Organization

A consciously coordinated social unit, composed of two or more people, that functions on a relatively continuous basis to achieve a common goal or set of goals.

Managers
Individuals who achieve goals through other people. people.

Examples of Organization: Organization:

Managers do their work in an organization. This is organization. consciously coordinated social unit, composed of two or more people, that functions on a relatively continuous basis to achieve a common goal or set of goals. goals. On the basis of this definition, manufacturing and service firms are organizations and so are schools, hospitals, churches, military units, retail stores, police departments, and local, state, and federal government agencies. agencies. The people who oversee the activities of others and who are responsible for attaining goals in these organizations are managers (although they re sometimes called administrators. administrators.

Management Functions: Functions:

The Management Functions are as follows: follows: The Planning function encompasses defining an organization s goals, establishing an overall strategy for achieving those goals, and developing a comprehensive hierarchy of plans to integrate and coordinate activities. activities. Managers are also responsible for designing an organization s structure. structure. We call this function Organizing. It includes the determination of what Organizing. tasks are to be done, who is to do them, how the tasks are to be grouped, who reports to whom, and where decisions are to be made. made. Every organization contains people, and it is management s job to direct and coordinate those people. This the Leading function. When managers people. function. motivate employees, direct the activities of others, select the most effective communication channels, or resolve conflicts among members, they are engaging in leading. leading. The final function managers perform is Controlling. To ensure that things Controlling. are going as they should, management must monitor the organization s performance. performance.

Management Roles: Roles:

The four roles described Coordinating, Controlling earlier Planning, Organizing,

Interpersonal Roles: Roles:

Communication between human colleagues, supervisors, bosses etc. etc. beings, fellow workers,

Informational Roles: Roles:

The formal flow of upward and downward information within an organization

Decisional Roles: Roles:

Goals and tasks are accomplished through decisions. The process decisions. of decision making in an organization. organization.

Management Skills
Technical Skills: Skills:
Encompass the ability to apply specialized knowledge or expertise. expertise.

Human Skills: Skills:

The ability to work with understanding, and motivate other people, both individually and in groups, describes Human Skills.

Conceptual Skills: Skills:

Managers must have the mental ability to analyze and diagnose complex situations. These tasks require Conceptual situations. Skills. Skills.

Managerial Activities
Management. 1. Traditional Management. Decision making, Planning, and Controlling. Controlling. 2. Communication. Exchanging routine information and processing paperwork. 3. Human Resource Management. Motivating, Discipline, Management. Managing conflict, Staffing, and Training. Training.

Organizational Behavior (OB)

A field of study that investigates the impact that individuals, groups, and structure have on behavior within organizations, for the purpose of applying such knowledge toward improving an organization s effectiveness. effectiveness.

CONTRIBUTING DISCIPLINES TO THE OB FIELD

Organizational behavior is an applied behavioral science that is built on contributions from a number of behavioral disciplines. disciplines. The predominant areas are psychology, sociology, social psychology, anthropology, and political science. science.

BEHAVIORAL SCIENCE

CONTRIBUTION
Learning Motivation Personality Emotions Perceptions Training Leadership Effectiveness Job satisfaction Individual decision making Performance appraisal Attitude measurement Employee selection Work design Work stress Group dynamics Work teams Communication Power Conflict Intergroup behavior

UNIT OF ANALYSIS

OUTPUT

Psychology

Individual

Sociology

Formal organization theory Organizational technology Organizational change Organizational culture Behavioral change Attitude change Communication Group processes Group decision making Comparative values Comparative attitudes Cross-cultural analysis

Group

Study of Organizational Behavior

Social Psychology

Organization System

Anthropology Organizational culture Organizational environment Political Science Conflict Intraorganizational politics Power

Managing Workforce Diversity

Workforce Diversity: Diversity: Means that organizations are becoming more heterogeneous in terms of gender, race, and ethnicity. ethnicity. Recent decades have seen large scale movement of talent and expertise across national boundaries. boundaries. This phenomena or trend is also called brain drain . All kinds, sizes and shapes of people move from one organization to another, creating a need for diversity management. management.

Improving Quality and Productivity: Productivity:

Quality Management (QM): The constant attainment of (QM):
customer satisfaction through the continuous improvement of all organizational processes. processes.

Process reengineering: Reconsidering how work would be reengineering:

done and an organization structured if it were starting over. over. Improving Customer Service Improving people skills Empowering people Stimulating Innovation and Change Helping Employees Balance Work/Life Conflicts Improving Ethical Behavior Absenteeism Turnover Job Satisfaction

HISTORICAL BACKGROUND
Early management pioneers, such as Henri Fayol, Henri Ford, Alfred P. Sloan, and even the scientific managers at the end of the 19th century such as Frederick W. Taylor, recognized the behavioral side of management. management. However, they did not emphasize the human dimension; dimension; they let it play only a minor role in comparison with the roles of hierarchical structure, specialization, and the management functions of planning and controlling. controlling.

HISTORICAL OVERVIEW OF MANAGEMENT

The approaches to Management, historically speaking, can be divided into three major schools. schools. 1. Scientific Management: This School emphasized Management: efficiency. efficiency. 2. Human Relations: Takes into consideration the Relations: human aspects of efficiency. efficiency. 3. Administrative Management: Management: coordinated aspect of Management. Management. Stresses the

The combination of these three Schools of Management has produced highly effective management techniques for which American business is known throughout the world. world.

FREDRICK W. TAYLOR:
Father of scientific management concentrated on the process of finding One Best Way to achieve the highest production from workers. Taylor spent years of his life scientifically designing jobs in order to increase member efficiency. In many ways, Taylor neglected the human aspect of worker production. production. His pig iron handling experiments at the Bethlehem Steel Company in the late 1880s-1890s created the scientific 1880s 1890s managementmanagement-philosophy for which Taylor is famous. famous. Taylor s concept of Optimum Worker Efficiency was demonstrated when he designed a shovel which could carry 21 lbs of coal, as against existing shovels which containing 4 lbs to 30 lbs. lbs. The 21 lbs shovel saved his Company $ 75,000 to 80,000 75, 80, annually; annually; and reduced manpower from 500 to 150 in the Company. Company.

Fredrick & Lillian Gilberth researched into Time & Motion studies of finding the One Best Way of doing a job. job. Lillian Gilberth did a lot of work leading to a field called Personnel Administration. She Was Administration. interested in scientific selection; placement; selection; placement; and training of personnel. For her contribution personnel. she received Ph.D. in Psychology in 1915. Ph. 1915.

Human Relations School: School: In another setting, Scotland, Robert Owen, emphasized the importance of humanizing the management process. process. Eighty years later, a German, Dr. Hugo Dr. Munesterberg was hired by Harvard University; University; and soon became a great industrial psychologist. psychologist. He was credited with developing a lot of aptitude tests .

MayoMayo-Father of Human Relations School

Elton Mayo, the scientist behind Hawthorne experiments at the Western Electric Company marked the point in management history when employees governs began to be taken seriously. seriously. Mayo was credited with developing the Hawthorne Effect; the Effect; special treatment effect. effect. Mayo tried to establish that respectful/respectable treatment of workers pays in the long run. run. Mayo & his associates kept trying many types of production incentives. incentives. Experiments failed because workers wanted a share in the decision making process. process.

Results of Hawthorne Studies

1.Human social & psychological needs are 1.Human every bit as effective as motivates as money. money. 2.The social interaction of the work group is an 2.The influential as the organization of the actual work. work. 3.The human factor cannot be ignored in any 3.The accurate management planning. planning.

The Organizational Behavioral Approach to Management: Management:

Organizational behavior represents the human side of management, not the whole of management. Other management. recognized approaches to management include the process, quantitative, systems, knowledge, and contingency approaches. approaches. In other words, organizational behavior does not intend to portray the whole of management. management.

O.B. CHARACTERISTICS
We are essentially concerned with finding and analyzing the variables that have an impact on employee productivity, absence turnover, and satisfaction. satisfaction. Obvious characteristics are an employee s age, gender, marital status, and length of service with an organization. organization.

Age: Age: The relationship between age and job

performance is likely to be an increasing importance. importance. issue of

Advantages of Older Workers: Workers: 1. They see a number of positive qualities that older workers bring to their jobs: specifically, jobs: experience, judgment, a strong work ethic, and commitment to quality. Older workers are quality. also perceived as lacking flexibility and as being resistant to a new technology. technology.

Disadvantages: Disadvantages: 2. And in a time when organization actively seek individuals who are adaptable and open to change, the negatives associated with age clearly hinder the initial hiring of older workers and increase the likelihood that they will be let go during cutbacks. cutbacks.

Gender: Gender: Few issues initiate more debates,

misconceptions, and unsupported opinions than whether women perform as well on jobs as men do. do. In this section, we review the research on that issue. issue. The evidence suggests that the best place to begin is with the recognition that there are few, if any, important differences between men and women that will affect their job performance. performance.

Similar Output: Output:

There are, for instance, no consistent male-female maledifferences in problem-solving ability, analytical problemskills, competitive drive, motivation, sociability, or learning ability. ability. Psychological studies have found that women are more willing to conform to authority and that men are more aggressive and more likely than women to have expectations of success, but those differences are minor. minor.

Fair Assumption in Organizations: Organizations:

Given the significant changes that have taken place in the past 30 years in terms of increasing female participation rates in the workforce and rethinking what constitutes male and female participation rates in the workforce and rethinking what constitutes male and female roles, you should operate in the assumption that there is no significant difference in job productivity between men and women. Similarly, there is no evidence women. indicating that an employee s gender affects job satisfaction. satisfaction.

Research in Western Countries: Countries:

But what about absence and turnover rates? Are women less stable employees than men? First, on the question of turnover, the evidence indicates no significant differences. Women s differences. quit rates are similar to those for men. The men. research on absence, however, consistently indicates that women have higher rates of absenteeism than men do. do.

Marital Status: Status:

There are not enough studies to draw any conclusions about the effect of marital status on productivity. But research consistently productivity. indicates that married employees have fewer absences, undergo less turnover, and are more satisfied with their jobs than are their unmarried coworkers. coworkers.

Tenure: Tenure:
The last O.B. characteristic we ll look at is tenure. tenure. With the exception of the issue of male-female maledifferences, probably no issue is more subject to misconceptions and speculations than the impact of seniority on job performance. Extensive reviews of performance. the seniority productivity relationship have been conducted. conducted. If we define seniority as time on a particular job, we can say that the most recent evidence demonstrates a positive relationship between seniority and job productivity. So tenure, productivity. expressed as work experience, appears to be a good predictor of employee productivity. productivity.

Ability: Ability: An individual s capacity to perform the various tasks in a job. job. Intellectual ability: ability: The capacity to do mental activities. activities. Multiple Intelligences: Intelligences: Intelligence contains four subparts: subparts: Cognitive, social, emotional, and cultural. cultural.

Physical ability: The capacity to do tasks demanding ability: stamina, dexterity, strength, and similar characteristics. characteristics. Learning: Learning: Any relatively permanent change in behavior that occurs as a result of experience. experience. You can t Teach an Old Dog New Tricks! This statement is false. It reflects the widely held stereotype false. that older workers have difficulties in adapting to new methods and techniques. techniques. Studies consistently demonstrate that older employees are perceived as being relatively inflexible, resistant to change, and less trainable than their younger counterparts, particularly with respects to information technology skills. But these perceptions skills. are wrong. wrong.

Shaping: Shaping: A Managerial Tool Shaping behavior: Systematically reinforcing behavior:

each successive step that moves an individual closer to the desired response. response.

Methods of Shaping Behavior: There are Behavior:

four ways in which to shape behavior: through behavior: positive reinforcement, negative reinforcement, punishment, and extinction. Both positive and extinction. negative reinforcement result in learning. They learning. strengthen a response and increase the probability of repetition. repetition.

Well Pay Versus Sick Pay: Pay: attendance not absent. absent.

Organizations should reward

Employee Discipline: Disciplining employees for undesirable Discipline: behaviors tells them only what not to do. It doesn t tell them do. what alternative behaviors are preferred. Discipline does have preferred. a place in organizations. In practice, it tends to be popular organizations. because of its ability to produce fast results in the short run. run. Developing Training Programs: Most organizations have Programs: some type of systematic training programs. programs. Self-Management: Self-Management: Learning techniques that allow individuals to manage their own behavior so that less external management control is necessary. necessary.

Values, Attitudes, and Job Satisfaction

Values: Values: Basic convictions that a specific mode of conduct or endend-state of existence is personally or socially preferable to an opposite or converse mode of conduct or end-state of existence. They contain a judgmental endexistence. element in that they carry an individual s ideas as to what is right , good, or desirable. Values have both desirable. content and intensity attributes. The content attribute attributes. says that a mode of conduct or end-state of existence is endimportant. important. The intensity attribute specifies how important it is. is.

Values System: System: A hierarchy based on a ranking of an individual s values in terms of their intensity. When we rank intensity. an individual s values in terms of their intensity, we obtain that person s value system. All of us system. have a hierarchy of values that forms our value system. system. This system is identified by the relative importance we assign to values such as freedom, pleasure, selfrespect, honesty, obedience, and equality. equality.

are important to the study of organizational behavior because they lay the foundation for the understanding of attitudes and motivation and because they influence our perceptions. Individuals enter an organization with preconceived notions of what ought and what ought not to be. Suppose that you enter an organization with the view that allocating pay on the basis of seniority is wrong or inferior. How are you going to react if you find that the organization you have just joined rewards seniority and not performance?

Importance

of

Values: Values

Attitudes:

Evaluate statements or judgments concerning objects, people, or events. Attitudes are evaluate statements either favorable or unfavorableconcerning objects, people, or events. They reflect how one feels about something. When I say I like my job, I am expressing my attitude about work. Attitudes are not the same values, but the two are interrelated. You can see this by looking at the three components of an attitude: cognition, affect, and behavior.

In organizations, attitudes are important because they affect job behavior. If workers believe, for example, that supervisors, auditors, bosses, and time-and-motion engineers are all in conspiracy to make employees work harder for the same or less money, then it makes sense to try to understand how these attitudes were formed, their relationship to actual job behavior, and how they might be changed.

Cognitive Component of an attitude

The opinion or belief segment of an attitude.

Effective Component of an attitude

The emotional or feeling segment of an attitude.

Behavioral Component of an attitude

An intention to behave in a certain way toward someone or something.

Types of Attitudes
Most of the research in OB has been concerned with three attitudes: Job Satisfaction, Job Involvement, and Organizational Commitment.

Job Satisfaction:
The term job satisfaction refers to an individuals general attitude toward his or her job. A person with a high level of job satisfaction holds positive attitudes abut the job, while a person who is dissatisfied with his or her job holds negative attitudes about the job. When people speak of employee attitudes, more often that not they mean job satisfaction.

Job Involvement:
The degree to which a person identifies with his or her job, actively participates in it, and considers his or her performance important to self-worth. Job involvement measures the degree to which a person identifies psychologically with his or her job and considers his or her perceived performance level important to selfworth.

Organizational Commitment: The degree to which an employee identifies with a particular organization and its goals, and wishes to maintain membership in the organization. Organizational Commitment the third, job attitude we will discuss is organizational commitment, which is defines as a state in which an employee identifies with a particular organization and its goals, and wishes to maintain membership in the organization. So, high job involvement means identifying with ones specific job, while high organizational commitment means identifyi8ng with ones employing organization.

The Effect of Job Satisfaction on Employee Performance Managers insert in job satisfaction tends to center on its effect on employee performance. Researchers have recognized this interest, so we find a large number of studies that have been designed to assess the impact of job satisfaction on employee productivity, absenteeism, and turnover.

Happy Workers Are Productive Workers

This statement is generally false. The myth that happy workers are productive workers developed in the 1930s and 1940s largely as a result of findings drawn by researchers conducting the Hawthorne studies at Western Electric. Based on those conclusions, managers began efforts to make their employees happier by engaging in practices such as laissez-faire leadership, improving working conditions, expanding health and improving working conditions, expanding health and family benefits such as insurance and college tuition-reimbursement, providing company picnics and other informal gettogethers, and offering counseling services for employees.

Satisfaction and Productivity: As the Myth or Productivity: Science? box concludes, happy workers aren t necessarily productive workers. At the individual level, workers. the evidence suggests the reverse to be more accurate that productivity is likely to lead to satisfaction. satisfaction. Satisfaction and Absenteeism: We find a consistent Absenteeism: negative relationship between satisfaction and absenteeism. absenteeism. Satisfaction and Turnover: Satisfaction is also Turnover: negatively related to turnover. turnover.

How Employees Can Express Dissatisfaction

Dissatisfaction expressed through behavior directed toward leaving the organization.

Exit:

Voice:

Dissatisfaction expressed through active and constructive attempts to improve conditions.

Loyalty:
Dissatisfaction expressed by passively waiting for conditions to improve.

Neglect:
Dissatisfaction expressed through allowing conditions to worsen.

Job Satisfaction and Customer Satisfaction

The evidence indicates that satisfied employees increase customer satisfaction and loyalty.

Personality and Emotions

Personality:
Dissatisfaction expressed through behavior directed toward leaving the organization.

Personality Determinants Heredity:

Heredity refers to those factors that were determined at conception. Physical Stature, facial attractiveness, gender, temperament, muscle composition and reflexes, energy level, and biological rhythms are characteristics that are generally considered to be either completely or substantially influenced by who your parents are; that is, by their biological, physiological, and inherent psychological makeup.

If personality characteristics were completely dictated by heredity, they would be fixed at birth and no amount of experience could alter them. If you were relaxed and easy going as a child, for example, that would be the result would not be possible for you to change those characteristics. But personality characteristics are not completely dictated by heredity.

Environment:
Among the factors that exert pressures on our personality formation are the culture in which we are raised; our early conditioning; the norms among our family, friends, and social groups; and other influences that we experience. These environmental factors play a substantial role in shaping our personalities. For example, culture establishes the norms, attitudes, and values that are passed along from one generation to the next and create consistencies over time. An ideology that is intensely fostered in one culture may have only moderate influence in another.

Careful consideration of the arguments favoring either heredity or environment as the primary determinant of personality forces the conclusion that both are important. Heredity sets the parameters or outer limits, but an individuals full potential will be determined by how he or she adjusts to the demands and requirements of the environment. Situation A third factor, the situation, influences the effects of heredity and environment on personality. An individuals personality, although generally stable and consistent, does change in different situations. The different demands of different situations call forth different aspects of ones personality. So we shouldnt look at personality patterns in isolation.

It seems only logical to suppose that situations will influence an individuals personality, but a neat classification scheme that would tell us the impact of various types of situations has so far eluded us. However, we do know that certain situations are more relevant that others in influencing personality.

Personality Traits: Enduring characteristics that describe an

individuals behavior.

The Big Five Models: Extraversion: A personality dimension describing someone who is
sociable, gregarious, and assertive.

Agreeableness: A personality dimension that describes someone who

is good-natured, cooperative, and trusting.

Conscientiousness:

A personality dimension that describes someone who is responsible, dependable, persistent, and organized. A personality dimension that characterizes someone as calm, self-confident, secure (positive) versus nervous, depressed, and insecure (negative). A personality dimension that characterizes someone in terms of imagination, sensitivity, and curiosity.

Emotional Stability:

Openness

to

Experience:

Locus of Control:
Some people believe that they are masters of their own fate. Other people see themselves as pawns of fate, believing that what happens to them in their lives is due to luck or chance The first type, those who believe that they control their destinies, have been labeled internals, whereas the latter, who see their lives as being controlled by outside forces, have been called externals. A persons perception of the source of his or her fate is termed locus of control.

Internals:
Individuals who believe that they control what happens.

Externals:
Individuals who believe that what happens to them is controlled by outside forces such as luck or chance.

Self-esteem:
Individuals degree of liking or disliking themselves. People differ in degree to which they like or dislike themselves . This trait is called self-esteem. The research of self-esteem (SE) offers some interesting insights into organizational behavior. For example, self-esteem is directly related to expectations for success. High SEs believe that they possess the ability they need to succeed at work.

Individually with high self-esteem will take more risks in job selection and are more likely to choose unconventional jobs than people with low selfesteem. The most generalizable finding on selfesteem is that low SEs are more susceptible to external influence than are high SEs. Low SEs are dependent on the receipt of positive evaluations from others. As a result, they are more likely to seek approval from others and more prone to conform to the beliefs and behavior those they respect than are high SEs. In managerial positions, low SEs will tend to be concerned with pleasing others and, therefore, are less likely to take unpopular stands than are high SEs.

Self-Monitoring: A personality trait that has recently received increased attention is called selfmonitoring. It refers to an individuals ability to adjust his or her behavior to external, situational factors. Individuals high in self-monitoring show considerable adaptability in adjusting their behavior to external situational factors. They are highly sensitive to external cues and can behave differently in different situations. High self-monitors are capable of presenting striking contradictions between their public persona and their private self. Low self-monitors cant disguise themselves in that way. They tend to display their true dispositions and attitudes in every situation; hence, there is high behavioral consistency between who they are and what they do.

However, preliminary evidence suggests that high self-monitors tend to pay closer attention the behavior of others and are more capable of conforming than are low self-monitors. In addition, high self-monitoring managers tend to be more mobile in their careers, receive more promotions (both internal and cross-organizational), and are more likely to occupy central positions in an organization. We might also hypothesize that high self-monitors will be more successful in managerial positions in which individuals are required to play multiple, and even contradicting, roles. The high self-monitor is capable of putting on different faces for different audiences.

Risk Taking: People differ in their willingness to take chances. This propensity to assume or avoid risk has been shown to have an impact on how long it takes managers to make a decision and how much information they require before making their choice. In general, managers in large organizations tend to be risk averse, especially in contrast to growthoriented entrepreneurs who actively manage small businesses.

Types of Personality:

Do you know people are excessively competitive and always seem to be experiencing a sense of time urgency? aggressively involved in a chronic, incessant struggle to achieve more and more in less and less time, and, if required to do so, against the opposing efforts of other things or other persons.

Type A Personality:
1. Are always moving, walking, and eating rapidly; 2. Feel impatient with the rate at which most events take place; 3. Strive to think or do two or more things at once; 4. Cannot cope with leisure time; 5. Are obsessed with numbers, measuring their success in terms of how many or how much of everything they acquire.

Type B Personality:
1. Never suffer from a sense of time urgency with its accompanying impatience; 2. Feel no need to display or discuss either their achievements or accomplishments unless such exposure is demanded by the situation; 3. Play for fun and relaxation, rather than to exhibit their superiority at any cost; 4. Can relax without guilt. Type As operate under moderate to high levels of stress. They subject themselves to more or less continuous time pressure, creating for themselves a life of deadlines. These characteristics result in some rather specific behavioral outcomes.

For example, Type As are fast workers, because they

emphasize quantity over quality. In managerial positions, Type As demonstrate their competitiveness by working long hours and, not infrequently, making poor decisions because they make them too fast. Type As are also rarely creative. Because of their concern with quantity and speed, they rely on past experience when faced with problems. They will not allocate the time necessary to develop unique solutions to new problems. They rarely vary in their responses to specific challenges in their milieu; hence, their behavior is easier to predict than that of Type Bs. Type As do better in job interviews because they are more likely to be judged as having desirable traits such as high drive, competence, aggressiveness, and success motivation. Are Type As or Type Bs more successful in organizations? Despite the Type As hard work, the Type Bs re the ones who appear to make it to the top. Great salespersons are usually Type As; senior executives are usually Type Bs.

Deep Down, People Are All Alike

This statement is essentially false. Only in the broadest sense can we say that people are all alike. For instance, its true that people all have values, attitudes, like and dislikes, feelings, goals, and similar general attributes. But individual differences are far more illuminating. People differ in intelligence, personality, abilities, ambition, motivation, emotional display, values, priorities, expectations, and the like. If we want to understand, explain, or predict human behavior accurately, we need to focus on individual differences. Your ability to predict behavior will be severely limited if you constantly assume that all people are alike or that everyone is like you.

skill, strength, and coordination.

Realistic: Prefers physical activities that require Investigative: Prefers activities that involve

thinking, organizing, and understanding.

Social: Prefers activities that involve helping and

developing others.

Conventional: Prefers rule-regulated, orderly,

and unambiguous activities. Prefers verbal activities in which there are opportunities to influence others and attain power. Prefers ambiguous and unsystematic activities that allow creative expression.

Enterprise:

Artistic:

What are emotions?

Affect:
experience. Intense feeling that are directed at someone or something. Feelings that tend to be less intense than emotions and that lack a contextual stimulus. A situation in which an employee expresses organizationally desired emotions during interpersonal transactions. A broad range of feelings that people

Emotions: Moods:

Emotional Labor:

Felt Versus Displayed Emotions:

There are people with whom you have to work toward whom you find it very difficult to be friendly. May be you consider their personality abrasive. May be you know theyve said negative things about you behind your back. Regardless, your job requires you to interact with these people on a regular basis. So youre forced to feign friendliness.

Felt Emotions:
emotions.

An individuals actual

Displayed Emotions:
organizationally required appropriate in a given job.

Emotions that are and considered

Emotions Dimensions

Variety:

There are dozens of emotions. They include anger, contempt, enthusiasm, envy, fear, frustration, happiness, hate, hope, jealousy, joy, love, pride, surprise, and sadness. One way to classify them is by whether they are positive or negative. Positive emotionslike happiness and hopeexpress the opposite. Emotions Dimensions
Happiness Surprise Fear Sadness Anger Disgust

Perception and Individual Decision Making

Perception: A process by which individuals organize and interpret
their sensory impressions in order to give meaning to their environment. Why is perception important in the study of OB? Simply because peoples behavior is based on their perception of what reality is, not on reality itself. The world as it is perceived is the world that is behaviorally important.

Factors influencing perception:

When an individual looks at a target and attempts to interpret what he or she sees, that interpretation is heavily influenced by the personal characteristics of the individual perceiver. Personal characteristics that affect perception include a persons attitude personality, motives, interests, past experiences, and expectations. People selectively interpret what they see on the basis of their interests, background, experience, and attitudes.

Selective perception:

A Drawing a general impression about an individual on the basis of a single characteristics. When we draw a general impression about an individual on the basis of single characteristic, such as intelligence, sociability, or appearance, a Halo effect is operating. The reality of the halo effect was confirmed in a classic study in which subjects were given a list of traits such as intelligent, skillful, practical, industrious, determined, and warm and were asked to evaluate the person to whom those traits applied. When those traits were used, the person was judged to be wise, humorous, popular, and imaginative. When the same list was modifiedcold was substituted for warm a completely different set of perceptions was obtained. Clearly, the subjects were allowing a single trait to influence their overall impression of the person being judged.

Halo Effect:

Contrast Effects :

Evaluation of a persons characteristics that are affected by comparisons with other people recently encountered who rank higher or lower on the same characteristics. own

Projection:

Attributing ones characteristics to other people.

Stereotyping:

Judging someone on the basis of ones perception of the group to which that person belongs.

Specific Applications in Organizations: People in organizations are always judging each other. Managers must appraise their employees performances. We evaluate how much effort our co-workers are putting into their jobs. When a new person joins a work team, he or she is immediately sized up by the other team members. In many cases, these judgments have important consequences for the organization. Lets briefly look at a few of the more obvious applications.

Employment Interview:
Interviews generally draw early impressions that become very quickly entrenched. If negative information is exposed early in the interview, it tends to be more heavily weighted than if that same information comes out later. Studies indicate that most interviewers decisions change very little after the first four or five minutes of the interview. Aas result, information elicited early in the interview carries greater weight than does information elicited later, and a good applicant is probably characterized more by the absence of unfavorable characteristics than by the presence of favorable characteristics.

A situation in which one person inaccurately perceives a second person and the resulting expectations cause the second person to behave in ways consistent with the original perception. The terms self-fulfilling prophecy, or Pygmalion effect, have evolved to characterize the fact that peoples expectations determine their behavior. In other words, if a manager expects big things from his people, theyre not likely to let him down. Similarly, if a manager expects people to perform minimally, theyll tend to behave so as to meet those low expectations. The result then is that the expectations become reality.

Self-fulfilling Prophecy:

THE LINK BETWEEN PERCEPTION AND INDIVIDUAL DECISION MAKING

DECISION: The choices made from among two or more alternatives. Individuals in organizations make decisions. That is, they make choices from among two or more alternatives. Top managers, for instance, determine their organizations goals, what products or services to offer, how best to finance operations, or where to locate a new manufacturing plant. Middle-and lower-level managers determine production schedules, select new employees, and decide how pay raises are to be allocated. Of course, making decisions is not the sole province of managers. Non-managerial employees also make decisions that affect their jobs and the organizations for which they work.

Problem: A discrepancy between some current state of affairs and some desired state. Decision making occurs as a creation to a Problem. That is, there is a discrepancy between some current state of affairs and some desired state, requiring the consideration of alternative courses of action. So if your car breaks down and you rely on it to get to work, you have a problem that requires a decision on your part. Unfortunately, most problems dont come neatly packaged with a label problem clearly displayed on them. One persons problem is another persons satisfactory state of affairs. One manager may view her divisions two percent decline in quarterly sales to be a serious problem requiring immediate action on her part. In contrast, her counterpart in another division of the same company, who also had a two percent sales decrease, may consider that percentage quite acceptable.

How Should Decisions Be Made

The Rational Decision-Making Process: Rational: Making consistent, value-maximizing choices within specified constraints.

Steps in the Rational Decision-Making Model Decision1. 2. 3. 4. 5. 6. Define the Problem Identify the decision criteria Allocate weights to the criteria Develop the alternatives Evaluate the alternatives Select the best alternative

The Rational Model: The six steps in rational decision-making model are:
The Model begins by defining the problem. Once a decision maker has defined the problem, he or she needs to identify the decision criteria that will be important in solving the problem. In this step, the decision maker determines what is relevant in making the decision. This step brings the decision makers interests, values and similar personal preferences into the process. Identifying criteria is important because what one person thinks is relevant another person may not. To weight the previously identified criteria in order to give them the correct priority in the decision.

The fourth step requires the decision maker to generate possible alternatives that could succeed in resolving the problem. No attempts is made in this step to appraise these alternatives, only to list them. This is done by rating each alternative on each criterion. The strengths and weaknesses of each alternative become evident as they are compared with the criteria and weights established in the second and third steps. The final step in this model requires computing the optimal decision. This is done evaluating each alternatives against the weighted criteria and selecting the alternative with the highest total score.

Assumptions of the Model

Problem Clarity: The Problem is clear and unambiguous. The decision maker is assumed to have complete information regarding the decision making. Known Options: It is assumed the decision maker can identify all the relevant criteria and can list all the viable alternatives. Clear Preferences: Rationally assumes that the criteria and alternatives can be ranked and weighted to reflect their importance.

Constant Preferences: Its assumed that the specific design criteria are constant and that the weights assigned to them are stable over time. No time or cost constraints: The rational decision maker that there are no time or cost constraints. Maximum Payoff: The rational decision maker will choose the alternative that yields the highest perceived value.

Improving Creativity in Decision Making

The rational decision maker needs creativity, that is, the ability to produce novel and useful ideas. These are ideas that are different from whats been done before but that are also appropriate to the problem or opportunity presented.

Three-Component Model of Creativity

i. Expertise in the foundation for all creative work. ii. The second component is creative-thinking skills. iii. The final component is our model is intrinsic task motivation. This is the desire to work on something because its interesting, involving, exciting, satisfying, or personally challenging. This motivational component is what turns creativity potential into actual creative ideas. It determines the extent to which individuals fully engage their expertise and creative skills. So creative people often love their work, to the point of seeming obsessed.

How are decisions actually mad in Organization

Are decision makers in organization rational? Do they carefully assess problems, identify all relevant criteria, use their creativity to identify all viable alternatives. Most decisions in the real world dont follow the rational model. For instance, people are usually content to find an acceptable or reasonable solution to their problem rather than an optimal one. As such, decision makers generally make limited use of their creativity.

Bounded Rationality
Individuals make decisions by constructing simplified models that extract the essential features from problems without capturing all their complexity. Because the capacity of the human mind for formulating and solving complex problems is far too small to meet the requirements for full rationality, individuals operate within the confines of bounded rationality.

How does bounded rationality work for the typical individual? Once a problem is identified, the search for criteria and alternatives begins. But the list of criteria is likely to be far from exhaustive. The decision maker will identify a limited list made up of the more conspicuous choices. These are the choices that are easy to find and that tend to be highly visible. Once this limited set of alternatives is identified, the decision maker will began reviewing them.

But the review will not be comprehensivenot all the alternatives will be carefully evaluated. Instead, the decision maker will begin with alternatives that differ only in a relatively small degree from the choice currently in effect. Following along familiar and well-worn paths, the decision maker proceeds to review alternatives only until he or she identifies an alternative that is good enoughone that meets an acceptable level of performance. The first alternative that meets the good enough criterion ends the search. So the final solution represents a satisfaction choice rather than an optimal one.

Bin order to avoid information overload, decision makers rely on heuristics, or judgmental shortcuts, in decision making. There are two common categories of heuristicsavailability and representatives. The tendency for people to base their judgments on information that is readily available to them. Assessing the likelihood of an occurrence by drawing analogies and seeing identical situations in which they dont exist. An increased commitment to a previous decision in spite of negative information.

Making Choice Biases that creep in:

Availability Heuristic:

Representative Heuristic:

Escalation of Commitment:

Decision Making Styles:

1. The basic foundation of the model is the recognition that people differ along two dimensions. 2. The first is their way of thinking. Some people are logical and rational. They process information serially. 3. In contrast, some people are intuitive and creative. They perceive things as a whole. Note that these differences are above and beyond general human limitations such as those we described regarding bounded rationality. The other dimension addresses a persons tolerance for ambiguity. Some people have a high need to structure information in ways that minimize ambiguity, while others are able to process many thoughts at the same time.

There are: behavioral.

directive,

analytic,

conceptual,

and

People using the directive style have a low tolerance for ambiguity and seek rationality. They are efficient and logical but their efficiency concerns result in decisions made with minimal information and with few alternatives assessed. Directive types make decisions fast and they focus on the short run. The analytic type has a much greater tolerance for ambiguity than do directive decision makers. This lead to the desire for more information and consideration of more alternatives than is true for directives. Analytic managers would be with novel and unexpected situations.

Individuals with a conceptual style tend to use data from multiple sources and consider many alternatives. Their focus is long range, and they are very good at finding creative solutions to problems. The final categorythe behavioral style characterizes decision makers who have a strong concern for the people in the organization and their development. Theyre concerned with the well-being of their subordinates and are receptive to suggestions from others. Although these four categories are distinct, most managers have characteristics that fall into more than one. Its probably best to think in terms of a managers dominant style and his or her backup styles.

What about Ethics in Decision Making

Three Ethical Decision Criteria Utilitarianism: Decisions are made to provide the greatest good for the greater number. Whistle-blowers: Individuals who report unethical practices by their employer to outsiders. Another ethical criterion is to focus on rights. This calls on individuals to make decisions consistent with fundamental liberties and privileges as set forth in documents like the Bill of Rights. A third criterion is to focus on justice. This requires individuals to impose and enforce rules fairly and impartially so that there is an equitable distribution on benefits and costs. Union members typically favour this view. It justifies paying people the same wage for a given job, regardless of performance differences, and using seniority as the primary determination in making layoff decisions.

Ethics and National Culture: What is seen as an ethical decision in China may not to be seen as such in Canada. The reason is that there are no global ethical standards. Contrasts between Asia and the West provide an illustration. Because bribery is commonplace in countries such as China, a Canadian working in China might face the dilemma: Should I pay a bribe to secure business if it is an accepted part of that countrys culture?

Although ethical standards may seem ambiguous in the West, criteria defining right and wrong are actually much clearer in the West than in Asia. Few issues are black and white there; most are gray. The need for a global organizations to establish ethical principles for decision makers in countries such as India and China, and modifying them to reflect cultural norms, may critical if high standards are to be upheld and if consistent practices are to be achieved.