeismAbsenteeism

TurnoverTurnover

OrganizationalOrganizational

CitizenshipCitizenship

Job SatisfactionJob Satisfaction

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Attitudes

Attitudes Evaluative statements either favorable or unfavorable concerning

objects, people or events

Reflects how an individual feels about something

Components ofAttitude

Cognitive component the beliefs, opinions, knowledge, or information

held by a person Affective component the emotional or feeling part of an attitude

Behavioral component the intention to behave in a certain way

toward someone or something

Managers are especially interested job-related attitudes an employee have.

Three most widely known

Job satisfaction

Job involvement

Organizational commitment

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Attitudes

Job Satisfaction A persons general attitude towards his/her job

A person with high level of job satisfaction have positive attitude toward

his/her job

What affect does job satisfaction have on employee

behavior? Satisfaction and Productivity

As a result of the Hawthorne Studies, managers generalized

employees satisfied with their jobs would translate to working hard

this belief is false

Individual level research suggests reverse productivity more likely

lead to satisfaction

Organizational level research shows more support for the satisfaction-

productivity relationship

Organizations with more satisfied employees tend to be more effective

We may not be able to say a happy worker is more productive but it

might be true happy organizations are more productive

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Attitudes

What affect does job satisfaction have on employee

behavior? (Contd) Satisfaction and Absenteeism

Although research shows satisfied employees have lower level of

absenteeism than dissatisfied employees however, the core relation

isnt that strong. Other factors have an impact on the relationship

Organizations that provide liberal sick-leave benefits are encouragingtheir employees (including highly satisfied ones) to take sick days

Satisfaction and Turn-over

Research shows relationship between satisfaction and turn-over is

much stronger

Satisfied employees have low level of turn-over Employees decision to leave also depends on labor market

conditions, expectations about alternative job opportunities, length of

employment etc..

For superior performers the level of satisfaction is less important in

predicting turn-over. Because, organizations typically does everything

it can to keep high performers pay raise, recognition, promotion, etc.

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Attitudes

Job satisfaction and Customer Satisfaction For front-line employees who have regular contact with customers

satisfied employees increase customer satisfaction

Satisfied employees are more likely to be friendly, up-beat, responsive and

less likely to leave their job as such, customers are more likely to

encounter familiar faces and receive experienced service this helps build

customer satisfaction and loyalty

Job involvement The degree to which an employee identifies with his/her job, actively

participates in it and considers his/her job to be important to self-worth

Employees with high level of job involvement strongly identify with andreally care about the kind of work they do

Influence of job involvement on employee behavior high levels have been

found to be related to fewer absences and lower resignation rates

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Attitudes

Organizational Commitment An employees orientation towards the organization in terms of his/her

loyalty to, identification with, and involvement in the organization

Job involvement identifies with your job, organizational commitment is

identifying with your employing organization

Organizational commitment leads to lower level of absenteeism and turn-

over Better indicator of turn-over than job-satisfaction

Employee-employer relationship has changed considerably the notion of

an employee staying with a single organization for most of his/her career

has become increasingly obsolete

Perceived Organizational Support Employees general belief that their organization values their contribution

and cares about their well-being shows that the commitment of the

organization to the employee can be beneficial how? high level of

perceived organizational support have been shown to lead to increased job

satisfaction and lowered turn-over

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Attitudes

Attitude and Consistency People seek consistency in two ways

Consistency among their attitudes

Consistency between their attitudes and behaviors

If there is inconsistency, in order to achieve consistency, individuals

Alter their attitudes

Alter their behavior

Develop a rational for the inconsistency

Attitude Surveys A instrument/document that presents employees with a set of statements

or questions eliciting how they feel about their jobs, work groups,supervisors, or their organization.

Provide management with feedback on employee perceptions of the

organization and their jobs.

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Sample Attitude Survey

Source: Based on T. Lammers, The Essential Employee Survey, Inc., December 1992, pp. 159161.

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Attitudes

Implication for Managers Attitudes warn of potential behavioral problems:

Managers should do things that generate the positive attitudes that

reduce absenteeism and turnover.

Attitudes influence behaviors of employees:

Managers should focus on helping employees become more

productive to increase job satisfaction.

Employees will try to reduce dissonance unless:

Managers identify the external sources of dissonance.

Managers provide rewards compensating for the dissonance.

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Personality

Personality The unique combination of psychological characteristics that affect how a

person reacts and interacts with others

We are interested in personality because, just like attitudes, it too affects

how and why people behave the way they do

Two approaches to classify personality traits have received most attention

Myers Briggs Type Indicator (MBTI) The Big Five Model

MBTI A general personality assessment tool that measures the personality of an

individual using four dimensions:

Social interaction: Extrovert or Introvert (E or I)

Preference for gathering data: Sensing or Intuitive (S or N)

Preference for decision making: Feeling or Thinking (F or T)

Style of decision making: Perceptive or Judgmental (P or J)

Combining these preferences provides a description of 16 personality types

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Example of MBTI Personality Types

Type Description

INFJ (introvert, intuitive,INFJ (introvert, intuitive,

feeling, judgmental)feeling, judgmental)

Quietly forceful, conscientious, and concerned for others. SuchQuietly forceful, conscientious, and concerned for others. Such

people succeed by perseverance, originality, and the desire to dopeople succeed by perseverance, originality, and the desire to dowhatever is needed or wanted. They are often highly respected forwhatever is needed or wanted. They are often highly respected for

their uncompromising principles.their uncompromising principles.

ESTP (extrovert, sensing,ESTP (extrovert, sensing,

thinking, perceptive)thinking, perceptive)

Blunt and sometimes insensitive. Such people are matterBlunt and sometimes insensitive. Such people are matter--ofof--fact andfact and

do notdo not

worry or hurry. They enjoy whatever comes along. They work bestworry or hurry. They enjoy whatever comes along. They work bestwith real things that can be assembled or disassembled.with real things that can be assembled or disassembled.

ISFP (introvert, sensing,ISFP (introvert, sensing,

feeling, perceptive)feeling, perceptive)

Sensitive, kind, modest, shy, and quietly friendly. Such peopleSensitive, kind, modest, shy, and quietly friendly. Such people

strongly dislikestrongly dislike

disagreements and will avoid them. They are loyal followers anddisagreements and will avoid them. They are loyal followers and

quite often are relaxed about getting things done.quite often are relaxed about getting things done.

ENTJ (extrovert, intuitive,ENTJ (extrovert, intuitive,

thinking, judgmental)thinking, judgmental)

Warm, friendly, candid, and decisive; also usually skilled in anythingWarm, friendly, candid, and decisive; also usually skilled in anything

that requires reasoning and intelligent talk, but may sometimesthat requires reasoning and intelligent talk, but may sometimesoverestimate what they are capable of doing.overestimate what they are capable of doing.

Source: Based on I. Briggs-Myers, Introductionto Type (PaloA

lto, CA

: Consulting Psychologists Press, 1980), pp. 7

8.

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Personality

MBTI (Contd) Organizations using MBTI include Apple, AT&T, Citigroup, GE, 3M and

many hospitals and educational institutions, the US Armed Force

However, there is no hard evidence to support the validity of MBTI

How could MBTI help managers?

Proponents of the assessment believe it is important to know these

personality types because they influence the way people interact andsolve problems

MBTI has been used to help managers select employees who are well

matched to certain types of jobs

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Personality

The Big Five Model A five-factor model that encompass most of the significant variations in

human personality

The five personality traits in the Big Five Model are:

Extraversion: Sociable, talkative, and assertive

Agreeableness: Good-natured, cooperative, and trusting

Conscientiousness: Responsible, dependable, persistent, andachievement oriented

predicts job performance in a number of jobs

Emotional Stability: Calm, enthusiastic, and secure or tense, nervous,

and insecure

Openness to Experience: Imaginative, artistically sensitive, andintellectual

More than just a personality framework research has shown important

relationship exist between these personality dimensions and job

performance

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Personality

Additional Personality Insights Researchers have identified five other personality traits that have proved to

be powerful in explaining individual behavior in organizations

Locus of Control

Internal locus: persons who believe that they control their own destiny.

External locus: persons who believe that what happens to them is due

to luck or chance (the uncontrollable effects of outside forces). less satisfied and involved with their jobs

More alienated from the work setting

Machiavellianism (Mach)

The degree to which an individual is pragmatic, maintains emotional

distance, and seeks to gain and manipulate power ends can justifymeans.

Are productive in jobs that require bargaining and have high

rewards for success

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Personality

Additional Personality Insights (Contd) Self Esteem (SE)

The degree to which people like or dislike themselves

High SEs

Believe in themselves and expect success.

Take more risks and use unconventional approaches.

Are more satisfied with their jobs than Low SEs.

Low SEs

Are more susceptible to external influences.

Depend on positive evaluations from others.

Are more prone to conform than high SEs.

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Personality

Additional Personality Insights (Contd) Self Monitoring

An individuals ability to adjust behavior to external, situational factors.

High self-monitors:

Are sensitive to external cues and behave differently in different

situations.

Can present contradictory public persona and private selvesimpression management.

Low self-monitors

Do not adjust their behavior to the situation.

Are behaviorally consistent in public and private.

Risk Taking The propensity (or willingness) to take risks - High risk-takers take less

time and require less information than low risk-takers when making a

decision.

Organizational effectiveness is maximized when the risk-taking

propensity of a manager is aligned with the specific demands of the job

assigned to the manager.

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Personality

Personality Types in Different Cultures a countrys culture can influence dominantpersonality characteristics of its

people

e.g., national cultures differ in the strength of locus of control


Understanding personality difference is needed in employee selection Managers will have high-performing and more satisfied employees if

consideration is given to matching personalities with job

Best documented Personality-Jobfit Theory was developed by

psychologists John Holland

An employees job satisfaction and likelihood of turn-over depends on

the compatibilityof the employeespersonality and occupation

Key points of the theory:

There are differences in personalities

There are different types of jobs

Job satisfaction and turn-over are related to the match between

personality and job for an individual

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Hollands Typology of Personality and Sample OccupationsHollands Typology of Personality and Sample Occupations

Source: Based on J. L. Holland, MakingVocationalChoices: A Theory of VocationalPersonalitiesand WorkEnvironments (Odessa, FL: Psychological Assessment Resources, 1997).

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Perception

Perception A process by which individuals give meaning (reality) to their environment

by organizing and interpreting their sensory impressions

We interpret what we see and call it reality

We behave according to our perception

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Perception

Factors that influence Perception Theperceiver: individuals personal characteristics will heavily influence

the interpretation attitudes, personality, interest, motives, biases, etc.

The target: characteristics of the target distinctiveness, contrast,

similarity

Thesituation: the context in which the object is seen time, location, light,

color, other situational factors draw attention or distract from the target

Shortcuts used in judging others Assumedsimilarity: Assuming that others are more like us than they

actually are.

Stereotyping: Judging someone on the basis of our perception of a group

he or she is a part of. Halo effect: Forming a general impression of a person on the basis of a

single characteristic of that person

Implication for managers Employees react to perceptions (not to reality)

Pay close attention to how employees perceive their jobs and mgt actions

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Learning

Learning Any relativelypermanent change in behavior that occurs as a result of

experience.

Almost all complex behavior is learned.

Learning is a continuous, life-long process.

The principles of learning can be used to shape behavior

Shaping Behavior Attempting to moldindividuals by guiding their learning in graduated

steps such that they learn to behave in ways that most benefit the

organization.

Shaping methods

Positive reinforcement desired response is followed by somethingpleasant

Negative reinforcement desired response followed by eliminating or

withdrawing something unpleasant

Punishment undesirable behavior followed by something unpleasant

Extinction no rewards for undesired response

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Learning

Implication for Managers Manage employee learning by means of rewards

A positive or negative reinforcement strengthen a desired behavior

tend to increase its frequency

punishment and extinction weaken an undesired behavior

tend to decrease its frequency

managers should serve as models

set examples of the desired behavior

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MGT201 Chapter 13