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1. Organizational behavior is the study of what people think, feel, and do in and around organizations. Its focus is on
employee behavior, decisions, perceptions, and emotional responses. OB encompasses the study of how
organizations interact with their external environments, particulary in the context of employee behavior and
decisions.
2. Organizations: groups of people who work interdependently towards some purpose. One key feature of
organizations is that they are collective entities. They consist of human being and these people interact with each
other in an organized way. This organization relationship requires some minimal level communication,
coordination,, and collaboration to achieve organizational objectives.
3. Why Study OB? it helps to fulfill our need to understand and predict the world in which we. Building high-
performance team, motivating co-workers, handling workplace conflicts, influencing boss, and changing employee
behavior.
4. Organizational Effectiveness: a broad concept represented by several perspectives, including the organizations fit
with the external environment, intenal-subsystems cofiguration for high performance, emphasis on organizational
learning, and ability to satisfy the needs of key stakeholders.
Knowledge acquisition: information is brougt into the organization from the external environment
Knowledge sharing: refers to the distribution of knowledge throughout the organization
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Knowledge use: application of knowledge to organizational processes in ways that improve the
organizations effectiveness.
To recognize to the value of new information, assimilate it, and use it for value-added acitvities,
organizations require suficient absorptive capacity (the ability to recognize the value of new information
assimilate it, and use it for value-added acitvities)
Intellectual Capital: a companys stock of knowledge, including human capital, structural capital, and
relationship capital. How to retain intellectual capital? Keeping good employees.
Human Capital: The stock of knowledge, skills, and abilities among employess that provides economic value
to the organization.
Organizational Memory: the storage and preservation of intellectual capital (usually they are corporate
leaders)
c. High-performance work practice: a perspective which holds that effective organizations incorporate several
workplace practices that leverage the potential of human capital.
d. Stakeholder Perspective: individuals, organizations, and other entities that affect, or are affected by, the
organizations objectiveness and actions.
Value: relatively stable, evaluative beliefs that guide a persons preferences for outcomes of courses of
action in a variety of situations
Ethics: study of moral principles or values that determine whether actions are rght or wrong and outcomes
are good or bad
Corporate Social Responsibility (CSR): organizational activities intended to benefit society and the
environment beyond the firms immediate financial interests or legal obligations.
a. Task Perfomance: goal-directed behaviors under the individuals control that support organizational objectives
b. Organizational Citizenship: Employee needs to engage Organizational Citizenship Behaviors various forms of
cooperation and helpfulness to others that support the organizations social and psychological context.
c. Counter-productive work behaviors: voluntary behaviors that have the potential to directly or indirectly harm the
organization
d. Joining and staying with the Organization: Attracting and retaining talented people isparticularly important as worries
about skill short-ages heat up.
e. Maintaining Work Attendance: Employees who experience job dissatisfaction of work-related stress are more likely
to be absent or late for work because taking off is a way to temporarily withdraw from stressful or dissatisfying
conditions.
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a. Surface-level diversity: the observable demographic or physiological differences in people, such as their
race, ethnicity, gender, age, and physical disabilities.
b. Deep-level diversity: differences in the psychological characterics of employees, including personalities,
beliefs, values, and attitudes.
Consequences of Diversity
Diversity make better decisions on complex problems than do teams whose members have similar
backgrounds. In contrast, teams with diverse employees usually take longer to perform effectively, brings numerous
communication problems.
Emerging Employment Relationships
Work-life balance: the degree to which a person minimizes conflict between work and nonwork demands.
Virtual work: work performed away from the traditional physical workplace by means of information technology
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a. Motivation: forces within a person that affect his or her direction, intensity, and persistence of voluntary
behavior
b. Ability: natural aptitudes and learned capabilities required to successfully complete a task. Competencies: skills,
knowledge, aptitudes, and other personal characteristics that lead to superior performance
c. Role perception: the extent to which people understand the job duties assugb assigned to or expected of them.
Three concepts of role perception:
1. Employees have accurate role perceptions when they understand the specific tasks assigned
2. When they understand the priority of their various tasks.
3. Understanding the preferred behaviors of procedures for accomplishing the assigned task.
d. Situational Factors: conditions beyond the employees immediate control that constrain or facilitate behavior
and performance.
Personality in Organizations
1. Personality: the relatively enduring pattern of thoughts, motions, and behaiors that characterize a person, along
with the psychological processer behind those characteristics.
Personality Determinants: Nature vs Nurture
Nature: our genetic or hereditary origins the genes that we inherit from our parents.
Nurture:: the persons socialization, life experience, and other forms
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a. Conscientiousness: personality dimension describing people who are careful, dependable, and self-
disciplined
b. Agreeableness: personality dimension icludes the traits of being courteous, good-natured, emphatic, and
caring.
c. Neuroticism: personaliy dimension describing people with high levels of anxiety, hostility, depression, and
self-consciousness
d. Openness to experience: extent which peole are imaginative, creative, curious, and aesthetically sensitive
e. Extroversion: personality dimension describing people who are outgoing, talkative, sociable, and assertive.
Jungian Personality Theory and The Myers-Briggs Type Indicator
Five-Factor Model is not the most popular practice. That distinction goes to Jungian personality theory, which is
measured through the Myers-Briggs Type Indicator (MBTI)
MBTI is an instrument designed to measure the elemens of Jungian personality theory, particularly preferences
regading perceiving and judging information.
How people gather information or perceive: sensing (S) and insitution (N)
How people process information or make decisions: thinking (T) and feeling (F)
How people in their environment: Introversion (I) and extraversion (E)
How people adapt in their environment: Perceiving (P) and Judging (J)
MBTI does a reasonably good job of measuring Jungs psychological types and seems to improve self-
awareness for career development and mutual understanding. On other hand, it poorly predicts job performance
and is generally not recommended for employment selection.
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Types of Values
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Emotions (emotional episodes) are transmitted to the logical reasoning process, where they are logically
analyzed along with other information about attitude object. Whus, whil consicously evaluating whether the marger
is good or bad, emotions have already formed an opinion, which then sways your conscious evaluation. We listen
in on our emotions to help us consciously decide whether support or oppose something.
Work attitudes are shaped by the almonst continous bombardment of emotional experiences people have
at work. Those who experience morepositive emotions tend to have more favorable attitutdes towards their jobs
and organizations, even when they arent continously aware of many of these emotional experiences.
Cognitive Dissonance: conditions that occurs when we perceive an inconsistency between our beliefs, feelings, and
behavior
Emotions and Personality: studies report that people with a negative emotional trait have lower levels of job
satisfaction and higher levels of job burnout. While positive and negative personality traits have som effect, other
research concludes that the actual situation in which people work has a noticeably stronger infuence on their
attitudes and behavior.
Managing Emotions at Work
Emotional Rules: emotional labor the effort, planning, and control needed to express organizationally
desired emotions during interpersonal transactions. Almost everyone is expected to abide by display rules norms
requiring us to display specific emotions and to hide other emotions.
Emotional Dissonance: conflict between required and true emotions.
Emotional Intelligence
EI: A set of abilities to perceive and express emotion, assimilate emotion in thought, understand and reason with
emotion, and regulate emotion in oneself and others
(1) Self-Awareness: Self-awareness is the ability to perceive and understand the meaning of your own emotions
(2) Self-Management: Self-management is the ability to manage your own emotions, something that we all do to
some extent
(3) Social Awareness: Social awareness. Social awareness is the ability to perceive and understand the emotions
of other people.
(4) Relationship Management: Involves managing other peoples emotions
Job Satisfaction
Job satisfaction: a persons evaluation of his or her job and work context.
A useful template for organizing and understanding the consequences of job dissatisfaction is the exit-voice-loyalty-
neglect (EVLN) model:
1. Exit: Exit includes leaving the organization, transferring to another work unit, or at least trying to get
away from the dissatisfying situation
2. Voice: Voice is any attempt to change, rather than escape from, the dissatisfying situation. Could be
positive or negative (counterproductive behavior)
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3. Loyalty: In the original version of this model, loyalty was not an outcome of dissatisfaction. Rather, it
determined whether people chose exit or voice (i.e., high loyalty resulted in voice; low loyalty produced
exit).
4. Neglect: Neglect includes reducing work effort, paying less attention to quality, and increasing
absenteeism and lateness
Job Satisfaction and Work Behavior
1. Job satisfaction had a minimal effect on job performance. There is a moderate relationship between job
satisfaction and job performance. In other words, happy workers really are more productive workers to some
extent. Even with a moderate association between job satisfaction and performance, there are a few underlying
reasons why the relationship isnt stronger. One argument is that general attitudes (such as job satisfaction)
dont predict specific behaviors very well.
2. Job performance leads to job satisfaction (rather than vice versa), but only when performance is linked to
valued rewards. Higher performers receive more rewards and, consequently, are more satisfied than low-
performing employees who receive fewer rewards. The connection between job satisfaction and performance
isnt stronger because many organizations do not reward good performance.
3. The third explanation is that job satisfaction influences employee motivation but doesnt affect performance in
jobs where employees have little control over their job output.
Job Satisfaction and Customer Satisfaction
Another popular belief is that happy customers are the result of happy employees. Service profit chain
model, which proposes that increasing employee satisfaction and loyalty results in higher customer perceptions of
value, thereby improving the companys profitability. In other words, job satisfaction has a positive effect on
customer service.
There are two main reasons for this relationship:
1. Employees are usually in a more positive mood when they feel satisfied with their jobs and working
conditions. Employees in a good mood display friendliness and positive emotions more naturally and
frequently, and this causes customers to experience positive emotions.
2. Satisfied employees are less likely to quit their jobs, so they have better knowledge and skills to serve
clients. Lower turnover also enables customers to have the same employees serve them, so there is
more consistent service
Job Ethics of Job Satisfaction
Job satisfaction is also an ethical issue that influences the organizations reputation in the community
Indeed, employees in several countries closely monitor ratings of the best companies to work for, an indication that
employee satisfaction is a virtue worth considerable goodwill to employers. This virtue is apparent when an
organization has low job satisfaction. The company tries to hide this fact, and when morale problems become
public, corporate leaders are usually quick to improve the situation.
Organizational Commitment
Organizational (affective) commitment: is the employees emotional attachment to, Identification with, and
involvement in a particular organization.
Continuance Commitment: An employees calculative attachment to the organization, whereby the employee is
motivated to stay only because leaving would be costly.
Consequences of Organizational Commitment
Organizational (affective) commitment can be a significant competitive advantage. Loyal employees are
less likely to quit their jobs and be absent from work. They also have higher work motivation and organizational
citizenship, as well as somewhat higher job performance. Organizational commitment also improves customer
satisfaction because long-tenure employees have better knowledge of work practices and because clients like to
do business with the same employees.
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One warning is that employees with very high loyalty tend to have high conformity, which results in lower
creativity. There are also cases of dedicated employees who violated laws to defend the organization. However,
most companies suffer from too little rather than too much employee loyalty.
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Alarm reaction: The alarm reaction stage occurs when a threat or challenge activates the
physiological stress responses that were noted above.
Resistance: activates various biochemical, psychological, and behavioral mechanisms that give the
individual more energy and engage coping mechanisms to overcome or remove the source of
stress.
Exhaustion: people have a limited resistance capacity, and if the source of stress persists, the
individual will eventually move into the third stage.
Consequences of Distress
Many people experience tension headaches, muscle pain, and related problems mainly due to muscle
contractions from the stress response. Studies have found that high stress levels also contribute to cardiovascular
disease, including heart attacks and strokes, and may be associated with some forms of cancer.
Stress also produces various psychological consequences, such as job dissatisfaction, moodiness,
depression, and lower organizational commitment. Furthermore, various behavioral outcomes have been linked to
high or persistent stress, including lower job performance, poor decision making, and increased workplace
accidents and aggressive behavior. Most people react to stress through fight or flight
Job burnout
Job burnout is a particular stress consequence that refers to the process of emotional exhaustion, cynicism, and
reduced feelings of personal accomplishment.
Three stage of Job burnout:
1. Emotional exhaustion, is characterized by a lack of energy, tiredness, and a feeling that ones emotional
resources are depleted
2. Cynicism (also called depersonalization ), which is characterized by an indifferent attitude toward
work, emotional detachment from clients, a cynical view of the organization, and a tendency to strictly
follow rules and regulations rather than adapt to the needs of others.
3. Reduced personal accomplishment, entails feelings of diminished confidence in ones ability to perform
the job well. In such situations, employees develop a sense of learned helplessness as they no longer
believe that their efforts make a difference.
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Stressors: Any environmental conditions that place a physical or emotional demand on a person.
Harassment and Incivility
Psychological harassment: Repeated and hostile or unwanted conduct, verbal comments, actions,
or gestures that affect an employees dignity or psychological or physical integrity and that result
in a harmful work environment for the employee.
Sexual Harassment: Unwelcome conduct of a sexual nature that detrimentally affects the work
environment or leads to adverse jobrelated consequences for its victims.
Work Overload
Working more hours, and more intensely during those hours, than they can reasonably manage.
Work overload is an important predictor of job burnout. It is also a major cause of workfamily
conflicts, because overworked employees have insufficient time to satisfy their nonwork roles of
being a parent, a spouse, and so forth
Low Task Control
An increasingly popular model of job burnout suggests that emotional exhaustion depends on both
job demands and job resources:
Job demands are aspects of work that require sustained physical or psychological effort. High
workload is one of the more significant job demands in the contemporary workplace
Job resources: represent aspects of the job that help employees to achieve work goals, reduce job
demands, and/or stimulate personal growth and development.
has found that various forms of meditation reduce anxiety, reduce blood pressure and muscle tension,
and moderate breathing and heart rate.
Many large employers offer employee assistance programs (EAPs) counseling services that help
employees resolve marital, financial, or work-related troubles
5. Receive Social Support
It potentially improves the persons resilience (particularly her or his optimism and self-confidence)
because support makes people feel valued and worthy. Social support also provides information to
help the person interpret, comprehend, and possibly remove the stressor.
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2. Summarize Maslows needs hierarchy and discuss Maslows contribution to the field of motivation.
MASLOWS NEEDS HIERARCHY THEORY (described as innate & universal) by Abraham Maslow in 1940s
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3. Summarize McClellands learned needs theory, including the three needs he studied.
4. Describe four-drive theory and discuss its implications for motivating employees.
Developed by Harvard Business School professors.
FEATURES OF FOUR DRIVES:
- Innate and hardwired (everyone has them)
- Independent of each other
- no hierarchy of drives
- no drives are excluded from the model
- three of the four drives are proactive (we
regularly try to fulfill them). Only the drive to defend
is reactive (triggered by threat)
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5. Diagram the expectancy theory model and discuss its practical implications for motivating employees.
In expectancy Theory, work effort is directed toward behaviors that people believe will lead to desired outcomes. Depends
on 3 factors:
1. Increasing E-to-P Expectancies
- Perception that his or her effort will result in a particular
level of performance
- Assuring employees they have competencies, person-job
matching, provide role clarification and sufficient
resources, behavioral modeling
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people inherently seek feedback about their strengths, not their flaws
persons interests, preferences, and competencies stabilize over time
MULTISOURCE FEEDBACK
Received from a full circle of people around the employee
Provides more complete and accurate information
Several challenges
8. Identify the factors that influence procedural justice, as well as the consequences of procedural justice.
Higher procedural fairness with:
1. Voice (encourage them to present their facts and perspectives on the issue)
2. Unbiased decision maker
3. Decision based on all information
4. Existing policies consistently
5. Decision maker listened to all sides
6. Those who complain are treated respectfully
7. Those who complain are given full explanation
CONSEQUENCES
Procedural justice has a strong influence on a persons emotions and motivation. Employees tend to experience
anger toward the source of the injustice, which generates various response behaviors that scholars categorize as either
withdrawal or aggression.
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6. Identify three strategies for improving employee motivation through job design.
JOB DESIGN PRACTICES THAT MOTIVATE
1. Job Rotation: moving from one job to another
o Benefits
Minimizes repetitive strain injury
Multiskills the workforce
Potentially reduces job boredom
2. Job Enlargement: adding tasks to an existing job (e.g. video journalist)
3. Job Enrichment: given more responsibility for scheduling, coordinating, and planning ones own work
1. Clustering tasks into natural groups
Stitching highly interdependent tasks into one job (e.g., video journalist, assembling entire product)
2. Establishing client relationships
Directly responsible for specific clients
Communicate directly with those clients
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SUPPORTING EMPOWERMENT
- Individual factors: possess required competencies, able to perform the work
- Job design factors: autonomy, task identity, task significance, job feedback
- Organizational factors: resources, learning orientation, trust
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2. Describe the four conditions in sociotechnical systems theory that support SDWTs.
SOCIOTECHNICAL SYSTEMS THEORY
- A theory stating that effective work sites have joint optimization of their social and technological systems, and
that teams should have sufficient autonomy to control key variances in the work process.
- Main sources of SDWT
- 4 main conditions for high performance SDWTs:
1. Responsible for entire work process
2. Sufficient autonomy to control work process (able to work more quickly and effectively)
3. Control key variances (disturbances/interruptions in work process that affect quality of performance)
4. Operate under joint optimization (key requirement in sociotechnical systems theory that a balance must be
struck between social and technical systems to maximize an operations effectiveness.)
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5. Describe the roles of communication systems, task structure, team size, and team composition in virtual team
effectiveness.
DESIGNING HIGH-PERFORMANCE VIRTUAL TEAMS
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Noise Psychological, social, and structural barriers that distort and obscure the sender's intended message
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c. Media-Richness Hierarchy
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7. Communication barriers
a. Perception
1) Receivers dont listen as well as senders assume
2) Senders overestimate how well other people understand the message
b. Filtering
1) May involve deleting or delaying negative information or using less harsh words so the message sounds
more favorable
c. Language
1) Jargon specialized words and phrases may become a source of noise when transmitted to people who
do not have the jargon codebook
2) Ambiguity language has built-in ambiguities that cause misunderstandings; may be used to minimize
the risk of conflict e.g. using a phrase such as rightsizing
d. Information Overload
1) Information processing capacity the amount of information an employee is able to process in a fixed
unit of time
2) Information load the amount of information to be processed per unit of time (jobs have a varying
information load)
3) Information overload creates noise in the communication system information gets overlooked or
misinterpreted when people cant process it fast enough, resulting in poorer quality decisions and higher
stress
e. Managing Information Overload
1) Increase information processing capacity
a) Learn to read faster
b) Scan through documents more efficiently
c) Remove distractions
d) Time management
e) Temporarily work longer hours
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7. Structural Sources of Conflict in Organizations leads on or both parties to perceive that conflict exists
a. Incompatible goals Goals of one party perceived to interfere with others goals e.g. cost efficiency
vs. customer service.
b. Differentiation Divergent beliefs may agree on a common goal but have different beliefs about
how to achieve that goal. Also explains about cross-cultural and intergenerational conflicts tension
during mergers.
c. Interdependence Conflict increases with interdependence greater chance that each side will
disrupt or interfere with the others goals.
Three levels of interdependence:
1) Pooled interdependence work units rely on a common resource or authority, e.g. shared
administrative support
2) Sequential interdependence one persons output is next persons input, e.g. assembly
line
3) Reciprocal interdependence output is exchanged so employees are highly dependent on
each other, e.g. medical team
d. Scarce resources Motivates competition for the resource may udermine others who also need
that resource to fulfill their goals
e. Ambiguous rules Creates uncertainty threatens goals, and also encourages political tactics
(because there are no underlying rules)
f. Communication problems Rely on stereotypes when parties lack opportunity to communicate; Less
motivated to communicate because relationship is uncomfortable; and arrogant communication
escalates perceptions of conflict escalates conflict when other party reciprocates.
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Problem:
1) Doesnt usually resolve the coflict;
2) May increase the other partys frustration.
d. Yielding Giving in completely to the other sides wishes making unilateral concessions and
offering help with no expectation of reciprocal help.
Best when:
1) Other party has much more power;
2) Issue is much less important to you than to the other party;
3) Value/logic of your position is imperfect.
Problem:
1) Increases other partys expectations for the future.
e. Compromising Reach a middle ground between the interests of the parties
Best when:
1) Parties have equal power;
2) Quick solution is required i.e. time pressures;
3) Parties lack trust/openness for problem solving.
Problem:
1) Sub-optimal solution where mutual gains are possible.
10. Cultural and Gender Differences in Conflict-Handling Styles Each and every cultural and gender has their
own preferred conflict-handling style
11. Structural Approaches to Conflict Management
a. Emphasize superordinate goals superordinate goal a broad goal that all parties to a dispute value
and agree is important
1) Emphasize common strategic objecive rather than objectives specific to the individual or
work-unit;
2) Reduce goal incompatibility and differentiation.
b. Reduce differentiation
1) Reduce differences that generate conflict;
2) Create common experiences, e.g. moving staff across merged companies.
c. Improve communication/understanding Conflicting parties are given more opportunities to
communicate and understand each other communication
1) Conflicting parties are given more opportunities to communicate and understand each
other
2) Relates to contact hypothesis
3) This should be applied only when differentiation is sufficiently low/after differentiation ha
been reduced (or could escalate conflict); people in collectivist and high power distance
cultures are less comfortable with using direct communication.
d. Reduce interdependence
1) Create buffers decoupling the relationship, e.g. build up inventories in assembly line vs.
just-in-time inventory system
2) Use integrators, i.e. employees (human buffers) who coordinate the activities of
differentiated work units toward completion of a common task, e.g. coordinate efforts of
several departments to launch a new product
3) Combine jobs reduces task interdependence and is a form of job enrichment, e.g. each
person assembles an entire product.
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e. Increase resources
1) Increases the aount of resources available.
f. Clarify rules and procedures
1) Establish rules and procedures, e.g. create a schedule;
2) Clarifying roles and responsibilities.
c. Negotiator Skills
1) Preparation and goal setting Negotiators should carefully think through their initial-
offer, target, and resistance points. They need to consider alternative strategies in case the
negotiation fails.
2) Gathering information Seek to understand before you seek to be understood we
should spend more time listening closely to the other party and asking for details.
3) Communicating effectively Effective negotiators communicate in a way that maintains
effective relationships between the parties
4) Making concessions
a) Enable the parties to move toward the area of potential agreement;
b) Symbolize each partys motivation to bargain in good faith;
c) Tell the other party of the relative importance of the negotiating items.
13. Third-Party Conflict Resolution Any attempt by a relatively neutral person to help conflicting parties resolve
their differences.
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