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MGMT1135

CHAPTERS 1-6 SUMMARY

Organisational Behaviour
Chapter 1: Introduction to the Field of Organisational Behaviour
[1.1] DEFINE ORGANISATIONAL BEHAVIOUR AND ORGANISATIONS, AND DISCUSS THE IMPORTANCE OF THIS FIELD
OF INQUIRY

• Organisational behaviour is the study of what people think, feel and do in and around organisations
• Organisations are groups of people (collective entities) who work interdependently towards some purpose
(collective sense of purpose)
• OB theories help people
- Make sense of the workplace
- Question and rebuild their personal mental models
- Get things done in organisation

[1.2] DEBATE THE ORGANISATIONAL OPPORTUNITIES AND CHALLENGES OF GLOBALISATION, WORKFORCE DIVERSITY
AND EMERGING EMPLOYMENT RELATIONSHIPS

• Globalisation refers to the economic, social and cultural connectivity with people in other parts of the world
- Economic and social benefits
- May be responsible for work intensification, reduced job security and lessening work-life balance
• Workforce diversity is apparent at both the surface level (observable demographic and other overt
differences in people i.e. race, ethnicity, gender, age and physical capabilities) and deep level (differences in
the psychological characteristics of employees, including personalities, believes, values and attitudes, and
can be inferred from a person’s decisions, statements and actions)
- Evidence of deep-level diversity across generational cohorts
- Competitive advantage that improves decision making and team performance on complex tasks
- Imposes numerous challenges- dysfunctional team conflict and lower team performance
• Work-life balance is the degree to which a person minimised conflict between work and non-work demands
- Emerging employment trend
- Virtual work is the work performed away from the traditional physical workplace through the use of
information technology
§ Telework (working from home)
§ Potentially increases employee productivity and reduces stress
§ May lead to social isolation, reduced promotion opportunities and tension in family relations

[1.3] DISCUSS THE ANCHORS ON WHICH ORGANISATIONAL BEHAVIOUR KNOWLEDGE IS BASED

• Multidisciplinary anchor states that the field should develop from knowledge in other disciplines
(psychological, sociology, economics) and not just from its own isolated research base
• Systematic research anchor states that OB knowledge should be based on systematic research, consistent
with evidence-based management (the practice of making decisions and taking actions based on research
evidence)
• Contingency anchor states that OB theories generally need to consider that there will be different
consequences in different situations
• Multiple levels of analysis anchor states that OB topics may be viewed from the individual, team
(interpersonal) and organisational levels of analysis

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MGMT1135 CHAPTERS 1-6 SUMMARY
[1.4] COMPARE AND CONTRAST THE FOUR PERSPECTIVES OF ORGANISATIONAL EFFECTIVENESS

• Organisational effectiveness is a broad concept and considered the ‘ultimate dependant variable’ in OB
- Represented by several perspectives including the organisation’s fit with the external environment,
its internal subsystem configuration for high performance, its emphasis on organisational learning
and its ability to satisfy the needs of key stakeholders
• Open systems perspective views organisations as complex organisms that ‘live’ within an external
environment
- Depends on the external environment for resources, then use organisational subsystems to
transform these resources into outputs, which are returned to the environment
- Receive feedback from the external environment to maintain a good ‘fit’ with that environment
- Fit occurs by adapting to the environment, managing the environment or moving to another
environment
- Organisational efficiency (productivity) is the amount of outputs relative to inputs in the
organisation’s transformation process
• Organisational learning perspective suggests organisational effectiveness depends on the organisation’s
capacity to acquire, share, use and store valuable knowledge
- Knowledge is viewed as a resource or asset, called intellectual capital (stock of knowledge)
§ Human capital refers to the stock of knowledge, skills and abilities among employees that
provide economic value to the organisation
§ Structural capital includes the knowledge embedded in an organisation’s systems and
structures
§ Relationship capital is the value derived from an organisation’s relationships with
customers, suppliers and others
- Knowledge is retained in the organisational memory; companies also selectively unlearn
• High-performance work practices (HPWPs) perspective identifies a bundle of systems and structures to
leverage workforce potential
- HPWPs include employment involvement, job autonomy, development of employee competencies
and performance or skill-based rewards
- Improve organisational effectiveness by building human capital, increasing adaptability and
strengthening employee motivation and attitudes
• Stakeholder perspective states that leaders manage the interests of diverse stakeholders by relying on their
personal and organisation values for guidance
- Stakeholders are individuals, groups and other entities that affect, or are affected by the
organisation’s objectives and actions
- Incorporates values (relatively stable, evaluative beliefs that guide a person’s preferences for
outcomes or courses of action in a variety of situations), ethics (the study of moral principles or
values that determine whether actions are right or wrong and outcomes are good or bad) and
corporate social responsibility (organisational activities intended to benefit society and the
environment beyond the firm’s immediate financial interests or legal obligations)

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MGMT1135 CHAPTERS 1-6 SUMMARY
Chapter 2: Individual Behaviour, Personality and Values
[2.1] DESCRIBE THE FOUR FACTORS THAT DIRECTLY INFLUENCE INDIVIDUAL BEHAVIOUR AND PERFORMANCE


• Motivation represents the forces within a person that affect his or her direction, intensity and persistence of
voluntary behaviour
- Direction refers to the path along which people engage their effort
- Intensity is the amount of effort allocated to the goal
- Persistence is continuing the effort for a certain amount of time
• Ability includes the natural aptitudes and the learned capabilities required to successfully complete a task
- Aptitudes are natural talents that help employees to learn task quicker and perform better
- Capabilities are skills & knowledge that you currently possess
- Competencies are characteristics of a person that result in superior performance
• Role perceptions are the extent to which people understand the job duties assigned to them
- Understand the specific tasks assigned, what jobs to perform
- Understand the priority of various tasks & performance expectations
- Understand the preferred behaviours or procedures for accomplishing tasks
• Situational factors include conditions beyond the employee’s immediate control that constrain or facilitate
behaviour and performance
- Outside factors include consumer preferences & economic conditions – no control
- Inside factors such as time, people, budget, facilities can be designed by organisation

[2.2] SUMMARISE THE FIVE TYPES OF INDIVIDUAL BEHAVIOUR IN ORGANISATIONS

• Task performance refers to goal-directed behaviours under the individual’s control that support
organisational objectives
• Organisational citizenship behaviours (OCBs) consist of various forms of cooperation and helpfulness to
others that support the organisation’s social and psychological context
• Counterproductive work behaviours (CWBs) are voluntary behaviours that have the potential to directly or
indirectly harm the organisation
• Joining and staying with the organisation refers to agreeing to become an organisational member and
remaining with the organisation
• Maintaining work attendance includes minimising absenteeism when capable of working and avoiding
scheduled work when not fit
o Presenteeism is attending work when one’s capacity to work is significantly diminished)
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[2.3] DESCRIBE PERSONALITY AND DISCUSS HOW THE ‘BIG FIVE’ PERSONALITY DIMENSIONS AND FOUR MBTI TYPES
RELATE TO INDIVIDUAL BEHAVIOUR IN ORGANISATIONS

• Personality is the relatively enduring pattern of thoughts emotions and behaviours that characterise a
person, along with the psychological processes behind those characteristics
- External traits are observable behaviours- what people say or do
- Inherent traits are identified by the consistency/stability of behaviour across time & situation
§ Internal states that are inferred from behaviour
§ People vary their behaviour to suit the situation even if it is not their norm
- Developed through nature and nurture
§ Nature refers to our genetic/hereditary origins, genes inherited from our parents
§ Nurture refers to the person’s socialisation, life experiences & interaction with environment
• Five Factor Model represents most personality traits
- Conscientiousness: organised, dependable, goal-focused, thorough, disciplined, methodical,
industrious
- Agreeableness: trusting, helpful, good-natured, considerate, tolerant, selfless, generous, flexible
- Neuroticism: anxious, insecure, self-conscious, depressed, temperamental
- Openness to experience: imaginative, creative, unconventional, curious, nonconforming,
autonomous, perceptive
- Extraversion: outgoing, talkative, energetic, sociable, assertive
• Myers-Briggs Type Indicator (MBTI) is an instrument designed to measure the elements of Jungian
personality theory, particularly preferences regarding perceiving and judging information
- Introversion-extroversion: competing origins for getting energy
- Sensing-intuition: perceiving information
- Thinking-feeling: processing information and making decisions
- Judging-perceiving: orienting to the external world
• Desirable traits
- Resilience refers to the capability of individuals to cope successfully in the face of significant change,
adversity or risk
- Self-efficacy refers to a person’s belief that he or she can successfully complete a task

[2.4] SUMMARISE SCHWARTZ’S MODEL OF INDIVIDUAL VALEUS AND DISCUSS THE CONDITIONS IN WHICH VALUES
INFLUENCE BEHAVIOUR

• Values are stable, evaluative believes that guide our preferences for outcomes or courses of action in a
variety of situations
- Evaluative, rather than descriptive
- More likely to conflict
- Formed more from socialisation than hereditary
• Schwartz’s model organises 57 values into a circumplex of 10 dimensions along two bipolar dimensions:
openness to change to conservation and self-enhancement to self-transcendence
- Openness to change: self-direction, stimulation, hedonism
- Conservation: conformity, security, tradition
- Self-enhancement: achievement, power and hedonism
- Self-transcendence: benevolence, universalism
• Values influence behaviour when the situation facilitates that connection and when we actively think about
them and understand their relevance to the situation
• Values congruence refers to how similar a person’s values hierarchy is to the values hierarchy of another
source (organisation, person, etc)
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[2.5] DESCRIBE THREE ETHICAL PRINCIPLES AND DISCUSS THREE FACTORS THAT INFLUENCE ETHICAL BEHAVIOUR

• Three ethical principles


- Utilitarianism: seek the greater good for the greatest number of people
- Individual rights: everyone is entitled to act in a certain way
- Distributive justice: people who are similar should receive similar benefits and burdens
• Factors affecting ethical behaviour
- Moral intensity: the degree to which an issue demands the application of ethical principles
- Moral sensitivity: the individual’s ability to recognise the presence and relative importance of an
ethical issues
§ Empathy
§ Expertise or knowledge of prescriptive norms and rules
§ Direct experience with moral dilemmas
§ Mindfulness: a person’s receptive and impartial attention to and awareness of the present
situation as well as to one’s own thoughts and emotions in that moment
- Situational forces: the situation in which the conduct occurs
- Ethical conduct at work is supported by clothes of ethical conduct, mechanisms for communicating
ethical violations, the organisation’s culture and the leader’s behaviour

[2.6] DESCRIBE FIVE VALUES COMMONLY STUDIED ACROSS CULTURES (CROSS-CULTURE VALUES)

• Individualism is the degree to which people in a culture emphasise independence and personal uniqueness
• Collectivism describes the degree to which people in a culture emphasise duty to groups to which they
belong and to group harmony
• Power distance is the degree to which people in a culture accept unequal distribution of power in a society
• Uncertainty avoidance refers to the degree to which people in a culture tolerate ambiguity (lower certainty
avoidance) or feel threatened by ambiguity and uncertainty (high uncertainty avoidance)
• Achievement-nurturing orientation describes the degree to which people in a culture emphasise
competitive versus cooperative relations with other people

Chapter Three: Perceiving Ourselves and Others in Organisations


[3.1] DESCRIBE THE ELEMENTS OF SELF-CONCEPT AND EXPLAIN HOW EACH AFFECTS AN INDIVIDUAL’S BEHAVIOUR
AND WELLBEING

• Self-concept includes an individual’s self-beliefs and their self-evaluations


- Three structural characteristics
§ Complexity refers to the number of distinct and important roles or identities that people
perceive about themselves
§ Consistency (internal) exists when most of the individual’s self-perceived roles require
similar personality traits, values and other attributes
§ Clarity is the degree to which a person has a clear, confidently defined and stable self-
concept
- Influence employee wellbeing, behaviour and performance
- Consists of personal identity and social
§ Personal identity
§ Social identity theory explains how people define themselves in terms of the groups to
which they belong or have an emotional attachment
• Self-enhancement refers to a person’s inherent motivation to have a positive self-concept (and to have
others perceive him or her favourably)

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MGMT1135 CHAPTERS 1-6 SUMMARY
• Self-verification refers to a person’s inherent motivation to confirm and maintain his/her existing self-
concept
• Self-evaluation consists of self-esteem, self-efficacy and locus of control
- Self-esteem is the extent to which people life, respect and are satisfied with themselves (represents
a person’s overall self-evaluation)
- Self-efficacy refers to a person’s belief that he or she has the ability, motivation, correct role
perceptions and favourable situation to complete a task successfully
- Locus of control is defined as a person’s general belief about the amount of control he or she has
over personal life events
• Social identity theory states that people define themselves by the groups to which they belong or have an
emotional attachment

[3.2] OUTLINE THE PERCEPTUAL PROCESS AND DISCUSS THE EFFECTS OF CATEGORICALTHINKING AND MENTAL
MODELS IN THAT PROCESS

• Perception involves selecting, organising and interpreting information to make sense of the world around us
• Selective attention is the process of attending to some information received by our senses and ignoring
other information
• Confirmation bias is the non-conscious tendency to screen out information that is contrary to decisions,
beliefs, values and assumptions, whereas confirming information is more readily noticed
• Perceptual organisation and interpretation
- Categorical thinking refers to the mostly non-conscious process of organising people and objects
into preconceived categories that are stored in our long-term memory
- Mental models are knowledge structures that we develop to describe, explain and predict the world
around us, and also help us make sense of incoming stimuli

[3.3] DISCUSS HOW STEREOTYPING, ATTRIBUTION, SELF-FUFILLING PROPHECY, HALO, FALSE-CENSENSUS, PRIMACY
AND RECENCY EFFECTS INFLUENCE THE PERCEPTUAL PROCESS

• Stereotyping occurs when people assign traits to others based on their membership in a social category
- Encompasses mental effort, fills in missing information and enhances our self-concept
- Lays the foundation for prejudice and systemic discrimination
• Attributive process involves deciding whether an observed behaviour or event is caused mainly by the
person (internal factors) or the environment (external factors)
- Decided by perceptions of the consistency, distinctiveness and consensus of the behaviour

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MGMT1135 CHAPTERS 1-6 SUMMARY
- Self-serving bias is the tendency to attribute our favourable outcomes to internal factors and our
failures to external factors
- Fundamental attribution error is the tendency to see the person rather than the situation as the
main cause of that person’s behaviour
• Self-fulfilling prophecy occurs when our expectations about another person causes that person to act in a
way that is consistent with those expectations
- Positive organisation behaviour is the view that focuses on building positive qualities and traits
within individuals or institutions as opposed to focusing on what is wrong with them
• Halo effect occurs when our general impression of a person, usually based on one prominent characteristic,
colours our perception of other characteristics of that person
• False-consensus effect (similar-to-me effect) occurs when we overestimate the extent to which others have
beliefs and characteristics similar to our own
• Primacy effect is our tendency to quickly form an opinion of people on the basis of the first information we
received about them
• Recency effect occurs when the most recent information dominates our perception of others

[3.4] DISCUSS THREE WAYS TO IMPROVE PERCEPTIONS, WITH SPECIFIC APPLICATION TO ORGANISATION
SITUATIONS

• Become aware of the existence of perceptual bias


- Makes people more mindful of their thoughts and actions, but training may reinforce rather than
reduce reliance on stereotypes and tends to be ineffective for prejudiced people
• Become aware of biases in own decisions and behaviour
- Self-awareness increases though formal tests (IAT or Johari Window- model of mutual
understanding that encourages disclosure and feedback to increase our own open area and reduce
the blind, hidden and unknown area)

• Meaningful interaction
- Applies the contact hypothesis- the more we interact with someone, the less prejudiced or
perceptually biased we will be against that person
- Improves empathy (a person’s understanding and sensitivity to the feelings, thoughts and situations
of others)

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[3.5] OUTLINE THE MAIN FEATURES OF GLOBAL MINDSET AND JUSTIFY ITS USEFULNESS TO EMPLOYEES AND
ORGANISATIONS

• Global mind-set refers to an individual’s ability to perceive, know about and process information across
cultures
- Includes
§ Awareness of, openness to and respect for other views and practices in the world
§ Capacity to empathise and act effectively across cultures
§ Ability to process complex information about novel environments
§ Ability to comprehend and reconcile intercultural matters with multiple levels of thinking
- Developed through self-awareness, opportunities to compare their own mental models with people
from other cultures, formal cross-cultural training and immersion in other cultures

Chapter Four: Workplace Emotions, Attitudes and Stress


[4.1] EMPLAIN HOW EMOTIONS AND COGNITION (LOGICAL THINKING) INFLUENCE ATTITUDES AND BEHAVIOUR

• Emotions are physiological, behavioural and psychological episodes experienced towards an object, person
or event that creates a state of readiness
- Differ from attitudes which are a cluster of beliefs, feelings and behavioural intentions
§ Beliefs are a person’s established perceptions about the attitude object
§ Feelings are positive or negative evaluations of the attitude object
§ Behavioural intentions represent a motivation to engage in a particular behaviour
• Attitudes have been described as a purely rational process in which beliefs predict feelings, which predict
behavioural intentions, which predict behaviour
• Emotions have a greater or equal influence on behaviour than cognition (logical thinking)
• Behaviour can influence attitudes through cognitive dissonance- an emotional experience causes by a
perception that our beliefs, feelings and behaviour are incongruent

[4.2] DISCUSS THE DYNAMICS OF EMOTIONAL LABOUR AND THE ROLE OF EMOTIONAL INTELLIGENCE IN THE
WORKPLACE

• Emotional labour consists of the effort, planning and control needed to express organisationally desired
emotions during interpersonal transactions
• Emotional dissonance is the psychological tension experienced when the emotions people are required to
display are quite different from the emotions they are actually experiencing at that moment
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• Emotional intelligence (EI) is the ability to perceive and express emotion, assimilate emotion in thought,
understand and reason with emotion, and regulate emotion in oneself and others
- Has four components arranged in a hierarchy- self-awareness, self-management, awareness of
others’ emotions and management of others’ emotions

[4.3] SUMMARISE THE CONSEQUENCES OF JOB DISSATISFACTION, AS WELL AS STRATEGIES TO INCREASE


ORGANISATIONAL (AFFECTIVE) COMMITMENT

• Job satisfaction represents a person’s evaluation of his/her job and work context
• EVLN Model is the way that employees respond to job dissatisfaction
- Exit: quitting or getting away from the situation
- Voice: attempting to change the situation
- Loyalty: patiently waiting for the problem to resolve itself
- Neglect: reducing work effort and performance
• Service profit chain model proposes that employee’s job satisfaction influences company profitability
indirectly though service quality, customer loyalty and related factors
• Three types of organisational commitment
- Affective organisational commitment (loyalty) is an individual’s emotional attachment to,
identification with and involvement in a particular organisation
- Continuance commitment is an individual’s calculative bond with the organisation
§ No alternative employment opportunities
§ Leaving requires a financial sacrifice
- Normative commitment refers to an individual’s feelings of obligation to remain with the
organisation
• Commitment is affected through justice and support, shared values, trust (positive expectations one person
has towards another person in stations involving risk), organisational comprehension and employee
involvement

[4.4] DESCRIBE THE STRESS EXPREIENCE AND REVIEW THREE MAJOR STRESSORS

• Stress is an adaptive response to a situation that is perceived as challenging or threatening to a person’s


wellbeing


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• General adaptation syndrome (stress experience model) involves moving through three stages: alarm,
resistance and exhaustion
- Alarm reaction: threat/challenge activates physiological stress responses
- Resistance: activates biochemical, psychological and behavioural mechanisms
- Exhaustion
• Conservation of resources (COR) theory proposes that individuals seek to retain and protect their personal
resources
• Consequences of stress: job burnout, emotional exhaustion, cynicism and reduced personal accomplishment
• Stressors are the causes of stress and include any environmental conditions that place a physical or
emotional demand on a person
- Harassment and incivility: psychological harassment is the repeated and hostile or unwanted
conduct, verbal comments, actions or gestures that affect an employee’s dignity or psychological or
physical integrity and that result in a harmful work environment for the employee
- Work overload
- Low task control: when employees face high workloads without the ability to adjust the pace of the
load to their own energy, attention span and other resources
• Workaholic is a person who is highly involved in work, feels compelled to work and has low enjoyment of
work

[4.5] IDENTIFY FIVE WAYS TO MANAGE WORKPLACE STRESS

• Intervention
- Removing the stressor
§ Job crafting: modifying aspects of work to align the job with one’s own preferences, needs
and abilities
- Withdrawing from the stressor
- Changing stress perceptions
§ Psychological capital: individuals’ positive psychological resources of resilience, self-efficacy,
hope and optimism
- Controlling stress consequences
§ Mindfulness meditation: an intervention that focuses an individual’s attention on becoming
more aware of themselves and the world around them
§ Employee assistance programs (EAPs): counselling services provides to employees to
support their psychological wellbeing in their work and personal lives
- Receiving social support

Chapter Five: Foundations of Employee Motivation


[5.1] DEFINE EMPLOYEE ENGAGEMENT

• Employee engagement is defined as in individual’s emotional and cognitive (logical) motivation, particularly
a focused, intense, persistent and purposive effort o wards work-related goals
- Emotional involvement in, commitment to and satisfaction with the work
- High level of absorption in the work and sense of self-efficacy about performing the work

[5.2] EXPLAIN THE ROLE OF HUMAN DRIVES AND EMOTIONS IN EMPLOYEE MOTIVATION AND BEHAVIOUR

• Motivation consists of the forces within a person that affect his/her direction, intensity and persistence of
voluntary behaviour in the workplace

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• Drives (primary needs) are hardwired characteristics of the brain that correct deficiencies or maintain an
internal equilibrium by producing emotions to energise individuals
- ‘Prime’ movers of behaviour, generating emotions that put us in a state of readiness to act
• Needs are goal-directed forces that people experience and are shaped by the individual’s self-concept
(including personality and values), social norms and past experience

[5.3] SUMMARIES MASLOW’S NEEDS HIERARCHY, MCCLELLAND’S LEARNED NEEDS THEORY, AND FOUR-DRIVE
THEORY AND DISCUSS THEIR IMPLICATIONS FOR MOTIVATING EMPLOYEES

• Maslow’s needs hierarchy has five levels and states that the lowest needs are initially the most important
but higher needs become more important as the lower ones are satisfied
- Lacks research support because it wrongly assumes that everyone has the same hierarchy,
hierarchies vary due to different personal values
- Contributes holistic perspective, humanistic perspective and positive perspective
• McClelland’s learned needs theory argues that needs can be strengthened through learning
- Need for achievement (nAch): a learned need in which people want to accomplish reasonably
challenging goals and desire unambiguous feedback and recognition for their success
- Need for affiliation (nAff): a learned need in which people seek approval from others, conform to
their wishes and expectations, and avoid conflict and confrontation
- Need for power (nPow): a learned need in which people want to control their environment,
including people and material resources, to benefit either themselves (personalised power) or
others (socialised power)
• Four-drive theory states that everyone has four innate drives- the drives to acquire, bond, learn and defend-
and that incorporates both emotional and cognitive processes
- Drives
§ Drive to acquire: seek, take, control & retain objects and personal experience
§ Drive to bond: form social relationships & develop mutual caring commitments with others
§ Drive to learn: satisfy our curiosity, to know & understand ourselves and the environment
§ Drive to defend: protect ourselves physically & socially, creates ‘fight or flight’ response
- Drives activate emotions that people regulate through a skill set that considers social normal, past
experience and personal values
- Ensure that individual jobs and workplaces provide a balanced opportunity to fulfil the four drives
and that the fulfilment of the four drives must be kept in balance

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[5.4] DISCUSS THE EXPECTANCY THEORY MODEL, INCLUDING ITS PRACTICAL IMPLICATIONS

• Expectancy theory is a motivation theory based on the idea that work effort is directed towards behaviours
that people believe will lead to desired outcomes
- E-to-P expectancy is the individual’s perception that their effort will result in a particular level of
performance
§ Increases by improving the employee’s ability and confidence to perform the job, enhancing
self-efficacy and improving communication
- P-to-O expectancy is the perceived probability that a specific behaviour or performance level will
lead to a particular outcome
§ Increases by measuring performance accurately, distributing higher rewards to better
performers, and showing employees that rewards are performance-based
- Outcome valences is the anticipated satisfaction or dissatisfaction that an individual feels towards
an outcome
§ Increase by finding out what employees want and using these resources as rewards, and
minimising countervalent outcomes

[5.5] OUTLINE ORGANISATIONAL BEHAVIOUR MODIFICATION (OB MOD) AND SOCIAL COGNITIVE THEORY AND
EXPLAIN THEIR RELEVANCE TO EMPLOYEE MOTIVATION

• Organisational behaviour modification is a theory that explains employee behaviour in terms of the
antecedent conditions and consequences of that behaviour
- Antecedents are environmental stimuli that provoke (not necessarily cause) behaviour
- Behaviour
- Consequences are events following behaviour that influence its future occurrence
§ Positive reinforcement, punishment, negative reinforcement and extinction
• Social cognitive theory explains how learning and motivation occurs by observing and modelling others as
well as by anticipating the consequences of our behaviour
- Suggests that people infer (rather than only directly experience) cause-effect relationships,
anticipate the consequences of their actions, develop self-efficacy in performing behaviour, exercise
personal control over their behaviour and reflect on their direct experiences
- Emphasises self-regulation of individual behaviour, including self-reinforcement (reinforcement that
occurs when an employee has control over a reinforce but doesn’t ‘take’ it until he/she has
completed a self-set goal

[5.6] DESCRIBE THE CHARACTERISTICS OF EFFECTIVE GOAL SETTING AND FEEDBACK

• Goal setting is the process of motivating employees and clarifying their role perceptions by establishing
performance objectives

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- Specific: what needs to be accomplished, how it should be accomplished and where, when and with
whom; clarifies performance expectations
- Measureable: how much (quantity), how well (quality) and at what cost
- Achievable: challenging but not discouraging
- Relevant: relevant to the job and within his/her control
- Time-framed: when it should be completed/assessed
- Exciting: leads to commitment
- Reviewed: need feedback about reaching goals
• Effective feedback is specific, relevant, timely, credible and sufficiently frequent
• Strengths-based coaching (appreciative coaching) is a positive organisational behaviour approach to
coaching and feedback that focuses on building and leveraging the employee’s strengths rather than trying
to correct his or her weaknesses
• Multisource (360-degree) feedback is information about an employee’s performance collected from a full
circle of people
• Employees usually prefer non-social feedback sources in order to learn about progress towards goal
accomplishment

[5.7] SUMMARISE EQUITY THEORY AND DESCRIBES WAYS TO IMPROVE PROCEDURAL JUSTICE

• Distributive justice is the perceived fairness in the outcomes we receive relative to our contributions and
the outcomes and contributions of others
• Procedural justice is the perceived fairness of the procedures used to decide the distribution of resources
- Improve by giving employees a voice in the process so that their opinion may be heard
- May result in anger to the source of injustice
• Equity theory explains how people develop perceptions of fairness in the distribution and exchange of
resources
- Equality principle operates when we believe that everyone in the group should receive the same
outcomes
- Need principle is applied when we believe that those with the greatest need should receive more
outcomes than others with less need
- Four elements: outcome/input ratio, comparison other, equity evaluation, consequences of inequity
- Companies need to consider both the equity of the distribution or resources but also fairness in the
process of making resource allocation decisions

Chapter Six: Applied Performance Practices


[6.1] IDENTIFY THE MAIN INDIVIDUAL, TEAM AND ORGANISATION-LEVEL REWARDS UTILISED BY ORGANISATIONS
AND DISCUSS THE MEANING OF MONEY IN THE WORKPLACE

• Money (and other financial rewards) is a fundamental part of the employment relationship, but it also
relates to our needs, our emotions and our self-concept
- Viewed as symbol of status and prestige, source of security, evil & anxiety or feeling of inadequacy
• Objectives
- Membership and seniority
§ Attracts job applicants and reduces turnover
- Job status
§ Improves feeling of fairness
§ Job evaluation is systematically rating the worth of jobs within an organisation by measuring
the required skill, effort, responsibility and working conditions

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- Competency
§ Motivate employees to learn new skills
- Performance
§ Individual (commissions)
§ Team
• Gainsharing plan: a team-based reward that calculates bonuses from the work
unit’s cost savings and productivity improvement
§ Organisational
• Employee stock ownership plans (ESOPs) are organisational rewards that
encourages employees to buy company stock, usually at a discounted price
• Stock options gibe employees the right to purchase company stock at a future date
at a predetermined price
• Profit-sharing plan pays bonuses to employees on the basis of the previous year’s
level of corporate profits

[6.2] DESCRIBE SIX WAYS TO IMPROVE REWARD EFFECTIVENESS

• Ensure that rewards are linked to work performance


• Rewards are aligned with performance within the employee’s control
• Team rewards are used where jobs are interdependent
• Rewards are valued by employees
• Rewards have no unintended consequences
• Rewards are adapted to suit the cultural context in which they are used

[6.3] HIGHLIGHT THE ADVANTAGES AND DISADVANTAGES OF JOB SPECIALISATION

• Job design is the process of assigning tasks to a job, including the interdependency of those tasks with other
jobs
• Job specialisation is the result of a division in labour in which work is subdivided into separate jobs for
different people
- Increases work efficiency because: employees master the tasks quickly, spend less time changing
tasks, require less training and can be matched more closing with the jobs best suited to their skills
- May reduce work motivation, create mental health problem, lower product or service quality and
increase costs through discontentment, absenteeism and turnover
• Scientific management is the practice of systematically partitioning work into its smallest elements and
standardising tasks to achieve maximum efficiency

[6.4] DIAGRAM THE JOB CHARACTERISTICS MODEL AND DESCRIBE THREE WAYS TO IMPROVE EMPLOYEE
MOTIVATION THROUGH JOB DESIGN

• Job characteristics model is a job design model that relates the motivational properties of jobs to specific
personal and organisational consequences of those properties
- Skill variety is the extent to which employees must use different skills and talents to perform tasks
within their jobs
- Task identity is the degree to which a job requires completion of a whole or an identifiable piece of
work
- Task significance is the degree to which a job has a substantial impact on the organisation and/or a
larger society
- Autonomy is the degree to which a job gives employees the freedom, independence, and discretion
to schedule their work and determine the procedures used in completing it
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MGMT1135 CHAPTERS 1-6 SUMMARY
- Job feedback is the degree to which employees receive feedback on how well they are doing in their
job
• Jobs vary in required social interaction (task interdependence), predictability of work activities (task
variability) and procedural clarity (task analysability)
• Motivate employees through
- Job rotation reduces boredom, develops a more flexible workforce and reduces incidence of
repetitive strain injuries
- Job enlargement is the practice of adding more tasks to an existing job
- Job enrichment is the practice of giving employees more responsibility for scheduling, coordinating
and planning their own work

[6.5] DEFINE EMPOWERMENT AND IDENTIFY STRATEGIES THAT SUPPORT EMPOWERMENT

• Empowerment is a psychological concept represented by four dimensions: self-determination, meaning,


competence and impact, related to the individual’s role in the organisation
- Self-determination: empowered employees feel they have freedom, independence and discretion
over their work activities
- Meaning: employees who feel empowered care about their work and believe that what they do is
important
- Competence: empowered people are confident about their ability to perform the work well and
have a capacity to grow with new challenges
- Impact: empowered employees view themselves as active participants in the organisation; that is,
their decisions and actions have an influence on the company’s success
• Individual characteristics seem to have a minor influence on empowerment
• Job design is a major influence, particularly autonomy, task identity, task significance and job feedback
• Empowerment is supported at the organisational level through a learning orientation culture, sufficient
information and resources and corporate leaders who trust employees

[6.6] DESCRIBE THE FIVE ELEMENTS OF SELF-LEADERSHIP AND IDENTIFY SPECIFIC PERSONAL AND WORK
ENVIRONMENT INFLUENCES ON SELF-LEADERSHIP

• Self-leadership is the process of influencing oneself to establish the self-direction and self-motivation
needed to perform a task
- Personal goal setting
- Constructive thought patterns
§ Self-talk occurs in any situation in which a person talks to himself or herself about his or
own thoughts or actions
§ Mental imagery involves mentally practising a task and imagining successfully performing it
beforehand
- Designing natural rewards
- Self-monitoring
- Self-reinforcement
• More likely if
- People have higher levels of conscientiousness, extraversion and a positive self-concept
- Workplace supports empowerment and has high trust between employees and management

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