Bài giảng PPT (Power Point) học phần Hành vi tổ chức | NEU

Bộ slide bài giảng gồm 12 bài giúp sinh viên củng cố kiến thức và đạt điểm cao trong bài thi kết thúc học phần Hành vi tổ chức.

Thông tin:
93 trang 1 năm trước

Bình luận

Vui lòng đăng nhập hoặc đăng ký để gửi bình luận.

Bài giảng PPT (Power Point) học phần Hành vi tổ chức | NEU

Bộ slide bài giảng gồm 12 bài giúp sinh viên củng cố kiến thức và đạt điểm cao trong bài thi kết thúc học phần Hành vi tổ chức.

381 191 lượt tải Tải xuống
(c) 2008 Prentice-Hall, All rights
reserved. 1
ORGANIZATIONAL BEHAVIOR
Instructor: Assoc. Prof. Dr. Pham Thi Bich Ngoc
Faculty of Human Resources Economics and Management
NEU
Course Objectives
The course is designed to give students the basic
knowledge of human behavior in organizations and how
to apply this knowledge to increase the organization
effectiveness. After taking this class, the students should
all be able to:
Demonstrate an understanding of basic theory and research
related to contemporary issues in organizational behavior.
Demonstrate an understanding of individual behavior and the
links between individual behavior and its social and organizational
context.
Demonstrate ability to apply OB theories to discuss work issues
and to develop constructive proposals for dealing with that issues.
Exhibit analytical, research, teamworking and presentation skills
1-1
COURSE READING MATERIAL
Text book:
S. P. Robbins and T. A. Judge (2017). Organizational Behavior
(Global Edition). Prentice Hall, USA
Reference book
Moorheard, G. and Griffin, R. W., 2012, Managing Organizational
behavior, International Edition, US, South-Western Cengage Learning
John R Schermerhorn, Jr., Richard N. Osborn, James G. Hunt, Mary
Uhl-Bien (2012) Organizational Behavior: International Student
Version (12
th
Edition). Wiley John & Sons.
Laurie J. Mullins (2016). Management Organizational Behavior (11
th
Edition). Prentice Hall.
McShane, S. L, Glinow, M. A. V. (2010), Organizational Behavior
(5
th
Edition) The McGraw-Hill Companies, Inc., USA
1-2
0
1
2
(c) 2008 Prentice-Hall, All rights
reserved. 2
Course schedule
1-3
Session Topics
Session 1
Introduction and Chapter 1
Session 2
Chapter 2: Diversity in Organizations
Chapter 3: Attitudes and Job Satisfaction
Session 3
Chapter 5: Personality & Values
Chapter 6: Perception and individual decision making
Session 4,5
Chapter 7: Motivation Concepts
Chapter 8: Motivation: From Concepts to Applications
Session 6
Chapter 9: Foundations of Group Behavior
Chapter 10: Understanding Work Teams
Session 7
Chapter 11: Communication
Session 8
Chapter 12: Leadership
Session 9
Chapter 15: Foundations of Organization structure
Session 10
Chapter 16: Organizational Culture
Session 11,12,13
Group presentation
ASSESSMENT
10% Participation in class
20% Midterm examination (Individual
test)
20% Group assignments
50% Final examination
1-4
Unit 1:
Introduction to Organizational Behavior
3
4
5
(c) 2008 Prentice-Hall, All rights
reserved. 3
Learning Objectives
After studying this unit, you should be able to:
Identify the functions that comprise the management process
and relate them to organizational behavior.
Relate organizational behavior to basic managerial roles and
skills.
Demonstrate the importance of interpersonal skills in the
workplace
Define organizational behavior (OB).
Importance and functions of OB
Identify the major behavioral science disciplines that
contribute to OB.
Identify the challenges and opportunities managers have in
applying OB concepts.
1-6
Environment
What is an organization?
1-7
Resources
GoalsMechanism
Types of employees
Senior
managers
Line managers
Supervisors
Operatives
1-8
6
7
8
(c) 2008 Prentice-Hall, All rights
reserved. 4
Organization as an open system
1-9
What Managers Do
They get things done through other people.
Management Activities:
Make decisions
Allocate resources
Direct activities of others to attain goals
1-10
The Nature of Managerial Work
Management’s Contribution to Effectiveness
Feedback
Management
Plans
Organizes
Leads
Controls
To Coordinate
the Behavior of
Individuals
Groups
Organizations
To Attain
Effectiveness of
Individuals
Groups
Organizations
9
10
11
(c) 2008 Prentice-Hall, All rights
reserved. 5
Management Functions
Control
Lead
Organize
Plan
1-12
Based on your own experiences or observations, provide
examples of each function?
Discovered ten managerial roles
Separated into three groups:
Interpersonal
Informational
Decisional
Mintzberg’s Managerial Roles
1-13
Mintzberg’s Managerial Roles: Interpersonal
1-14
12
13
14
(c) 2008 Prentice-Hall, All rights
reserved. 6
Mintzberg’s Managerial Roles: Informational
Source: Adapted from The Nature of Managerial Work by H. Mintzberg. Copyright ©
1973 by H. Mintzberg. Reprinted by permission of Pearson Education.
1-15
Mintzberg’s Managerial Roles: Decisional
Source: Adapted from The Nature of Managerial Work by H. Mintzberg. Copyright ©
1973 by H. Mintzberg. Reprinted by permission of Pearson Education.
1-16
Katz’s Essential Management Skills
Technical Skills
The ability to apply specialized
knowledge or expertise
Human Skills
The ability to work with, understand,
and motivate other people, both
individually and in groups
Conceptual Skills
The mental ability to analyze and
diagnose complex situations
1-17
15
16
17
(c) 2008 Prentice-Hall, All rights
reserved. 7
118
Managerial Skills at Different Organizational Levels
Top
manager
Middle
manager
First-line
manager
Technical
skills
Conceptual skills
Interpersonal
skills
Diagnostic skills
The Importance of Interpersonal Skills
Interpersonal skills are important because…
‘Good places to work have better financial performance.
Better interpersonal skills result in lower turnover of
quality employees and higher quality applications for
recruitment.
There is a strong association between the quality of
workplace relationships and job satisfaction, stress, and
turnover.
It fosters social responsibility awareness.
Organizational Behavior
“OB is the study of human behavior
in organizational settings, the
interface between human behavior
and the organization, and the
organization itself (Griffin et al.,
2012)
Organizational behavior (OB) is 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.
1-20
Human behavior in
organizational settings
The Organization
The Individual-
Organization Interface
Environment
Environment
18
19
20
(c) 2008 Prentice-Hall, All rights
reserved. 8
Intuition and Systematic Study
Gut feelings
Individual observation
Commonsense
Intuition
Looks at relationships
Scientific evidence
Predicts behaviors
Systematic
Study
The two are complementary means of predicting behavior.
1-21
Complementing Intuition with Systematic Study
Systematic Study of Behavior
Behavior generally is predictable if we know how the person
perceived the situation and what is important to him or her.
Evidence-Based Management (EBM)
Complements systematic study.
Argues for managers to make decisions based on evidence.
Intuition
Systematic study and EBM add to intuition, or those “gut
feelings” about “why I do what I do” and “what makes
others tick.”
If we make all decisions with intuition or gut instinct, we’re
likely working with incomplete information.
Contributing Disciplines
Psychology
Sociology
Social
Psychology
Anthropology
Many behavioral sciences
have contributed to the
development of
Organizational
Behavior
1-23
21
22
23
(c) 2008 Prentice-Hall, All rights
reserved. 9
Challenges and Opportunities for OB
Globalization
Responding to economic pressure
Diversity workforces
Improving customer service
Using social media at work
Improving ethical behavior
Enhancing employee well-being at work
Employment options
Innovation and change
1-24
Three Levels of Analysis OB Model
Inputs
Variables like personality,
group structure, and
organizational culture that
lead to processes.
Group structure, roles,
and team responsibilities
are typically assigned
immediately before or
after a group is formed.
Organizational structure
and culture change over
time.
Three Levels of Analysis OB Model
24
25
26
(c) 2008 Prentice-Hall, All rights
reserved. 10
Processes
If inputs are like the nouns
in organizational behavior,
processes are like verbs.
Defined as actions that
individuals, groups, and
organizations engage in as a
result of inputs, and that
lead to certain outcomes.
Three Levels of Analysis OB Model
Outcomes
Key variables that you want
to explain or predict, and
that are affected by some
other variables.
Three Levels of Analysis OB Model
Outcome Variables
Attitudes and stress
Employee attitudes are the evaluations employees make,
ranging from positive to negative, about objects, people, or
events.
Stress is an unpleasant psychological process that occurs in
response to environmental pressures.
27
28
29
(c) 2008 Prentice-Hall, All rights
reserved. 11
Outcome Variables
Task performance
The combination of effectiveness and efficiency at doing
your core job tasks is a reflection of your level of task
performance (Routine task performance, Adaptive task
performance, creative task performance)
Outcome Variables
- Counterproductive behavior: employee behaviors that intentionally
hinder organizational goal accomplishment
Outcome Variables
Organizational citizenship behavior
The discretionary behavior that is not part of an employee’s
formal job requirements, and that contributes to the
psychological and social environment of the workplace, is
called organizational citizenship behavior.
30
31
32
(c) 2008 Prentice-Hall, All rights
reserved. 12
Outcome Variables
Withdrawal behavior
Withdrawal behavior is the set of actions that employees
take to separate themselves from the organization.
Outcome Variables
Group cohesion
Group cohesion is the extent to which members of a
group support and validate one another at work.
Group functioning
Group functioning refers to the quantity and quality of
a group’s work output.
Outcome Variables
Productivity
An organization is productive if it achieves its goals by
transforming inputs into outputs at the lowest cost. This
requires both effectiveness and efficiency.
Survival
The final outcome is organizational survival, which is
simply evidence that the organization is able to exist and
grow over the long term.
33
34
35
(c) 2008 Prentice-Hall, All rights
reserved. 13
Implications for Managers
Resist the inclination to rely on generalizations;
some provide valid insights into human
behavior, but many are erroneous.
Use metrics and situational variables rather
than “hunches” to explain cause-and-effect
relationships.
Work on your interpersonal skills to increase
your leadership potential.
Implications for Managers
Improve your technical skills and conceptual skills
through training and staying current with OB
trends like “big data”.
OB can improve your employees’ work quality and
productivity by showing you how to empower your
employees, design and implement change
programs, improve customer service, and help
your employees balance work-life conflicts.
Summary and Managerial Implications
Managers need to develop their interpersonal skills to
be effective.
OB focuses on how to improve factors that make
organizations more effective.
The best predictions of behavior are made from a
combination of systematic study and intuition.
Situational variables moderate cause-and-effect
relationships which is why OB theories are
contingent.
There are many OB challenges and opportunities for
managers today.
The textbook is based on the contingent OB model.
1-38
36
37
38
1
Attitudes and
Job Satisfaction
Instructor: Assoc. Prof. Dr., Pham Thi Bich Ngoc
Learning Objectives
Contrast the three components of an attitude.
Summarize the relationship between attitudes and
behavior.
Compare the major job attitudes.
Define job satisfaction.
Summarize the main causes of job satisfaction.
Identify three outcomes of job satisfaction.
Identify four employee responses to
dissatisfaction.
Contrast the Three Components of an
Attitude (1 of 2)
Attitudes are evaluative statementseither favorable or
unfavorableabout objects, people, or events.
They reflect how we feel about something.
Contrast the Three Components of an
Attitude (2 of 2)
The Components of an Attitude
Summarize the Relationship
Between Attitudes and Behavior (1
of 2)
The attitudes that people hold determine what they do.
Festinger: cases of attitude following behavior
illustrate the effects of cognitive dissonance.
Cognitive dissonance is any incompatibility an
individual might perceive between two or more
attitudes or between behavior and attitudes.
Compare the Major Job Attitudes (1 of
5)
Job Satisfaction
A positive feeling about the job resulting from
an evaluation of its characteristics.
Job Involvement
Degree of psychological identification with the
job where perceived performance is important
to self-worth.
Psychological Empowerment
Belief in the degree of influence over one’s
job, competence, job meaningfulness, and
autonomy.
0 1
2 3
4 5
2
Compare the Major Job Attitudes (2 of
5)
Organizational Commitment
Identifying with a particular organization and
its goals and wishing to maintain membership
in the organization.
Employees who are committed will be less
likely to engage in work withdrawal even if
they are dissatisfied, because they have a
sense of organizational loyalty.
Compare the Major Job Attitudes (3 of
5)
Perceived Organizational Support (POS)
Degree to which employees believe the
organization values their contribution and cares
about their well-being.
Higher when rewards are fair, employees are
involved in decision making, and supervisors are
seen as supportive.
POS is important in countries where power
distance is lower.
Compare the Major Job Attitudes (4 of
5)
Employee Engagement
The degree of involvement with, satisfaction
with, and enthusiasm for the job.
Engaged employees are passionate about
their work and company.
Compare the Major Job Attitudes (5
of 5)
Are these job attitudes really all that distinct?
No, these attitudes are highly related; and
while there is some distinction, there is also a
lot of overlap that may cause confusion.
Define Job Satisfaction (2 of 5)
Job Satisfaction
A positive feeling about a job resulting from an
evaluation of its characteristics.
Two approaches for measuring job satisfaction are popular
The single global rating.
The summation of job facets.
Summarize the Main Causes of
Job Satisfaction
(1 of 3)
What causes job satisfaction?
Job conditions
The intrinsic nature of the work itself, social
interactions, and supervision are important
predictors of job satisfaction.
Personality
People who have positive core self-
evaluations, who believe in their inner worth
and basic competence, are more satisfied
with their jobs than those with negative
core self-evaluations.
6 7
8 9
10 11
3
Summarize the Main Causes of Job
Satisfaction (3 of 3)
Corporate Social Responsibility (CSR)
Corporate social responsibility (CSR): self-
regulated actions to benefit society or the
environment beyond what is required by law.
Includes environmental sustainability
initiatives, nonprofit work, and charitable
giving.
Increasingly affects employee job
satisfaction.
Outcomes of Job Satisfaction
Job Performance
Happy workers are more likely to be productive
workers.
OCB
People who are more satisfied with their jobs are
more likely to engage in OCB.
Customer Satisfaction
Satisfied employees increase customer satisfaction
and loyalty.
Life Satisfaction
Research shows that job satisfaction is positively
correlated with life satisfaction.
Four Employee Responses
to Dissatisfaction
Four Employee Responses to
Dissatisfaction (2 of 2)
Counterproductive Work Behavior (CWB)
Counterproductive work behavior:
Absenteeism: the more satisfied you are, the
less likely you are to miss work.
Turnover:
The Theory of Cognitive
Dissonance
Desire to reduce dissonance depends on
Importance of elements creating dissonance
Degree of individual influence over elements
Rewards involved in dissonance
Cognitive Dissonance
Any incompatibility between two or more attitudes or
between behavior and attitudes.
•Individuals seek to reduce this gap, or dissonance”
12 13
14 15
16
1
Personalities and
Values
Instructor: Pham Thi Bich Ngoc, PhD
Learning Objectives
Describe personality, the way it is measured, and the factors
that shape it.
Describe the strengths and weaknesses of the Myers-Briggs Type
Indicator (MBTI) personality framework and the Big Five model.
Discuss how the concepts of core self-evaluation (CSE), self-
monitoring, and proactive personality contribute to the
understanding of personality.
Describe how the situation affects whether personality predicts
behavior.
Contrast terminal and instrumental values.
Describe the differences between person-job fit and person-
organization fit.
Compare Hofstede’s five value dimensions and the GLOBE
framework.
Describe Personality, the Way It Is Measured, and the
Factors that Shape It (1 of 4)
Defining Personality
Personality is a dynamic concept
describing the growth and
development of a person’s whole
psychological system.
The sum total of ways in which an
individual reacts to and interacts
with others.
Personality consists of stable
characteristics which explain why
a person behaves in a particular
way
Describe Personality, the Way It Is Measured, and the
Factors that Shape It (2 of 4)
Measuring Personality
Managers need to know how to measure
personality.
Personality tests are useful in hiring decisions
and help managers forecast who is best for a
job.
The most common means of measuring personality
is through self-report surveys.
Describe Personality, the Way It Is Measured, and the
Factors that Shape It (3 of 4)
Personality Determinants
Is personality the result of heredity or
environment?
Heredity refers to those factors that were
determined at conception.
The heredity approach argues that the
ultimate explanation of an individual’s
personality is the molecular structure of the
genes, located in the chromosomes.
Describe Personality, the Way It Is Measured, and the
Factors that Shape It (4 of 4)
Early research tried to identify and label enduring personality
characteristics.
Shy, aggressive, submissive, lazy, ambitious,
loyal, and timid.
These are personality traits.
2
The Myers-Briggs Type
Indicator
Personality Types
Extraverted or Introverted (E or I)
Sensing or Intuitive (S or N)
Thinking or Feeling (T or F)
Judging or Perceiving (J or P)
Extraverted Characteristics
Act first, think/reflect later
Feel deprived when cutoff from
interaction with the outside world
Usually open to and motivated
by outside world of people and
things
Enjoy wide variety and change in
people relationships
Myers-Briggs Type Indicator
Introverted Characteristics
Think/reflect first, then Act
Regularly require an amount
of "private time" to recharge
batteries
Motivated internally, mind is
sometimes so active it is
"closed" to outside world
Prefer one-to-one
communication and
relationships
Sensing Characteristics
Mentally live in the Now, attending to
present opportunities
Using common sense and creating
practical solutions is automatic-
instinctual
Memory recall is rich in detail of facts
and past events
Best improvise from past experience
Like clear and concrete information;
dislike guessing when facts are
"fuzzy"
Myers-Briggs Type Indicator
Intuitive Characteristics
Mentally live in the Future, attending to
future possibilities
Using imagination and creating/inventing
new possibilities is automatic-instinctual
Memory recall emphasizes patterns,
contexts, and connections
Best improvise from theoretical
understanding
Comfortable with ambiguous, fuzzy data
and with guessing its meaning
Thinking Characteristics
Instinctively search for facts and
logic in a decision situation
Naturally notices tasks and work
to be accomplished.
Easily able to provide an
objective and critical analysis
Accept conflict as a natural,
normal part of relationships with
people.
Myers-Briggs Type Indicator
Feeling Characteristics
Instinctively employ personal
feelings and impact on people in
decision situations
Naturally sensitive to people needs
and reactions
Naturally seek consensus and
popular opinions
Unsettled by conflict; have almost a
toxic reaction to disharmony.
Judging Characteristics
Plan many of the details in
advance before moving into
action.
Focus on task-related action;
complete meaningful segments
before moving on.
Work best and avoid stress when
keep ahead of deadlines.
Naturally use targets, dates and
standard routines to manage life.
Myers-Briggs Type Indicator
Perceiving Characteristics
Comfortable moving into action
without a plan; plan on-the-go.
Like to multitask, have variety,
mix work and play.
Naturally tolerant of time
pressure; work best close to the
deadlines.
Instinctively avoid commitments
which interfere with flexibility,
freedom and variety
The Big Five Model
3
Short Form for the IPIP-NEO
http://www.personal.psu.edu/~j5j/IPIP/ipipneo120.htm
Traits That Matter Most to Business Success at Buyout
Companies
Most Important
Less Important
Persistence
Strong oral communication
Attention to detail
Teamwork
Efficiency
Flexibility/adaptability
Analytical skills
Enthusiasm
Setting high standards
Listening skills
Model of How Big Five Traits Influence OB Criteria
Other Personality Traits Relevant to OB
The Dark Triad Machiavellianism: the degree to which an individual is
pragmatic, maintains emotional distance, and believes that ends can
justify means.
Narcissism: the tendency to be arrogant, have a grandiose sense of self-importance,
require excessive admiration, and have a sense of entitlement.
Psychopathy: the tendency for a lack of concern for others and a lack of guilt or
remorse when their actions cause harm.
Other Personality Traits Relevant to OB
An emerging framework to study dark side traits:
First, antisocial people are indifferent and callous
toward others.
Second, borderline people have low self-esteem
and high uncertainty.
Other Personality Traits Relevant to OB
Third, schizotypal individuals are eccentric and
disorganized.
Fourth, obsessive compulsive people are
perfectionists and can be stubborn, yet they
attend to details, carry a strong work ethic, and
may be motivated by achievement.
Fifth, avoidant individuals feel inadequate and
hate criticism.
4
Other Personality Traits Relevant to OB
Core Self-Evaluation: bottom line conclusions individuals have about
their capabilities, competence, and worth as a person.
Self-Monitoring: measures an individual’s ability to adjust his or her
behavior to external, situational factors.
Proactive Personality: people who identify opportunities, show
initiative, take action, and persevere until meaningful change occurs.
Other Personality Traits
Relevant to OB
Locus of control
Machiavellianism
Self-esteem
Self-monitoring
Propensity for risk taking
Locus of Control
Machiavellianism
Conditions Favoring High Machs
Direct interaction
Minimal rules and regulations
Distracting emotions
Self-Esteem and Self-Monitoring
Risk-Taking
High Risk-taking Managers
Make quicker decisions.
Use less information to make decisions.
Operate in smaller and more entrepreneurial organizations.
Low Risk-taking Managers
Are slower to make decisions.
Require more information before making decisions.
Exist in larger organizations with stable environments.
Risk Propensity
Aligning managers’ risk-taking propensity to job requirements
should be beneficial to organizations.
5
The Situation, Personality, and Behavior (1 of 2)
Situation strength theory: indicates that the way personality translates
into behavior depends on the strength of the situation.
The degree to which norms, cues, or standards
dictate appropriate behavior.
Clarity: degree to which cues about work duties and
responsibilities are available and clear
Consistency: the extent to which cues regarding work duties
and responsibilities are compatible with one another
Constraints: the extent to which individuals’ freedom to
decide or act is limited by forces outside their control
Consequences: the degree to which decisions or actions have
important implications for the organization or its members,
clients, supplies, and so on.
5-24
Contrast Terminal and Instrumental Values
(1 of 3)
Values: basic convictions about what is right, good, or desirable.
Value system: ranks values in terms of intensity.
The Importance and Organization of Values
Values:
Lay the foundation for understanding of
attitudes and motivation.
Influence attitudes and behaviors.
Contrast Terminal and Instrumental Values
(2 of 3)
Terminal vs. Instrumental Values
Terminal values: desirable
end-states of existence.
Instrumental values:
preferred modes of
behavior or means of
achieving terminal values.
Contrast Terminal and Instrumental Values
(3 of 3)
Dominant Work Values in Today’s Workforce
Cohort
Entered the
Workforce
Dominant Work Values
Boomers
1965
1985
Success, achievement,
ambition, dislike of
authority; loyalty to career
Xers
1985
2000
-30s to 50s
Work
-life balance, team-
oriented, dislike of rules;
loyalty to relationships
Millennials
2000 to present
-30s
Confident, financial
success, self
-reliant but
team
-oriented; loyalty to
both self and relationships
Values in
the Rokeach
Survey
Source: M. Rokeach, The Nature of Human
Values (New York: The Free Press, 1973).
Values in
the Rokeach
Survey
(cont’d)
Source: M. Rokeach, The Nature of Human
Values (New York: The Free Press, 1973).
6
Mean Value Rankings of
Executives, Union Members,
and Activists
Source: Based on W. C. Frederick and J. Weber, “The Values of
Corporate Managers and Their Critics: An Empirical Description and
Normative Implicatio ns,in W. C. Frederick and L. E. Preston (eds.)
Business Ethics: Research Issues and Empirical Studies (Greenwich,
CT: JAI Press, 1990), pp. 12344.
Importance of Values
Provide understanding of the attitudes, motivation, and behaviors of
individuals and cultures.
Influence our perception of the world around us.
Represent interpretations of “right” and “wrong.”
Imply that some behaviors or outcomes are preferred over others.
Person-Job Fit vs. Person-Organization Fit (1
of 3)
Holland’s Typology of Personality and Congruent Occupations
Type
Personality Characteristics
Congruent Occupations
Realistic:
Prefers physical activities
that require skill, strength, and
coordination
Shy, genuine, persistent, stable,
conforming, practical
Mechanic, drill press operator,
assembly
-line worker, farmer
Investigative:
Prefers activities that
involve thinking, organizing, and
understanding
Analytical, original, curious,
independent
Biologist, economist,
mathematician, news reporter
Social:
Prefers activities that involve
helping and developing others
Sociable, friendly, cooperative,
understanding
Social worker, teacher,
counselor, clinical psychologist
Conventional:
Prefers rule-regulated,
orderly, and unambiguous activities
Conforming, efficient, practical,
unimaginative, inflexible
Accountant, corporate
manager, bank teller, file clerk
Enterprising:
Prefers verbal activities
in which there are opportunities to
influence others and attain power
Self
-confident, ambitious,
energetic, domineering
Lawyer, real estate agent,
public relations specialist,
small business manager
Artistic:
Prefers ambiguous and
unsystematic activities that allow
creative expression
Imaginative, disorderly,
idealistic, emotional,
impractical
Painter, musician, writer,
interior decorator
Person-Job Fit vs. Person-Organization Fit (2
of 3)
Person-Organization Fit
People high on extraversion fit well with
aggressive and team-oriented cultures.
People high on agreeableness match up better
with a supportive organizational climate than one
focused on aggressiveness.
People high on openness to experience fit better in
organizations that emphasize innovation rather
than standardization.
Person-Job Fit vs. Person-Organization Fit
(3 of 3)
Other Dimensions of Fit
Although person-job fit and person-organization
fit are considered the most salient dimensions for
workplace outcomes, other avenues of fit are
worth examining.
Person-group fit
Person-supervisor fit
Hofstede’s Five Value Dimensions
Hofstede’s Framework
Power distance
Individualism versus collectivism
Masculinity versus femininity
Uncertainty avoidance
Long-term versus short-term
orientation
7
Hofstede’s Framework for
Assessing Cultures
Power Distance
The extent to which a society accepts that
power in institutions and organizations is
distributed unequally.
Low
distance: relatively equal power
between those with status/wealth and those
without status/wealth
High
distance: extremely unequal power
distribution between those with
status/wealth and those without
status/wealth
Hofstede’s Framework
(cont’d)
Collectivism
A tight social framework in
which people expect
others in groups of which
they are a part to look
after them and protect
them.
Individualism
The degree to which
people prefer to act as
individuals rather than
a member of groups.
Vs.
Hofstede’s Framework
(cont’d)
Masculinity
The extent to which the
society values work roles
of achievement, power,
and control, and where
assertiveness and
materialism are also
valued.
Femininity
The extent to which
there is little
differentiation
between roles for
men and women.
Vs.
Hofstede’s Framework
(cont’d)
Uncertainty Avoidance
The extent to which a society feels threatened by
uncertain and ambiguous situations and tries to
avoid them.
High Uncertainty Avoidance:
Society does not like
ambiguous situations & tries to
avoid them.
Low Uncertainty Avoidance:
Society does not mind
ambiguous situations &
embraces them.
Hofstede’s Framework
(cont’d)
Long-term Orientation
A national culture
attribute that
emphasizes the future,
thrift, and persistence.
Short-term Orientation
A national culture attribute
that emphasizes the
present and the here and
now.
Vs.
The GLOBE Framework for Assessing Culture
The Global Leadership and Organizational
Behavior Effectiveness (GLOBE) research
program updated Hofstede’s research.
Data from 825 organizations and 62 countries.
Used variables similar to Hofstede’s.
Added some news ones.
1
Perception and Individual Decision
Making
Instructor: Assoc. Prof. Dr. Pham Thi Bich Ngoc
National Economics University
LEARNING OBJECTIVES
EXPLAIN THE FACTORS THAT INFLUENCE PERCEPTION.
DESCRIBE ATTRIBUTION THEORY.
EXPLAIN THE LINK BETWEEN PERCEPTION AND DECISION
MAKING.
CONTRAST THE RATIONAL MODEL OF DECISION MAKING WITH
BOUNDED RATIONALITY AND INTUITION.
EXPLAIN HOW INDIVIDUAL DIFFERENCES AND
ORGANIZATIONAL CONSTRAINTS AFFECT DECISION MAKING.
WHAT IS PERCEPTION, AND WHY IS IT
IMPORTANT?
….A process by which we
assign causes or motives to
explain people’s behavior
….an explanation of the cause of behavior:
how people explain the causes of their own
and other people’s behavior
0
1
2
2
FACTORS THAT INFLUENCE PERCEPTION
ATTRIBUTION THEORY
Distinctiveness:
Consensus
Consistency
That determination however depends on 3 factors:
EXPLAIN ATTRIBUTION THEORY (2 OF 10)
CLARIFICATION OF THE DIFFERENCES BETWEEN INTERNAL AND EXTERNAL
CAUSATION
INTERNALLY CAUSED THOSE THAT ARE BELIEVED TO BE
UNDER THE PERSONAL CONTROL OF THE INDIVIDUAL.
EXTERNALLY CAUSED RESULTING FROM OUTSIDE
CAUSES.
3
4
5
3
EXPLAIN ATTRIBUTION THEORY (3 OF 10)
EXAMPLE
ERRORS AND BIASES IN ATTRIBUTIONS
6
7
8
4
ERRORS AND BIASES IN ATTRIBUTIONS
(CONT’D)
FREQUENTLY USED SHORTCUTS IN
JUDGING OTHERS
FREQUENTLY USED SHORTCUTS IN JUDGING
OTHERS
Recency Effects
The tendency to remember
recent information. If the recent
information is negative, the
person or object is evaluated
negatively
9
10
11
5
FREQUENTLY USED SHORTCUTS IN
JUDGING OTHERS
APPLICATIONS OF SHORTCUTS IN
ORGANIZATIONS
EMPLOYMENT INTERVIEW
EVIDENCE INDICATES THAT INTERVIEWERS MAKE
PERCEPTUAL JUDGMENTS THAT ARE OFTEN
INACCURATE.
INTERVIEWERS GENERALLY DRAW EARLY IMPRESSIONS
THAT BECOME VERY QUICKLY ENTRENCHED.
STUDIES INDICATE THAT MOST INTERVIEWERS’
DECISIONS CHANGE VERY LITTLE AFTER THE FIRST
FOUR OR FIVE MINUTES OF THE INTERVIEW.
APPLICATIONS OF SHORTCUTS IN
ORGANIZATIONS
PERFORMANCE EXPECTATIONS
EVIDENCE DEMONSTRATES THAT PEOPLE WILL ATTEMPT TO
VALIDATE THEIR PERCEPTIONS OF REALITY, EVEN WHEN
THOSE PERCEPTIONS ARE FAULTY.
SELF-FULFILLING PROPHECY, OR THE PYGMALION
EFFECT, CHARACTERIZES THE FACT THAT PEOPLE’S
EXPECTATIONS DETERMINE THEIR BEHAVIOR.
EXPECTATIONS BECOME REALITY.
12
13
14
6
APPLICATIONS OF SHORTCUTS IN
ORGANIZATIONS
PERFORMANCE EVALUATION
AN EMPLOYEE’S PERFORMANCE APPRAISAL IS VERY MUCH
DEPENDENT UPON THE PERCEPTUAL PROCESS.
MANY JOBS ARE EVALUATED IN SUBJECTIVE TERMS.
SUBJECTIVE MEASURES ARE PROBLEMATIC BECAUSE OF
SELECTIVE PERCEPTION, CONTRAST EFFECTS, HALO
EFFECTS, AND SO ON.
LINK BETWEEN PERCEPTION AND
DECISION MAKING
INDIVIDUALS MAKE DECISIONS CHOOSING FROM TWO OR MORE
ALTERNATIVES.
DECISION MAKING OCCURS AS A REACTION TO A PROBLEM.
THERE IS A DISCREPANCY BETWEEN SOME CURRENT STATE
OF AFFAIRS AND SOME DESIRED STATE, REQUIRING
CONSIDERATION OF ALTERNATIVE COURSES OF ACTION.
ONE PERSON’S PROBLEM IS ANOTHER’S SATISFACTORY
STATE OF AFFAIRS.
LINK BETWEEN PERCEPTIONS AND INDIVIDUAL DECISION MAKING
15
16
17
7
STEPS IN THE RATIONAL DECISION-
MAKING MODEL
RATIONAL MODEL OF DECISION MAKING
ASSUMPTIONS OF THE RATIONAL MODEL
THE DECISION MAKER…
HAS COMPLETE INFORMATION.
IS ABLE TO IDENTIFY ALL THE RELEVANT OPTIONS IN
AN UNBIASED MANNER.
CHOOSES THE OPTION WITH THE HIGHEST UTILITY.
MOST DECISIONS IN THE REAL WORLD DON’T FOLLOW THE RATIONAL
MODEL.
BOUNDED RATIONALITY
MOST PEOPLE RESPOND TO A COMPLEX PROBLEM BY
REDUCING IT TO A LEVEL AT WHICH IT CAN BE READILY
UNDERSTOOD.
PEOPLE SATISFICE THEY SEEK SOLUTIONS THAT ARE
SATISFACTORY AND SUFFICIENT.
INDIVIDUALS OPERATE WITHIN THE CONFINES OF
BOUNDED RATIONALITY.
THEY CONSTRUCT SIMPLIFIED MODELS THAT EXTRACT
THE ESSENTIAL FEATURES.
18
19
20
8
HOW DOES BOUNDED RATIONALITY
WORK?
ONCE A PROBLEM IS IDENTIFIED, THE SEARCH FOR CRITERIA
AND OPTIONS BEGINS.
A LIMITED LIST OF THE MORE CONSPICUOUS CHOICES
IS IDENTIFIED.
THE DECISION MAKER THEN REVIEWS THE LIST,
LOOKING FOR A SOLUTION THAT IS “GOOD
ENOUGH.
INTUITION
INTUITIVE DECISION MAKING OCCURS OUTSIDE
CONSCIOUS THOUGHT; IT RELIES ON HOLISTIC
ASSOCIATIONS, OR LINKS BETWEEN DISPARATE PIECES OF
INFORMATION, IS FAST, AND IS AFFECTIVELY CHARGED,
MEANING IT USUALLY ENGAGES THE EMOTIONS.
THE KEY IS NEITHER TO ABANDON NOR RELY SOLELY ON
INTUITION, BUT TO SUPPLEMENT IT WITH EVIDENCE AND
GOOD JUDGMENT.
INDIVIDUAL DIFFERENCES, ORGANIZATIONAL
CONSTRAINTS, AND DECISION MAKING (1 OF 2)
INDIVIDUAL DIFFERENCES
PERSONALITY
GENDER
MENTAL ABILITY
CULTURAL DIFFERENCES
NUDGING
21
22
23
9
INDIVIDUAL DIFFERENCES, ORGANIZATIONAL
CONSTRAINTS, AND DECISION MAKING (2 OF 2)
ORGANIZATIONAL CONSTRAINTS
PERFORMANCE EVALUATION SYSTEMS
REWARD SYSTEMS
FORMAL REGULATIONS
SYSTEM-IMPOSED TIME CONSTRAINTS
HISTORICAL PRECEDENTS
DESCRIBE THE THREE-STAGE MODEL OF CREATIVITY (1 OF 2)
CREATIVITY IS THE ABILITY TO PRODUCE NOVEL
AND USEFUL IDEAS.
THESE ARE IDEAS THAT ARE
DIFFERENT FROM WHAT HAS BEEN
DONE BEFORE, BUT THAT ARE ALSO
APPROPRIATE TO THE PROBLEM.
COMMON ATTRIBUTES OF CREATIVE
INDIVIDUALS
BACKGROUND EXPERIENCES AND CREATIVITY
PERSONAL TRAITS AND CREATIVITY: OPENNESS, AN ATTRACTION TO
COMPLEXITY, HIGH LEVELS OF ENERGY, AUTONOMY, SELF-
CONFIDENCE
COGNITIVE ABILITIES AND CREATIVITY:
INDIVIDUAL’S POWER TO THINK INTELLIGENTLY AND
TO ANALYZE SITUATIONS AND DATA EFFECTIVELY.
INTELLIGENCE: PRECONDITION FOR INDIVIDUAL
CREATIVITY
CREATIVITY LINKS WITH THE ABILITY TO THINK
DIVERGENTLY (SEE DIFFERENCES BETWEEN
SITUATIONS) AND CONVERGENTLY (SEE SIMILARITIES
BETWEEN SITUATIONS)
24
25
26
10
HOW TO FACILITATE INDIVIDUAL
CREATIVITY…
Leaders
Support new ideas
Good listener
Favourable and cooperative working
environment
Respect diversity
Friendly and cooperative
Trust
27
(c) 2008 Prentice-Hall, All rights reserved. 1
Foundation of Group
Behavior
INSTRUCTOR: ASSOC. PROF. DR., PHAM THI BICH NGOC
NEU
Learning Objectives (1 of 2)
Distinguish between the different types of groups.
Describe model of group development.
Show how role requirements change in different
situations.
Demonstrate how norms exert influence on an
individual’s behavior.
Show how status and size differences affect group
performance.
Describe how issues of cohesiveness and diversity
can be integrated for group effectiveness.
Contrast the strengths and weaknesses of group
decision making.
Defining Groups
Two or more individuals interacting and interdependent,
who have come together to achieve particular objectives
Two or more people who interact with one another such
that each person influences and is influenced by each
other person
Any number of people who (1) interact with one another;
(2) are psychologically aware of one another; and (3)
perceive themselves to be a group.
Classifying Groups
(cont’d)
Relatively permanent
Relatively temporary
formal
informal
Functions of formal group
The Five Stages of Group
Development
1. Forming
2. Storming
3. Norming Stage
4. Performing Stage
5. Adjourning Stage
0 1
2 3
4 5
(c) 2008 Prentice-Hall, All rights reserved. 2
Group Properties/Group Performance
Factors
Group
Performa
nce
Norms
Statu
s
Compositi
on
Size
Cohesive
ness
Roles
Group Property 1: Roles
Role
A set of expected behavior patterns
attributed to someone occupying a
given position in a social unit
is the expected pattern of behaviors
associated with members occupying a
particular position within the structure of
the organization.
Group Property 1: Roles
Role Perception
An individual’s view of how he or she is
supposed to act in a given situation
received by external stimuli
Role Expectations
How others believe a person should act in
a given situation
Role conflict
A situation in which an individual is confronted
by divergent role expectations
Group Property 1: Roles
Role conflict can result in role stress
Role ambiguity occurs when there is lack of clarity as
to the precise requirements of the role and the person is
unsure what to do
Role overload is when a person faces too many
separate roles or too great a variety of expectations.
Role underload can arise when the prescribed role
expectations fall short of the person’s perception of their
role
Group Property 2: Norms
Group Norms
Acceptable standards of behavior within a
group that are shared by the group’s
members
Are the standards against which the
appropriateness of the behaviors of members
are judged
Determine behavior expected in a certain
situation
Group Property 2: Norms
Is an assumption or expectation held by group
members concerning what kind of behavior is:
Right or wrong
Good or bad
Allowed or not allowed
Appropriate or not appropriate
Classes of Norms
Performance norms -
Appearance norms
Social arrangement norms
Allocation of resources norms
Improvement and change norms
6 7
8 9
10 11
(c) 2008 Prentice-Hall, All rights reserved. 3
Group Property 3: Status
A socially defined position or rank given to groups
or group members by others it differentiates
group members
Important factor in understanding behavior
Significant motivator
Status Characteristics Theory
Status derived from one of three sources:
Power a person has over others
Ability to contribute to group goals
Personal characteristics
Status Effects
On Norms and Conformity
High-status members are less restrained by norms
and pressure to conform
Some level of deviance is allowed to high-status
members so long as it doesn’t affect group goal
achievement
On Group Interaction
High-status members are more assertive
Large status differences limit diversity of ideas and
creativity
Group Property 4: Size
Is the number of members of the group
Twelve or more members is a “large” group
Seven or fewer is a “small” group
Affects resources available to perform the
task
Affects degree of formalization of
interactions, communication, and
participation
Can increase the degree of social loafing
Group Property 4: Size
Best use of a group:
Attribute Small Large
Speed X
Individual Performance X
Problem Solving X
Diverse Input X
Fact-finding Goals X
Overall Performance X
Group Property 4: Size
Factors that Determine Ideal Group Size
Group members’ ability
Maturity of individual group members
Group tasks
Ability of the group leader
Group Property 5:
Cohesiveness
Is the extent to which a group is committed to
staying together
Degree to which group members are attracted to
each other and are motivated to stay in the
group
12 13
14 15
16 17
(c) 2008 Prentice-Hall, All rights reserved. 4
Factors contributing to
group cohesiveness
Group Property 6 -
Composition
The degree of similarity or difference among group
members on factors important to the group’s work
Homogeneity
Degree to which members are similar in one or
several ways that are critical to the group’s work
Heterogeneity
Degree to which members differ in one or more
ways that are critical to the group’s work
Group Decision Making
Strengths of group decision making:
More complete information and
knowledge
Increased diversity of views
Increased acceptance of solutions
Weaknesses of group decision making:
Time consuming
Conformity pressures
Dominance of a few members
Ambiguous responsibility
Group Decision Making
Effectiveness and efficiency of group
decisions:
Accuracy (group)
Speed (individual)
Creativity (group)
Acceptance (group)
Group Decision Making
(cont’d)
Groupthink
A mode of thinking that occurs when members of a
group are deeply involved in a cohesive in-group
and the desire for unanimity offsets their motivation
to appraise alternative courses of action
Effects of Groupthink
Consideration of and focus on fewer alternatives
Failure to perceive non-obvious risks and drawbacks
of an alternative
Rejection of expert opinions
Ignoring potential for setbacks or actions of
competitors in not developing contingency plans
18 19
20 21
22 23
(c) 2008 Prentice-Hall, All rights reserved. 5
Group Decision Making
Most group decision making takes place in
interacting groups.
Members meet face-to-face and rely on
both verbal and nonverbal interaction
to communicate with each other.
Interacting groups often censor themselves
and pressure individual members toward
conformity of opinion.
Group Decision Making
Brainstorming can overcome pressures for
conformity.
In a brainstorming session:
The group leader states the problem.
Members then “free-wheel” as many
alternatives as they can.
No criticism is allowed.
One idea stimulates others, and group
members are encouraged to “think
the unusual.”
Group Decision Making
The nominal group technique: restricts
discussion or interpersonal communication
during the decision making process.
Nominal groups outperform brainstorming
groups.
Group Decision Making
Steps for a nominal group:
Each member independently writes
down his/her ideas on the problem.
After this silent period, each member
presents one idea to the group.
The ideas are discussed for clarity.
Each group member rank-orders the
ideas.
The idea with the highest aggregate
ranking determines the final decision.
Evaluating Group
Effectiveness
Type of Group
Effectiveness Criteria Interacting
Brain-
storming
Nominal Electronic
Number and quality of ideas Low Moderate High High
Social Pressure High Low Moderate Low
Money Costs Low Low Low High
Speed Moderate Moderate Moderate Moderate
Task Orientation Low High High High
Potential for Interpersonal
Conflict
High Low Moderate Moderate
Commitment to Solution High N/A Moderate Moderate
Development of Group
Cohesiveness
High High Moderate Low
24 25
26 27
28
(c) 2008 Prentice-Hall, All rights reserved. 1
Understanding Work Teams
Instructor: Pham Thi Bich Ngoc, PhD.
NEU
Learning Objectives
Analyze the continued popularity of teams in
organizations.
Contrast groups and teams.
Contrast the five types of team arrangements.
Identify the characteristics of effective teams.
Explain how organizations can create team players.
Decide when to use individuals instead of teams.
Analyze the Growing Popularity of Teams in
Organizations
Why are teams popular?
Teams can achieve feats an individual could never
accomplish.
Teams are flexible and responsive to changing events.
They can quickly assemble, deploy, refocus, and
disband.
They are an effective means to democratize
organizations and increase employee involvement.
They introduce a collaborative mindset.
Differences Between Groups and Teams
Comparing Workgroups and Work Teams
Types of Teams
Problem-Solving Teams
Groups of 5 to 12 employees from the
same department who meet for a few
hours each week to discuss ways of
improving quality, efficiency, and the
work environment
Self-Managed Work Teams
Groups of 10 to 15 people who take
on the responsibilities of their former
supervisors
More Types of Teams
Cross-Functional Teams
Employees from about the same hierarchical level, but from
different work areas, who come together to accomplish a
task
Very common
Task forces
Committees
Work teams
Management teams
(c) 2008 Prentice-Hall, All rights reserved. 2
A Final Type of Team
Virtual Teams
Teams that use computer technology to tie
together physically dispersed members in
order to achieve a common goal
Characteristics
Limited socializing
The ability to overcome time and space
constraints
To be effective, needs:
Trust among members
Close monitoring
To be publicized
A Team-Effectiveness Model
Creating Effective Teams: Context
Adequate Resources
Need the tools to complete the job
Effective Leadership and Structure
Agreeing to the specifics of work and how the team fits
together to integrate individual skills
Even “self-managed” teams need leaders
Leadership especially important in multi-team systems
Climate of Trust
Members must trust each other and the leader
Performance and Rewards Systems that Reflect Team
Contributions
Cannot just be based on individual effort
Creating Effective Teams: Composition
How should teams be staffed?
Abilities of Members
Need technical expertise, problem-solving, decision-making,
and good interpersonal skills
Personality of Members
Conscientiousness, openness to experience, and
agreeableness all relate to team performance
Allocating Roles and Diversity
Many necessary roles must be filled
Diversity can often lead to lower performance
Size of Team
The smaller the better: 5 to 9 is optimal
Members Preference for Teamwork
Do the members want to be on teams?
Key Roles On Teams
Creating Effective Teams: Process
Commitment to a Common Purpose
Create a common purpose that provides direction
Have reflexivity: willing to adjust plan if necessary
Establishment of Specific Team Goals
Must be specific, measurable, realistic, and challenging
Team Efficacy
Team believes in its ability to succeed
Mental Models
Have an accurate and common mental map of how the work gets
done
A Managed Level of Conflict
Task conflicts are helpful; interpersonal conflicts are not
Minimized Social Loafing
Team holds itself accountable both individually and as a team
(c) 2008 Prentice-Hall, All rights reserved. 3
Turning Individuals into Team Players
Creating Team Players
Selection
Make team skills one of the interpersonal skills in the hiring
process.
Training
Individualistic people can learn
Rewards
Rework the reward system to encourage cooperative efforts
rather than competitive (individual) ones
Continue to recognize individual contributions while still
emphasizing the importance of teamwork
Beware! Teams Aren’t Always the Answer
Teams take more time and resources than does individual
work.
Three tests to see if a team fits the situation:
1. Is the work complex and is there a need for different
perspectives: will it be better with the insights of more than
one person?
2. Does the work create a common purpose or set of goals for
the group that is larger than the aggregate of the goals for
individuals?
3. Are members of the group involved in interdependent
tasks?
Costs of Teams in Organizations
Difficulties in
changing to a
team-based
organization
Cumbersome and lengthy
team development process
Employee resistance
to role changes
Managerial sense of loss
of usefulness
Managerial role
confusion/frustration
Losses due to premature
abandonment of the process
Benefits of Teams in Organizations
Enhanced
performance
Organizational
enhancements
Employee
benefits
Reduced
costs
Team-Based
Environment Benefits
Benefits of Teams in Organizations
Enhanced
performance
Organizational
enhancements
Employee
benefits
Reduced
costs
Team-Based
Environment Benefits
(c) 2008 Prentice-Hall, All rights reserved. 1
COMMUNICATION
INSTRUCTOR: ASSOC. PROF. DR. PHAM THI BICH NGOC
NEU
Learning Objectives (1 of 2)
Describe the functions and process
of communication.
Contrast downward, upward, and lateral
communication through small-group networks
and the grapevine.
Contrast oral, written, and nonverbal
communication.
Describe how channel richness underlies the
choice of communication channel.
Differentiate between automatic and controlled
processing of persuasive messages.
Identify common barriers to effective communication.
Discuss how to overcome the potential problems of cross-
cultural communication
What is Communication?
Communication
The transference and understanding of meaning
The Communication
Process
Describe the Functions and Process
of Communication (1 of 7)
Communication serves five major
functions within a group or organization:
Management
Feedback
Emotional sharing
Persuasion
Information exchange
Describe the Functions and Process
of Communication (2 of 7)
Communication acts to manage member
behavior in several ways.
Authority hierarchies and formal
guidelines.
Job descriptions and company
policies.
Workgroup teasing or harassing.
0 1
2 3
4 5
(c) 2008 Prentice-Hall, All rights reserved. 2
Communication Channels
Channel
The medium selected by the sender through which
the message travels to the receiver
Types of Channels
Formal Channels
Informal Channels
Direction of
Communication
Upward
Downward
Lateral
Three Common Formal
Small-Group Networks
Chain:
Rigidly follows the chain of command
Each member communicates with the person above
and below, except for the individuals on each end
who communicate with only one person
Wheel:
Information flows between the person at the end of
each spoke and the person in the middle
Circle Network
Each member communicates with the people on
both sides but with no one else
All Channel:
All group members communicate actively with each
other
Communication networks
Criteria
Networks
Chain
Networks
Wheel
Networks
All
-Channel
Speed
Moderate
Fast
Fast
Accuracy
High
High
Moderate
Emergence of a
leader
Moderate
High
None
Member satisfaction
Moderate
Low
High
The Grapevine
Three Main Grapevine Characteristics
1. Informal, not controlled by management
2. Perceived by most employees as being more
believable and reliable than formal
communications
3. Largely used to serve the self-interests of those
who use it
Results from:
Desire for information about important situations
Ambiguous conditions
Conditions that cause anxiety
Insightful to managers
Serves employee’s social needs
Reducing Rumors
1. Announce timetables for making important
decisions
2. Explain decisions and behaviors that may
appear inconsistent or secretive
3. Emphasize the downside, as well as the
upside, of current decisions and future plans
4. Openly discuss worst-case possibilitiesthey
are almost never as anxiety-provoking as
the unspoken fantasy
6 7
8 9
10 11
(c) 2008 Prentice-Hall, All rights reserved. 3
Communication Networks
(cont’d)
Characteristics of Communication Networks
Networks form spontaneously as interactions among
workers continue
Networks rarely are permanent
Task is crucial to the choice of a network pattern
Environment affects the frequency and types of
interactions among members
Personal factors and group performance factors
influence communication networks
Networks strongly influence group effectiveness
Electronic groups that have little face-to-face
communication are an emerging trend
Communication Networks
(cont’d)
Organizational Communication Networks
Communication and information flows do not
necessarily follow the lines of an organization chart
Downward communication provides directions
Upward communication provides feedback
Horizontal communication is related to task
performance
Methods of Communication
Methods of Communication
Oral Communication
Written Communication
Nonverbal Communication
Methods of Communication
Allocation of Time at Work for Managers and Professionals
Source: Based on M. Chui et al., “The Social Economy: Unlocking Value and Productivity through Social Technologies,”
McKinsey and Company, July 2012, http://www.mckinsey.com.
Methods of Communication
Note: CareerBuilder surv ey of over 2,000 hiring professionals.
Source: Based on CareerBuilder at
http://www.careerbuilder.com/JobPoster/Resources/page.aspx?pagever=2012SocialMedia&template=none.
12 13
14 15
16 17
(c) 2008 Prentice-Hall, All rights reserved. 4
Methods of Communication
Nonverbal Communication
Includes body movements, the intonations or
emphasis we give to words, facial expressions,
and the physical distance between the sender
and receiver.
Body language can convey status, level of
engagement, and emotional state.
Advantages: Supports other communications and
provides observable expression of emotions and
feelings
Disadvantage: Misperception of body language or
gestures can influence receiver’s interpretation of
message
Nonverbal
Communication
Facial
Expressions
Physical
Movements
Body
Language
Environmental
Elements
Elements of Nonverbal
Communication
Nonverbal Communication
Physical distance also has meaning.
What is considered proper spacing between
people largely depends on cultural norms.
A businesslike distance in some European
countries feels intimate in many parts of
North America.
Distance may indicate aggressiveness or
sexual interest, or it may signal disinterest or
displeasure with what is being said.
Methods of Communication
Choice Considerations
Audience (physical or not physical presence)
Nature of the message (urgency and secrecy)
Costs of transmission
Channel Richness and Choice
of Communication Channel (1 of 4)
Sources: Reproduced from R. L. Daft and R. A. Noe, Organizational Behavior (Fort
Worth, TX: Harcourt, 2001), 311.
Channel Richness and Choice
of Communication Channel (2 of 4)
The choice of channel depends on whether the
message is routine.
Routine messages tend to be straightforward
and have a minimum of ambiguity.
Choose oral communication when you need
to gauge the receiver’s receptivity.
Written communication is more reliable for
complex and lengthy communications.
18 19
20 21
22 23
(c) 2008 Prentice-Hall, All rights reserved. 5
Barriers to Effective
Communication
Filtering
A sender’s manipulation of information so that it will be
seen more favorably by the receiver
Selective Perception
People selectively interpret what they see on the basis
of their interests, background, experience, and
attitudes
Information Overload
A condition in which information inflow exceeds an
individual’s processing capacity
Emotions
How a receiver feels at the time a message is received
will influence how the message is interpreted
More Barriers to Effective
Communication
Language
Words have different meanings to different people
Communication Apprehension
Undue tension and anxiety about oral
communication, written communication, or both
Gender Differences
Men tend to talk to emphasize status while women
talk to create connections
Communication Barriers and Cultural
Context
High-
vs.
Low-
Cont
ext
Cultu
res
Overcoming Problems in
Cross-
Cultural Communication (3 of 3)
A Cultural Guide
Know yourself.
Foster a climate of mutual respect, fairness,
and democracy.
State facts, not your interpretation.
Consider the other person’s viewpoint.
Proactively maintain the identity of the group.
24 25
26 27
28
(c) 2008 Prentice-Hall, All rights reserved. 1
Leadership
Instructor: Pham Thi Bich Ngoc, Assoc. Prof., Dr.
NEU
What Is Leadership?
Leadership
The ability to influence a group toward the achievement of
goals
Not all leaders are managers, nor are all managers leaders.
Is a propertythe set of characteristics attributed to someone
who is perceived to use influence successfully
Is influencethe ability to affect the perceptions, beliefs,
attitudes, motivation, and/or behavior of others
Management
Use of authority inherent in designated formal rank to obtain
compliance from organizational members
Both are necessary for organizational success
Trait Approaches to
Leadership
Trait Approaches to Leadership
Attempts to identify stable and enduring character traits
that differentiate effective leaders from non-leaders
focusing on:
Identifying leadership traits
Developing methods for measuring them
Using the methods to select leaders
Current limited set of leadership traits
Emotional intelligence, drive, motivation; honesty and
integrity, self-confidence, cognitive ability, knowledge of the
business, charisma
Traits can predict leadership, but they are better at
predicting leader emergence than effectiveness.
Behavioral Approaches of
Leadership
Proposing that specific behaviors differentiate leaders
from non-leaders
Behavioral theories of leadership imply we can train
people to be leaders.
Behavioral Approaches to
Leadership
The Michigan
Studies
The Ohio State
Studies
The Leadership
Grid
Early Studies in Behavioral
Approaches to Leadership
The Michigan Studies
Two key dimensions of leader
behavior:
Employee-oriented/ Employee-
centered
Production-oriented / Job-
centered
0 1
2 3
4 5
(c) 2008 Prentice-Hall, All rights reserved. 2
The Ohio State Studies
Found two key dimensions of leader
behavior:
Initiating structure
Consideration
Both are important
The Leadership Grid
Provides a means for evaluating leadership styles and then training
managers to move toward an ideal style of behavior
Draws on both studies to assess leadership style
“Concern for People” is Consideration and Employee-Orientation
“Concern for Production” is Initiating Structure and Production-
Orientation
Style is determined by position on the graph
Source: The Leadership Grid Figure
from Leadership DilemmasGrid
Solutions by Robert R. Blake and Anne
Adams McCanse. (Formerly the
Managerial Grid by Robert R. Blake
and Jane S. Mouton.) Houston: Gulf
Publishing Company, p. 29. Copyright
1997 by Grid International, Inc.
Reproduced by permission of Grid
International, Inc.
The Leadership
Grid
®
The Emergence of Contingency
Leadership Models
While trait and behavior theories do help us understand
leadership, an important component is missing: the environment
in which the leader exists
Situational leadership theories deals with this additional aspect
of leadership effectiveness studies
Assume that appropriate leader behavior varies from one
situation to another situation
Seek to identify how key situational factors interact to
determine appropriate leader behavior
Three key theories:
Fielder’s Model
Hersey and Blanchard’s Situational Leadership Theory
Path-Goal Theory
The Fiedler contingency model
6 7
8 9
10 11
(c) 2008 Prentice-Hall, All rights reserved. 3
Hersey-Blanchard Situational
Leadership
R1
Unable
Unwilling
R2
Unable
Willing
R3
Able
Unwilling
R4
Able
Willing
Degree of follower’s readiness to assume personal responsibility:
S1
Telling:
Instructing &
supervising
S2
Selling:
Explaining &
clarifying
S3
Participating:
Sharing &
facilitating
S4
Delegating:
Coaching &
assisting
Leadership behavior appropriate to the situation
LeaderMember Exchange
Theory
LMX Model
How groups are assigned is unclear
Follower characteristics determine group membership
Leaders control by keeping favorites close
Research has been generally supportive
Contemporary Approaches to Leadership
Charismatic Leadership
Transformational, Transactional Leadership
Reference: David A. Nadler and Michael L. Tushman, “Beyond the Charismatic Leader: Leadership and
Organizational Change,” California Management Review, Winter 1990, pp. 7097.
Transactional and Transformational Leadership
Transactional Leader
Contingent Reward:
Contracts exchange of rewards for effort, promises
rewards for good performance, recognizes accomplishments.
Management by Exception (active):
Watches and searches for deviations
from rules and standards, takes corrective action.
Management by Exception (passive):
Intervenes only if standards are not
met.
Laissez
-Faire: Abdicates responsibilities, avoids making decisions
Transformational Leader
Idealized Influence:
Provides vision and sense of mission, instills pride, gains
respect and trust.
Inspirational Motivation:
Communicates high expectations, uses symbols to
focus efforts, expresses important purposes in simple ways.
Intellectual Stimulation:
Promotes intelligence, rationality, and careful
problem solving.
Individualized Consideration: Gives personal attention, treats each employee
individually, coaches, advises
.
12 13
14 15
16 17
(c) 2008 Prentice-Hall, All rights reserved. 4
Role of Leaders in Creating Ethical Organizations (2
of 3)
Ethical Leadership
Ethics touches on leadership at a number of
junctures.
Efforts have been made to combine ethical
and charismatic leadership into an idea of
socialized charismatic leadership leadership
that conveys other-centered values by
leaders who model ethical conduct.
Role of Leaders in Creating Ethical Organizations (3
of 3)
Servant Leadership
Servant leaders go beyond their self-
interest and instead focus on
opportunities to help followers grow
and develop.
Characteristic behaviors include
listening, empathizing, persuading,
accepting stewardship, and actively
developing followers’ potential.
Challenges to our Understanding of Leadership (2 of
5)
Substitutes for and Neutralizers of Leadership
Defining Characteristics
Relationship
-Oriented
Leadership
Task
-Oriented
Leadership
Individual
Black
Black
Experience/training
No effect on
Substitutes for
Professionalism
Substitutes for
Substitutes for
Indifference to rewards
Neutralizes
Neutralizes
Job
Black
Black
Highly structured task
No effect on
Substitutes for
Provides its own
feedback
No effect on
Substitutes for
Intrinsically satisfying
Substitutes for
No effect on
Organization
Black
Black
Explicit formalized goals
No effect on
Substitutes for
Rigid rules and
procedures
No effect on
Substitutes for
Cohesive work groups
Substitutes for
Substitutes for
Challenges to our Understanding of Leadership (3 of 5)
Online Leadership
Needs more research.
Today’s managers and employees are
increasingly linked by networks rather than
geographic proximity.
Online leaders have to think carefully
about what actions they want their digital
messages to initiate.
Identification-based trust is difficult to
achieve without face-to-face interaction.
Writing skills are likely to become an
extension of interpersonal skills.
Challenges to our Understanding of Leadership (4 of 5)
Selecting Leaders
Identifying effective leaders:
Review specific requirements for the
position.
Consider personality tests to identify
leadership traits.
Situation-specific experience is relevant.
Plan for a change in leadership.
Challenges to our Understanding of Leadership (5 of 5)
Training Leaders
Leadership training is likely to be more successful
with high self-monitors.
Teach implementation skills.
Teach trust building, mentoring, and situational-
analysis.
Behavioral training through modeling exercises
can increase an individual’s charismatic
leadership qualities.
Review leadership after key organizational events.
Train in transformational leadership skills.
18 19
20 21
22 23
(c) 2008 Prentice-Hall, All rights reserved. 5
Emerging Issues in
Leadership (cont’d)
Strategic Leadership
Requires that leaders be capable of:
Understanding the complexities of both the organization and its environment
Leading change in the organization to achieve and maintain a superior
alignment between the organization and its environment
Managerial requirements:
Encompassing understanding of the organization
Firm grasp of the organization’s environment
Awareness of firm’s alignment with the environment
Ability to improve the alignment
Emerging Issues in
Leadership (cont’d)
Why Ethical Leadership Is Essential
Increasing pressure for high ethical standards for
leadership positions
Increasing pressure to hold leaders accountable for their
actions
Increasing environmental pressure for stronger corporate
governance models
Emerging Issues in
Leadership (cont’d)
Virtual Leadership Challenges
Changes in leadership and mentoring as in-person
contact replaces virtual contact
Less nonverbal communication
Increasing importance of e-mail’s role in conveying
appreciation, reinforcement, and constructive feedback
Face-to-face leadership skills become critical as
opportunities decrease for direct contact
24 25
26
(c) 2008 Prentice-Hall, All rights reserved. 1
Foundations of
Organization Structure
Instructor: Pham Thi Bich Ngoc, PhD.
NEU
The Nature of Organization Structure
Organization Structure
The system of task, reporting, and authority relationships within
which an organization does its work
Purpose of structure is to order and coordinate the actions of
employees to achieve organizational goals
“Structure follows strategy”
Objectives of Organizational
Structure
To link individuals in an established network of
relationships
To group together the tasks required to fufil the
objectives of the organization as a whole and to
allocate them to suitable individuals or groups
To allocate to individuals or groups the authority
they require to perform their functions
To coordinate the objectives and activities of
separated units
To enable the flow of work, information and other
resources via lines of cooperation and communication
Organization Chart
Describes the structure of an organization
Shows all people, positions, reporting relationships, and lines of formal
communication
Depicts reporting relationships and work group memberships
Shows how positions and small work groups are combined into departments which
make up the shape (configuration) of the organization
Units and relationships among them
Formal communication and reporting channels
Structure of authority, responsibility and delegation
Different types of chart:
Vertical chart
Horizontal chart
Concentric chart
Matrix chart
“Metaphors”: network spider web
Organization Chart
Organization chart: aid managerial thinking and
communication but:
Static not dynamic as organization
Formal structrure of authority and communication, not
present informal organiztion
Describe the structure of org, not the org itself (mission,
values, people, activities)
Identify Seven Elements of an Organization’s Structure
Key Design Questions and Answers for Designing the Proper
Organizational Structure
The Key Question
The Answer Is Provided by
1. To what degree are activities subdivided into
separate jobs?
Work specialization
2.
On what basis will jobs be grouped together?
Departmentalization
3.
To whom do individuals and groups report?
Chain of command
4.
How many individuals can a manager
efficiently and effectively direct?
Span of control
5.
Where does decision-making authority lie?
Centralization and decentralization
6.
To what degree will there be rules and
regulations to direct employees and
managers?
Formalization
7.
Do individuals from different areas need to
regularly interact?
Boundary spanning
0 1
2 3
4 5
(c) 2008 Prentice-Hall, All rights reserved. 2
Work Specialization/Labour
Division
The way the organization’s work is divided into
different jobs to be done by different people
The process of dividing work into relatively specialized jobs to
achieve the advantages of specialization
Division of labor can occur by:
Dividing work into different personal specialties.
Dividing work into different activities necessitated
by the natural sequence of the work the
organization does.
Work specialization
Work specialization: the division of labor into separate
activities.
Repetition of work.
Training for specialization.
Increasing efficiency through invention.
Henry Ford
Work Specialization
Economies and Diseconomies
Specialization can reach a point of diminishing returns
Then job enlargement gives greater efficiencies than does
specialization
Departmentalization
The basis by which jobs are grouped together
Grouping Activities by:
Function
Product
Geography
Process
Customer
Functional Departmentalization
Jobs are combined according to the functions of the
organization.
The principal advantage is efficiency.
By having departments of specialists, management
creates efficient units.
A major disadvantage is that organizational goals may be
sacrificed in favor of departmental goals.
Customer
Departmentalization
Customers and clients can be a basis for grouping jobs.
Examples of customer-oriented departments include:
Educational institutions
The loan department in a commercial bank
Telephone companies
Department stores
6 7
8 9
10 11
(c) 2008 Prentice-Hall, All rights reserved. 3
Geographic
Departmentalization
Groups are established according to geographic area.
The logic is that all activities in a given region should be
assigned to a manager.
Advantageous in large organizations because physical
separation of activities makes centralized coordination
difficult.
Provides a training ground for managerial personnel.
Product Departmentalization
All jobs associated with producing and selling a product or
product line are placed under the direction of one
manager.
Product becomes the preferred basis as a firm grows by
increasing the number of products it markets.
Concentrating authority, responsibility, and accountability
in a specific product department allows top management
to coordinate actions.
Combined Bases for
Departmentalization:
The Matrix Organization
The matrix organization attempts to maximize the
strengths and minimize the weaknesses of both the
functional and product bases.
Typically seen as a balanced compromise between
functional and product organization.
Characterized by the existence of a dual authority
system, which can cause conflicts.
Facilitates the utilization of highly specialized staff and
equipment.
The flexibility of this system allows speedy response to
challenges.
Chain of Command/Administrative hierarchy
Chain of Command
System of reporting relationships in the
organization from the first level up through the
president or CEO
The unbroken line of authority that extends
from the top of the organization to the lowest
echelon and clarifies who reports to whom
Unity of Command
A subordinate should have only one superior to
whom he or she is directly responsible
Organizational downsizing results in lower overhead
costs, less bureaucracy, faster decision making,
smoother communications, and increases in
productivity
Chain of command
The chain of command is less relevant today because of
technology and the trend of empowering people.
Operating employees make decisions once reserved
for management.
Increased popularity of self-managed and cross-
functional teams.
Many organizations still find that enforcing the chain of
command is productive.
Chain of Command/Administrative
hierarchy
Responsibility
An obligation to do something with the expectation of
achieving some act or output
Authority
The rights inherent in a managerial position to give orders and
to expect the orders to be obeyed
Power that has been legitimized within a particular social
context
Originates in the ownership of the organization
The relationship between responsibility and authority must be one
of parity
Can be delegated down to others
Delegation is the transfer to others of authority to make decisions
and use organizational resources
12 13
14 15
16 17
(c) 2008 Prentice-Hall, All rights reserved. 4
Chain of Command/Administrative
hierarchy
An Alternative View of Authority
Acceptance Theory of Authority
The authority of a manager depends on their subordinates’
acceptance of the manager’s right to give directives and to
expect compliance with them
By either accepting or rejecting the directives of a supervisor,
workers can limit supervisory authority
Span of Control
The number of subordinates a manager can efficiently and
effectively direct
Wider spans of management increase organizational
efficiency
Narrow span drawbacks:
Expense of additional layers of management
Increased complexity of vertical communication
Encouragement of overly tight supervision and
discouragement of employee autonomy
Contrasting Spans of Control
Conditions Affecting Span of
Control
Optimal unit size (span of control) depends on:
1. The coordination requirements within the unit, including
factors such as the degree of job specialization
2. Degree of specialization
3. Ability to communicate and manage
4. The similarity of the tasks in the unit
5. The type of information available or needed by unit
members
6. Differences in the members’ need for autonomy
7. The extent to which members need direct access to the
supervisor
Centralization and
Decentralization
Centralization
The degree to which decision making is concentrated at a
single point in the organization.
Decision-making authority is concentrated at the top of
the organizational hierarchy
Decentralization
The degree to which decision making is spread throughout
the organization.
Decisions are made throughout the hierarchy.
Delegation of Authority
Delegation of authority: the process of distributing
authority downward in an organization.
Managers decide how much authority should be
delegated to each job and to each jobholder.
The benefits of decentralizing authority include:
Relatively high delegation of authority encourages the
development of professional managers.
Managers who have high authority can exercise more
autonomy, and thus satisfy their desires to participate
in problem solving.
18 19
20 21
22 23
(c) 2008 Prentice-Hall, All rights reserved. 5
Reasons to Centralize
Authority
Managers must be trained to make the decisions that go
with delegated authority, and training can be quite
expensive.
Managers accustomed to making decisions may resist
delegating authority to their subordinates, which can
reduce effectiveness.
Administrative costs are incurred because new control
systems must be developed to provide top management
with information about the effects of subordinates
decisions.
Decentralization means duplication of functions.
Delegation Decision
Guidelines
Delegation of authority differs among individuals,
depending on each person’s ability to make decisions.
If a local manager is incapable of making decisions,
decision making should be centralized, regardless of how
routine the decisions.
Capable individuals aren’t always motivated individuals.
Motivation must accompany competency to create
conducive conditions for decentralization.
Formalization
The degree to which rules and procedures shape
the jobs and activities of employees
The degree to which jobs within the organization are standardized.
High formalization
Minimum worker discretion in how to get the job done
Many rules and procedures to follow
Low formalization
Job behaviors are nonprogrammed
Employees have maximum discretion
Good managers use appropriate judgment in making exceptions to
rules in recognizing that:
Individuals are unique with meaningful differences
There are commonalities among employees
Boundary spanning
Boundary spanning occurs when individuals form
relationships with people outside their formally assigned
groups.
Positive results are especially strong in organizations
that encourage extensive internal communication; in
other words, external boundary spanning is most
effective when it is followed up with internal
boundary spanning.
Simple Structure
A structure characterized by a low degree of departmentalization,
wide spans of control, authority centralized in a single person, and
little formalization
Simple Structure
Simple structure: the manager and the owner are one
and the same.
Strengths:
Simple, fast, and flexible.
Inexpensive to maintain.
Accountability is clear.
Weaknesses:
Difficult to maintain in anything other than small
organizations.
Riskyeverything depends on one person.
24 25
26 27
28 29
(c) 2008 Prentice-Hall, All rights reserved. 6
Bureaucracy
A structure of highly operating routine tasks
achieved through specialization, very
formalized rules and regulations, tasks that
are grouped into functional departments,
centralized authority, narrow spans of
control, and decision making that follows the
chain of command
Matrix Designs
Combines two different designs to gain the benefits of each.
A structure that creates dual lines of authority and combines
functional and product departmentalization
Key Elements
Gains the advantages of functional and product
departmentalization while avoiding their weaknesses
Facilitates coordination of complex and interdependent
activities
Breaks down unity-of-command concept
Matrix structure is appropriate when:
1. External pressure exists for a dual focus
2. Pressure exists for a high information-processing capacity
3. Pressure exists for shared focus
Matrix Structure (College of Business Administration)
(Dean)
(Director)
Employee
New Design Options: Virtual/Network
Organization
A small, core organization that
outsources its major business
functions
Highly centralized with little or no
departmentalization
Provides maximum flexibility while
concentrating on what the
organization does best
Reduced control over key parts of
the business
New Design Options: Virtual/Network Organization
The Virtual Organization
The essence of the virtual organization is that it
is typically a small, core organization that
outsources major business functions.
Also referred to as a modular or network
organization.
It is highly centralized, with little or no
departmentalization.
The team structure
The team structure: eliminates the chain of command
and replaces departments with empowered teams.
Removes vertical and horizontal boundaries.
Breaks down external barriers.
Flattens the hierarchy and minimizes status and
rank.
When fully operational, the team structure may break
down geographic barriers.
30 31
32 33
34 35
(c) 2008 Prentice-Hall, All rights reserved. 7
The circular structure
In the circular structure: in the center are the
executives, and radiating outward in rings grouped by
function are the managers, then the specialists, then
the workers.
Has intuitive appeal for creative entrepreneur.
However, employees may be unclear about whom
they report to and who is running the show.
We are still likely to see the popularity of the circular
structure spread.
Mechanistic vs. Organic
Structural
Contingency Design Theories
Contingency design theory: emphasizes the importance of
fitting a design to the demands of a situation, including:
Technology
Environmental uncertainty
Strategy
Organization size
The essence of this approach is expressed by this question:
Under what circumstances, and in what situations, is either
the mechanistic or organic design relatively more
effective?
The Relationship Between Strategy
and Structure
“Structure follows strategy” (Alfred Chandler)
Management determines what the organization is to do and what its goals
are before designing appropriate structure
Innovation Strategy
A strategy that emphasizes the introduction of major new products and services
Organic structure best
Cost-minimization Strategy
A strategy that emphasizes tight cost controls, avoidance of unnecessary
innovation or marketing expenses, and price cutting
Mechanistic model best
Imitation Strategy
A strategy that seeks to move into new products or new markets only after their
viability has already been proven
Mixture of the two types of structure
The Relationship Between Strategy
and Structure
An organization’s structure is a means to help
management achieve its objectives.
Most current strategy frameworks focus on three strategy
dimensions:
Innovation
Cost Minimization
Imitation
The Relationship Between
Size and Structure
Size
As measured by employee total, organization asset value, sales total, total
of clients served, physical capacity
Large organizations have a more complex structure
Large size -employing 2,000 or more people- is associated with greater
specialization of labor, wider spans of control, more hierarchical levels, greater
formalization
Large organizations are more efficient and take advantage of economies of scale
The impact of size becomes less important as an organization expands.
36 37
38 39
40 41
(c) 2008 Prentice-Hall, All rights reserved. 8
The Relationship Between Technology and Structure
Technology: the way an organization transfers its
inputs into outputs.
Numerous studies have examined the technology-
structure relationship.
Organizational structures adapt to their technology.
The Relationship Between Technology and Structure
The mechanistic design is effective for firms that mass
produce products, such as clothing, foods, and
automobiles.
Tasks are fairly routine, where workers tend machines
designed and paced by engineering standards.
Actual control of the work flow is separated from
supervision of the workforce.
In such organizations, the ideas of scientific
management and mechanistic design are applicable.
The Relationship Between Environment and Structure
Environment
Institutions or forces outside the organization that potentially affect the
organization’s performance
All elements that lie outside the organization boundary
People, other organizations, economic factors, objects, events
General environment
All of a broad set of dimensions and factors within which the organization operates
Political-legal, social, cultural, technological, economic, international
Task environment
Specific organizations, groups, individuals who influence the organization
Three key dimensions: capacity, volatility, and complexity
Analyze the Behavioral Implications of
Different Organizational Designs (2 of 2)
Organizational Designs and Employee Behavior
Work specialization contributes to higher
employee productivity.
No evidence supports a relationship between
span of control and employee satisfaction or
performance.
Fairly strong evidence links centralization and
job satisfaction, meaning that less centralization
is associated with higher satisfaction.
National culture influences the preference for
structure.
Implications for Managers (1 of
3)
Organizational Structure: Its Determinants and Outcomes
42 43
44 45
46
(c) 2008 Prentice-Hall, All rights reserved. 1
Organizational Culture
Instructor: Pham Thi Bich Ngoc, Assoc. Prof., Dr.
The Nature of Organization
Culture
Organizational Culture
A set of values held by individuals in a firm that
help employees understand acceptability of
actions
The Nature of Organization
Culture
Culture Values
Are often taken for granted (implicit)
May not be made explicit (i.e., not written down)
Are communicated through symbolic means; Are passed
from one generation to the next
Organizations are able to operate efficiently only when
shared values exist among the employees.
An individual’s personal values guide behavior on and
off the job.
Core Values
Expressed Values
Visible Culture
Levels of
organizational
Culture
Do Organizations Have
Uniform Cultures?
Most organizations have a dominant culture and
numerous sets of subcultures.
The dominant culture expresses the core values a
majority of members share and that give the
organization distinct personality.
Subcultures tend to develop in large organizations
to reflect common problems, situations, or
experiences that members face.
Common Characteristics of
Organizational Culture
Strong versus Weak Cultures
Culture versus Formalization
High formalization creates predictability,
orderliness, and consistency.
Formalization and culture are two different roads
to the same destination.
0 1
2 3
4 5
(c) 2008 Prentice-Hall, All rights reserved. 2
What Do Cultures Do?
Culture’s Functions
1. Defines the boundary between one organization and others
2. Conveys a sense of identity for its members
3. Facilitates the generation of commitment to something larger
than self-interest
4. Enhances the stability of the social system
5. Serves as a sense-making and control mechanism for fitting
employees in the organization
What Do Cultures Do?
The trend toward decentralized organizations makes
culture more important than ever, but also makes
establishing a strong culture more difficult.
Individual-organization “fit”— whether the
applicant’s or employee’s attitudes and behavior are
compatible with the culture strongly influences
who gets a job offer, a favorable performance
review, or a promotion.
What Do Cultures Do?
Culture Creates Climate
Organizational climate is shared
perceptions about the organization and
work environment.
Team spirit at the organizational level.
Climates can interact with one another to
produce behavior.
Climate also influences the habits people
adopt.
What Do Cultures Do?
The Ethical Dimension of Culture
Organizational cultures are not neutral in their
ethical orientation, even when they are not openly
pursuing ethical goals.
Over time, the ethical work climate (EWC), or
the shared concept of right and wrong behavior
in that workplace, develops as part of the
organizational climate.
The ethical climate reflects the true values of the
organization and shapes the ethical decision making
of its members.
What Do Cultures Do?
Studies of ethical climates and workplace outcomes
suggest that some climate categories are likely to be
found in certain organizations.
By measuring the collective levels of moral sensitivity,
judgment, motivation, and character of our
organizations, we may be able to judge the strength of
the influence our ethical climates have on us.
What Do Cultures Do?
Sustainability: practices that can be maintained over very
long periods of time because the tools or structures that
support the practices are not damaged by the processes.
Social sustainability practices.
Sustainable management doesn’t need to be purely
altruistic.
To create a truly sustainable business, an organization must
develop a long-term culture and put its values into practice.
Like other cultural practices we’ve discussed, sustainability
needs time and nurturing to grow.
6 7
8 9
10 11
(c) 2008 Prentice-Hall, All rights reserved. 3
What Do Cultures Do?
Culture and Innovation
The most innovative companies have
open, unconventional, collaborative,
vision-driven, and accelerating
cultures.
Startup firms often have innovative
cultures.
They are usually small, agile, and
focused on solving problems in
order to survive and grow.
What Do Cultures Do?
Culture as an Asset
Culture can significantly contribute to an
organization’s bottom line in many ways.
There are many more cases of business success
stories because of excellent organizational cultures
than there are of success stories despite bad
cultures, and almost no success stories because of
bad ones.
What Do Cultures Do?
Culture as a Liability
Institutionalization
Barrier to change
Occurs when culture’s values are not aligned with the values necessary for
rapid change
Barrier to diversity
Strong cultures put considerable pressure on employees to conform,
which may lead to institutionalized bias
Barrier to acquisitions and mergers
Incompatible cultures can destroy an otherwise successful merger
Creating and Sustaining
Culture (1 of 6)
How a Culture Begins
Ultimate source of an organization’s culture is its
founders.
Founders have the vision of what the organization
should be.
Unconstrained by previous ideologies or customs.
New organizations are typically small, which
facilitates the founders’ imparting of their vision on
all organizational members.
Creating and Sustaining
Culture (2 of 6)
Culture creation occurs in three ways:
Founders hire employees who think and feel the
way they do.
Employees are indoctrinated and socialized into the
founders’ way of thinking.
Founders’ own behavior encourages employees to
identify with them and internalize their beliefs,
values, and assumptions.
Creating and Sustaining
Culture (3 of 6)
Keeping a Culture Alive
Selection
Identify and hire individuals with
the knowledge, skills, and abilities
to perform successfully.
Two-way street.
Top Management
Establish norms of behavior.
12 13
14 15
16 17
(c) 2008 Prentice-Hall, All rights reserved. 4
Creating and Sustaining
Culture (4 of 6)
Types of Culture
Formal Control Orientation
Flexible
Internal External
Stable
Clan Culture
Entrepreneurial
Culture
Bureaucratic
Culture
Market Culture
Forms of Attention
How Culture is Transmitted to
Employees
Stories
Rituals
Material Symbols
Language
Influencing an Organizational Culture
(1 of 5)
How can management create a more ethical
culture?
Be a visible role model.
Communicate ethical expectations.
Provide ethics training.
Visibly reward ethical acts and punish unethical
ones.
Provide protective mechanisms.
Influencing an Organizational Culture
(2 of 5)
There is a trend today for organizations to attempt
to create a positive organizational culture:
Emphasizes building on employee strengths.
Rewards more than it punishes.
Emphasizes individual vitality growth.
Influencing an Organizational Culture (3 of 5)
What Is Spirituality?
Workplace spirituality is not about organized
religious practices.
It is not about God or theology.
Workplace spirituality recognizes that people
have an inner life that nourishes and is nourished
by meaningful work that takes place in the
context of community.
18 19
20 21
22 23
(c) 2008 Prentice-Hall, All rights reserved. 5
Influencing an Organizational Culture (5 of 5)
Characteristics of a Spiritual Organization
Cultural characteristics present in spiritual
organizations include:
Benevolence
Strong sense of purpose
Trust and respect
Open-mindedness
Identify Characteristics of a Spiritual
Culture (1 of 2)
Achieving a Spiritual Organization
Leaders can demonstrate values, attitudes,
and behaviors that trigger intrinsic motivation
and a sense of calling through work.
Encouraging employees to consider how their
work provides a sense of purpose through
community building also can help achieve a
spiritual workplace.
Managing Organization
Culture
Taking Advantage of the Existing Culture
Easier and faster to alter employee behaviors within the
existing culture than it is to change existing history, traditions,
and values
Managers must be aware and understand the organization’s
values
Managers can communicate their understanding to lower-level
individuals
Managing Organization
Culture
Teaching Organization Culture
Organizational socialization
Is the process through which employees learn about the
firm’s culture and pass their knowledge and understanding
on to others
Organizational mechanisms
Are examples of organization culture that employees see in
more experienced employees’ behaviors
Corporate pamphlets and formal training sessions
Managing Organization
Culture
Changing the Organization Culture
Managing symbols
Substituting stories and myths that support the new cultural values for those that
support old ones
Culture can be difficult to change when upper management inadvertently
reverts to old behaviors
The Stability of Change
New values and beliefs must be seen as stable and influential as old ones
Changing value systems requires enormous effort because value systems
tend to be self-reinforcing
Managing Organization Culture
Culture can be changed, but
Need time
Support from top managers
Other resources
How to make culture change
Change people
Change corporate vision and mission
Change organizational policies and
system: reward system, recruitment
and selection policies, technology…
24 25
26 27
28 29
(c) 2008 Prentice-Hall, All rights reserved. 6
Implications for Managers (1 of 3)
How Organizational Cultures Have an Impact on Employee
Performance and Satisfaction
30
(c) 2008 Prentice-Hall, All rights reserved. 1
Motivation: From Concepts to
Applications
INSTRUCTOR: ASSOC. PROF. DR., PHAM THI BICH NGOC
NEU
Learning Objectives
Describe how the job characteristics model motivates
by changing the work environment.
Compare the main ways jobs can be redesigned.
Explain how specific alternative work arrangements can
motivate employees.
Describe how employee involvement measures can
motivate employees.
Demonstrate how the different types of variable-pay
programs can increase employee motivation.
Show how flexible benefits turn benefits into motivators.
Identify the motivational benefits of intrinsic rewards.
Job Characteristics Model
(JCM)
Hackman and Oldham’s concept that any job can be
described through five core job dimensions:
Skill variety Requirements for different tasks in
the job.
Task identity Completion of a whole piece of
work.
Task significance The job’s impact on others.
Autonomy Level of discretion in decision
making.
Feedback Amount of direct and clear
information on performance.
The way elements in a job are organized (job design)
impacts motivation, satisfaction, and performance.
0
1
2
(c) 2008 Prentice-Hall, All rights reserved. 2
The Job Characteristics Model
Employee growth-need strength moderates the relationships.
Motivating Potential Score (MPS)
The core dimensions of the job characteristics model (JCM)
can be combined into a single predictive index called the
motivating potential score (MPS).
People who work on jobs with high core dimensions are
generally more motivated, satisfied, and productive.
Job dimensions operate through the psychological states
in influencing personal and work outcome variables rather
than influencing them directly.
Evidence supports the JCM concept that the presence of a
set of job characteristics does generate higher and more
satisfying job performance.
While the JCM framework is supported by research, the MPS
model isn’t practical and doesn’t work well.
How Can Jobs Be Redesigned?
Job Rotation
The periodic shifting of a worker from
one task to another
Systematically moving workers from one
job to another in an attempt to minimize
monotony and boredom
Job Enlargement
The horizontal expansion of jobs
Giving workers more tasks to perform
Job Enrichment
The vertical expansion of jobs
Giving workers a greater variety of tasks
to perform and more control over how to
perform them
3
4
5
(c) 2008 Prentice-Hall, All rights reserved. 3
How Can Jobs Be Redesigned?
Repetitive jobs provide little variety, autonomy, or motivation.
Job Rotation
Referred to as cross-training.
Periodic shifting from one task to another.
Strengths: reduces boredom, increases
motivation, and helps employees better
understand their work contributions.
Weaknesses: creates disruptions, requires extra
time for supervisors addressing questions and
training time, and reduced efficiencies.
Job enrichments
Allow employees to plan their own
work schedules.
Allow employees to decide how
the work should be performed.
Allow employees to check their
own work.
Allow employees to learn new skills.
Guidelines for Enriching a
Job
6
7
8
(c) 2008 Prentice-Hall, All rights reserved. 4
Flexible Work Arrangements
Variable Work Schedules
Compressed work schedule
Employees work a full forty-hour week in fewer than
the traditional five days
Flexible work schedules (flextime)
Employees gain more personal control over the hours they work
each day
Job Sharing
Part-time employees share one full-time job
Telecommuting
Employees spend part of their time working off-site
Alternative Work
Arrangements
Job Sharing
Two or more people split a 40-hour-a-week job.
Declining in use.
Can be difficult to find compatible pairs of
employees who can successfully coordinate
the intricacies of one job.
Increases flexibility and can increase
motivation and satisfaction when a 40-hour-a-
week job is just not practical.
Alternative Work Arrangements
Telecommuting
Employees do their work at home at least two days a week
on a computer that is linked to their office.
The Virtual Office
Employees work out of their home on a relatively permanent
basis.
Some well-known organizations actively discourage
telecommuting, but for most organizations it remains
popular.
Typical Telecommuting Jobs
Professional and other knowledge-related tasks
Routine information-handling tasks
Mobile activities
9
10
11
(c) 2008 Prentice-Hall, All rights reserved. 5
Employee Involvement
Employee Involvement: a participative process
that uses employees’ input to increase their
commitment to the organization’s success.
Examples of Employee Involvement Programs
Participative management
Representative participation
Employee Involvement
Participative management
Joint decision making.
Trust and confidence in leaders is essential.
Studies of the participation-performance have
yielded mixed results.
Employee Involvement
Representative participation
Workers are represented by a small group of
employees who actually participate in decision
making.
Almost every country in Western Europe requires
representative participation.
The two most common forms:
Works councils
Board representatives
12
13
14
(c) 2008 Prentice-Hall, All rights reserved. 6
Employee Involvement
and Motivation
Early Perspectives on Employee Involvement
In the beginning:
Employee satisfaction is a result of their participation
in decision-making
Recently:
Employees are valued human resources who can
contribute to organizational effectiveness
Their participation is valued
Employee Involvement
and Motivation
Areas of Employee Involvement
Personal job-related decisions
Administrative matters (e.g., work schedules)
Product quality decisions
Techniques and Issues in Employee Involvement
Empowerment through work teams (quality circles)
Decentralization of decision-making and increased
delegation
Empowerment
Empowering others by:
Articulating a clear vision and
goals
Providing support
Providing necessary resources
Providing good information
15
16
17
(c) 2008 Prentice-Hall, All rights reserved. 7
Requirements for Effective
Empowerment
An organization must be:
Sincere in its efforts to spread power and autonomy to
lower levels of the organization
Committed to maintaining participation and
empowerment
Systematic and patient in its efforts to empower workers
Prepared to increase its commitment to training
Delegation
Delegation is the process of assigning tasks and granting
sufficient authority for their accomplishment.
Delegation is a process where a manager:
Determines the results expected
Allocates duties to subordinates
Grants them authority to enable those duties to be carried
out
Holds them responsible for the completion of the work
and achievement results.
The ultimate accountability for the task remains with the
manager.
Problems of Delegation
Managers are reluctant to delegate
because of:
Low confidence and trust
The burden of accountability for the
mistakes of subordinates
Poor control and communication system
Lack of understanding of what delegation
involves
Lack of training and development of
managers in delegation skills
Fear of losing power
18
19
20
(c) 2008 Prentice-Hall, All rights reserved. 8
Variable-Pay Programs
What to Pay:
Complex process that entails balancing internal
equity and external equity.
Some organizations prefer to pay leaders by
paying above market.
Paying more may net better-qualified and more
highly motivated employees who may stay with
the firm longer.
Variable-Pay Programs
How to Pay:
Variable pay programs:
Piece-rate plans
Merit-based pay
Bonuses
Profit sharing
Employee stock ownership plans
Earnings therefore fluctuate up and down.
Variable-Pay Programs
Piece-Rate Pay
A pure piece-rate plan provides no base salary and
pays the employee only for what he or she produces.
Limitation: not a feasible approach for many jobs.
The main concern for both individual and team
piece-rate workers is financial risk.
21
22
23
(c) 2008 Prentice-Hall, All rights reserved. 9
Variable-Pay Programs
Merit-Based Pay
Allows employers to differentiate pay based on
performance.
Creates perceptions of relationships between
performance and rewards.
Limitations:
Based on annual performance appraisals.
Merit pool fluctuates.
Union resistance.
Variable-Pay Programs
Bonuses
An annual bonus is a significant component of
total compensation for many jobs.
Increasingly include lower-ranking employees.
Many companies now routinely reward
production employees with bonuses when
profits improve.
Downside: employees’ pay is more vulnerable to
cuts.
Variable-Pay Programs
Profit-Sharing Plans
Organization-wide programs that distribute
compensation based on some established formula
centered around a company’s profitability.
Appear to have positive effects on employee
attitudes at the organizational level.
Employees have a feeling of psychological
ownership.
24
25
26
(c) 2008 Prentice-Hall, All rights reserved. 10
Variable-Pay Programs
Employee Stock Ownership Plan (ESOP)
A company-established benefit plan in which
employees acquire stock, often at below-market
prices, as part of their benefits.
Increases employee satisfaction and innovation.
Employees need to psychologically
experience ownership.
Can reduce unethical behavior.
Variable-Pay Programs
Evaluation of Variable Pay
Do variable-pay programs increase motivation
and productivity?
Generally, yes, but that doesn’t mean
everyone is equally motivated by them.
Show How Flexible Benefits
Turn Benefits Into Motivators
Developing a Benefits Package
Flexible benefits individualize rewards.
Allow each employee to choose the
compensation package that best satisfies his or
her current needs and situation.
Today, almost all major corporations in the
United States offer flexible benefits.
However, it may be surprising that their usage
is not yet global.
27
28
29
(c) 2008 Prentice-Hall, All rights reserved. 11
Identify the Motivational
Benefits of Intrinsic Rewards
Employee Recognition Programs
Organizations are increasingly recognizing that
important work rewards can be both intrinsic and
extrinsic.
Rewards are intrinsic in the form of employee
recognition programs and extrinsic in the form of
compensation systems.
Implications for Managers (1 of 3)
Recognize individual differences.
Spend the time necessary to understand what’s
important to each employee.
Design jobs to align with individual needs and
maximize their motivation potential.
Use goals and feedback.
You should give employees firm, specific goals,
and they should get feedback on how well
they are faring in pursuit of those goals.
Implications for Managers (2 of 3)
Allow employees to participate in decisions that
affect them.
Employees can contribute to setting work goals,
choosing their own benefits packages, and
solving productivity and quality problems.
Link rewards to performance.
Rewards should be contingent on performance,
and employees must perceive the link between
the two.
30
31
32
(c) 2008 Prentice-Hall, All rights reserved. 12
Implications for Managers (3 of 3)
Check the system for equity.
Employees should perceive that experience,
skills, abilities, effort, and other obvious inputs
explain differences in performance and hence in
pay, job assignments, and other obvious rewards.
Special Issues in
Motivation
Motivating Professionals
Provide challenging projects.
Allow them the autonomy to be productive.
Reward with educational opportunities.
Reward with recognition.
Express interest in what they are doing.
Create alternative career paths.
Special Issues in
Motivation (cont’d)
Motivating the Diversified Workforce
Provide flexible work, leave, and pay schedules.
Provide child and elder care benefits.
Structure working relationships to account for cultural
differences and similarities.
Motivating Low-Skilled Service Workers
Recruit widely.
Increase pay and benefits.
Make jobs more appealing.
33
34
35
(c) 2008 Prentice-Hall, All rights reserved. 13
Special Issues in
Motivation (cont’d)
Motivating People Doing Highly Repetitive Tasks
Recruit and select employees that fit the job.
Create a pleasant work environment.
Motivating Contingent Workers
Provide opportunity for permanent status.
Provide opportunities for training.
Provide equitable pay.
36
(c) 2008 Prentice-Hall, All rights reserved. 1
Motivation Concepts
Instructor: Assoc. Prof. Dr. Pham Thi Bich Ngoc
NEU
Learning Objectives
Describe the three key elements of motivation.
Compare the early theories of motivation.
Contrast the elements of self-determination theory
and goal-setting theory.
Demonstrate the differences among self-efficacy
theory, reinforcement theory, equity theory, and
expectancy theory.
Identify the implications of employee job
engagement for managers.
Describe how the contemporary theories of
motivation complement one another.
Defining Motivation
Motivation is the processes that account for an
individual’s intensity, direction, and persistence of
effort toward attaining a goal.
The level of motivation varies both between
individuals and within individuals at different
times.
Three key elements:
Intensity
Direction
Persistence
0
1
2
(c) 2008 Prentice-Hall, All rights reserved. 2
Motivation framework
Need-based Theories of
Motivation
These early theories may not be valid, but they do
form the basis for contemporary theories and are
still used by practicing managers.
Maslow’s Hierarchy of Needs Theory
Alderfer’s ERG (Existence, Relatedness, and
Growth)
Herzberg’s Two-Factor Theory
McClelland’s Theory of Needs
Maslow’s Hierarchy of
Needs
There is a hierarchy of five needs. As each need is
substantially satisfied, the next need becomes dominant.
Assumptions
Individuals
cannot move to
the next higher
level until all
needs at the
current (lower)
level are satisfied
Must move in
hierarchical
order
Self-Actualization
Esteem
Social
Safety
Physiological
Lower Order
External
Higher Order
Internal
3
4
5
(c) 2008 Prentice-Hall, All rights reserved. 3
Maslow’s need theory has received wide recognition,
particularly among practicing managers.
It is intuitively logical and easy to understand
and some research has validated it.
However, most research does, especially when
the theory is applied to diverse cultures.
Herzberg’s Two-Factor
Theory
Hygiene
Factors
Motivators
Achievement
Responsibility
Growth
Work
Conditions
Salary
Company
Policies
Extrinsic and
Related to
Dissatisfaction
Intrinsic and
Related to
Satisfaction
Compare the Early Theories of
Motivation
Contrasting View of Satisfaction and Dissatisfaction
6
7
8
(c) 2008 Prentice-Hall, All rights reserved. 4
Herzberg’s Two-Factor
Theory
Assumes that motivation, as a construct, has two separate
dimensions:
Motivation factors which affect satisfaction
Hygiene factors which determine dissatisfaction
Assumes motivation occurs through job enrichment once
hygiene factors are addressed
Criticisms of Herzberg’s theory
Limited because it relies on self-reports.
Reliability of methodology is questioned.
No overall measure of satisfaction was utilized.
Alderfer’s ERG Theory
A reworking of Maslow to fit empirical research.
Three groups of core needs:
Existence (Maslow: physiological and safety)
Relatedness (Maslow: social and status)
Growth (Maslow: esteem and self-actualization)
Removed the hierarchical assumption
Can be motivated by all three at once
9
10
11
(c) 2008 Prentice-Hall, All rights reserved. 5
McClelland’s Three Needs
Theory
Need for Achievement (nAch)
The drive to excel, to achieve in relation to a set of
standards, to strive to succeed
Need for Power (nPow)
The need to make others behave in a way that they
would not have behaved otherwise
Need for Affiliation (nAff)
The desire for friendly and close interpersonal
relationships
People have varying levels of each of the three
needs.
Hard to measure
Performance Predictions
for High nAch
People with a high need for achievement are
likely to:
Prefer to undertake activities with a 50/50 chance
of success, avoiding very low- or high-risk situations
Be motivated in jobs that offer high degree of
personal responsibility, feedback, and moderate risk
Not necessarily make good managers too
personal a focus. Most good general managers do
NOT have a high nAch
Need high level of nPow and low nAff for
managerial success
Good research support, but it is not a very
practical theory
Parallels among the Need theories of
Motivation
Growth Needs
Relatedness
Needs
Existence Needs
Self-actualization
Needs
Self-Esteem
Respect of others
Social
Needs
Security
Physiological Needs
Motivation Factors
Achievement
Work itself
Responsibility
Advancement
Recognition
Hygience Factors
Supervision
Interpersonal relationship
Job security
Company Policies
Pay
Working Conditions
Need for
Achievement
Need for power
Need for
Affiliation
12
13
14
(c) 2008 Prentice-Hall, All rights reserved. 6
Process-based and Contemporary Theories
of Motivation
Self-determination theory
Goal-Setting Theory
Self-Efficacy Theory
Equity Theory
Reinforcement Theory
Expectancy Theory
Self-Determination Theory
People prefer to feel they have control over
their actions.
People paid for work feel less like they want
to do it and more like they have to it.
Proposes that in addition to being driven by a
need for autonomy, people seek ways to
achieve competence and positive
connections to others.
Self-Determination Theory
When extrinsic rewards are used as payoffs for performance,
employees feel they are doing a good job.
Self-determination theory acknowledges that extrinsic rewards
can improve even intrinsic motivation under specific
circumstances.
15
16
17
(c) 2008 Prentice-Hall, All rights reserved. 7
Self-Determination Theory
What does self-determination theory suggest for providing
rewards?
Self-concordance: considers how strongly people’s reasons for
pursuing goals are consistent with their interests and core
values.
Goal-Setting Theory
Goal-Setting Theory
Goals tell an employee what needs to be
done and how much effort is needed.
Evidence suggests:
Specific goals increase performance.
Difficult goals, when accepted, result in higher
performance than do easy goals.
Feedback leads to higher performance than
does non-feedback.
Goal-Setting Theory
Three other factors influencing the goals-performance
relationship:
Goal commitment
Task characteristics
National culture
18
19
20
(c) 2008 Prentice-Hall, All rights reserved. 8
Goal-Setting Theory
People differ in the way they regulate their thoughts and
behaviors.
Those with a promotion focus strive for
advancement and accomplishment and
approach conditions that move them closer
toward desired goals.
Those with a prevention focus strive to fulfill duties
and obligations and avoid conditions that pull
them away from desired goals.
Goal Setting and
Motivation
Basic Premise:
That specific and difficult goals, with self-generated
feedback, lead to higher performance
Purposes of Setting Goals in Organizations
To provide a useful framework for managing
motivation to enhance employee performance
To serve management as a control device for
monitoring of how well the organization is
performing
Self-Efficacy
The extent to which we believe we can accomplish
our goals even if we failed to do so in the past
Expanded Goal Setting Theory
The Goal-Setting Process
Goal-directed effort is a function of goal attributes:
1. Goal difficulty: The extent to which a goal is challenging, requires
effort, and is attainable
Difficult Goals:
Focus and direct attention
Energize the person to work harder
Difficulty increases persistence
Force people to be more effective and efficient
2. Goal specificity: The clarity and precision of a goal
3. Goal acceptance: the extent to which a person accepts a goal as
his/her own
4. Goal commitment: the extent to which a person is interested in
reaching a goal
21
22
23
(c) 2008 Prentice-Hall, All rights reserved. 9
Source: Reprinted from ORGANIZATIONAL DYNAMICS, Autumn
1979, Gary P. Latham et al., "The Goal-Setting Theory of Motivation",
Copyright 1979, with permission from Elsevier.
Broader Perspectives on
Goal Setting
Management by Objectives (MBO)
A collaborative goal-setting process through which
organizational goals cascade down throughout the
organization
Requires customizing to each organization
Can be effective for managing reward systems where the
manager has individual interactions with each employee
Self-Efficacy Theory
An individual’s belief that he or she is capable of
performing a task.
Higher efficacy is related to:
Greater confidence
Greater persistence in the face of difficulties
Better response to negative feedback (work harder)
Self-Efficacy complements Goal-Setting Theory.
24
25
26
(c) 2008 Prentice-Hall, All rights reserved. 10
Increasing Self-Efficacy
Enactive mastery
Most important source of efficacy
Gaining relevant experience with task or job
“Practice makes perfect”
Vicarious modeling
Increasing confidence by watching others perform the task
Most effective when observer sees the model to be similar to him-
or herself
Verbal persuasion
Motivation through verbal conviction
Pygmalion and Galatea effects - self-fulfilling prophecies
Arousal
Getting “psyched up” – emotionally aroused to complete task
Can hurt performance if emotion is not a component of the task
Self-Efficacy Theory
Joint Effects of Goals and Self-Efficacy on Performance
Source: Based on E. A. Locke and G. P. Latham, “Building a Practically Useful
Theory of Goal Setting and Task Motivation: A 35-Year Odyssey,” American
Psychologist (September 2002): 70517.
Self-Efficacy Theory
Implications of self-efficacy theory:
The best way for a manager to use verbal
persuasion is through the Pygmalion effect.
A form of self-fulfilling prophecy believing in
something can make it true.
Training programs often make use of enactive
mastery by having people practice and build
their skills.
27
28
29
(c) 2008 Prentice-Hall, All rights reserved. 11
Reinforcement Theory
Reinforcement theory: behavior is a function of its
consequences.
Reinforcement conditions behavior.
Behavior is environmentally caused.
Goal setting is a cognitive approach: an individual’s
purposes direct his or her action.
Operant conditioning theory: people learn to behave to get
something they want or to avoid something they don’t
want.
B.F. Skinner’s behaviorism.
Reinforcement Theory
focuses on a behavioral approach rather than a
cognitive one.
Behavior is environmentally caused
Thought (internal cogitative event) is not important
Feelings, attitudes, and expectations are ignored
Behavior is controlled by its consequences reinforcers
Behavior is a function of its consequences
Reinforcement is the consequence of behavior
Is not a motivational theory but a means of analysis of
behavior
Reinforcement strongly influences behavior but is not
likely to be the sole cause
Equity Theory
30
31
32
(c) 2008 Prentice-Hall, All rights reserved. 12
Equity Theory
When employees perceive an inequity, they can be
predicted to make one of six choices:
Change their inputs.
Change their outcomes.
Distort perceptions of self.
Distort perceptions of others.
Choose a different referent.
Leave the field.
Equity Theory
Model of Organizational Justice
Expectancy Theory
Expectancy theory: a tendency to act in a certain way
depends on an expectation that the act will be followed by
a given outcome and on the attractiveness of that outcome
to the individual.
Three relationships:
Effort-performance relationship
Performance-reward relationship
Rewards-personal goals relationship
33
34
35
(c) 2008 Prentice-Hall, All rights reserved. 13
Expectancy Theory
Expectancy Theory
Expectancy theory helps explain why a lot of workers aren’t
motivated and do only the minimum.
Three questions employees need to answer in the affirmative if
their motivation is to be maximized:
If I give maximum effort, will it be recognized in
my performance appraisal?
If I get a good performance appraisal, will it lead
to organizational rewards?
If I’m rewarded, are the rewards attractive to
me?
Expectancy Relationships
(Linkages)
Effortperformance
The perceived probability that exerting a given amount of
effort will lead to performance results
Performancereward
The belief that performing at a particular level will lead to the
attainment of a desired outcome
Attractiveness
The importance placed on the potential outcome or reward
that can be achieved on the job.
36
37
38
(c) 2008 Prentice-Hall, All rights reserved. 14
Expectancy Theory
Factor influence Effort-Performance:
Level of expectancy: belief/perception that one’s effort
will result attainment of desired performance goals.
Factors affecting expectancy perception:
self-efficacy
Goal difficulty
Expectancy Theory
Factor influence Performance-Reward:
Instrumentality: Motivation depend on the perceived
effective relationship between given input and the
expected outcome.
Factor influence the individual’s instrumentality
perception:
Trust
Control:
Policies
Expectancy Theory
Factor influence Reward-Personal Goal:
Valence: value placed on outcomes (intrinsic and
extrinsic). It is a function of individual’s needs, goals, values
and source of motivation
Factors influencing valence for outcome:
Values
Needs
Goals
Preferences
39
40
41
(c) 2008 Prentice-Hall, All rights reserved. 15
Implications for managers of Expectancy
Theory
Managers should give attention to a
number of factors:
Use rewards appropriate in terms of individual
performance
Attempt to establish clear relationships between effort-
performance and rewards
Establish clear procedures for the evaluation of individual
levels of performance
42
43
| 1/93

Preview text:

ORGANIZATIONAL BEHAVIOR
Instructor: Assoc. Prof. Dr. Pham Thi Bich Ngoc
Faculty of Human Resources Economics and Management NEU 0 Course Objectives
The course is designed to give students the basic
knowledge of human behavior in organizations and how
to apply this knowledge to increase the organization
effectiveness. After taking this class, the students should all be able to:
Demonstrate an understanding of basic theory and research
related to contemporary issues in organizational behavior.
Demonstrate an understanding of individual behavior and the
links between individual behavior and its social and organizational context.
Demonstrate ability to apply OB theories to discuss work issues
and to develop constructive proposals for dealing with that issues.
Exhibit analytical, research, teamworking and presentation skills 1-1 1 COURSE READING MATERIAL Text book:
➢ S. P. Robbins and T. A. Judge (2017). Organizational Behavior
(Global Edition). Prentice Hall, USA Reference book
➢ Moorheard, G. and Griffin, R. W., 2012, Managing Organizational
behavior, International Edition, US, South-Western Cengage Learning
➢ John R Schermerhorn, Jr., Richard N. Osborn, James G. Hunt, Mary
Uhl-Bien (2012) Organizational Behavior: International Student
Version (12th Edition).
Wiley John & Sons.
➢ Laurie J. Mullins (2016). Management Organizational Behavior (11th
Edition). Prentice Hall.
➢ McShane, S. L, Glinow, M. A. V. (2010), Organizational Behavior
(5th Edition) The McGraw-Hill Companies, Inc., USA 1-2 2
(c) 2008 Prentice-Hall, All rights reserved. 1 Course schedule Session Topics Session 1 Introduction and Chapter 1
Chapter 2: Diversity in Organizations Session 2
Chapter 3: Attitudes and Job Satisfaction
Chapter 5: Personality & Values Session 3
Chapter 6: Perception and individual decision making Chapter 7: Motivation Concepts Session 4,5
Chapter 8: Motivation: From Concepts to Applications
Chapter 9: Foundations of Group Behavior Session 6
Chapter 10: Understanding Work Teams Session 7 Chapter 11: Communication Session 8 Chapter 12: Leadership Session 9
Chapter 15: Foundations of Organization structure Session 10
Chapter 16: Organizational Culture
Session 11,12,13 Group presentation 1-3 3 ASSESSMENT
10% Participation in class
20% Midterm examination (Individual test)20% Group assignments
50% Final examination 1-4 4 Unit 1:
Introduction to Organizational Behavior 5
(c) 2008 Prentice-Hall, All rights reserved. 2 Learning Objectives
After studying this unit, you should be able to:
– Identify the functions that comprise the management process
and relate them to organizational behavior.
– Relate organizational behavior to basic managerial roles and skills.
– Demonstrate the importance of interpersonal skills in the workplace
– Define organizational behavior (OB).
– Importance and functions of OB
– Identify the major behavioral science disciplines that contribute to OB.
– Identify the challenges and opportunities managers have in applying OB concepts. 1-6 6 What is an organization? Environment Resources Mechanism Goals 1-7 7 Types of employees Senior managers Line managers Supervisors Operatives 1-8 8
(c) 2008 Prentice-Hall, All rights reserved. 3 Organization as an open system 1-9 9 What Managers Do
They get things done through other people.
Management Activities: – Make decisions – Allocate resources
– Direct activities of others to attain goals 1-10 10 The Nature of Managerial Work Management To Coordinate To Attain Plans the Behavior of Effectiveness of Organizes Individuals Individuals Leads Groups Groups Controls Organizations Organizations Feedback
Management’s Contribution to Effectiveness 11
(c) 2008 Prentice-Hall, All rights reserved. 4 Management Functions Control Plan Lead Organize
Based on your own experiences or observations, provide examples of each function? 1-12 12 Mintzberg’s Managerial Roles
Discovered ten managerial roles
Separated into three groups: – Interpersonal – Informational – Decisional 1-13 13
Mintzberg’s Managerial Roles: Interpersonal 1-14 14
(c) 2008 Prentice-Hall, All rights reserved. 5
Mintzberg’s Managerial Roles: Informational
Source: Adapted from The Nature of Managerial Work by H. Mintzberg. Copyright ©
1973 by H. Mintzberg. Reprinted by permission of Pearson Education. 1-15 15
Mintzberg’s Managerial Roles: Decisional
Source: Adapted from The Nature of Managerial Work by H. Mintzberg. Copyright ©
1973 by H. Mintzberg. Reprinted by permission of Pearson Education. 1-16 16
Katz’s Essential Management Skills ➢ Technical Skills
– The ability to apply specialized knowledge or expertise ➢ Human Skills
– The ability to work with, understand,
and motivate other people, both individually and in groups ➢ Conceptual Skills
– The mental ability to analyze and diagnose complex situations 1-17 17
(c) 2008 Prentice-Hall, All rights reserved. 6
Managerial Skills at Different Organizational Levels Top C o D manager n i c a e g s T p s In n k e tu k te o i c i s l l l h a ls r ti Middle s n l p c i s e s manager c k r a i s k l l o i ls n ll a s l First-line manager 1–18 18
The Importance of Interpersonal Skills
Interpersonal skills are important because…
‘Good places to work’ have better financial performance.
Better interpersonal skills result in lower turnover of
quality employees and higher quality applications for recruitment.
There is a strong association between the quality of
workplace relationships and job satisfaction, stress, and turnover.
It fosters social responsibility awareness. 19 Organizational Behavior
“OB is the study of human behavior
in organizational settings, the
interface between human behavior and the organization, and the
organization itself” (Griffin et al.,
Environment 2012) Human behavior in organizational settings
Organizational behavior (OB) is a The Individual-
field of study that investigates the Organization Interface
impact that individuals, groups, and
structure have on behavior within
The Organization
organizations for the purpose of
applying such knowledge toward
improving an organization’s
Environment effectiveness. 1-20 20
(c) 2008 Prentice-Hall, All rights reserved. 7 Intuition and Systematic Study • Gut feelings • Individual observation Intuition • Commonsense • Looks at relationships
Systematic • Scientific evidence Study • Predicts behaviors
The two are complementary means of predicting behavior. 1-21 21
Complementing Intuition with Systematic Study
Systematic Study of Behavior
– Behavior generally is predictable if we know how the person
perceived the situation and what is important to him or her.
Evidence-Based Management (EBM)
– Complements systematic study.
– Argues for managers to make decisions based on evidence. ➢ Intuition
– Systematic study and EBM add to intuition, or those “gut
feelings” about “why I do what I do” and “what makes others tick.”
– If we make all decisions with intuition or gut instinct, we’re
likely working with incomplete information. 22 Contributing Disciplines Many behavioral sciences have contributed to the development of Organizational Psychology Behavior Social Psychology Sociology Anthropology 1-23 23
(c) 2008 Prentice-Hall, All rights reserved. 8
Challenges and Opportunities for OB ➢ Globalization
Responding to economic pressure
Diversity workforces
Improving customer service
Using social media at work
Improving ethical behavior
Enhancing employee well-being at work Employment options
Innovation and change 1-24 24
Three Levels of Analysis OB Model 25
Three Levels of Analysis OB Model ➢ Inputs
– Variables like personality, group structure, and organizational culture that lead to processes. – Group structure, roles, and team responsibilities are typically assigned immediately before or after a group is formed. – Organizational structure and culture change over time. 26
(c) 2008 Prentice-Hall, All rights reserved. 9
Three Levels of Analysis OB Model ➢ Processes
– If inputs are like the nouns in organizational behavior, processes are like verbs. – Defined as actions that individuals, groups, and organizations engage in as a result of inputs, and that lead to certain outcomes. 27
Three Levels of Analysis OB Model ➢ Outcomes
– Key variables that you want to explain or predict, and that are affected by some other variables. 28 Outcome Variables ➢Attitudes and stress
– Employee attitudes are the evaluations employees make,
ranging from positive to negative, about objects, people, or events.
Stress is an unpleasant psychological process that occurs in
response to environmental pressures. 29
(c) 2008 Prentice-Hall, All rights reserved. 10 Outcome Variables ➢Task performance
– The combination of effectiveness and efficiency at doing
your core job tasks is a reflection of your level of task
performance (
Routine task performance, Adaptive task
performance, creative task performance) 30 Outcome Variables
- Counterproductive behavior: employee behaviors that intentionally
hinder organizational goal accomplishment 31 Outcome Variables
Organizational citizenship behavior
– The discretionary behavior that is not part of an employee’s
formal job requirements, and that contributes to the
psychological and social environment of the workplace, is
called organizational citizenship behavior. 32
(c) 2008 Prentice-Hall, All rights reserved. 11 Outcome Variables ➢Withdrawal behavior
Withdrawal behavior is the set of actions that employees
take to separate themselves from the organization. 33 Outcome Variables ➢Group cohesion
Group cohesion is the extent to which members of a
group support and validate one another at work. ➢Group functioning
Group functioning refers to the quantity and quality of a group’s work output. 34 Outcome Variables ➢Productivity
– An organization is productive if it achieves its goals by
transforming inputs into outputs at the lowest cost. This
requires both effectiveness and efficiency. ➢Survival
– The final outcome is organizational survival, which is
simply evidence that the organization is able to exist and grow over the long term. 35
(c) 2008 Prentice-Hall, All rights reserved. 12 Implications for Managers
Resist the inclination to rely on generalizations;
some provide valid insights into human
behavior, but many are erroneous.

Use metrics and situational variables rather
than “hunches” to explain cause-and-effect relationships.
Work on your interpersonal skills to increase
your leadership potential. 36 Implications for Managers
Improve your technical skills and conceptual skills
through training and staying current with OB
trends like “big data”.

OB can improve your employees’ work quality and
productivity by showing you how to empower your
employees, design and implement change
programs, improve customer service, and help
your employees balance work-life conflicts.
37
Summary and Managerial Implications
Managers need to develop their interpersonal skills to be effective.
OB focuses on how to improve factors that make
organizations more effective.
The best predictions of behavior are made from a
combination of systematic study and intuition.
Situational variables moderate cause-and-effect
relationships – which is why OB theories are contingent.
There are many OB challenges and opportunities for managers today.
The textbook is based on the contingent OB model. 1-38 38
(c) 2008 Prentice-Hall, All rights reserved. 13 Learning Objectives Attitudes and Job Satisfaction
 Contrast the three components of an attitude.
 Summarize the relationship between attitudes and behavior.
Instructor: Assoc. Prof. Dr., Pham Thi Bich Ngoc
 Compare the major job attitudes.  Define job satisfaction.
 Summarize the main causes of job satisfaction.
 Identify three outcomes of job satisfaction.
 Identify four employee responses to dissatisfaction. 0 1
Contrast the Three Components of an
Contrast the Three Components of an Attitude (1 of 2) Attitude (2 of 2)
 Attitudes are evaluative statements—either favorable or The Components of an Attitude
unfavorable—about objects, people, or events.
– They reflect how we feel about something. 2 3
Summarize the Relationship
Compare the Major Job Attitudes (1 of
Between Attitudes and Behavior 5) (1 of 2)  Job Satisfaction
 The attitudes that people hold determine what they do.
 A positive feeling about the job resulting from
an evaluation of its characteristics.
 Festinger: cases of attitude fol owing behavior
il ustrate the effects of cognitive dissonance.  Job Involvement
 Degree of psychological identification with the
Cognitive dissonance is any incompatibility an
job where perceived performance is important
individual might perceive between two or more to self-worth.
attitudes or between behavior and attitudes.
Psychological Empowerment
Belief in the degree of influence over one’s
job, competence, job meaningfulness, and autonomy. 4 5 1
Compare the Major Job Attitudes (2 of
Compare the Major Job Attitudes (3 of 5) 5) Organizational Commitment
Perceived Organizational Support (POS)
 Identifying with a particular organization and
 Degree to which employees believe the
its goals and wishing to maintain membership
organization values their contribution and cares in the organization. about their wel -being.
 Employees who are committed wil be less
 Higher when rewards are fair, employees are
likely to engage in work withdrawal even if
involved in decision making, and supervisors are
they are dissatisfied, because they have a seen as supportive.
sense of organizational loyalty.
 POS is important in countries where power distance is lower. 6 7
Compare the Major Job Attitudes (4 of
Compare the Major Job Attitudes (5 5) of 5)  Employee Engagement
Are these job attitudes real y al that distinct?
 The degree of involvement with, satisfaction
 No, these attitudes are highly related; and
with, and enthusiasm for the job.
while there is some distinction, there is also a
lot of overlap that may cause confusion.
 Engaged employees are passionate about their work and company. 8 9 Define Job Satisfaction Summarize the Main Causes of (2 of 5) Job Satisfaction  Job Satisfaction ( 1 of W 3) hat causes job satisfaction?
 A positive feeling about a job resulting from an  Job conditions
evaluation of its characteristics.
The intrinsic nature of the work itself, social
 Two approaches for measuring job satisfaction are popular
interactions, and supervision are important
predictors of job satisfaction.  The single global rating.  Personality
 The summation of job facets.
People who have positive core self-
evaluations, who believe in their inner worth
and basic competence, are more satisfied
with their jobs than those with negative core self-evaluations. 10 11 2
Summarize the Main Causes of Job Outcomes of Job Satisfaction Satisfaction (3 of 3) • Job Performance
 Corporate Social Responsibility (CSR)
Corporate social responsibility (CSR): self-
– Happy workers are more likely to be productive workers.
regulated actions to benefit society or the
environment beyond what is required by law. • OCB
– People who are more satisfied with their jobs are
Includes environmental sustainability more likely to engage in OCB.
initiatives, nonprofit work, and charitable giving.
Customer Satisfaction
Increasingly affects employee job
– Satisfied employees increase customer satisfaction and loyalty. satisfaction. • Life Satisfaction
– Research shows that job satisfaction is positively
correlated with life satisfaction. 12 13 Four Employee Responses Four Employee Responses to Dissatisfaction to Dissatisfaction (2 of 2)
 Counterproductive Work Behavior (CWB)
Counterproductive work behavior:
 Absenteeism: the more satisfied you are, the
less likely you are to miss work.  Turnover: 14 15 The Theory of Cognitive Dissonance Cognitive Dissonance
•Any incompatibility between two or more attitudes or
between behavior and attitudes.
•Individuals seek to reduce this gap, or “dissonance”
Desire to reduce dissonance depends on
Importance of elements creating dissonance
Degree of individual influence over elements
Rewards involved in dissonance 16 3 Learning Objectives Personalities and
 Describe personality, the way it is measured, and the factors that shape it. Values
 Describe the strengths and weaknesses of the Myers-Briggs Type
Indicator (MBTI) personality framework and the Big Five model.
 Discuss how the concepts of core self-evaluation (CSE), self-
monitoring, and proactive personality contribute to the understanding of personality.
Instructor: Pham Thi Bich Ngoc, PhD
 Describe how the situation affects whether personality predicts behavior.
Contrast terminal and instrumental values.
 Describe the differences between person-job fit and person- organization fit.
 Compare Hofstede’s five value dimensions and the GLOBE framework.
Describe Personality, the Way It Is Measured, and the
Describe Personality, the Way It Is Measured, and the
Factors that Shape It (1 of 4)
Factors that Shape It (2 of 4)  Defining Personality  Measuring Personality
Personality is a dynamic concept
 Managers need to know how to measure describing the growth and personality.
development of a person’s whole psychological system.
Personality tests are useful in hiring decisions
and help managers forecast who is best for a
 The sum total of ways in which an
individual reacts to and interacts job. with others.
 The most common means of measuring personality
 Personality consists of stable
is through self-report surveys.
characteristics which explain why
a person behaves in a particular way
Describe Personality, the Way It Is Measured, and the
Describe Personality, the Way It Is Measured, and the
Factors that Shape It (3 of 4)
Factors that Shape It (4 of 4)  Personality Determinants
 Early research tried to identify and label enduring personality
 Is personality the result of heredity or characteristics. environment?
 Shy, aggressive, submissive, lazy, ambitious,
Heredity refers to those factors that were loyal, and timid. determined at conception.
These are personality traits.
The heredity approach argues that the
ultimate explanation of an individual’s
personality is the molecular structure of the
genes, located in the chromosomes. 1 The Myers-Briggs Type
Myers-Briggs Type Indicator Indicator Extraverted Characteristics
Introverted Characteristics
Think/reflect first, then Act
 Act first, think/reflect later
Regularly require an amount
 Feel deprived when cutoff from
of "private time" to recharge
interaction with the outside world batteries Personality Types
 Usually open to and motivated
Motivated internally, mind is
Extraverted or Introverted (E or I)
by outside world of people and
sometimes so active it is things
Sensing or Intuitive (S or N)
"closed" to outside world
Thinking or Feeling (T or F)
 Enjoy wide variety and change in ➢ Prefer one-to-one
Judging or Perceiving (J or P) people relationships communication and relationships
Myers-Briggs Type Indicator
Myers-Briggs Type Indicator Sensing Characteristics
Intuitive Characteristics Thinking Characteristics Feeling Characteristics
Mentally live in the Now, attending to
Mentally live in the Future, attending to present opportunities
 Instinctively search for facts and
Instinctively employ personal future possibilities logic in a decision situation
feelings and impact on people in
Using common sense and creating decision situations
practical solutions is automatic-
Using imagination and creating/inventing instinctual
new possibilities is automatic-instinctual
 Naturally notices tasks and work ➢ to be accomplished.
Naturally sensitive to people needs
Memory recall emphasizes patterns, and reactions
Memory recall is rich in detail of facts
contexts, and connections and past events  Easily able to provide an
Naturally seek consensus and
objective and critical analysis
Best improvise from theoretical
Best improvise from past experience popular opinions understanding
Like clear and concrete information;
 Accept conflict as a natural,
Unsettled by conflict; have almost a
dislike guessing when facts are
Comfortable with ambiguous, fuzzy data
normal part of relationships with
toxic reaction to disharmony. "fuzzy"
and with guessing its meaning people.
Myers-Briggs Type Indicator The Big Five Model Judging Characteristics
Perceiving Characteristics
Comfortable moving into action
 Plan many of the details in
without a plan; plan on-the-go. advance before moving into action.
Like to multitask, have variety, mix work and play.
 Focus on task-related action; complete meaningful segments before moving on.
Naturally tolerant of time
pressure; work best close to the
 Work best and avoid stress when deadlines. keep ahead of deadlines.
Instinctively avoid commitments
 Naturally use targets, dates and
which interfere with flexibility,
standard routines to manage life. freedom and variety 2
Short Form for the IPIP-NEO
Traits That Matter Most to Business Success at Buyout Companies
 http://www.personal.psu.edu/~j5j/IPIP/ipipneo120.htm Most Important Less Important Persistence Strong oral communication Attention to detail Teamwork Efficiency Flexibility/adaptability Analytical skills Enthusiasm Setting high standards Listening skills
Model of How Big Five Traits Influence OB Criteria
Other Personality Traits Relevant to OB
 The Dark Triad Machiavellianism: the degree to which an individual is
pragmatic, maintains emotional distance, and believes that ends can justify means.
Narcissism: the tendency to be arrogant, have a grandiose sense of self-importance,
require excessive admiration, and have a sense of entitlement.
Psychopathy: the tendency for a lack of concern for others and a lack of guilt or
remorse when their actions cause harm.
Other Personality Traits Relevant to OB
Other Personality Traits Relevant to OB
 An emerging framework to study dark side traits:
 Third, schizotypal individuals are eccentric and
 First, antisocial people are indifferent and callous disorganized. toward others.
 Fourth, obsessive compulsive people are
 Second, borderline people have low self-esteem
perfectionists and can be stubborn, yet they and high uncertainty.
attend to details, carry a strong work ethic, and
may be motivated by achievement.
 Fifth, avoidant individuals feel inadequate and hate criticism. 3
Other Personality Traits Relevant to OB Other Personality Traits Relevant to OB
 Core Self-Evaluation: bottom line conclusions individuals have about
their capabilities, competence, and worth as a person.
 Self-Monitoring: measures an individual’s ability to adjust his or her  Locus of control
behavior to external, situational factors.  Machiavellianism
 Proactive Personality: people who identify opportunities, show  Self-esteem
initiative, take action, and persevere until meaningful change occurs.  Self-monitoring  Propensity for risk taking Locus of Control Machiavellianism
Conditions Favoring High MachsDirect interaction
Minimal rules and regulations
Distracting emotions
Self-Esteem and Self-Monitoring Risk-Taking  High Risk-taking Managers  Make quicker decisions.
 Use less information to make decisions.
 Operate in smaller and more entrepreneurial organizations.  Low Risk-taking Managers
 Are slower to make decisions.
 Require more information before making decisions.
 Exist in larger organizations with stable environments.  Risk Propensity
 Aligning managers’ risk-taking propensity to job requirements
should be beneficial to organizations. 4
The Situation, Personality, and Behavior (1 of 2)
Contrast Terminal and Instrumental Values (1 of 3)
 Situation strength theory: indicates that the way personality translates
into behavior depends on the strength of the situation.
 Values: basic convictions about what is right, good, or desirable.
 The degree to which norms, cues, or standards dictate appropriate behavior.
Value system: ranks values in terms of intensity.
 The Importance and Organization of Values
Clarity: degree to which cues about work duties and
responsibilities are available and clear  Values:
Consistency: the extent to which cues regarding work duties
Lay the foundation for understanding of
and responsibilities are compatible with one another attitudes and motivation.
Constraints: the extent to which individuals’ freedom to
decide or act is limited by forces outside their control
Influence attitudes and behaviors.
Consequences: the degree to which decisions or actions have
important implications for the organization or its members, clients, supplies, and so on. 5-24
Contrast Terminal and Instrumental Values
Contrast Terminal and Instrumental Values (2 of 3) (3 of 3)
Dominant Work Values in Today’s Workforce
 Terminal vs. Instrumental Values Entered the Approximate Workforce Current Age
Terminal values: desirable Cohort Dominant Work Values end-states of existence. Boomers 1965–1985 50s to 70s Success, achievement, ambition, dislike of authority; loyalty to career Xers 1985–2000 Mid-30s to 50s Work-life balance, team-
Instrumental values: oriented, dislike of rules; preferred modes of loyalty to relationships behavior or means of Millennials 2000 to present To mid-30s Confident, financial achieving terminal values. success, self-reliant but team-oriented; loyalty to both self and relationships Values in Values in the Rokeach the Rokeach Survey Survey (cont’d)
Source: M. Rokeach, The Nature of Human
Source: M. Rokeach, The Nature of Human
Values (New York: The Free Press, 1973).
Values (New York: The Free Press, 1973). 5 Importance of Values
 Provide understanding of the attitudes, motivation, and behaviors of individuals and cultures.
 Influence our perception of the world around us.
 Represent interpretations of “right” and “wrong.”
 Imply that some behaviors or outcomes are preferred over others. Mean Value Rankings of Executives, Union Members, and Activists
Source: Based on W. C. Frederick and J. Weber, “The Values of
Corporate Managers and Their Critics: An Empirical Description and
Normative Implications,” in W. C. Frederick and L. E. Preston (eds.)
Business Ethics: Research Issues and Empirical Studies (Greenwich,
CT: JAI Press, 1990), pp. 123–44.
Person-Job Fit vs. Person-Organization Fit (1
Person-Job Fit vs. Person-Organization Fit (2 of 3) of 3)
Holland’s Typology of Personality and Congruent Occupations  Person-Organization Fit
 People high on extraversion fit well with Type
Personality Characteristics Congruent Occupations
aggressive and team-oriented cultures.
Realistic: Prefers physical activities
Shy, genuine, persistent, stable,
Mechanic, drill press operator,
that require skill, strength, and conforming, practical assembly-line worker, farmer coordination
 People high on agreeableness match up better
Investigative: Prefers activities that
Analytical, original, curious, Biologist, economist,
with a supportive organizational climate than one
involve thinking, organizing, and independent mathematician, news reporter understanding focused on aggressiveness.
Social: Prefers activities that involve
Sociable, friendly, cooperative, Social worker, teacher, helping and developing others understanding
counselor, clinical psychologist
 People high on openness to experience fit better in
Conventional: Prefers rule-regulated,
Conforming, efficient, practical, Accountant, corporate
organizations that emphasize innovation rather
orderly, and unambiguous activities unimaginative, inflexible
manager, bank teller, file clerk than standardization.
Enterprising: Prefers verbal activities Self-confident, ambitious, Lawyer, real estate agent,
in which there are opportunities to energetic, domineering public relations specialist,
influence others and attain power small business manager
Artistic: Prefers ambiguous and Imaginative, disorderly, Painter, musician, writer,
unsystematic activities that allow idealistic, emotional, interior decorator creative expression impractical
Person-Job Fit vs. Person-Organization Fit
Hofstede’s Five Value Dimensions (3 of 3)  Other Dimensions of Fit
– Although person-job fit and person-organization  Hofstede’s Framework
fit are considered the most salient dimensions for
workplace outcomes, other avenues of fit are  Power distance worth examining.
Individualism versus collectivism ▪ Person-group fit
Masculinity versus femininity ▪ Person-supervisor fit
Uncertainty avoidance
Long-term versus short-term orientation 6 Hofstede’s Framework for Hofstede’s Framework Assessing Cultures (cont’d) Power Distance
The extent to which a society accepts that Collectivism Individualism Vs.
power in institutions and organizations is A tight social framework in distributed unequally. The degree to which which people expect people prefer to act as
Low distance: relatively equal power others in groups of which individuals rather than
between those with status/wealth and those they are a part to look a member of groups. without status/wealth after them and protect them.
High distance: extremely unequal power
distribution between those with
status/wealth and those without status/wealth Hofstede’s Framework Hofstede’s Framework (cont’d) (cont’d) Uncertainty Avoidance Masculinity Vs.
The extent to which a society feels threatened by The extent to which the Femininity
uncertain and ambiguous situations and tries to society values work roles avoid them. The extent to which
High Uncertainty Avoidance: of achievement, power, there is little Society does not like and control, and where differentiation
ambiguous situations & tries to assertiveness and between roles for avoid them. materialism are also men and women. valued.
Low Uncertainty Avoidance: Society does not mind ambiguous situations & embraces them. Hofstede’s Framework
The GLOBE Framework for Assessing Culture (cont’d)
 The Global Leadership and Organizational
Behavior Effectiveness (GLOBE) research Long-term Orientation Vs. Short-term Orientation
program updated Hofstede’s research. A national culture A national culture attribute
 Data from 825 organizations and 62 countries. attribute that that emphasizes the emphasizes the future, present and the here and
 Used variables similar to Hofstede’s. thrift, and persistence. now.  Added some news ones. 7
Perception and Individual Decision Making
Instructor: Assoc. Prof. Dr. Pham Thi Bich Ngoc
National Economics University 0 LEARNING OBJECTIVES
• EXPLAIN THE FACTORS THAT INFLUENCE PERCEPTION.
• DESCRIBE ATTRIBUTION THEORY.
• EXPLAIN THE LINK BETWEEN PERCEPTION AND DECISION MAKING.
• CONTRAST THE RATIONAL MODEL OF DECISION MAKING WITH
BOUNDED RATIONALITY AND INTUITION.
• EXPLAIN HOW INDIVIDUAL DIFFERENCES AND
ORGANIZATIONAL CONSTRAINTS AFFECT DECISION MAKING. 1
WHAT IS PERCEPTION, AND WHY IS IT IMPORTANT? ….A process by which we assign causes or motives to explain people’s behavior
….an explanation of the cause of behavior:
how people explain the causes of their own and other people’s behavior 2 1
FACTORS THAT INFLUENCE PERCEPTION 3 ATTRIBUTION THEORY
That determination however depends on 3 factors: Distinctiveness: Consensus Consistency 4
EXPLAIN ATTRIBUTION THEORY (2 OF 10)
• CLARIFICATION OF THE DIFFERENCES BETWEEN INTERNAL AND EXTERNAL CAUSATION
INTERNALLY CAUSED – THOSE THAT ARE BELIEVED TO BE
UNDER THE PERSONAL CONTROL OF THE INDIVIDUAL.
EXTERNALLY CAUSED – RESULTING FROM OUTSIDE CAUSES. 5 2
EXPLAIN ATTRIBUTION THEORY (3 OF 10) 6 EXAMPLE 7
ERRORS AND BIASES IN ATTRIBUTIONS 8 3
ERRORS AND BIASES IN ATTRIBUTIONS (CONT’D) 9 FREQUENTLY USED SHORTCUTS IN JUDGING OTHERS 10
FREQUENTLY USED SHORTCUTS IN JUDGING OTHERS Recency Effects
The tendency to remember
recent information. If the recent
information is negative, the
person or object is evaluated negatively 11 4 FREQUENTLY USED SHORTCUTS IN JUDGING OTHERS 12 APPLICATIONS OF SHORTCUTS IN ORGANIZATIONS • EMPLOYMENT INTERVIEW
• EVIDENCE INDICATES THAT INTERVIEWERS MAKE
PERCEPTUAL JUDGMENTS THAT ARE OFTEN INACCURATE.
• INTERVIEWERS GENERALLY DRAW EARLY IMPRESSIONS
THAT BECOME VERY QUICKLY ENTRENCHED.
• STUDIES INDICATE THAT MOST INTERVIEWERS’
DECISIONS CHANGE VERY LITTLE AFTER THE FIRST
FOUR OR FIVE MINUTES OF THE INTERVIEW. 13 APPLICATIONS OF SHORTCUTS IN ORGANIZATIONS • PERFORMANCE EXPECTATIONS
• EVIDENCE DEMONSTRATES THAT PEOPLE WILL ATTEMPT TO
VALIDATE THEIR PERCEPTIONS OF REALITY, EVEN WHEN THOSE PERCEPTIONS ARE FAULTY.
SELF-FULFILLING PROPHECY, OR THE PYGMALION
EFFECT, CHARACTERIZES THE FACT THAT PEOPLE’S
EXPECTATIONS DETERMINE THEIR BEHAVIOR.
• EXPECTATIONS BECOME REALITY. 14 5 APPLICATIONS OF SHORTCUTS IN ORGANIZATIONS • PERFORMANCE EVALUATION
• AN EMPLOYEE’S PERFORMANCE APPRAISAL IS VERY MUCH
DEPENDENT UPON THE PERCEPTUAL PROCESS.
• MANY JOBS ARE EVALUATED IN SUBJECTIVE TERMS.
• SUBJECTIVE MEASURES ARE PROBLEMATIC BECAUSE OF
SELECTIVE PERCEPTION, CONTRAST EFFECTS, HALO EFFECTS, AND SO ON. 15 LINK BETWEEN PERCEPTION AND DECISION MAKING
• INDIVIDUALS MAKE DECISIONS – CHOOSING FROM TWO OR MORE ALTERNATIVES.
• DECISION MAKING OCCURS AS A REACTION TO A PROBLEM.
• THERE IS A DISCREPANCY BETWEEN SOME CURRENT STATE
OF AFFAIRS AND SOME DESIRED STATE, REQUIRING
CONSIDERATION OF ALTERNATIVE COURSES OF ACTION.
• ONE PERSON’S PROBLEM IS ANOTHER’S SATISFACTORY STATE OF AFFAIRS. 16
LINK BETWEEN PERCEPTIONS AND INDIVIDUAL DECISION MAKING 17 6
STEPS IN THE RATIONAL DECISION- MAKING MODEL 18
RATIONAL MODEL OF DECISION MAKING
• ASSUMPTIONS OF THE RATIONAL MODEL • THE DECISION MAKER… • HAS COMPLETE INFORMATION.
• IS ABLE TO IDENTIFY ALL THE RELEVANT OPTIONS IN AN UNBIASED MANNER.
• CHOOSES THE OPTION WITH THE HIGHEST UTILITY.
• MOST DECISIONS IN THE REAL WORLD DON’T FOLLOW THE RATIONAL MODEL. 19 BOUNDED RATIONALITY
• MOST PEOPLE RESPOND TO A COMPLEX PROBLEM BY
REDUCING IT TO A LEVEL AT WHICH IT CAN BE READILY UNDERSTOOD.
• PEOPLE SATISFICE – THEY SEEK SOLUTIONS THAT ARE SATISFACTORY AND SUFFICIENT.
• INDIVIDUALS OPERATE WITHIN THE CONFINES OF BOUNDED RATIONALITY.
• THEY CONSTRUCT SIMPLIFIED MODELS THAT EXTRACT THE ESSENTIAL FEATURES. 20 7 HOW DOES BOUNDED RATIONALITY WORK?
• ONCE A PROBLEM IS IDENTIFIED, THE SEARCH FOR CRITERIA AND OPTIONS BEGINS.
• A LIMITED LIST OF THE MORE CONSPICUOUS CHOICES IS IDENTIFIED.
• THE DECISION MAKER THEN REVIEWS THE LIST,
LOOKING FOR A SOLUTION THAT IS “GOOD ENOUGH.” 21 INTUITION
• INTUITIVE DECISION MAKING OCCURS OUTSIDE
CONSCIOUS THOUGHT; IT RELIES ON HOLISTIC
ASSOCIATIONS, OR LINKS BETWEEN DISPARATE PIECES OF
INFORMATION, IS FAST, AND IS AFFECTIVELY CHARGED,
MEANING IT USUALLY ENGAGES THE EMOTIONS.
• THE KEY IS NEITHER TO ABANDON NOR RELY SOLELY ON
INTUITION, BUT TO SUPPLEMENT IT WITH EVIDENCE AND GOOD JUDGMENT. 22
INDIVIDUAL DIFFERENCES, ORGANIZATIONAL
CONSTRAINTS, AND DECISION MAKING (1 OF 2) • INDIVIDUAL DIFFERENCES • PERSONALITY • GENDER • MENTAL ABILITY • CULTURAL DIFFERENCES • NUDGING 23 8
INDIVIDUAL DIFFERENCES, ORGANIZATIONAL
CONSTRAINTS, AND DECISION MAKING (2 OF 2) • ORGANIZATIONAL CONSTRAINTS
• PERFORMANCE EVALUATION SYSTEMS • REWARD SYSTEMS • FORMAL REGULATIONS
• SYSTEM-IMPOSED TIME CONSTRAINTS • HISTORICAL PRECEDENTS 24
DESCRIBE THE THREE-STAGE MODEL OF CREATIVITY (1 OF 2)
• CREATIVITY IS THE ABILITY TO PRODUCE NOVEL AND USEFUL IDEAS. • THESE ARE IDEAS THAT ARE DIFFERENT FROM WHAT HAS BEEN
DONE BEFORE, BUT THAT ARE ALSO APPROPRIATE TO THE PROBLEM. 25 COMMON ATTRIBUTES OF CREATIVE INDIVIDUALS
• BACKGROUND EXPERIENCES AND CREATIVITY
• PERSONAL TRAITS AND CREATIVITY: OPENNESS, AN ATTRACTION TO
COMPLEXITY, HIGH LEVELS OF ENERGY, AUTONOMY, SELF- CONFIDENCE
• COGNITIVE ABILITIES AND CREATIVITY:
INDIVIDUAL’S POWER TO THINK INTELLIGENTLY AND
TO ANALYZE SITUATIONS AND DATA EFFECTIVELY.
INTELLIGENCE: PRECONDITION FOR INDIVIDUAL CREATIVITY
CREATIVITY LINKS WITH THE ABILITY TO THINK
DIVERGENTLY (SEE DIFFERENCES BETWEEN
SITUATIONS) AND CONVERGENTLY (SEE SIMILARITIES BETWEEN SITUATIONS)
26 9 HOW TO FACILITATE INDIVIDUAL CREATIVITY… ⚫ Leaders ⚫ Support new ideas ⚫ Good listener
Favourable and cooperative working environment ▪ Respect diversity ▪ Friendly and cooperative ▪Trust 27 10 Learning Objectives (1 of 2)
 Distinguish between the different types of groups. Foundation of Group
 Describe model of group development.
 Show how role requirements change in different Behavior situations.
 Demonstrate how norms exert influence on an individual’s behavior.
INSTRUCTOR: ASSOC. PROF. DR., PHAM THI BICH NGOC
 Show how status and size differences affect group NEU performance.
 Describe how issues of cohesiveness and diversity
can be integrated for group effectiveness.
 Contrast the strengths and weaknesses of group decision making. 0 1 Defining Groups Classifying Groups (cont’d)
 Two or more individuals interacting and interdependent,
who have come together to achieve particular objectives Relatively permanent Relatively temporary
 Two or more people who interact with one another such
that each person influences and is influenced by each formal other person
 Any number of people who (1) interact with one another;
(2) are psychological y aware of one another; and (3)
perceive themselves to be a group. informal 2 3 Functions of formal group The Five Stages of Group Development 1. Forming 2. Storming 3. Norming Stage 4. Performing Stage 5. Adjourning Stage 4 5
(c) 2008 Prentice-Hall, All rights reserved. 1
Group Properties/Group Performance Group Property 1: Roles Factors  Role
 A set of expected behavior patterns Norms
attributed to someone occupying a Statu Roles
given position in a social unit s
 is the expected pattern of behaviors Group
associated with members occupying a Performa
particular position within the structure of nce the organization. Cohesive Compositi on ness Size 6 7 Group Property 1: Roles Group Property 1: Roles
 Role conflict can result in role stress  Role Perception
 Role ambiguity occurs when there is lack of clarity as
 An individual’s view of how he or she is
to the precise requirements of the role and the person is
supposed to act in a given situation – unsure what to do received by external stimuli
 Role overload is when a person faces too many  Role Expectations
separate roles or too great a variety of expectations.
 How others believe a person should act in
 Role underload can arise when the prescribed role a given situation
expectations fal short of the person’s perception of their role  Role conflict
 A situation in which an individual is confronted by divergent role expectations 8 9 Group Property 2: Norms Group Property 2: Norms  Group Norms
 Is an assumption or expectation held by group
members concerning what kind of behavior is:
 Acceptable standards of behavior within a
group that are shared by the group’s  Right or wrong members  Good or bad
 Are the standards against which the  Allowed or not allowed
appropriateness of the behaviors of members  Appropriate or not appropriate are judged  Classes of Norms
 Determine behavior expected in a certain situation  Performance norms -  Appearance norms –
 Social arrangement norms –
 Allocation of resources norms
 Improvement and change norms 10 11
(c) 2008 Prentice-Hall, All rights reserved. 2 Group Property 3: Status Status Effects
A social y defined position or rank given to groups  On Norms and Conformity
or group members by others – it differentiates
 High-status members are less restrained by norms group members and pressure to conform
 Important factor in understanding behavior
 Some level of deviance is allowed to high-status  Significant motivator
members so long as it doesn’t affect group goal achievement  On Group Interaction
Status Characteristics Theory
 High-status members are more assertive
 Status derived from one of three sources:
 Large status differences limit diversity of ideas and
 Power a person has over others creativity
 Ability to contribute to group goals  Personal characteristics 12 13 Group Property 4: Size Group Property 4: Size
 Is the number of members of the group  Best use of a group:
 Twelve or more members is a “large” group
 Seven or fewer is a “small” group Attribute Small Large
 Affects resources available to perform the task Speed X Individual Performance X
 Affects degree of formalization of
interactions, communication, and Problem Solving X participation Diverse Input X Fact-finding Goals X
 Can increase the degree of social loafing Overall Performance X 14 15 Group Property 4: Size Group Property 5: Cohesiveness
 Factors that Determine Ideal Group Size  Group members’ ability
 Is the extent to which a group is committed to
 Maturity of individual group members staying together  Group tasks
 Degree to which group members are attracted to
each other and are motivated to stay in the
 Ability of the group leader group 16 17
(c) 2008 Prentice-Hall, All rights reserved. 3 Factors contributing to group cohesiveness 18 19 Group Property 6 - Group Decision Making Composition
 Strengths of group decision making:
The degree of similarity or difference among group
 More complete information and
members on factors important to the group’s work knowledge Homogeneity
 Increased diversity of views
Degree to which members are similar in one or
several ways that are critical to the group’s work
 Increased acceptance of solutions
 Weaknesses of group decision making: Heterogeneity
Degree to which members differ in one or more  Time consuming
ways that are critical to the group’s work  Conformity pressures  Dominance of a few members  Ambiguous responsibility 20 21 Group Decision Making Group Decision Making (cont’d)
 Effectiveness and efficiency of group decisions:  Groupthink
 A mode of thinking that occurs when members of a  Accuracy (group)
group are deeply involved in a cohesive in-group
and the desire for unanimity offsets their motivation  Speed (individual)
to appraise alternative courses of action  Effects of Groupthink  Creativity (group)
 Consideration of and focus on fewer alternatives  Acceptance (group)
 Failure to perceive non-obvious risks and drawbacks of an alternative
 Rejection of expert opinions
 Ignoring potential for setbacks or actions of
competitors in not developing contingency plans 22 23
(c) 2008 Prentice-Hall, All rights reserved. 4 Group Decision Making Group Decision Making
 Most group decision making takes place in
Brainstorming can overcome pressures for interacting groups. conformity.
 Members meet face-to-face and rely on
 In a brainstorming session:
both verbal and nonverbal interaction
The group leader states the problem.
to communicate with each other.
Members then “free-wheel” as many
 Interacting groups often censor themselves alternatives as they can.
and pressure individual members toward No criticism is al owed. conformity of opinion.
One idea stimulates others, and group
members are encouraged to “think the unusual.” 24 25 Group Decision Making Group Decision Making
 The nominal group technique: restricts  Steps for a nominal group:
discussion or interpersonal communication
during the decision making process.
 Each member independently writes
down his/her ideas on the problem.
 Nominal groups outperform brainstorming groups.
 After this silent period, each member
presents one idea to the group.
 The ideas are discussed for clarity.
 Each group member rank-orders the ideas.
 The idea with the highest aggregate
ranking determines the final decision. 26 27 Evaluating Group Effectiveness Type of Group Brain- Effectiveness Criteria Interacting Nominal Electronic storming Number and quality of ideas Low Moderate High High Social Pressure High Low Moderate Low Money Costs Low Low Low High Speed Moderate Moderate Moderate Moderate Task Orientation Low High High High Potential for Interpersonal High Low Moderate Moderate Conflict Commitment to Solution High N/A Moderate Moderate Development of Group High High Moderate Low Cohesiveness 28
(c) 2008 Prentice-Hall, All rights reserved. 5 Learning Objectives
Analyze the continued popularity of teams in organizations. Understanding Work Teams
Contrast groups and teams.
Contrast the five types of team arrangements.
Identify the characteristics of effective teams.
Explain how organizations can create team players.
Instructor: Pham Thi Bich Ngoc, PhD.
Decide when to use individuals instead of teams. NEU
Analyze the Growing Popularity of Teams in
Differences Between Groups and Teams Organizations ➢
Comparing Workgroups and Work Teams Why are teams popular?
– Teams can achieve feats an individual could never accomplish.
– Teams are flexible and responsive to changing events.
– They can quickly assemble, deploy, refocus, and disband.
– They are an effective means to democratize
organizations and increase employee involvement.
– They introduce a collaborative mindset. Types of Teams More Types of Teams ➢ Problem-Solving Teams ➢ Cross-Functional Teams
– Groups of 5 to 12 employees from the
– Employees from about the same hierarchical level, but from
same department who meet for a few
different work areas, who come together to accomplish a
hours each week to discuss ways of task
improving quality, efficiency, and the – Very common work environment – Task forces ➢ Self-Managed Work Teams – Committees
– Groups of 10 to 15 people who take ➢
on the responsibilities of their former Work teams supervisors ➢ Management teams
(c) 2008 Prentice-Hall, All rights reserved. 1 A Final Type of Team A Team-Effectiveness Model ➢ Virtual Teams
– Teams that use computer technology to tie
together physically dispersed members in order to achieve a common goal ➢ Characteristics – Limited socializing
– The ability to overcome time and space constraints
To be effective, needs: – Trust among members – Close monitoring – To be publicized
Creating Effective Teams: Context
Creating Effective Teams: Composition ➢ Adequate Resources
How should teams be staffed?
– Need the tools to complete the job
Abilities of Members
Effective Leadership and Structure
– Need technical expertise, problem-solving, decision-making, and good interpersonal skills
– Agreeing to the specifics of work and how the team fits
Personality of Members
together to integrate individual skills – – Even “self
Conscientiousness, openness to experience, and -managed” teams need leaders
agreeableness all relate to team performance
– Leadership especially important in multi-team systems
Allocating Roles and DiversityClimate of Trust
– Many necessary roles must be filled
– Members must trust each other and the leader
– Diversity can often lead to lower performance
Performance and Rewards Systems that Reflect Team Size of Team Contributions
– The smaller the better: 5 to 9 is optimal
– Cannot just be based on individual effort
Member’s Preference for Teamwork
– Do the members want to be on teams? Key Roles On Teams
Creating Effective Teams: Process
Commitment to a Common Purpose
– Create a common purpose that provides direction
– Have reflexivity: willing to adjust plan if necessary
Establishment of Specific Team Goals
– Must be specific, measurable, realistic, and challenging ➢ Team Efficacy
– Team believes in its ability to succeed ➢ Mental Models
– Have an accurate and common mental map of how the work gets done
A Managed Level of Conflict
– Task conflicts are helpful; interpersonal conflicts are not
Minimized Social Loafing
– Team holds itself accountable both individually and as a team
(c) 2008 Prentice-Hall, All rights reserved. 2
Turning Individuals into Team Players
Beware! Teams Aren’t Always the Answer Creating Team Players
Teams take more time and resources than does individual work. Selection
Three tests to see if a team fits the situation:
Make team skills one of the interpersonal skills in the hiring process.
1. Is the work complex and is there a need for different ➢
perspectives: will it be better with the insights of more than Training one person?
– Individualistic people can learn
2. Does the work create a common purpose or set of goals for ➢ Rewards
the group that is larger than the aggregate of the goals for individuals?
– Rework the reward system to encourage cooperative efforts
rather than competitive (individual) ones
3. Are members of the group involved in interdependent tasks?
– Continue to recognize individual contributions while still
emphasizing the importance of teamwork
Costs of Teams in Organizations
Benefits of Teams in Organizations Managerial role confusion/frustration Team-Based Environment Benefits
Managerial sense of loss of usefulness Difficulties in changing to a Employee resistance team-based to role changes organization Enhanced Employee Reduced Organizational Cumbersome and lengthy performance benefits costs enhancements
team development process
Losses due to premature
abandonment of the process
Benefits of Teams in Organizations Team-Based Environment Benefits Enhanced Employee Reduced Organizational performance benefits costs enhancements
(c) 2008 Prentice-Hall, All rights reserved. 3 Learning Objectives (1 of 2)
 Describe the functions and process COMMUNICATION of communication.
 Contrast downward, upward, and lateral
communication through smal -group networks and the grapevine.
INSTRUCTOR: ASSOC. PROF. DR. PHAM THI BICH NGOC
 Contrast oral, written, and nonverbal communication. NEU
 Describe how channel richness underlies the
choice of communication channel.
 Differentiate between automatic and controlled
processing of persuasive messages.
 Identify common barriers to effective communication.
 Discuss how to overcome the potential problems of cross- cultural communication 0 1 What is Communication? The Communication Process  Communication
 The transference and understanding of meaning 2 3
Describe the Functions and Process
Describe the Functions and Process
of Communication (1 of 7)
of Communication (2 of 7)
Communication serves five major
Communication acts to manage member
functions within a group or organization: behavior in several ways.  Management
 Authority hierarchies and formal guidelines.  Feedback  Emotional sharing
 Job descriptions and company policies.  Persuasion
 Workgroup teasing or harassing.  Information exchange 4 5
(c) 2008 Prentice-Hall, All rights reserved. 1 Communication Channels Direction of Communication  Channel
 The medium selected by the sender through which
the message travels to the receiver Downward  Types of Channels  Formal Channels Lateral  Informal Channels Upward 6 7 Three Common Formal Small-Group Networks Communication networks  Chain:
 Rigidly fol ows the chain of command Networks Networks Networks
 Each member communicates with the person above
and below, except for the individuals on each end
who communicate with only one person Criteria Chain Wheel All-Channel  Wheel: Speed Moderate Fast Fast
 Information flows between the person at the end of
each spoke and the person in the middle Accuracy High High Moderate Emergence of a  Circle Network leader Moderate High None
 Each member communicates with the people on
both sides but with no one else Member satisfaction Moderate Low High  Al Channel:
 All group members communicate actively with each other 8 9 The Grapevine Reducing Rumors 1.
Announce timetables for making important decisions
 Three Main Grapevine Characteristics 2.
Explain decisions and behaviors that may 1.
Informal, not controlled by management
appear inconsistent or secretive 2.
Perceived by most employees as being more
believable and reliable than formal 3.
Emphasize the downside, as wel as the communications
upside, of current decisions and future plans 3.
Largely used to serve the self-interests of those who use it 4.
Openly discuss worst-case possibilities—they
are almost never as anxiety-provoking as  Results from: the unspoken fantasy 
Desire for information about important situations  Ambiguous conditions  Conditions that cause anxiety  Insightful to managers
 Serves employee’s social needs 10 11
(c) 2008 Prentice-Hall, All rights reserved. 2 Communication Networks Communication Networks (cont’d) (cont’d)
 Characteristics of Communication Networks
 Organizational Communication Networks
 Networks form spontaneously as interactions among
 Communication and information flows do not workers continue
necessarily fol ow the lines of an organization chart
 Networks rarely are permanent
 Downward communication provides directions
 Task is crucial to the choice of a network pattern
 Upward communication provides feedback
 Environment affects the frequency and types of interactions among members
 Horizontal communication is related to task performance
 Personal factors and group performance factors
influence communication networks
 Networks strongly influence group effectiveness
 Electronic groups that have little face-to-face
communication are an emerging trend 12 13 Methods of Communication Methods of Communication  Oral Communication  Written Communication  Nonverbal Communication 14 15 Methods of Communication Methods of Communication
Al ocation of Time at Work for Managers and Professionals
Note: CareerBuilder survey of over 2,000 hiring professionals.
Source: Based on M. Chui et al., “The Social Economy: Unlocking Value and Productivity through Social Technologies,”
Source: Based on CareerBuilder at
McKinsey and Company, July 2012, http://www.mckinsey.com.
http://www.careerbuilder.com/JobPoster/Resources/page.aspx?pagever=2012SocialMedia&template=none. 16 17
(c) 2008 Prentice-Hall, All rights reserved. 3 Methods of Communication Nonverbal Communication
Nonverbal Communication
 Includes body movements, the intonations or
emphasis we give to words, facial expressions,
and the physical distance between the sender Elements of Nonverbal and receiver. Communication
 Body language can convey status, level of
engagement, and emotional state.
Advantages: Supports other communications and
provides observable expression of emotions and Facial Physical Environmental feelings Expressions Movements Elements
Disadvantage: Misperception of body language or Body
gestures can influence receiver’s interpretation of Language message 18 19 Nonverbal Communication Methods of Communication
Physical distance also has meaning.
 What is considered proper spacing between  Choice Considerations
people largely depends on cultural norms.
 Audience (physical or not physical presence)
 Nature of the message (urgency and secrecy)
A businesslike distance in some European
countries feels intimate in many parts of  Costs of transmission North America.
 Distance may indicate aggressiveness or
sexual interest, or it may signal disinterest or
displeasure with what is being said. 20 21 Channel Richness and Choice
Channel Richness and Choice
of Communication Channel of Communication Channel (2 of 4) (1 of 4)
The choice of channel depends on whether the message is routine.
 Routine messages tend to be straightforward
and have a minimum of ambiguity.
Choose oral communication when you need
to gauge the receiver’s receptivity.
Written communication is more reliable for
complex and lengthy communications.
Sources: Reproduced from R. L. Daft and R. A. Noe, Organizational Behavior (Fort
Worth, TX: Harcourt, 2001), 311. 22 23
(c) 2008 Prentice-Hall, All rights reserved. 4 Barriers to Effective More Barriers to Effective Communication Communication  Filtering  Language
 A sender’s manipulation of information so that it wil be
seen more favorably by the receiver
 Words have different meanings to different people  Communication Apprehension  Selective Perception
 People selectively interpret what they see on the basis
 Undue tension and anxiety about oral
of their interests, background, experience, and
communication, written communication, or both attitudes  Gender Differences  Information Overload
 Men tend to talk to emphasize status while women
 A condition in which information inflow exceeds an talk to create connections
individual’s processing capacity  Emotions
 How a receiver feels at the time a message is received
wil influence how the message is interpreted 24 25
Communication Barriers and Cultural High- Context vs. Low- Cont ext Cultu res 26 27 Overcoming Problems in Cross-
Cultural Communication (3 of 3) A Cultural Guide  Know yourself.
 Foster a climate of mutual respect, fairness, and democracy.
 State facts, not your interpretation.
 Consider the other person’s viewpoint.
 Proactively maintain the identity of the group. 28
(c) 2008 Prentice-Hall, All rights reserved. 5 What Is Leadership?  Leadership
 The ability to influence a group toward the achievement of goals
 Not al leaders are managers, nor are al managers leaders.
 Is a property—the set of characteristics attributed to someone
who is perceived to use influence successful y
 Is influence—the ability to affect the perceptions, beliefs,
attitudes, motivation, and/or behavior of others Leadership  Management
 Use of authority inherent in designated formal rank to obtain
compliance from organizational members
Instructor: Pham Thi Bich Ngoc, Assoc. Prof., Dr.
 Both are necessary for organizational success NEU 0 1 Trait Approaches to Behavioral Approaches of Leadership Leadership
 Trait Approaches to Leadership
 Proposing that specific behaviors differentiate leaders
 Attempts to identify stable and enduring character traits from non-leaders
that differentiate effective leaders from non-leaders focusing on:
 Behavioral theories of leadership imply we can train
 Identifying leadership traits people to be leaders.
 Developing methods for measuring them
 Using the methods to select leaders
 Current limited set of leadership traits
 Emotional intelligence, drive, motivation; honesty and
integrity, self-confidence, cognitive ability, knowledge of the business, charisma
 Traits can predict leadership, but they are better at
predicting leader emergence than effectiveness. 2 3 Behavioral Approaches to The Michigan Studies Leadership Early Studies in Behavioral Approaches to Leadership
Two key dimensions of leader behavior:
Employee-oriented/ Employee- centered The Michigan The Ohio State The Leadership Studies Studies Grid Production-oriented / Job- centered 4 5
(c) 2008 Prentice-Hall, All rights reserved. 1 The Ohio State Studies The Leadership Grid
Found two key dimensions of leader behavior:
 Provides a means for evaluating leadership styles and then training
managers to move toward an ideal style of behavior Initiating structure
 Draws on both studies to assess leadership style Consideration
 “Concern for People” is Consideration and Employee-Orientation
 “Concern for Production” is Initiating Structure and Production- Both are important Orientation
 Style is determined by position on the graph 6 7 The Emergence of Contingency The Leadership Leadership Models Grid®
 While trait and behavior theories do help us understand
leadership, an important component is missing: the environment in which the leader exists
 Situational leadership theories deals with this additional aspect
of leadership effectiveness studies
 Assume that appropriate leader behavior varies from one situation to another situation
 Seek to identify how key situational factors interact to
determine appropriate leader behavior  Three key theories:  Fielder’s Model
Source: The Leadership Grid Figure
from Leadership Dilemmas—Grid
 Hersey and Blanchard’s Situational Leadership Theory
Solutions by Robert R. Blake and Anne Adams McCanse. (Formerly the  Path-Goal Theory
Managerial Grid by Robert R. Blake
and Jane S. Mouton.) Houston: Gulf
Publishing Company, p. 29. Copyright
1997 by Grid International, Inc.
Reproduced by permission of Grid International, Inc. 8 9 The Fiedler contingency model 10 11
(c) 2008 Prentice-Hall, All rights reserved. 2 Hersey-Blanchard Situational Leader–Member Exchange Leadership Theory
Degree of fol ower’s readiness to assume personal responsibility: R1 R2 R3 R4 Unable Unable Able Able Unwil ing Willing Unwil ing Willing S1 S2 S3 S4 Telling: Sel ing: Participating: Delegating: Instructing & Explaining & Sharing & Coaching & supervising clarifying facilitating assisting
Leadership behavior appropriate to the situation 12 13
Contemporary Approaches to Leadership LMX Model
 How groups are assigned is unclear
 Fol ower characteristics determine group membership  Charismatic Leadership
 Leaders control by keeping favorites close
 Transformational, Transactional Leadership
 Research has been generally supportive 14 15
Transactional and Transformational Leadership Transactional Leader
Contingent Reward: Contracts exchange of rewards for effort, promises
rewards for good performance, recognizes accomplishments.
Management by Exception (active): Watches and searches for deviations
from rules and standards, takes corrective action.
Management by Exception (passive): Intervenes only if standards are not met.
Laissez-Faire: Abdicates responsibilities, avoids making decisions Transformational Leader
Idealized Influence: Provides vision and sense of mission, instills pride, gains respect and trust.
Inspirational Motivation: Communicates high expectations, uses symbols to
focus efforts, expresses important purposes in simple ways.
Intellectual Stimulation: Promotes intelligence, rationality, and careful
Reference: David A. Nadler and Michael L. Tushman, “Beyond the Charismatic Leader: Leadership and problem solving.
Organizational Change,” California Management Review, Winter 1990, pp. 70–97.
Individualized Consideration: Gives personal attention, treats each employee
individually, coaches, advises. 16 17
(c) 2008 Prentice-Hall, All rights reserved. 3
Role of Leaders in Creating Ethical Organizations (2
Role of Leaders in Creating Ethical Organizations (3 of 3) of 3) Ethical Leadership
Ethics touches on leadership at a number of junctures. Servant Leadership
Efforts have been made to combine ethical
Servant leaders go beyond their self-
and charismatic leadership into an idea of interest and instead focus on
socialized charismatic leadership – leadership
opportunities to help fol owers grow
that conveys other-centered values by and develop.
leaders who model ethical conduct.
Characteristic behaviors include
listening, empathizing, persuading,
accepting stewardship, and actively
developing fol owers’ potential. 18 19
Chal enges to our Understanding of Leadership (2 of
Chal enges to our Understanding of Leadership (3 of 5) 5)
Substitutes for and Neutralizers of Leadership
Defining Characteristics Relationship-Oriented Task-Oriented Leadership Leadership Online Leadership Individual Black Black Experience/training No effect on Substitutes for  Needs more research. Professionalism Substitutes for Substitutes for
 Today’s managers and employees are
increasingly linked by networks rather than Indifference to rewards Neutralizes Neutralizes geographic proximity. Job Black Black
Online leaders have to think careful y Highly structured task No effect on Substitutes for
about what actions they want their digital Provides its own No effect on Substitutes for messages to initiate. feedback
Identification-based trust is difficult to Intrinsical y satisfying Substitutes for No effect on
achieve without face-to-face interaction. Organization Black Black
Writing skil s are likely to become an Explicit formalized goals No effect on Substitutes for
extension of interpersonal skil s. Rigid rules and No effect on Substitutes for procedures Cohesive work groups Substitutes for Substitutes for 20 21
Chal enges to our Understanding of Leadership (4 of 5)
Chal enges to our Understanding of Leadership (5 of 5) Selecting Leaders Training Leaders
Identifying effective leaders:
– Leadership training is likely to be more successful
Review specific requirements for the with high self-monitors. position.
– Teach implementation skil s.
Consider personality tests to identify
– Teach trust building, mentoring, and situational- leadership traits. analysis.
Situation-specific experience is relevant.
– Behavioral training through modeling exercises
can increase an individual’s charismatic
Plan for a change in leadership. leadership qualities.
– Review leadership after key organizational events.
– Train in transformational leadership skil s. 22 23
(c) 2008 Prentice-Hall, All rights reserved. 4 Emerging Issues in Emerging Issues in Leadership (cont’d) Leadership (cont’d)  Strategic Leadership
 Why Ethical Leadership Is Essential
 Requires that leaders be capable of:
 Increasing pressure for high ethical standards for
 Understanding the complexities of both the organization and its environment leadership positions
 Leading change in the organization to achieve and maintain a superior
alignment between the organization and its environment
 Increasing pressure to hold leaders accountable for their  Managerial requirements: actions
 Encompassing understanding of the organization
 Increasing environmental pressure for stronger corporate
 Firm grasp of the organization’s environment governance models
 Awareness of firm’s alignment with the environment
 Ability to improve the alignment 24 25 Emerging Issues in Leadership (cont’d)
 Virtual Leadership Challenges
 Changes in leadership and mentoring as in-person
contact replaces virtual contact
 Less nonverbal communication
 Increasing importance of e-mail’s role in conveying
appreciation, reinforcement, and constructive feedback
 Face-to-face leadership skil s become critical as
opportunities decrease for direct contact 26
(c) 2008 Prentice-Hall, All rights reserved. 5
The Nature of Organization Structure  Organization Structure
 The system of task, reporting, and authority relationships within
which an organization does its work
 Purpose of structure is to order and coordinate the actions of Foundations of
employees to achieve organizational goals Organization Structure
 “Structure follows strategy”
Instructor: Pham Thi Bich Ngoc, PhD. NEU 0 1 Objectives of Organizational Organization Chart Structure 
Describes the structure of an organization 
Shows all people, positions, reporting relationships, and lines of formal communication
 To link individuals in an established network of 
Depicts reporting relationships and work group memberships relationships 
Shows how positions and small work groups are combined into departments which
make up the shape (configuration) of the organization
 To group together the tasks required to fufil the 
Units and relationships among them
objectives of the organization as a whole and to
allocate them to suitable individuals or groups 
Formal communication and reporting channels 
Structure of authority, responsibility and delegation
 To allocate to individuals or groups the authority  Different types of chart:
they require to perform their functions  Vertical chart
 To coordinate the objectives and activities of  Horizontal chart separated units  Concentric chart
 To enable the flow of work, information and other  Matrix chart
resources via lines of cooperation and communication 
“Metaphors”: network spider web 2 3
Identify Seven Elements of an Organization’s Structure Organization Chart
 Organization chart: aid managerial thinking and
Key Design Questions and Answers for Designing the Proper communication but: Organizational Structure
 Static not dynamic as organization
 Formal structrure of authority and communication, not The Key Question
The Answer Is Provided by present informal organiztion
1. To what degree are activities subdivided into Work specialization separate jobs?
 Describe the structure of org, not the org itself (mission,
2. On what basis will jobs be grouped together? Departmentalization values, people, activities)
3. To whom do individuals and groups report? Chain of command
4. How many individuals can a manager Span of control
efficiently and effectively direct?
5. Where does decision-making authority lie?
Centralization and decentralization
6. To what degree will there be rules and Formalization
regulations to direct employees and managers?
7. Do individuals from different areas need to Boundary spanning regularly interact? 4 5
(c) 2008 Prentice-Hall, All rights reserved. 1 Work Specialization/Labour Work specialization Division
Work specialization: the division of labor into separate
The way the organization’s work is divided into activities.
different jobs to be done by different people – Repetition of work.
 The process of dividing work into relatively specialized jobs to
achieve the advantages of specialization
– Training for specialization.
 Division of labor can occur by:
– Increasing efficiency through invention.
 Dividing work into different personal specialties. – Henry Ford
 Dividing work into different activities necessitated
by the natural sequence of the work the organization does. 6 7 Work Specialization Departmentalization Economies and Diseconomies
 The basis by which jobs are grouped together  Grouping Activities by:  Function  Product  Geography  Process
 Specialization can reach a point of diminishing returns  Customer
 Then job enlargement gives greater efficiencies than does specialization 8 9 Customer Functional Departmentalization Departmentalization
 Jobs are combined according to the functions of the organization.
 Customers and clients can be a basis for grouping jobs.
 The principal advantage is efficiency.
 Examples of customer-oriented departments include:
 By having departments of specialists, management  Educational institutions creates efficient units.
 The loan department in a commercial bank
 A major disadvantage is that organizational goals may be  Telephone companies
sacrificed in favor of departmental goals.  Department stores 10 11
(c) 2008 Prentice-Hall, All rights reserved. 2 Geographic Product Departmentalization Departmentalization
 Groups are established according to geographic area.
 All jobs associated with producing and selling a product or
product line are placed under the direction of one
 The logic is that all activities in a given region should be manager. assigned to a manager.
 Product becomes the preferred basis as a firm grows by
 Advantageous in large organizations because physical
increasing the number of products it markets.
separation of activities makes centralized coordination difficult.
 Concentrating authority, responsibility, and accountability
in a specific product department allows top management
 Provides a training ground for managerial personnel. to coordinate actions. 12 13 Combined Bases for
Chain of Command/Administrative hierarchy Departmentalization: The Matrix Organization  Chain of Command 
System of reporting relationships in the
 The matrix organization attempts to maximize the
organization from the first level up through the
strengths and minimize the weaknesses of both the president or CEO functional and product bases. 
The unbroken line of authority that extends
from the top of the organization to the lowest
 Typically seen as a balanced compromise between
echelon and clarifies who reports to whom
functional and product organization.  Unity of Command
 Characterized by the existence of a dual authority 
A subordinate should have only one superior to
system, which can cause conflicts.
whom he or she is directly responsible
 Facilitates the utilization of highly specialized staff and 
Organizational downsizing results in lower overhead
costs, less bureaucracy, faster decision making, equipment.
smoother communications, and increases in productivity
 The flexibility of this system allows speedy response to challenges. 14 15 Chain of command
Chain of Command/Administrative hierarchy
The chain of command is less relevant today because of
technology and the trend of empowering people.  Responsibility
 Operating employees make decisions once reserved
 An obligation to do something with the expectation of achieving some act or output for management.  Authority
 Increased popularity of self-managed and cross-
 The rights inherent in a managerial position to give orders and functional teams.
to expect the orders to be obeyed
 Power that has been legitimized within a particular social
Many organizations still find that enforcing the chain of context command is productive.
 Originates in the ownership of the organization
 The relationship between responsibility and authority must be one of parity
 Can be delegated down to others
 Delegation is the transfer to others of authority to make decisions
and use organizational resources 16 17
(c) 2008 Prentice-Hall, All rights reserved. 3 Span of Control
Chain of Command/Administrative hierarchy
The number of subordinates a manager can efficiently and effectively direct
 An Alternative View of Authority
 Wider spans of management increase organizational
 Acceptance Theory of Authority efficiency
 The authority of a manager depends on their subordinates’
acceptance of the manager’s right to give directives and to  Narrow span drawbacks: expect compliance with them
 By either accepting or rejecting the directives of a supervisor,
 Expense of additional layers of management
workers can limit supervisory authority
 Increased complexity of vertical communication
 Encouragement of overly tight supervision and
discouragement of employee autonomy 18 19 Contrasting Spans of Control Conditions Affecting Span of Control
 Optimal unit size (span of control) depends on: 1.
The coordination requirements within the unit, including
factors such as the degree of job specialization 2. Degree of specialization
3. Ability to communicate and manage 4.
The similarity of the tasks in the unit 5.
The type of information available or needed by unit members 6.
Differences in the members’ need for autonomy 7.
The extent to which members need direct access to the supervisor 20 21 Centralization and Delegation of Authority Decentralization
 Delegation of authority: the process of distributing  Centralization
authority downward in an organization.
 The degree to which decision making is concentrated at a
single point in the organization.
 Managers decide how much authority should be
 Decision-making authority is concentrated at the top of
delegated to each job and to each jobholder. the organizational hierarchy  Decentralization
 The benefits of decentralizing authority include:
 The degree to which decision making is spread throughout
 Relatively high delegation of authority encourages the the organization.
development of professional managers.
 Decisions are made throughout the hierarchy.
 Managers who have high authority can exercise more
autonomy, and thus satisfy their desires to participate in problem solving. 22 23
(c) 2008 Prentice-Hall, All rights reserved. 4 Reasons to Centralize Delegation Decision Authority Guidelines
 Managers must be trained to make the decisions that go
 Delegation of authority differs among individuals,
with delegated authority, and training can be quite
depending on each person’s ability to make decisions. expensive.
 If a local manager is incapable of making decisions,
 Managers accustomed to making decisions may resist
decision making should be centralized, regardless of how
delegating authority to their subordinates, which can routine the decisions. reduce effectiveness.
 Capable individuals aren’t always motivated individuals.
 Administrative costs are incurred because new control
systems must be developed to provide top management
 Motivation must accompany competency to create
with information about the effects of subordinates
conducive conditions for decentralization. decisions.
 Decentralization means duplication of functions. 24 25 Formalization Boundary spanning
The degree to which rules and procedures shape
the jobs and activities of employees
Boundary spanning occurs when individuals form
 The degree to which jobs within the organization are standardized.
relationships with people outside their formally assigned groups.  High formalization
 Minimum worker discretion in how to get the job done
 Positive results are especially strong in organizations
 Many rules and procedures to follow
that encourage extensive internal communication; in  Low formalization
other words, external boundary spanning is most
 Job behaviors are nonprogrammed
effective when it is followed up with internal
 Employees have maximum discretion boundary spanning.
 Good managers use appropriate judgment in making exceptions to rules in recognizing that:
 Individuals are unique with meaningful differences
 There are commonalities among employees 26 27 Simple Structure Simple Structure
 A structure characterized by a low degree of departmentalization,
wide spans of control, authority centralized in a single person, and little formalization
Simple structure: the manager and the owner are one and the same.  Strengths: Simple, fast, and flexible. Inexpensive to maintain. Accountability is clear.  Weaknesses:
Difficult to maintain in anything other than small organizations.
Risky—everything depends on one person. 28 29
(c) 2008 Prentice-Hall, All rights reserved. 5 Bureaucracy Matrix Designs
 A structure of highly operating routine tasks 
Combines two different designs to gain the benefits of each.
achieved through specialization, very 
A structure that creates dual lines of authority and combines
functional and product departmentalization
formalized rules and regulations, tasks that  Key Elements
are grouped into functional departments,
 Gains the advantages of functional and product
departmentalization while avoiding their weaknesses
centralized authority, narrow spans of
 Facilitates coordination of complex and interdependent
control, and decision making that follows the activities
 Breaks down unity-of-command concept chain of command 
Matrix structure is appropriate when: 1.
External pressure exists for a dual focus 2.
Pressure exists for a high information-processing capacity 3.
Pressure exists for shared focus 30 31
Matrix Structure (College of Business Administration)
New Design Options: Virtual/Network Organization
 A small, core organization that (Director) outsources its major business functions
 Highly centralized with little or no departmentalization (Dean) Employee
Provides maximum flexibility while concentrating on what the organization does best
Reduced control over key parts of the business 32 33
New Design Options: Virtual/Network Organization The team structure The Virtual Organization
The team structure: eliminates the chain of command
and replaces departments with empowered teams.
 The essence of the virtual organization is that it
is typically a small, core organization that
 Removes vertical and horizontal boundaries.
outsources major business functions.
 Breaks down external barriers.
Also referred to as a modular or network
– Flattens the hierarchy and minimizes status and organization. rank.
It is highly centralized, with little or no departmentalization.
• When fully operational, the team structure may break down geographic barriers. 34 35
(c) 2008 Prentice-Hall, All rights reserved. 6 The circular structure Mechanistic vs. Organic Structural
• In the circular structure: in the center are the
executives, and radiating outward in rings grouped by
function are the managers, then the specialists, then the workers.
– Has intuitive appeal for creative entrepreneur.
– However, employees may be unclear about whom
they report to and who is running the show.
• We are still likely to see the popularity of the circular structure spread. 36 37 Contingency Design Theories
The Relationship Between Strategy and  “S S t tr ruc uc tur tur e fo e
llows strategy” (Alfred Chandler)
 Contingency design theory: emphasizes the importance of
 Management determines what the organization is to do and what its goals
fitting a design to the demands of a situation, including:
are before designing appropriate structure  Innovation Strategy  Technology
 A strategy that emphasizes the introduction of major new products and services  Environmental uncertainty  Organic structure best  Cost-minimization Strategy  Strategy
 A strategy that emphasizes tight cost controls, avoidance of unnecessary
innovation or marketing expenses, and price cutting  Organization size  Mechanistic model best  Imitation Strategy
 The essence of this approach is expressed by this question:
 A strategy that seeks to move into new products or new markets only after their
viability has already been proven
Under what circumstances, and in what situations, is either
 Mixture of the two types of structure
the mechanistic or organic design relatively more effective? 38 39
The Relationship Between Strategy The Relationship Between and Structure Size and Structure
An organization’s structure is a means to help
management achieve its objectives.  Size
Most current strategy frameworks focus on three strategy
 As measured by employee total, organization asset value, sales total, total
of clients served, physical capacity dimensions:
 Large organizations have a more complex structure
 Large size -employing 2,000 or more people- is associated with greater  Innovation
specialization of labor, wider spans of control, more hierarchical levels, greater formalization  Cost Minimization
 Large organizations are more efficient and take advantage of economies of scale  Imitation
 The impact of size becomes less important as an organization expands. 40 41
(c) 2008 Prentice-Hall, All rights reserved. 7
The Relationship Between Technology and Structure
The Relationship Between Technology and Structure
 The mechanistic design is effective for firms that mass
Technology: the way an organization transfers its
produce products, such as clothing, foods, and inputs into outputs. automobiles.
 Numerous studies have examined the technology- structure relationship.
 Tasks are fairly routine, where workers tend machines
designed and paced by engineering standards.
 Organizational structures adapt to their technology.
 Actual control of the work flow is separated from supervision of the workforce.
 In such organizations, the ideas of scientific
management and mechanistic design are applicable. 42 43
The Relationship Between Environment and Structure
Analyze the Behavioral Implications of
Different Organizational Designs (2 of 2)  Environment 
Institutions or forces outside the organization that potentially affect the
Organizational Designs and Employee Behavior organization’s performance
 All elements that lie outside the organization boundary
 Work specialization contributes to higher
 People, other organizations, economic factors, objects, events employee productivity.  General environment
 No evidence supports a relationship between
 All of a broad set of dimensions and factors within which the organization operates
span of control and employee satisfaction or
 Political-legal, social, cultural, technological, economic, international performance.  Task environment
 Specific organizations, groups, individuals who influence the organization
 Fairly strong evidence links centralization and 
Three key dimensions: capacity, volatility, and complexity
job satisfaction, meaning that less centralization
is associated with higher satisfaction.
 National culture influences the preference for structure. 44 45
Implications for Managers (1 of 3)
Organizational Structure: Its Determinants and Outcomes 46
(c) 2008 Prentice-Hall, All rights reserved. 8 The Nature of Organization Culture  Organizational Culture Organizational Culture
 A set of values held by individuals in a firm that
help employees understand acceptability of actions
Instructor: Pham Thi Bich Ngoc, Assoc. Prof., Dr. 0 1 Levels of The Nature of Organization organizational Visible Culture Culture Culture Expressed Values  Culture Values
 Are often taken for granted (implicit)
 May not be made explicit (i.e., not written down) Core Values
 Are communicated through symbolic means; Are passed
from one generation to the next
 Organizations are able to operate efficiently only when
shared values exist among the employees.
 An individual’s personal values guide behavior on and off the job. 2 3 Do Organizations Have Common Characteristics of Uniform Cultures? Organizational Culture
 Most organizations have a dominant culture and Strong versus Weak Cultures numerous sets of subcultures.
Culture versus Formalization
 The dominant culture expresses the core values a
majority of members share and that give the
 High formalization creates predictability,
organization distinct personality. orderliness, and consistency.
Subcultures tend to develop in large organizations
to reflect common problems, situations, or
 Formalization and culture are two different roads experiences that members face. to the same destination. 4 5
(c) 2008 Prentice-Hall, All rights reserved. 1 What Do Cultures Do? What Do Cultures Do?
The trend toward decentralized organizations makes  Culture’s Functions
culture more important than ever, but also makes 1.
Defines the boundary between one organization and others
establishing a strong culture more difficult. 2.
Conveys a sense of identity for its members
Individual-organization “fit”— whether the
applicant’s or employee’s attitudes and behavior are 3.
Facilitates the generation of commitment to something larger than self-interest
compatible with the culture — strongly influences
who gets a job offer, a favorable performance 4.
Enhances the stability of the social system review, or a promotion. 5.
Serves as a sense-making and control mechanism for fitting employees in the organization 6 7 What Do Cultures Do? What Do Cultures Do?
The Ethical Dimension of Culture Culture Creates Climate
 Organizational cultures are not neutral in their
ethical orientation, even when they are not openly
Organizational climate is shared
perceptions about the organization and pursuing ethical goals. work environment.
Over time, the ethical work climate (EWC), or
 Team spirit at the organizational level.
the shared concept of right and wrong behavior
in that workplace, develops as part of the
 Climates can interact with one another to produce behavior. organizational climate.
 Climate also influences the habits people
 The ethical climate reflects the true values of the adopt.
organization and shapes the ethical decision making of its members. 8 9 What Do Cultures Do? What Do Cultures Do?
Studies of ethical climates and workplace outcomes
Sustainability: practices that can be maintained over very
suggest that some climate categories are likely to be
long periods of time because the tools or structures that
found in certain organizations.
support the practices are not damaged by the processes.
By measuring the collective levels of moral sensitivity,
Social sustainability practices.
judgment, motivation, and character of our
– Sustainable management doesn’t need to be purely
organizations, we may be able to judge the strength of altruistic.
the influence our ethical climates have on us.
• To create a truly sustainable business, an organization must
develop a long-term culture and put its values into practice.
• Like other cultural practices we’ve discussed, sustainability
needs time and nurturing to grow. 10 11
(c) 2008 Prentice-Hall, All rights reserved. 2 What Do Cultures Do? What Do Cultures Do? Culture and Innovation Culture as an Asset
 The most innovative companies have
 Culture can significantly contribute to an
open, unconventional, collaborative,
organization’s bottom line in many ways.
vision-driven, and accelerating cultures.
 There are many more cases of business success
stories because of excellent organizational cultures
 Startup firms often have innovative cultures.
than there are of success stories despite bad
cultures, and almost no success stories because of
They are usually small, agile, and
focused on solving problems in bad ones. order to survive and grow. 12 13 What Do Cultures Do? Creating and Sustaining Culture as a Liability Culture (1 of 6)  Institutionalization How a Culture Begins  Barrier to change
 Ultimate source of an organization’s culture is its
 Occurs when culture’s values are not aligned with the values necessary for founders. rapid change
 Founders have the vision of what the organization  Barrier to diversity should be.
 Strong cultures put considerable pressure on employees to conform,
which may lead to institutionalized bias
Unconstrained by previous ideologies or customs.
 Barrier to acquisitions and mergers
 New organizations are typically small, which
 Incompatible cultures can destroy an otherwise successful merger
facilitates the founders’ imparting of their vision on all organizational members. 14 15 Creating and Sustaining Creating and Sustaining Culture (2 of 6) Culture (3 of 6)
Culture creation occurs in three ways: Keeping a Culture Alive
 Founders hire employees who think and feel the  Selection way they do.
Identify and hire individuals with
 Employees are indoctrinated and socialized into the
the knowledge, skills, and abilities founders’ way of thinking. to perform successfully.
 Founders’ own behavior encourages employees to Two-way street.
identify with them and internalize their beliefs,  Top Management values, and assumptions.
Establish norms of behavior. 16 17
(c) 2008 Prentice-Hall, All rights reserved. 3 Creating and Sustaining Types of Culture Culture (4 of 6) noiat Clan Culture Entrepreneurial Culture ent Flexible ri O l ro ntoC Stable al Bureaucratic Market Culture rm Culture Fo Internal External Forms of Attention 18 19
Influencing an Organizational Culture How Culture is Transmitted to (1 of 5) Employees
 How can management create a more ethical culture?  Stories  Be a visible role model.  Rituals  Material Symbols
 Communicate ethical expectations.  Language  Provide ethics training.
 Visibly reward ethical acts and punish unethical ones.
 Provide protective mechanisms. 20 21
Influencing an Organizational Culture
Influencing an Organizational Culture (3 of 5) (2 of 5) What Is Spirituality?
There is a trend today for organizations to attempt
to create a positive organizational culture:
 Workplace spirituality is not about organized religious practices.
 Emphasizes building on employee strengths.
 It is not about God or theology.
 Rewards more than it punishes.
Workplace spirituality recognizes that people
 Emphasizes individual vitality growth.
have an inner life that nourishes and is nourished
by meaningful work that takes place in the context of community. 22 23
(c) 2008 Prentice-Hall, All rights reserved. 4
Influencing an Organizational Culture (5 of 5)
Identify Characteristics of a Spiritual Culture (1 of 2)
Characteristics of a Spiritual Organization
Achieving a Spiritual Organization
 Cultural characteristics present in spiritual organizations include:
Leaders can demonstrate values, attitudes,
and behaviors that trigger intrinsic motivation Benevolence
and a sense of calling through work. Strong sense of purpose
Encouraging employees to consider how their Trust and respect
work provides a sense of purpose through
community building also can help achieve a Open-mindedness spiritual workplace. 24 25 Managing Organization Managing Organization Culture Culture
 Taking Advantage of the Existing Culture
 Teaching Organization Culture
 Easier and faster to alter employee behaviors within the
 Organizational socialization
existing culture than it is to change existing history, traditions, and values
 Is the process through which employees learn about the
firm’s culture and pass their knowledge and understanding
 Managers must be aware and understand the organization’s on to others values  Organizational mechanisms
 Managers can communicate their understanding to lower-level individuals
 Are examples of organization culture that employees see in
more experienced employees’ behaviors
 Corporate pamphlets and formal training sessions 26 27 Managing Organization Managing Organization Culture Culture
 Culture can be changed, but  Need time
 Changing the Organization Culture  Support from top managers  Managing symbols
 Substituting stories and myths that support the new cultural values for those that  Other resources support old ones
 Culture can be difficult to change when upper management inadvertently  How to make culture change reverts to old behaviors  The Stability of Change  Change people
 New values and beliefs must be seen as stable and influential as old ones
 Change corporate vision and mission
 Changing value systems requires enormous effort because value systems tend to be self-reinforcing
 Change organizational policies and
system: reward system, recruitment
and selection policies, technology… 28 29
(c) 2008 Prentice-Hall, All rights reserved. 5
Implications for Managers (1 of 3)
How Organizational Cultures Have an Impact on Employee Performance and Satisfaction 30
(c) 2008 Prentice-Hall, All rights reserved. 6 Motivation: From Concepts to Applications
INSTRUCTOR: ASSOC. PROF. DR., PHAM THI BICH NGOC NEU 0 Learning Objectives
 Describe how the job characteristics model motivates
by changing the work environment.
 Compare the main ways jobs can be redesigned.
 Explain how specific alternative work arrangements can motivate employees.
 Describe how employee involvement measures can motivate employees.
 Demonstrate how the different types of variable-pay
programs can increase employee motivation.
 Show how flexible benefits turn benefits into motivators.
 Identify the motivational benefits of intrinsic rewards. 1 Job Characteristics Model (JCM)
 Hackman and Oldham’s concept that any job can be
described through five core job dimensions:
Skill variety – Requirements for different tasks in the job.
Task identity – Completion of a whole piece of work.
Task significance – The job’s impact on others.
Autonomy – Level of discretion in decision making.
Feedback – Amount of direct and clear information on performance.
 The way elements in a job are organized (job design)
impacts motivation, satisfaction, and performance. 2
(c) 2008 Prentice-Hall, All rights reserved. 1 The Job Characteristics Model
Employee growth-need strength moderates the relationships. 3
Motivating Potential Score (MPS)
 The core dimensions of the job characteristics model (JCM)
can be combined into a single predictive index called the
motivating potential score (MPS).
 People who work on jobs with high core dimensions are
generally more motivated, satisfied, and productive.
 Job dimensions operate through the psychological states
in influencing personal and work outcome variables rather
than influencing them directly.
 Evidence supports the JCM concept that the presence of a
set of job characteristics does generate higher and more satisfying job performance.
 While the JCM framework is supported by research, the MPS
model isn’t practical and doesn’t work wel . 4 How Can Jobs Be Redesigned?  Job Rotation
 The periodic shifting of a worker from one task to another
 Systematically moving workers from one
job to another in an attempt to minimize monotony and boredom  Job Enlargement
 The horizontal expansion of jobs
 Giving workers more tasks to perform  Job Enrichment
 The vertical expansion of jobs
 Giving workers a greater variety of tasks
to perform and more control over how to perform them 5
(c) 2008 Prentice-Hall, All rights reserved. 2 How Can Jobs Be Redesigned?
 Repetitive jobs provide little variety, autonomy, or motivation.  Job Rotation
 Referred to as cross-training.
 Periodic shifting from one task to another.
 Strengths: reduces boredom, increases
motivation, and helps employees better
understand their work contributions.
 Weaknesses: creates disruptions, requires extra
time for supervisors addressing questions and
training time, and reduced efficiencies. 6 Job enrichments
 Al ow employees to plan their own work schedules.
 Al ow employees to decide how the work should be performed.
 Al ow employees to check their own work.
 Al ow employees to learn new skills. 7 Guidelines for Enriching a Job 8
(c) 2008 Prentice-Hall, All rights reserved. 3 Flexible Work Arrangements  Variable Work Schedules  Compressed work schedule
 Employees work a ful forty-hour week in fewer than the traditional five days
 Flexible work schedules (flextime)
 Employees gain more personal control over the hours they work each day  Job Sharing
 Part-time employees share one full-time job  Telecommuting
 Employees spend part of their time working off-site 9 Alternative Work Arrangements Job Sharing
 Two or more people split a 40-hour-a-week job. Declining in use.
Can be difficult to find compatible pairs of
employees who can successful y coordinate the intricacies of one job.
Increases flexibility and can increase
motivation and satisfaction when a 40-hour-a-
week job is just not practical. 10 Alternative Work Arrangements  Telecommuting
 Employees do their work at home at least two days a week
on a computer that is linked to their office.  The Virtual Office
 Employees work out of their home on a relatively permanent basis.
 Some wel -known organizations actively discourage
telecommuting, but for most organizations it remains popular.  Typical Telecommuting Jobs
 Professional and other knowledge-related tasks
 Routine information-handling tasks  Mobile activities 11
(c) 2008 Prentice-Hall, All rights reserved. 4 Employee Involvement
Employee Involvement: a participative process
that uses employees’ input to increase their
commitment to the organization’s success.
Examples of Employee Involvement Programs
Participative management
Representative participation 12 Employee Involvement Participative management  Joint decision making.
 Trust and confidence in leaders is essential.
 Studies of the participation-performance have yielded mixed results. 13 Employee Involvement
Representative participation
 Workers are represented by a small group of
employees who actually participate in decision making.
– Almost every country in Western Europe requires representative participation. – The two most common forms: ▪ Works councils ▪ Board representatives 14
(c) 2008 Prentice-Hall, All rights reserved. 5 Employee Involvement and Motivation
 Early Perspectives on Employee Involvement  In the beginning:
 Employee satisfaction is a result of their participation in decision-making  Recently:
 Employees are valued human resources who can
contribute to organizational effectiveness
 Their participation is valued 15 Employee Involvement and Motivation
 Areas of Employee Involvement
 Personal job-related decisions
 Administrative matters (e.g., work schedules)  Product quality decisions
 Techniques and Issues in Employee Involvement
 Empowerment through work teams (quality circles)
 Decentralization of decision-making and increased delegation 16 Empowerment  Empowering others by:
 Articulating a clear vision and goals  Providing support
 Providing necessary resources  Providing good information 17
(c) 2008 Prentice-Hall, All rights reserved. 6 Requirements for Effective Empowerment  An organization must be:
 Sincere in its efforts to spread power and autonomy to
lower levels of the organization
 Committed to maintaining participation and empowerment
 Systematic and patient in its efforts to empower workers
 Prepared to increase its commitment to training 18 Delegation
 Delegation is the process of assigning tasks and granting
sufficient authority for their accomplishment.
 Delegation is a process where a manager:
 Determines the results expected
 Al ocates duties to subordinates
 Grants them authority to enable those duties to be carried out
 Holds them responsible for the completion of the work and achievement results.
The ultimate accountability for the task remains with the manager. 19 Problems of Delegation
 Managers are reluctant to delegate because of:  Low confidence and trust
 The burden of accountability for the mistakes of subordinates
 Poor control and communication system
 Lack of understanding of what delegation involves
 Lack of training and development of managers in delegation skil s  Fear of losing power 20
(c) 2008 Prentice-Hall, All rights reserved. 7 Variable-Pay Programs What to Pay:
 Complex process that entails balancing internal
equity and external equity.
 Some organizations prefer to pay leaders by paying above market.
 Paying more may net better-qualified and more
highly motivated employees who may stay with the firm longer. 21 Variable-Pay Programs How to Pay:
Variable pay programs: Piece-rate plans Merit-based pay Bonuses Profit sharing
Employee stock ownership plans
 Earnings therefore fluctuate up and down. 22 Variable-Pay Programs Piece-Rate Pay
 A pure piece-rate plan provides no base salary and
pays the employee only for what he or she produces.
 Limitation: not a feasible approach for many jobs.
 The main concern for both individual and team
piece-rate workers is financial risk. 23
(c) 2008 Prentice-Hall, All rights reserved. 8 Variable-Pay Programs Merit-Based Pay
 Al ows employers to differentiate pay based on performance.
 Creates perceptions of relationships between performance and rewards.  Limitations:
Based on annual performance appraisals. Merit pool fluctuates. Union resistance. 24 Variable-Pay Programs Bonuses
 An annual bonus is a significant component of
total compensation for many jobs.
 Increasingly include lower-ranking employees.
Many companies now routinely reward
production employees with bonuses when profits improve.
 Downside: employees’ pay is more vulnerable to cuts. 25 Variable-Pay Programs Profit-Sharing Plans
 Organization-wide programs that distribute
compensation based on some established formula
centered around a company’s profitability.
 Appear to have positive effects on employee
attitudes at the organizational level.
 Employees have a feeling of psychological ownership. 26
(c) 2008 Prentice-Hall, All rights reserved. 9 Variable-Pay Programs
Employee Stock Ownership Plan (ESOP)
 A company-established benefit plan in which
employees acquire stock, often at below-market
prices, as part of their benefits.
 Increases employee satisfaction and innovation.
Employees need to psychologically experience ownership.
 Can reduce unethical behavior. 27 Variable-Pay Programs Evaluation of Variable Pay
 Do variable-pay programs increase motivation and productivity?
▪ Generally, yes, but that doesn’t mean
everyone is equally motivated by them. 28 Show How Flexible Benefits Turn Benefits Into Motivators
Developing a Benefits Package
Flexible benefits individualize rewards.
– Al ow each employee to choose the
compensation package that best satisfies his or
her current needs and situation.
▪ Today, almost all major corporations in the
United States offer flexible benefits.
▪ However, it may be surprising that their usage is not yet global. 29
(c) 2008 Prentice-Hall, All rights reserved. 10 Identify the Motivational Benefits of Intrinsic Rewards
Employee Recognition Programs
 Organizations are increasingly recognizing that
important work rewards can be both intrinsic and extrinsic.
 Rewards are intrinsic in the form of employee
recognition programs and extrinsic in the form of compensation systems. 30
Implications for Managers (1 of 3)
Recognize individual differences.
 Spend the time necessary to understand what’s important to each employee.
 Design jobs to align with individual needs and
maximize their motivation potential. Use goals and feedback.
 You should give employees firm, specific goals,
and they should get feedback on how well
they are faring in pursuit of those goals. 31
Implications for Managers (2 of 3)
Al ow employees to participate in decisions that affect them.
 Employees can contribute to setting work goals,
choosing their own benefits packages, and
solving productivity and quality problems.
Link rewards to performance.
 Rewards should be contingent on performance,
and employees must perceive the link between the two. 32
(c) 2008 Prentice-Hall, All rights reserved. 11
Implications for Managers (3 of 3)
Check the system for equity.
 Employees should perceive that experience,
skil s, abilities, effort, and other obvious inputs
explain differences in performance and hence in
pay, job assignments, and other obvious rewards. 33 Special Issues in Motivation  Motivating Professionals
 Provide challenging projects.
 Allow them the autonomy to be productive.
 Reward with educational opportunities.  Reward with recognition.
 Express interest in what they are doing.
 Create alternative career paths. 34 Special Issues in Motivation (cont’d)
 Motivating the Diversified Workforce
 Provide flexible work, leave, and pay schedules.
 Provide child and elder care benefits.
 Structure working relationships to account for cultural differences and similarities.
 Motivating Low-Skil ed Service Workers  Recruit widely.  Increase pay and benefits.  Make jobs more appealing. 35
(c) 2008 Prentice-Hall, All rights reserved. 12 Special Issues in Motivation (cont’d)
 Motivating People Doing Highly Repetitive Tasks
 Recruit and select employees that fit the job.
 Create a pleasant work environment.
 Motivating Contingent Workers
 Provide opportunity for permanent status.
 Provide opportunities for training.  Provide equitable pay. 36
(c) 2008 Prentice-Hall, All rights reserved. 13 Motivation Concepts
Instructor: Assoc. Prof. Dr. Pham Thi Bich Ngoc NEU 0 Learning Objectives
 Describe the three key elements of motivation.
 Compare the early theories of motivation.
 Contrast the elements of self-determination theory and goal-setting theory.
 Demonstrate the differences among self-efficacy
theory, reinforcement theory, equity theory, and expectancy theory.
 Identify the implications of employee job engagement for managers.
 Describe how the contemporary theories of
motivation complement one another. 1 Defining Motivation
 Motivation is the processes that account for an
individual’s intensity, direction, and persistence of
effort toward attaining a goal.
 The level of motivation varies both between
individuals and within individuals at different times. Three key elements:  IntensityDirectionPersistence 2
(c) 2008 Prentice-Hall, All rights reserved. 1 Motivation framework 3 Need-based Theories of Motivation
These early theories may not be valid, but they do
form the basis for contemporary theories and are
still used by practicing managers.
Maslow’s Hierarchy of Needs Theory
Alderfer’s ERG (Existence, Relatedness, and Growth)
Herzberg’s Two-Factor Theory
McClel and’s Theory of Needs 4 Maslow’s Hierarchy of Needs
There is a hierarchy of five needs. As each need is
substantially satisfied, the next need becomes dominant. Assumptions Self-Actualization  Higher Order Individuals Esteem cannot move to Internal the next higher Social level until all needs at the Safety Lower Order current (lower) level are satisfied External Physiological  Must move in hierarchical order 5
(c) 2008 Prentice-Hall, All rights reserved. 2
 Maslow’s need theory has received wide recognition,
particularly among practicing managers.
 It is intuitively logical and easy to understand
and some research has validated it.
 However, most research does, especially when
the theory is applied to diverse cultures. 6 Herzberg’s Two-Factor Theory Hygiene Factors Motivators Company Extrinsic and Growth Intrinsic and Policies Related to Related to Dissatisfaction Satisfaction Salary Responsibility Work Achievement Conditions 7 Compare the Early Theories of Motivation
Contrasting View of Satisfaction and Dissatisfaction 8
(c) 2008 Prentice-Hall, All rights reserved. 3 Herzberg’s Two-Factor Theory
 Assumes that motivation, as a construct, has two separate dimensions:
 Motivation factors which affect satisfaction
 Hygiene factors which determine dissatisfaction
 Assumes motivation occurs through job enrichment once hygiene factors are addressed 9
Criticisms of Herzberg’s theory
➢ Limited because it relies on self-reports.
➢ Reliability of methodology is questioned.
➢ No overall measure of satisfaction was utilized. 10 Alderfer’s ERG Theory
A reworking of Maslow to fit empirical research. Three groups of core needs:
Existence (Maslow: physiological and safety)
Relatedness (Maslow: social and status)
Growth (Maslow: esteem and self-actualization)
Removed the hierarchical assumption
 Can be motivated by al three at once 11
(c) 2008 Prentice-Hall, All rights reserved. 4 McClelland’s Three Needs Theory
 Need for Achievement (nAch)
 The drive to excel, to achieve in relation to a set of
standards, to strive to succeed  Need for Power (nPow)
 The need to make others behave in a way that they
would not have behaved otherwise
 Need for Affiliation (nAff)
 The desire for friendly and close interpersonal relationships
 People have varying levels of each of the three needs.  Hard to measure 12 Performance Predictions for High nAch
 People with a high need for achievement are likely to:
 Prefer to undertake activities with a 50/50 chance
of success, avoiding very low- or high-risk situations
 Be motivated in jobs that offer high degree of
personal responsibility, feedback, and moderate risk
 Not necessarily make good managers – too
personal a focus. Most good general managers do NOT have a high nAch
 Need high level of nPow and low nAff for managerial success
 Good research support, but it is not a very practical theory 13
Parallels among the Need theories of Motivation Motivation Factors Achievement Self-actualization Need for Work itself Needs Achievement Responsibility Growth Needs Advancement Self-Esteem Need for power Recognition Respect of others Hygience Factors Social Supervision Relatedness Needs
Interpersonal relationship Needs Need for Job security Affiliation Security Company Policies Existence Needs Pay Physiological Needs Working Conditions 14
(c) 2008 Prentice-Hall, All rights reserved. 5
Process-based and Contemporary Theories of Motivation  Self-determination theory  Goal-Setting Theory  Self-Efficacy Theory  Equity Theory  Reinforcement Theory  Expectancy Theory 15 Self-Determination Theory
 People prefer to feel they have control over their actions.
 People paid for work feel less like they want
to do it and more like they have to it.
 Proposes that in addition to being driven by a
need for autonomy, people seek ways to
achieve competence and positive connections to others. 16 Self-Determination Theory
 When extrinsic rewards are used as payoffs for performance,
employees feel they are doing a good job.
 Self-determination theory acknowledges that extrinsic rewards
can improve even intrinsic motivation under specific circumstances. 17
(c) 2008 Prentice-Hall, All rights reserved. 6 Self-Determination Theory
 What does self-determination theory suggest for providing rewards?
 Self-concordance: considers how strongly people’s reasons for
pursuing goals are consistent with their interests and core values. 18 Goal-Setting Theory  Goal-Setting Theory
 Goals tell an employee what needs to be
done and how much effort is needed.  Evidence suggests:
 Specific goals increase performance.
 Difficult goals, when accepted, result in higher
performance than do easy goals.
 Feedback leads to higher performance than does non-feedback. 19 Goal-Setting Theory
 Three other factors influencing the goals-performance relationship:  Goal commitment  Task characteristics  National culture 20
(c) 2008 Prentice-Hall, All rights reserved. 7 Goal-Setting Theory
 People differ in the way they regulate their thoughts and behaviors.
 Those with a promotion focus strive for
advancement and accomplishment and
approach conditions that move them closer toward desired goals.
 Those with a prevention focus strive to fulfill duties
and obligations and avoid conditions that pul them away from desired goals. 21 Goal Setting and Motivation  Basic Premise:
 That specific and difficult goals, with self-generated
feedback, lead to higher performance
 Purposes of Setting Goals in Organizations
 To provide a useful framework for managing
motivation to enhance employee performance
 To serve management as a control device for
monitoring of how well the organization is performing  Self-Efficacy
 The extent to which we believe we can accomplish
our goals even if we failed to do so in the past 22 Expanded Goal Setting Theory  The Goal-Setting Process
 Goal-directed effort is a function of goal attributes: 1.
Goal difficulty: The extent to which a goal is chal enging, requires effort, and is attainable  Difficult Goals:  Focus and direct attention
 Energize the person to work harder
 Difficulty increases persistence
 Force people to be more effective and efficient
2. Goal specificity: The clarity and precision of a goal
3. Goal acceptance: the extent to which a person accepts a goal as his/her own
4. Goal commitment: the extent to which a person is interested in reaching a goal 23
(c) 2008 Prentice-Hall, All rights reserved. 8
Source: Reprinted from ORGANIZATIONAL DYNAMICS, Autumn
1979, Gary P. Latham et al., "The Goal-Setting Theory of Motivation",
Copyright 1979, with permission from Elsevier.
24 Broader Perspectives on Goal Setting
 Management by Objectives (MBO)
 A collaborative goal-setting process through which
organizational goals cascade down throughout the organization
 Requires customizing to each organization
 Can be effective for managing reward systems where the
manager has individual interactions with each employee 25 Self-Efficacy Theory
 An individual’s belief that he or she is capable of performing a task.
 Higher efficacy is related to:  Greater confidence
 Greater persistence in the face of difficulties
 Better response to negative feedback (work harder)
 Self-Efficacy complements Goal-Setting Theory. 26
(c) 2008 Prentice-Hall, All rights reserved. 9 Increasing Self-Efficacy  Enactive mastery
 Most important source of efficacy
 Gaining relevant experience with task or job
 “Practice makes perfect”  Vicarious modeling
 Increasing confidence by watching others perform the task
 Most effective when observer sees the model to be similar to him- or herself  Verbal persuasion
 Motivation through verbal conviction
 Pygmalion and Galatea effects - self-fulfilling prophecies  Arousal
 Getting “psyched up” – emotionally aroused – to complete task
 Can hurt performance if emotion is not a component of the task 27 Self-Efficacy Theory
Joint Effects of Goals and Self-Efficacy on Performance
Source: Based on E. A. Locke and G. P. Latham, “Building a Practically Useful
Theory of Goal Setting and Task Motivation: A 35-Year Odyssey,” American
Psychologist (September 2002): 705–17. 28 Self-Efficacy Theory
 Implications of self-efficacy theory:
 The best way for a manager to use verbal
persuasion is through the Pygmalion effect.
A form of self-fulfil ing prophecy – believing in something can make it true.
 Training programs often make use of enactive
mastery by having people practice and build their skil s. 29
(c) 2008 Prentice-Hall, All rights reserved. 10 Reinforcement Theory
 Reinforcement theory: behavior is a function of its consequences.
 Reinforcement conditions behavior.
 Behavior is environmentally caused.
 Goal setting is a cognitive approach: an individual’s
purposes direct his or her action.
 Operant conditioning theory: people learn to behave to get
something they want or to avoid something they don’t want.
 B.F. Skinner’s behaviorism. 30 Reinforcement Theory
 focuses on a behavioral approach rather than a cognitive one.
 Behavior is environmental y caused
 Thought (internal cogitative event) is not important
 Feelings, attitudes, and expectations are ignored
 Behavior is control ed by its consequences – reinforcers
 Behavior is a function of its consequences
 Reinforcement is the consequence of behavior
 Is not a motivational theory but a means of analysis of behavior
 Reinforcement strongly influences behavior but is not likely to be the sole cause 31 Equity Theory 32
(c) 2008 Prentice-Hall, All rights reserved. 11 Equity Theory
 When employees perceive an inequity, they can be
predicted to make one of six choices:  Change their inputs.  Change their outcomes.
 Distort perceptions of self.
 Distort perceptions of others.
 Choose a different referent.  Leave the field. 33 Equity Theory
Model of Organizational Justice 34 Expectancy Theory
 Expectancy theory: a tendency to act in a certain way
depends on an expectation that the act wil be fol owed by
a given outcome and on the attractiveness of that outcome to the individual.  Three relationships:
 Effort-performance relationship
 Performance-reward relationship
 Rewards-personal goals relationship 35
(c) 2008 Prentice-Hall, All rights reserved. 12 Expectancy Theory 36 Expectancy Theory
 Expectancy theory helps explain why a lot of workers aren’t
motivated and do only the minimum.
 Three questions employees need to answer in the affirmative if
their motivation is to be maximized:
 If I give maximum effort, wil it be recognized in my performance appraisal?
 If I get a good performance appraisal, wil it lead to organizational rewards?
 If I’m rewarded, are the rewards attractive to me? 37 Expectancy Relationships (Linkages)  Effort–performance
 The perceived probability that exerting a given amount of
effort will lead to performance results  Performance–reward
 The belief that performing at a particular level will lead to the
attainment of a desired outcome  Attractiveness
 The importance placed on the potential outcome or reward
that can be achieved on the job. 38
(c) 2008 Prentice-Hall, All rights reserved. 13 Expectancy Theory
Factor influence Effort-Performance:
 Level of expectancy: belief/perception that one’s effort
wil result attainment of desired performance goals.
 Factors affecting expectancy perception:  self-efficacy  Goal difficulty 39 Expectancy Theory
Factor influence Performance-Reward:
 Instrumentality: Motivation depend on the perceived
effective relationship between given input and the expected outcome.
 Factor influence the individual’s instrumentality perception:  Trust  Control:  Policies 40 Expectancy Theory
Factor influence Reward-Personal Goal:
 Valence: value placed on outcomes (intrinsic and
extrinsic). It is a function of individual’s needs, goals, values and source of motivation
 Factors influencing valence for outcome:  Values  Needs  Goals  Preferences 41
(c) 2008 Prentice-Hall, All rights reserved. 14
Implications for managers of Expectancy Theory
Managers should give attention to a number of factors: 
Use rewards appropriate in terms of individual performance
 Attempt to establish clear relationships between effort- performance and rewards
 Establish clear procedures for the evaluation of individual levels of performance 42 43
(c) 2008 Prentice-Hall, All rights reserved. 15