OB 360 2nd Test Study Guide

7/25/2019 OB 360 2nd Test Study Guide

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Lecture 1: Motivation

Performance =f(Motivation x Ability)

Motivation are processes that account for an individuals intensity direction and

persistence of effort to!ard a "oal

Ability is the mental or physical capacity to do somethin"

#asic motivation process $xpectancy theory: %eed theories focus on !hat motivates behavior

$xpectancy theory (formulated by &ictor &room) focuses on

o ho! employees decide !hich behaviors to perform

o ho! much effort to exert

o individuals as rational careful processors of information

$xpectancy ' actors:

$xpectancy is belief that effort leads to a specific level of performance (varies from

to 1)

*nfluences on individuals expectancies:

o +elf,efficacy (affected by previous success at tas-)

o .elp received from others

o *nformation materials e/uipment necessary to complete tas-


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*nstrumentality is belief about extent to !hich performance !ill lead to

attainment of a particular outcome (varies from ,1 to 01)o *nstrumentality of 01: Attainment of particular outcome is totally dependent on

tas- performanceo *nstrumentality of ,1: Performin" certain behaviors reduces the chance of

obtainin" outcome

&alence is desirability of an outcome to an individual (varies from ,x to 0x)

o epends on an individuals needs (2 Maslo!)

o 3emember: 3e!ard system represents mix of intrinsic and extrinsic re!ards

(monetary re!ards should be at least 45 above employees base pay to trulymotivate people)

o 6our effort affects performance7 People have a locus of control but cannot

al!ays control everythin"7o 6ou are only "oin" to be motivated if you care about the outcome

Model deceptively simple but there are problems:

o 8endency to assume that performance means easily measurable individual

bottom,line resultso 3e!ards can easily be tied to performance !hen employee is relatively

autonomous7 #ut !hat happens if employee is part of lar"er "roup9o 8imeliness of re!ard administration is easy to achieve !ith intrinsic re!ards

!hich flo! from performance itself (employee re!ard themselves) but moredifficult for extrinsic re!ards such as pay increases or promotions

o Meetin" the re/uirement of e/uity both external (other or"aniations) and

internal e/uity (same or"aniation)

Additions

o e"ree to !hich effort leads to performance is modified by employees

abilities (s-ills trainin" etc7)o Ability of valued re!ards to satisfy needs is modified by perceived e/uity

$/uity 8heory: $/uity theory holds that motivation is a function of fairness in social

exchan"eso ;hen victimied by unfair social exchan"es corrective action is ta-en (from

sli"ht chan"e in attitude or behavior to stealin" and tryin" to harm someone)


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o People attempt to


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Eoal +ettin" 8heory application

o Productivity and ?ost *mprovement

o Lo""ers cut more trees and unionied truc- drivers increased the lo"s loaded

on their truc-s from 5 to F5 of the le"al allo!able !ei"ht as a result ofassi"ned "oals7 8he drivers saved the company @BG in F months

o +ubse/uent study saved @B74 million dollars in 1H !ee-s by assi"nin"unionied drivers the "oal of increasin" their number of daily trips to the mill

Motivation Concepts (R)

Motivation: processes that account for an individuals intensity direction and

persistence of effort to!ard attainin" a "oal Ior"aniational "oalso ' -ey elements: intensity, direction and persistence

o *ntensity: describes ho! hard a person tries7


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.i"h intensity is unli-ely to lead to favorable >ob,performance

outcomes unless the effort is channeled in a direction that benefits theor"aniation J !e consider the /uality of effort as !ell as its intensity

$ffort directed to!ard and consistent ! the or"aniations "oals the

-ind of effort !e should be see-in"

Persistence: measures ho! lon" a person can maintain effort

Maslows Hierarchy of Needs: hypothesied that !ithin every human bein" there

exists a hierarchy of five needs:17 Physiological7 .un"er thirst shelter sex other bodily needsB7 Safety7 +ecurity and protection from physicalDemotional harm'7 Social7 Affection belon"in"ness acceptance friendshipK7 Estee7 *nternal factors such as self respect autonomy and achievement

and external factors li-e status reco"nition and attentionG7 Self!act"ali#ation7 rive to become !hat !e are capable of becomin"

includes "ro!th achievin" our potential and self fulfillment

$heory % and $heory &o ou"las McEre"or proposed B distinct vie!s of human bein"s: one basically

ne"ative (8heory ) and the other basically positive (8heory 6)o $heory %: mana"ers believe employees inherently disli-e !or- and must

therefore be directed or even coerced into performin" ito $heory &: mana"ers assume employees can vie! !or- as bein" as natural as

rest or play and therefore the avera"e person can learn to accept and even see-responsibility

$wo 'actor $heory

o #elieved an individuals relationship to !or- is basic and that attitude to!ard

!or- can very !ell determine success or failureo ?oncluded that the replies people gave when they felt good about their jobs

differed significantly from the replies given when they felt bad

o *ntrinsic factors such as advancement reco"nition responsibility and

achievement seem related to >ob satisfactiono 3espondents !ho felt "ood about their !or- tended to attribute these factors to

themselves J dissatisfied respondents tended to cite extrinsic factors i7e7supervision pay company policies and !or-in" conditions

o pposite of satisfaction is not dissatisfaction7 3emovin" dissatisfyin"

characteristics from a >ob doesnt necessarily ma-e the >ob satisfyin"o $xistence of a d"al contin"": the opposite of satisfaction is no

satisfaction and the opposite of dissatisfaction is no dissatisfactiono ?haracteried conditions such as /uality of supervision pay company policies

and physical !or-in" conditions relationships ! others and >ob security asH&*ENE '+C$RS7

McClellands $heory of Needs

o eveloped by avid Mc?lelland focuses on ' needs:

Need for achieveent(nAch): drive to excel to achieve in relation to

a set of standards to strive to succeed


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Need for power: (nPo!) need to ma-e others behave in a !ay in !hich

they !ould not have behaved other!ise Need for affiliation(nAff): desire for friendly and close interpersonal

relationshipso ocused most attention on nAch7

.i"h achievers perform best !hen they perceive their probability ofsuccess as 7G or a G,G chance of success

isli-e "amblin" both !ith hi"h odds and lo! odds because then there

*s no challen"e to their s-ills J li-e to set "oals that re/uire stretchin"themselves a little

o 17 When jobs have a high degree of personal responsibility and feedback and

an intermediate degree of risk, high achievers are strongly motivatedsuccessful in entrepreneurial activities such as runnin" their o!n businessesand mana"in" self contained units !ithin lar"e or"aniations

o B7A high need to achieve does not necessarily make someone a good manager,

especially in large organizations.*nterested in ho! !ell they do personally

and not in influencin" others to do !ell7o '7Needs for affiliation and power tend to be closely related to managerial

successbest managers are high in their need for power and low in their need

for affiliation.A hi"h po!er motive may be a re/uirement for mana"erialeffectiveness

Conteporary $heories

Self deterination theory: people prefer to feel they have control over their actions

so anythin" that ma-es a previously en>oyed tas- feel li-e an obli"ation than a freelychosen activity !ill undermine motivation

Cognitive eval"ation theory: extrinsic re!ards !ill reduce intrinsic interest in a tas-

!hen people are paid for !or- it feels less li-e somethin" they !ant to do and moreli-e somethin" they have to do

Self concordance: considers ho! stron"ly peoples reasons for pursuin" "oals are

consistent ! their interest and core values J if individuals pursue "oals bc of anintrinsic interest they are more li-ely to attain their "oals and are happy even if theydont because the process of strivin" to!ard them is fun

oal Setting $heory

o Addresses issue of


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Manageent -y o-0ectives (M1): emphasies participatively set "oals that are tan"ibleverifiable and measurable

o A more systematic !ay to utilie "oal settin"

o Cverall ob>ectives are translated into specific ob>ectives for each succeedin" level in

the or"aniationN but because lo!er unit mana"ers >ointly participate in settin" their

o!n "oals M#C !or-s from the bottom up as !ell as from the top do!n

results ina hierarchy that lin-s ob>ectives at one level to those at the next

Self Efficacy $heory

o Self!efficacy: a-a social co" theory or social learnin" theory refers to an individuals

beliefs that he is capable of performin" a tas-7 8he hi"her your self efficacy the moreconfidence you have in your ability to succeed

o *ndividuals hi"h in self efficacy seem to respond to ne"ative feedbac- !ith increased

effort and motivation lo! self efficacy li-ely to lessen effort !hen "iven ne"ativefeedbac-

o can increase self efficacy -y/

o Enactive astery/ Most important "ainin" relevant experience ! the tas-D>ob

o 2icario"s odeling/#ecomin" more confident because you see someone elsedoin" the tas-

o 2er-al pers"asion/#ecomin" more confident bc someone convinces you that

you have the s-ills necessary to be successfulo +ro"sal/Leads to an ener"ied state !hich drives a person to complete a tas-

E3"ity $heory4rgani#ational 5"stice

o $/uity plays a role in motivation J employees perceive !hat they "et from a

>ob situation in relation to !hat they put into it and then compare theiroutcome,input ratio !ith that of relevant others

o 6 referent coparisons:

+elf inside: an employees experiences in a diff position inside the

employees current or"aniation +elf,outside: an employees experiences in a situation or position

outside the employees current or"aniation Cther,inside: another individual or "roup of individuals inside the

employees or"aniation Cther,outside: another individual or "roup of individuals outside the

employees or"aniationo Moderatin" variables: "ender len"th of tenure level in the or"aniation and

amount of education or professionalismo $mployees !ho perceive ine/uality !ill ma-e one of choices:

Change inp"ts (e7ert ore4less effort if over4"nder paid) Change o"tcoes (increase 3"antity, decrease 3"ality)

istort perceptions of self

istort perceptions of others

Choose a different referent

8"it the 0o-

E7pectancy theory: victor vrooms ar"ues that the stren"th of a tendency to act in a certain!ay depends on the stren"th of our expectation of a "iven outcome and its attractiveness


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'oc"ses on 9 relationships/

o Effort perforance relationship: probability perceived by the individual that

exertin" a "iven amount of effort !ill lead to performanceo Perforance reward relationship: the de"ree to !hich the individual

believes performin" at a particular level !ill lead to the attainment of a desired

outcomeo Rewards!personal goals relationship: de"ree to !hich or"aniational

re!ards satisfy an individuals personal "oals or needs and the attractiveness ofthose potential re!ards for the individual

Lecture B: Motivation8he truth about relativity (3)

;e have a tou"h time ma-in" evaluations7 ;e li-e e/ualiers

*f !e see "ood tom u"ly tom and "ood >erry !e are more li-ely to be "oodtom because !e had somethin" to compare it to

8he brother,in,la! syndrome(3)

o $/uality vs7 e/uityO!hat is the difference9

8heyre not the same7 E3"ity and ine3"ityare perceptions of the ratio of

outcomes to inputs that are experienced in relation to a comparisonperson

p4*p: o4*o(attained !hen this is true)

Cp= outcomes received by self (p) from an experience

*p= inputs exerted by self to achieve the experience

Co= outcomes received by another (o) from an experience asseen by p

*o= inputs exerted by another to achieve the experience as seen

by p E3"alityis !here outcomes of self and another are e/ual

p : o

o ?an you have e/uity !ithout e/uality9

yes

o ;hat are the sources of ine/uity in this example9

#rother in la! ma-es more money put in fe!er inputs (didnt "o to

colle"e also doesnt !or- as hard)o ?lassify strate"ies employed by author to restore e/uity

3e/uest more outcomes from employer J salary and better office more

secretarial services more travel money etc7 ecide that >ob is more interestin" more meanin"ful than drivin" a

truc- Cver the road truc- drivin" !as aversive J "reasy truc- stops

unhealthy -idneys bruised lo!er bac- muscles


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;ithdre! from comparison J dont spea- to him anymore

#e smart about !ho you choose as a reference

Motivation throu"h desi"n of >obs

o Qob rotation (or cross,trainin"): periodic shiftin" of an employee from on tas-

to another (usually at the same level !ith similar s-ill re/uirements)

o Autoliv automobile airba" manufacturin" planto Autoliv replaced its assembly line !ith R,shaped production cells that consist

of a "roup of !or-stations staffed by handful of employeeso ;or-er chan"e their >ob every BK minutes !hen Autoliv announces >ob

rotation by pipin" roc- music from +team: %a na na na hey hey hey "ood,bye

Qob enrichment: *ncreasin" employees responsibility and control over !or- (vertical

>ob loadin")o Allo! employees to plan their o!n !or- schedules (e7"7 allo! secretary to

determine !hen he or she does various tas-s and ho! much time to allo! foreach activity)

o Allo! employees to decide ho! the !or- should be performed (e7"7 if

mana"ers !ants secretary to prepare a ne! company brochure mana"er maylet secretary decide ho! to desi"n brochure)

o Allo! employees to chec- their o!n !or- (e7"7 instead of insistin" that

secretary "ives a draft of the brochure to the mana"er to chec- for errors themana"er holds the secretary responsible for producin" an error,free brochure)

o Allo! employees to learn ne! s-ills (e7"7 secretary may be "iven opportunity

to learn boo--eepin")

Qob characteristics model: An approach to >ob desi"n that aims at identifyin"

characteristics that ma-e >obs intrinsically motivatin"o

#uilt on early approaches but !ent further 2 attempt to identify exactly !hich>ob characteristics contribute to intrinsically motivatin" !or- $ach >ob has five core >ob dimensions:

+-ill variety

8as- identity

8as- si"nificance

Autonomy

eedbac-

Core 5o- iensions/

o 17 kill variety!$xtent to !hich >ob re/uires employee to use a number of

different s-ills or abilitieso B7 "ask #dentity!$xtent to !hich >ob involves performin" a !hole piece of

!or- from its be"innin" to its endo '7 "ask significance!$xtent to !hich >ob has impact on lives of other people

(in or out of or"aniation)o K7Autonomy! $xtent to !hich >ob allo!s freedom to schedule !or- and

decide ho! to carry it out


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o G7$eedback!$xtent to !hich performin" >ob provides clear information about

effectiveness

Motivatin" potential score: A measure of the overall potential of a >ob to foster

intrinsic motivationo #ased on employees perceptions of their >obs on each core dimension

3an"e: 1 to 'K'

Lo!est observed score: 4 (typist in an overflo! typin" pool)

.i"hest observed score: ' (mana"ement consultant)

Avera"e MP+ in R7+7 corporations: 1BH

Psycholo"ical states

o ive >ob dimensions contribute to three critical psycholo"ical states

$xperienced meanin"fulness of !or-: $xtent to !hich employees feel

their >ob is important !orth!hile and meanin"ful $xperienced responsibility for !or- outcomes: $xtent to !hich

employees feel personally responsible or accountable for their >obperformance

Sno!led"e of results: $xtent to !hich employees -no! ho! !ell they

perform their >obs

*ndividual differences

o $mployees may differ in the !ay they respond to the redesi"n of their >obs

Ero!th need stren"th: $xtent to !hich individual !ants his or her !or-

to contribute to personal "ro!th learnin" and development Sno!led"e and s-ills: $xtent to !hich individual possesses -no!led"e

and s-ills necessary to perform >ob effectively +atisfaction !ith !or- context: $xtent to !hich employees are satisfied

!ith extrinsic outcomes such as pay benefits >ob security etc7

3esearch $vidence

o Cverall conclusion: $mployees tend to prefer >obs that are hi"h on five core

dimensions 2 hi"her satisfaction and intrinsic motivation

o #R8 >ob dimension have most si"nificant effects on intrinsic motivation andon >ob satisfaction the effects on actual !or- behaviors are not as stron"

o +imply addin" the scores for the >ob characteristics mi"ht be a better !ay of

calculatin" the motivatin" potential score than usin" the multiplicative formula

American ?hopper

o ependent upon extrinsic

o 8he best moment is !hen the car starts


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o 8here is s-ill variety and tas- identity

Motivation +pplication (R)

motivatin" by chan"in" the nature of the !or- environment

0o- design: su""ests he !ay the elements in a >ob are or"anied can act to increase or

decrease effort and also su""ests !hat those elements are

5o- Characteristics Model (5CM): describe any >ob in terms of five core >ob

dimensionso S.ill variety: de"ree to !hich a >ob re/uires a variety of different activities so the !or-er

can use a number of different s-ills and talento $as. identity: de"ree to !hich a >ob re/uires completion of a !hole and identifiable

piece of !or-o $as. significance: de"ree to !hich a >ob has an impact on the lives or !or- of other

peopleo +"tonoy: de"ree to !hich a >ob provides the !or-er freedom independence and

discretion in schedulin" the !or- and determinin" the procedures in carryin" it outo 'eed-ac.: de"ree to !hich carryin" out !or- activities "enerates direct and clear

information about your o!n performanceo 0o- rotation: periodic shiftin" of an employee from one tas- to another !ith similar s-ill

re/uirements at the same or"aniational level (a-a cross trainin")o 0o- enrichent: expands >obs by increasin" the de"ree to !hich the !or-er controls the

plannin" execution and evaluation of the !or-

alternative !or- arran"ements


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o fle7tie: flexible !or- time employees must !or- a specific number of hours

per !ee- but can vary the hours of !or- !ithin certain limits

0o- sharing: allo!s B0 individuals to split a traditional K hour a !ee- >ob

allo!s or"aniations to dra! on talents of more than one individual in a "iven >ob

teleco"ting: !or-in" at home at least B days a !ee- on a computer lin-ed to theemployers office (similar to virtual office) J !or-in" from home on a relatively permanentbasis

advanta"es: lar"er labor pool from !hich to select hi"her productivity less

turnover improved moral and reduced office space costs

disadvanta"es: employees !ith hi"h social need may feel isolated those !ho are

vulnerable to out of si"ht out of mind J mi"ht lose out on raises and promotionssocial and physical conte7t of wor.

o social characteristics that improve >ob performance: interdependence social

support and interactions !ith other people outside !or- enhance moods help clarify their !or- role "ives employees "reater

opportunities to obtain assistance ! their !or- rin" about a positive feedbac-loops as employees assist one another

!or- context also matters J physical demands ma-e people physically

uncomfortable !hich is li-ely to sho! up in lo!er levels of >ob satisfaction Jemployees need ade/uate tools e/uipment materials favorable !or-in"conditions helpful co,!or-ers supportive !or- rules and procedures sufficientinformation to ma-e >ob related decisions and ade/uate time to do a "ood >ob inorder to perform !ell

eployee involveent: participative process that uses employees input to increase

their commitment to the or"aniations success J if !e en"a"e !or-ers in decisionsthat affect them and increase their autonomy and control over their !or- lives they!ill become more motivated more committed to the or"aniation more productiveand more satisfied !ith their >obs

o participative anageent: >oint decision ma-in" subordinates share a si"nificant

de"ree of decision ma-in" po!er ! their immediate superiors for this to !or- employees must be interested in the issue so that they are

motivated and that must also be competent and -no!led"eable in order toma-e a useful contribution

advanta"es: hi"her stoc- returns lo!er turnover rates and hi"her estimated

labor productivity disadvanta"es: participation typically only has a modest influence on variables

such as employee productivity motivation and >ob satisfaction ,

it is not asure means for improvin" employee performanceo representative participation: a-a the most !idely le"islated form of employee

involvement around the !orld J "oal is to redistribute po!er !ithin an or"aniation puttin" labor on a more

e/ual footin" ! the interests of mana"ement and stoc-holders by lettin"!or-ers be represented by a small "roup of employees !ho actually participate


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!or-s councils = "roups of nominated or elected employees !ho must be

consulted !hen mana"ement ma-es decisions about employees

board representatives = employees !ho sit on a companys board of directors and

represent the interests of the firms employees minimal influence

"reatest value of representative participation is symbolico employee involvement ,,, motivation theories

theory y is consistent ! participative mana"ement and theory x !ith the more

traditional autocratic style of mana"in" people B factor theory J employee involvement pro"rams could provide intrinsic

motivation by increasin" opportunities for "ro!th responsibility andinvolvement in the !or- itself

opportunity to ma-e and implement decisions and then see them !or- out J can

help satisfy an employees needs for responsibility achievement reco"nition"ro!th and enhanced self esteem

Lecture ': ?reativity

*ntrinsic motivation leads to creativity because it creates a drive to "o above and

beyond

*$C (3)

o .e thin-s that people !ant to be creative so you should "ive them freedom and

autonomy ma-es people feel responsible for the !or- they are doin"o ;hat !or-s at *$C !ont !or- every!here7 All they have to do is try to

have ne! ideas and "et those ideas out into the !orld J bc they can focusutterly on experimentation on explorin" ideas for the sa-e of explorin" them

and on brin"in" unli-ely people to"ether to !or-o *deas arent as "ood !hen focused on finishin" on time and on bud"et

o Ma-es a bi" difference !hen senior leadership immerses itself in innovation,

either appointin" !ho does innovation -no!in" !hats "oin" on at variouslevels and defendin" "ood ideas

o #i""est barrier is needin" to -no! the ans!er before you "et started

o *ts better to have a bi""er ecosystem for innovation than a smaller one J youll

"et more ideas and increase the li-elihood of better ideaso *nnovation and incentives J people !ant to put thin"s out in the !orld and

leave their mar- they !ant to be creative J theyre inherently motivatedo

%i-e:o .ired an architect to desi"n shoes7 ?reativity comes !ith criticism and

persistence7 Cpenness to experience leads to creativity7 .e made an analo"y ofthe buildin" to the shoes he desi"ned7

o ?reative ideas are novel to domain but not to the !orld

o 8o be creative you need to understand your domain7 Most people !or- in the

same domain for 10 years


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o Assumptions are bad for creativity7 8hin- of airplane alternatives7

Creativity/ *deas that are ori"inal (rare novel) and potentially useful (to the

or"aniation)

Coponential theory of creativity

o $xpertiseD-no!led"e (technical procedural etc7)

o ?reativity,relevant s-ills: Personality (openness to experience non,conformin" ris- ta-in" persistence etc7) creative thin-in",techni/ues etc7

o *ntrinsic motivation (vs7 extrinsic motivation)

*ntrinsic Motivation:

o Persons vie! of the tas- (as interestin" challen"in" etc7)

o Persons reason for en"a"in" in it (en>oyment etc7)

?reativity is made from expertise intrinsic motivation and creative s-ills

(R);hats +tiflin" ?reativity at ?ool#urst

o escribe the bac-"round of the case

Luisa 3eboredo is no! ?$C of the Miami,based fruit >uice company7

Performance !as sta"nant J used to be the most successful >uice ma-erin the southeast7 +old in most schools vendin" machines and inthousands of restaurants7 .er son points out that you cant "et acoolburst any!here else J and that its for -ids7 ust from bein" in the ri"ht place at the ri"httime !hen there !as no competition


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A"reeable J not very7 3ubbed a lot of people the !ron" !ay

he is intrinsically motivated J he passed up hi"h payin" >obs on !all

street to !or- at coolburst oin Microsoft (particularly in

the Hs)9o Eates early vision of


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o Mentorin" to support effort,performance lin-a"e (expectancy)

o ?lear performance,re!ard lin-a"e ( instrumentality)

o $valuation process (forced,curve ero,sum distribution 2 BG5


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o ?apacity (or potential): Cne can have po!er but not realie it

o ependence relationship: 8he "reater%s dependency onA the "reater isAs

po!er in the relationshipo iscretion:%has some discretion over hisDher behavior

o Cmnipresence: Po!er can reside !ithin anyone at any level of the or"aniation

(e7"7 lo! ra-in" members !ho have important -no!led"e)o ?ontextuality: Po!er often depends on the situation

ependency

Eeneral dependency postulate

o ;hen you possess somethin" that others re/uire but that you alone control

you ma-e them dependent on you 2 increase in po!ero *f somethin" is plentiful possession of it !ill not increase your po!er

+ources of dependency

o *mportance (e7"7 Mar-etin" departments in or"aniations)

o +carcity (e7"7 erruccio Lambor"hini durin" ;orld ;ar **7)

o

%onsubstitutability (e7"7 !ell,published faculty members) #ase Cf Po!er

o *ndividual

ormal: ?oercive re!ard le"itimate

Personal: $xpert referent

$xcercisin" *nfluence: Myths and 3ealities

o ormal authority does not "uarantee influence 2 establishin" trust (character x

competence) via sharin" of po!er (empo!erment)o ormal authority is a very limited source of po!er 2 most people !ho can

ma-e mana"ers lives difficult are people they have no formal authority over(e7"7 bosses and peers)

o Mana"ement has to do as much !ith ne"otiatin" interdependencies as !ith

formal authority

Myth 3eality

Cperative Principles Authority *nterdependence

+ource of Po!er ormal authority


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o etermine ob done

o +tep into their sho!s, !hat can you offer them that they !ant9

o Assess the /uality of your relationships

8rust (a function of ho! an individual perceives a mana"ers

competence) vs7 credibility (a function of an individuals perceptions of!hether he or she trusts the mana"er and !hether the mana"er hasinfluence)

;ith trust people !ill be less strin"ent about !hether you are payin"bac- in -ind

8his flexibility is invaluable to mana"ers

o 6ou may have po!er but not exercise it7 *f you have somethin" special you

have po!er7 Personal po!er is more useful7 ormal authority is never enou"hyou need to be influential7 6ou can offer people thin"s that they need7

+tanford #rea-fast +peech


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o basic rules of human behavior and reciprocation is T17 People feel they o!e

people and you say yes to the people you o!e7 +tart !ith a hi"h favor and then lo!er it7 *t increases the li-elihood that

they !ill say yeso 17 3eciprocity

o B7 +carcity: people !ant !hat they cant have so you need to ma-e it seem li-ethey cant "et it any!here else7

o '7 Authority

o K7 ?onsistency: arran"e for public commitment

o G7 ?onsensus: !hat are other people doin"9

o 7 ?ooperation: ho! can * help9

Lecture : +cience of Persuasion

$xperiment in R7+7 national par-

o +i"n !as put up pointin" out that lots of people had stolen !ood in the past

much dama"e had been done and as-in" people to stop

$xperiment !ith !ater preservation in hotels

o oin !ith us to conserve !ater by usin" your to!els more

than onceo Messa"e is successful (about percent of the time)

3eciprocity #y Proxy:

o 8raditional reciprocal exchan"e

A provides resources to Party # ma-in" Party # feel indebted to Party

A !hich in turn obli"ates Party # to return the favor to Party Ao 3eciprocity,by,proxy

Party A can also create in Party # a personal obli"ation to reciprocateby providin" resources on Party #s behalf to a third party (Party ?)that Party # values

+tandard environmental control messa"e

o


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environment deserves our combined efforts7 6ou can >oin us by reusin" yourto!els durin" your stay7

3eciprocity by proxy is the most effective

o *ncreases sense of obli"ation and elicits norm of reciprocity but does not

chan"e trust or perceived care for the environment

People feel less obli"ated to reciprocate the favors of others in an or"aniationalcompared to a personal context7 8his is because they !ere less li-ely to thin- that thepeoples motives for helpin" !ere "enuine and reflected their true character7 *n anor"aniational context people are more calculative and do other favors based onusefulness in the future7

o ' components:

o 17 ispostional attribution about the favorB7 esire to reciprocate'7

?ontextdispositional attribution about the favor7

%e"otiation: oint ne"7)

'7 *nterests: ;hat parties see- to advance in ne"otiation !hy they ta-e a position

o Positions (15 salary increase) vs7 interests (ob !ell

done)

Rltimatum "ame (flippin" a coin)

o 3ational solution !as predictin" that proposer should offer the smallestpossible share and responder !ould accept it

o 1ststudy (EUth +chmittber"er +ch!are 1FH'):

Avera"e offer !as '45 of the ected 45 of the time

o

rom an rational economic perspective this ma-es no sense or does it9o *n"rained sense of fairness can override economic interests (but !hat are the

alternatives9)o ;hats more li-ely to "et accepted9 GG,KG or G1,KF split

Limbic Qustice

o Act of immediate re>ection seems to be mediated by the limbic system and is

not solely driven by cortical processes


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o #enodiaepine treatment decreased the re>ection rate (from '475 to 1F75)

concomitantly !ith a diminished amy"dala response to unfair proposals andthis in spite of an unchan"ed feelin" of unfairness

o 8hey did not -no! !hat they !ere doin" and they did not understand the

concept of fair7 *t sho!s ho! deeply in"rained our concept of fairness really is7

#ac- to Rltimatum (round B)o .o! does the po!er shift bet!een round 1 and round B9 ;hy9

rom first person to second person

+econd person may be able to push beyond @'G,@'G split (round B

means that round 1 !as unsuccessful 2 force to as- for more thane/ual split)

3esearch: Cver H5 of initial re>ections are follo!ed by a

disadvanta"eous counterproposal (e7"7 @4G,@BG is countered by @B,@B proposal !hen dividin" @K)

o airness can be a very stron" force9 ;hich results is stron"er force: Cver, or

undercompensation9

8a-e,A!ays

o ?ooperation vs7 competition: A matter of choice rather than a "iven

o *mportance of considerin" the other sides perspective

o *mportance of relationshipsDreputation (second "ame)

o $conomics vs7 emotions (lettin" price bulldoe other interests)

People do not al!ays ma-e rational decisions

+ense of fairness is often very important and overrides economic

interests

#lue #u""y

o 1G,B5 reach a settlement that is economically irrational for one of the parties

o *mportance of resistance points aspiration levels V #A8%Aso #uyer may pay more than capable because of

.i"h levels of commitment to product (e#ay)

+elective consideration of information

o +eller may accept less than best alternative because of

3elational considerations

+usceptibility to feelin"s of sympathy or emotional appeals

Aversion to ris- inherent in holdin" out for future offers

.o! did you feel !hen you !ere unable to reach an a"reement 9

o Cften people have a"reement bias: #elief that if an impasse is reached then

ne"otiations failedo #R8 impasse is often rational choice (if there is a better alternative for at least

one party a"reement is irrational)o 1G,B5 of persons identify creative routes to a settlement that points out some

of the limitin" assumptions bein" brou"ht to the table

Po!er *n %e"otiations

o +ources of po!er

ormal vs7 informal


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#A8%A (#est Alternative 8o a %e"otiated A"reement)

;hat are you "oin" to do if you do not reach a"reement9

etermined by available alternatives

efines most you !ill pay D least you !ill accept

Sey source of po!er: Ability to !al- a!ay

*mprove your #A8%A 2 better ne"otiation

+hould you reveal your #A8%A9

o Po!er is important but it is ho! po!er is mobilied to shape perceptions and

expectation that matters (be!are harm to reputation)

o

Lecture 4: %e"otiations

"idelines/

*mportance of considerin" other sides perspective

*mportance of relationshipsDreputation

$conomics vs7 emotions (dont let price bulldoe other interests)

etermine the importance of outcome for you

Sno! your #A8%A (and that of the other party) (sets bottom line in defensible

!ay more effective)


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*nte"rative %e"otiation

;hy dont !e see more inte"rative ne"otiation9 #ecause it re/uires the

follo!in" conditions:

o Parties !ho are open !ith information and candid about their concernso +ensitivity to the others needs

o Ability to trust one another

o ;illin"ness to maintain flexible

?onditions are often not met in or"aniations

%e"otiators dilemma

Euidelines

#uild trust and thin- of relationship

As- dia"nostic /uestions

+hare important information

Rnbundle the issues Ma-e pac-a"e deals not sin"le,issue offers

?apitalie on differences in needsDdesires

ont for"et to claim value once its created

+ix .abits of Merely $ffective %e"otiators (3)*n any ne"otiation each side ultimately must choose bet!een acceptin" a deal or

ta-in" its best no deal option J that is the course of action it !ould ta-e if the deal!ere not possible

Mista-e 1: ne"lectin" the other sides problem

o 6ou cant ne"otiate effectively unless you understand your o!n interests and

your o!n no,deal optionso +ince the other side !ill say yes for its reasons not yours a"reement re/uires

understandin" and addressin" your counterparts problem as a means tosolvin" your o!n

o *f you !ant to chan"e someones mind you should first learn !here that

persons mind is Mista-e B: lettin" price bulldoe other interests

o %e"otiators !ho pay attention exclusively to price turn potentially cooperative

deals into adversarial ones7 Rse hard bar"ainin" tactics that often leavepotential >oint "ains unrealied7 #c !hile the price is an important factor in

most deals its rarely the only one7 Most deals are G5 emotion and G5economics7o Most turn do!n proposals that dont let them share in at least 'G,K5 of the

bounty this is irrational on a pure price basis but studies sho! that !hen asplit feels too une/ual to people they re>ect the spoils as unfair are offendedby the process and perhaps try to teach the "reedy person a lesson

o %eed to value the relationship the social contract the process the interests of

the full set of players


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Mista-e ': lettin" positions drive out interests

o ' elements at play: (1) issues are on the table for a"reement (B) positions are

one partys stands on the issues (') interests are underlyin" concerns that!ould be affected by the resolution7

o espite clear advanta"es of reconcilin" deeper interests people have a built in

bias to!ard focusin" on their o!n positions Mista-e K: searchin" too hard for common "round

o 8ypically !ere advised to find !in !in a"reements by searchin" for common

"roundN but many of the most fre/uently overloo-ed sources of value inne"otiation arise from differences amon" parties

Mista-e G: ne"lectin" #A8%Ass

o 8he better your batna appears both to you and to the other party the more

credible your threat to !al- a!ay becomes and the more it can serve aslevera"e to improve the deal

o %eed to assess your o!n batna but also thin- carefully about the other sides

Mista-e : failin" to correct for s-e!ed vision

o ?ant solve a ne"otiation problem correctly !ithout a firm understandin" of

both sides interests batnas valuations li-ely actions etc7+elf servin" role ais J people tend unconsciously to interpret info

pertainin" to their o!n side in a stron"ly self servin" !ay Partsan perceptions J !ere bad at assessin" the other sides critical

information

Politics and Power (te7t-oo.)

Ipeople !ho have po!er deny it people !ho !ant it try not to loo- li-e theyre see-in" itthose !ho are "ood at "ettin" it are secretive about ho! they do it

power: refers to a capacity that A has to influence the behavior of # so # acts inaccordance !ith As !ishes

dependency: the "reater #s dependence on A the "reater As po!er in the

relationship7 #ased on alternatives that # perceives and the importance # places onthe alternative controls

power vs; leadership

o power does not re&uire goal compatibility, merely dependence

o leadership re&uires some congruence between the goals of the leader and those

being led

o leadership focuses on the downward influence on followers, minimizes the

importance of lateral and upward influence patterns ' power does not.

o (eadership research emphasizes style #ases of po!er

o 'oral power: based on an individuals position in an or"aniation7 ?an come from

ability to coerce or re!ard or from formal authorityo coercive power: depends on fear of the ne"ative results from failin" to comply7

3ests on the application or the threat of application of physical sanctions such as theinfliction of pain


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o reward power: opposite of coercive7 People comply bc it produces positive

benefits someone !ho can distribute re!ards others vie!s as valuable !ill havepo!er over them J can be financial li-e bonuses or nonfinancial li-e reco"nition

o legitiatepower: most common in formal "roupsDor"aniations it represents the

formal authority to control and use or"aniational resources based on structural

position in the or"aniation broader than the po!er to coerce or re!ard7 *ncludes members acceptance of the

authority positiono personal power: comes from an individuals uni/ue characteristics

e7pert power: influence !ielded as a result of expertise special s-ill or -no!led"e

referent power: based on identification ! a person !ho has desirable resources or

personal traits

power tactics

o legitiacy: relyin" on authority position or sayin" a re/uest accords !

or"aniational policies or ruleso rational pers"asion: presentin" lo"ical ar"uments and factual evidence to

demonstrate a re/uest is reasonableo inspirational appeals: developin" emotional commitment by appealin" to a tar"ets

values needs hopes and aspirationso cons"ltation: increasin" the tar"ets support by involvin" him in decidin" ho! you

!ill accomplish your plano e7change: re!ardin" the tar"et ! benefits or favors in exchan"e for follo!in" a

re/uesto personal appeals: as-in" for compliance based on friendship or loyalty

o ingratiation: usin" flattery praise or friendly behavior prior to ma-in" a re/uest

o press"re: usin" !arnin"s repeated demands and threats

o coalitions: enlistin" the aid or support of others to persuade the tar"et to a"reeo some are more effective than othersN

rational persuasion inspirational appeals and consultation tend to be most effective

o political s.ill: ability to influence others to enhance their o!n ob>ects

politics: !hen employees in or"aniations convert their po!er into actiono organi#ational politics: focus on the use of po!er to affect decision ma-in" in an

or"aniation or on self servin" and or"aniationally unsanctioned behaviorso political -ehavior: (in or"aniations) consists of activities that are not re/uired as

part of an individuals formal role but that influence or attempt to influence thedistribution of advanta"es and disadvanta"es !ithin the or"aniation

o legitiate political -ehavior: refers to normal every day politics (i7e7 complainin"

to supervisor bypassin" chain of command etc7)o illegitiate political -ehavior: violates the implied rules of the "ame

politic.ing: use !hatever influence they can to taint the facts to support their "oals andinterests

o employees !ho are hi"h self monitors

o 8he hi"h self monitor is more sensitive to social cues exhibits hi"her levels of social

conformity and is more li-ely to be s-illed in political behavior than the lo! selfmonitor


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o Cr"aniational factors

o +o many employees ! different traits yet extent of political behavior varies

!idelyo ?ertain situations and cultures promote politics J specifically !hen an

or"aniations resources are declinin" !hen the existin" pattern of resources is

chan"in" and !hen there is opportunity for promotions politic-in" more li-elyto surface

o 3esponse to or"aniational politics

Cr"aniational politics may threaten employees

ecreased >ob satisfaction

*ncreased anxiety and stress J due to the perception that by not en"a"in" in

politics a person may be losin" "round to others !ho are active politic-ers

*ncreased turnover

3educed performance (self reported)

WualifiersN if understand decision ma-in" processes increased performance7 #ut

!hen understandin" is lo! li-ely o see politics as a threat efensive behaviors: reactive and protective behaviors to avoid action blame or

chan"e J ho! many employees respond !hen see politics as a threat*pression anageent: process by !hich individuals attempt to control the impression ofothers form of them

.i"h self monitors are concerned ! this J theyre "ood at readin" situations and

moldin" their appearances and behavior to fit each situation*M $echni3"es:

Confority: a"reein" ! someone elses opinion to "ain his or her approval

(in"ratiation)

'avors: doin" somethin" nice for someone to "ain their approval (in"ratiation)

E7c"ses: explanations of a predicament,creatin" event aimed at minimiin" theapparent severity of the predicament (defensive)

+pologies: admittin" responsibility for undesirable event and simultaneously

see-in" to "et a pardon for the action (defensive)

Self prootion: hi"hli"htin" best /ualities do!nplayin" deficits callin" attention

to ones achievement (self focused)

Enhanceent: claimin" that somethin" you did is more valuable than most other

members of the or"aniation !ould thin- (self focused)

'lattery: complimentin" others about their virtues in an effort to ma-e oneself

appear perceive and li-eable (assertive)

E7eplification: doin" more than you need to in an effort to sho! ho! dedicatedand ho! hard you are (assertive)


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Documents

OB 360 2nd Test Study Guide