Chapter 1 - What is Organizational Behavior?

Managers are individuals who achieve goals through others by making decisions, allocating
resources, and directing activities within an organization.
Organization is a coordinated group of two or more people working continuously to achieve
common goals, found in entities like businesses, schools, and government agencies.

MANAGEMENT FUNCTIONS
In the early 20th century, Henri Fayol outlined five key management functions, which have
since been condensed to four primary functions: planning, organizing, leading, and
controlling. These functions help managers define goals, coordinate activities, and ensure
organizational effectiveness.
1. Planning
• Description: Involves defining the organization’s goals, establishing strategies to
achieve them, and developing comprehensive plans for coordination.
• Importance: Planning is crucial as organizations exist to achieve specific goals, and
effective planning increases as managers advance from lower to mid-level
management.
2. Organizing
• Description: Entails designing the organization’s structure, which includes:
o Determining tasks to be completed
o Assigning tasks to individuals
o Grouping tasks
o Defining reporting relationships
o Establishing decision-making processes
• Importance: A well-organized structure enhances efficiency and clarity within the
organization.
3. Leading
• Description: Focuses on directing and coordinating the people within the
organization. This includes:
o Motivating employees
 o Selecting effective communication channels
o Resolving conflicts
• Importance: Effective leadership fosters a positive work environment and enhances
team performance.
4. Controlling
• Description: Involves monitoring organizational performance, comparing it to goals,
and making necessary corrections. This includes:
o Setting performance standards
o Measuring actual performance
o Taking corrective action when deviations occur
• Importance: Controlling ensures that the organization stays on track to meet its
goals.

MANAGEMENT ROLES
Henry Mintzberg identified ten managerial roles that fall into three main categories:
interpersonal, informational, and decisional.
Interpersonal Roles
1. Figurehead: Ceremonial duties (e.g., handing out diplomas).
2. Leader: Hiring, training, and motivating employees.
3. Liaison: Building relationships for information exchange, both internally and
externally.
Informational Roles
1. Monitor: Collecting information about the organization and the external
environment.
2. Disseminator: Sharing information with team members.
3. Spokesperson: Representing the organization to external stakeholders.
Decisional Roles
1. Entrepreneur: Initiating and overseeing new projects.
2. Disturbance Handler: Addressing unforeseen issues.
 3. Resource Allocator: Distributing resources effectively.
4. Negotiator: Engaging in discussions to reach agreements.

MANAGEMENT SKILLS
Managers require a blend of skills to be effective. Key skills include:
1. Technical Skills
• Description: The ability to apply specialized knowledge or expertise relevant to the
field (e.g., engineering, finance).
• Importance: Essential for understanding the specific tasks and processes in their
area of work.
2. Human Skills
• Description: The ability to understand, communicate with, motivate, and support
individuals and groups.
• Importance: Critical for fostering collaboration and resolving conflicts, as managers
achieve results through others.
3. Conceptual Skills
• Description: The mental ability to analyze complex situations, develop solutions,
and integrate new ideas.
• Importance: Vital for decision-making, problem-solving, and strategic planning in a
dynamic environment.
Summary
Management encompasses a range of functions, roles, and skills that are essential for
organizational success. Effective managers must plan, organize, lead, and control while also
fulfilling various interpersonal, informational, and decisional roles. They should cultivate
technical, human, and conceptual skills to navigate the complexities of their work and drive
their organizations toward achieving goals.

EFFECTIVE VS. SUCCESSFUL MANAGERIAL ACTIVITIES

Fred Luthans and his team examined what managers do and found that the fastest-
promoting managers (successful) do not necessarily engage in the same activities as those
who perform their jobs best (effective).
Key Managerial Activities
1. Traditional Management: Decision-making, planning, and controlling.
2. Communication: Exchanging information and processing paperwork.
3. Human Resource Management: Motivating, disciplining, and training staff.
4. Networking: Socializing and interacting with external stakeholders.
Time Allocation
Average time spent by managers:
• Traditional Management: 32%
• Communication: 29%
• Human Resource Management: 20%
• Networking: 19%
Success vs. Effectiveness
• Successful Managers:
o Emphasize networking for career advancement.
o Spend less time on human resource management.
• Effective Managers:
o Prioritize communication for better performance and employee satisfaction.
o Networking is less emphasized.
Research Insights
• Networking is linked to success, while effective managers focus on communication,
valuing feedback for improvement.
Conclusion
A key takeaway is the critical role of people management. Developing strong interpersonal
skills is essential for managers to be both effective and successful in their roles.
ORGANIZATIONAL BEHAVIOR (OB)
Definition: OB studies how individuals, groups, and structures influence behavior in
organizations to improve effectiveness.
Key Components:
• Determinants of Behavior: Individuals, groups, and organizational structures.
• Focus Areas: Jobs, absenteeism, turnover, productivity, motivation, leadership,
communication, group dynamics, learning, conflict, and work design.
Systematic Study
• Predictability: Identifying consistent behavior patterns allows for accurate
predictions.
• Approach: Analyzing relationships and basing conclusions on scientific evidence.
Evidence-Based Management (EBM)
• Advocates for decisions grounded in scientific evidence, enhancing management
effectiveness.
Role of Intuition
 • Intuition can supplement evidence but may lead to inaccuracies if relied upon
exclusively.
Critique of Management Trends
• The business press often promotes fads rather than substantial truths, making it
essential to discern valuable insights.
Conclusion
• Combining systematic study and EBM enriches decision-making and fulfills OB’s role
in effective management.
CHALLENGES AND OPPORTUNITY FOR OB
Understanding organizational behavior (OB) is essential for managers today due to dramatic
changes in the workplace, including an aging workforce, increased diversity, and the need
for adaptability in a global economy. Managers face challenges such as:
1. Economic Pressures: Recessions force managers to handle layoffs, pay cuts, and
employee stress, emphasizing the importance of effective management during tough
times.
2. Globalization: Managers often work with diverse teams across borders, requiring an
understanding of cultural differences and adaptation of management styles.
3. Workforce Diversity: Managing a diverse workforce involves recognizing individual
differences related to gender, ethnicity, age, and ability, presenting both
opportunities and challenges.
4. Customer Service: Organizations must foster a customer-responsive culture to
enhance employee attitudes and satisfaction.
5. Innovation and Change: Companies need to cultivate innovation and flexibility to
remain competitive, with employees as key drivers of change.
6. Work-Life Balance: Increasingly blurred boundaries between work and personal life
necessitate flexible schedules to retain talent.
7. Positive Work Environment: Creating a positive workplace enhances employee
resilience and engagement, focusing on strengths rather than limitations.
8. Ethical Behavior: Managers must address ethical dilemmas and foster a climate of
integrity, guiding employees through ethical challenges.
In summary, OB offers insights and solutions to help managers navigate these complexities,
improve employee relations, and enhance organizational effectiveness.

OVERVIEW OF ORGANIZATIONAL BEHAVIOR (OB) MODEL

This chapter concludes with a model defining Organizational Behavior (OB), highlighting its
components—inputs, processes, and outcomes—across three analytical levels: individual,
group, and organizational. The model is structured linearly, indicating that inputs lead to
processes, which in turn lead to outcomes. Importantly, outcomes can also feedback into
future inputs.
Inputs
Inputs are foundational variables, such as personality, group structure, and organizational
culture, that set the stage for organizational dynamics. These variables are often established
before employment:
• Individual Characteristics: Shaped by genetics and environment, influencing
diversity and personality.
• Group Dynamics: Roles and structures typically assigned at group formation.
• Organizational Culture: Developed over time through adaptation and evolving
norms.
Processes
Processes represent the actions resulting from inputs, akin to verbs in language. They occur
at various levels:
• Individual Level: Emotions, motivation, perception, and decision-making.
• Group Level: Communication, leadership, power dynamics, and conflict resolution.
• Organizational Level: Human resource management and change initiatives.
Outcomes
Outcomes are key variables that organizations aim to explain or predict, influenced by prior
variables:
1. Attitudes and Stress: Employee evaluations impact job performance. Positive
attitudes enhance productivity and citizenship behaviors.
2. Task Performance: Reflects effectiveness and efficiency in job roles, crucial for
organizational success.
3. Citizenship Behavior: Voluntary actions that contribute to the workplace
environment, enhancing team dynamics.
4. Withdrawal Behavior: Actions like absenteeism and turnover that negatively impact
organizational functioning.
5. Group Cohesion: Trust and mutual support within teams lead to better performance.
6. Group Functioning: The collective output quality and quantity of a group, often
exceeding the sum of individual efforts.
7. Productivity: Efficiency in transforming inputs to outputs while achieving
organizational goals.
 8. Survival: The long-term viability of an organization, dependent on adaptability and
market alignment.

Conclusion
The structured model serves as a framework for understanding how various elements of OB
interconnect across different levels. Each chapter in the book will delve into specific inputs,
processes, and outcomes, fostering a comprehensive understanding of the human side of
organizations.
Chapter 2 – Diversity in Organizations
Surface-level diversity includes visible traits like age, race, gender, and ethnicity, often
leading to assumptions but not reflecting deeper qualities.
Deep-level diversity involves unseen traits like personality, values, beliefs and workstyles
which become more important as people interact and get to know each other.
Discrimination involves recognizing differences, which is not inherently negative.
Unfair discrimination is when decisions are based on stereotypes about groups rather than
individual qualities, harming both organizations and employees.

FORMS OF DISCRIMINATION

DISCRIMINATION ON BASIS OF BIOGRAPHICAL CHARACTERISTICS

Biographical characteristics like age, gender, race, disability, and length of service are
obvious ways employees differ. These surface-level traits are easily accessible from HR files
and are often linked to discrimination. However, they have less impact on work outcomes
than many believe, with more variation occurring within groups than between them.
Age and job performance are increasingly important due to perceptions of declining
performance, an aging workforce, and anti-mandatory retirement laws. While older workers
are seen as experienced and committed, they're also perceived as less adaptable.
Research shows older employees are less likely to quit and have lower avoidable
absenteeism, with no clear link between age and reduced productivity. Job satisfaction
generally rises with age, especially for professionals. Age discrimination can lower employee
commitment and hurt organizational performance.
Gender - Men and women show no significant differences in job performance, though biases
persist against women in male-dominated roles. Women, especially mothers, often prefer
flexible schedules, leading to higher absenteeism and turnover. Combatting sex
discrimination and harassment improves employee well-being and organizational
outcomes.
Race and Ethnicity are sensitive topics in the workplace. Bias often leads individuals to
favor colleagues of their own race in evaluations and promotions. African Americans and
Hispanics report more workplace discrimination and higher turnover, though job
performance differences are minimal. Mental-ability tests show no clear racial bias in
predicting performance, and a positive diversity climate can boost business outcomes.
Despite higher performance evaluations, Disabled Individuals, especially with mental
illnesses, face lower expectations and hiring biases. Résumés mentioning disabilities are
rated less employable, though some studies show disabled individuals are viewed as having
superior qualities. Biases remain, especially against mental health issues.
Tenure - Seniority positively correlates with job productivity and negatively with
absenteeism, making tenure a strong predictor of performance. Longer tenure reduces
turnover and is positively related to job satisfaction, often more consistently than age.
Religious Diversity can lead to workplace conflict and discrimination, particularly against
Muslims, with many Americans holding negative attitudes. Discrimination may affect hiring
practices, as seen with applicants in Muslim attire facing negative interviews. Additionally,
religious beliefs can influence job performance, leading to rising claims of religious
discrimination in the U.S.
Sexual Orientation and Gender Identity - Federal law does not prohibit discrimination
based on sexual orientation, but many states and companies do. Over half of Fortune 500
companies, like Raytheon and IBM, offer domestic-partner benefits and support LGBTQ+
rights, while some companies, such as ExxonMobil, do not.
Gender identity policies are also on the rise, with many companies now supporting
transgender employees. From 2001 to 2006, the number of Fortune 500 companies with
such policies increased significantly. Overall, many organizations are fostering inclusive
environments for diverse sexual orientations and gender identities.
Ability - An individual’s capacity to perform the various tasks in a job.
Intellectual Abilities - The capacity to do mental activities like thinking, reasoning, and
problem solving.

General Mental Ability (GMA) - An overall factor of intelligence, as suggested by the positive
correlations among specific intellectual ability dimensions.
Physical Abilities - The capacity to do tasks that demand stamina, dexterity, strength, and
similar characteristics.
IMPLEMENTING DIVERSITY MANAGEMENT STRATEGIES
Diversity Management - The process and programs by which managers make everyone
more aware of and sensitive to the needs and differences of others.
Attracting, Selecting, Developing, and Retaining Diverse Employees
To enhance workforce diversity, target recruitment at underrepresented groups through
tailored advertisements and partnerships. Diverse recruiting messages attract women and
minorities, especially when they emphasize a commitment to diversity.
The selection process should prioritize qualifications over demographics to reduce bias.
Personality similarity can impact career advancement, varying by cultural context.
A positive diversity climate improves performance among diverse employees and enhances
overall sales. Although diverse individuals may initially show lower commitment and higher
turnover in homogeneous groups, these effects lessen over time. A supportive diversity
environment fosters greater commitment and lowers turnover intentions for all employees.

Diversity in Groups
Contemporary workplaces rely heavily on group collaboration, requiring effective
communication and a sense of cohesion. The impact of diversity on group performance can
be both positive and negative, depending on the context.
1. Demographic Diversity: Generally, demographic diversity (gender, race, ethnicity)
does not significantly enhance or detract from team performance.
2. Trait Diversity: Teams composed of individuals with lower intelligence,
conscientiousness, or disinterest in teamwork tend to perform worse. Conversely,
teams with diverse expertise and education levels can be more effective.
3. Effective Group Dynamics: A mix of assertive leaders and followers is beneficial,
while homogenous groups of either type may struggle.
4. Leveraging Differences: To optimize performance, emphasize the common goals
and interests among diverse members. Transformational leaders who focus on
higher-order goals are particularly effective in managing diverse teams.

Effective Diversity Programs

Organizations implement various strategies to leverage diversity, focusing on recruiting,
selection, training, and development. Effective diversity programs typically include three key
components:
 1. Legal Framework Education: Teach managers about equal employment opportunity
laws and encourage fair treatment of all individuals, regardless of demographics.
2. Market Relevance: Highlight how a diverse workforce enhances the ability to serve a
diverse customer base.
3. Personal Development: Foster skills and abilities of all employees, recognizing that
diverse perspectives can improve overall performance.
Key Findings
• Fair Treatment: Most negative reactions to discrimination stem from perceived
unfairness. Support for diversity programs is strong if they ensure fair opportunities
for all.
• Diversity Training: Simply offering diversity training does not guarantee increased
representation of women and minorities in management. Effective programs must
include strategies to hold managers accountable for promoting diversity.
• Experience and Adaptation: Positive diversity experiences lead to better adaptation
when they challenge stereotypes, motivate new perspectives, and are repeated
frequently.
Best Practices
• Analyze Workforce Representation: Identify underutilized groups and seek to
uncover hidden barriers to advancement.
• Transparent Recruiting: Improve recruiting practices and make selection processes
clear to all employees.
• Tailored Communication: Focus communications on qualifications and
performance, avoiding emphasis on group identity as a reason for support.
Chapter 3 – Attitudes and Job Satisfaction
Attitudes are evaluative statements, either positive or negative, about objects, people, or
events, reflecting how we feel about something. For instance, saying "I like my job" expresses
a positive attitude toward work.

MAIN COMPONENTS OF ATTITUDE

Attitudes have three main components:
1. Cognition (evaluation): A belief or thought about something, like “My pay is low.”
2. Affect (feeling): The emotional response to that belief, such as feeling angry about
the low pay.
3. Behavior (action): The intention or action that follows, like deciding to look for a
better-paying job.
These components are closely connected, with cognition and affect often influencing each
other and leading to behavior.

BEHAVIOR FOLLOWS ATTITUDE?

Behavior doesn't always follow attitudes. Early research assumed attitudes directly
influenced behavior, but Leon Festinger challenged this, suggesting behavior often shapes
attitudes due to Cognitive Dissonance—the discomfort from conflicting attitudes and
actions. People seek to reduce this discomfort by changing attitudes, behavior, or
rationalizing discrepancies.
Key factors, or moderating variables, strengthen the attitude-behavior link, including:
• Importance of attitude.
• Specificity of the attitude to the behavior.
• Accessibility of the attitude in memory.
• Social pressures and influence.
• Direct experience with the attitude subject.

MAJOR JOB ATTITUDES

Attitudes better predict behavior when they are specific, important, and frequently
expressed.
The major job attitudes include:
1. Job Satisfaction: Reflects a positive or negative feeling about one’s job, typically
based on an evaluation of its characteristics.
2. Job Involvement: Measures how much individuals identify with their job and see their
performance as vital to their self-worth. High involvement is linked to better job
performance and lower turnover.
3. Organizational Commitment: Describes an employee’s emotional attachment to
their organization and its goals. Committed employees are less likely to engage in
withdrawal behaviors like absenteeism or quitting, even when dissatisfied.
4. Perceived Organizational Support (POS): Refers to employees’ beliefs that their
organization values their contributions and cares for their well-being. High POS leads
to better citizenship behaviors and reduced tardiness.
5. Employee Engagement: Involves one’s enthusiasm and connection to their work.
Engaged employees perform better, are more productive, and are less likely to have
accidents or quit.
These attitudes are key to understanding and improving organizational behavior and
employee outcomes.
Job attitudes like job satisfaction, job involvement, organizational commitment, and
perceived organizational support (POS) are closely related, often overlapping. This
redundancy suggests that understanding one attitude often provides insights into others,
reducing the need for multiple distinct concepts. Personality and workplace environment
can further blur the distinctions between these attitudes, meaning knowing an employee's
job satisfaction may be enough to gauge their overall view of the organization.

MEASURING JOB SATISFACTION

Job satisfaction can be measured using two popular methods: a single global rating and
summation of job facets.
1. Single global rating asks employees to rate their overall satisfaction with one simple
question, like "How satisfied are you with your job?" on a scale from 1 to 5.
2. Summation of job facets evaluates multiple job elements (work nature, pay,
promotions, relationships, etc.), with employees rating each aspect individually. The
ratings are then summed to get an overall score.
While the summation method seems more thorough, research shows both methods are
equally effective. The global rating is simpler and quicker, while the summation helps identify
specific problem areas.
Most workers in the U.S. and developed countries report job satisfaction, though levels
dropped after the 2007 economic downturn, with only about half now satisfied. People are
more content with their work, supervisors, and co-workers than with pay and promotion
opportunities. Job satisfaction is higher in Western cultures, likely due to a greater focus on
positive emotions and individual happiness compared to Eastern cultures.

WHAT CAUSES JOB SATISFACTION

Job satisfaction is influenced by job characteristics, social interactions, and personal traits.
Employees feel satisfied when their work is interesting, offers variety, and allows
independence. Positive workplace relationships also enhance satisfaction.
While pay matters for those in poverty, its impact lessens once individuals earn around
$40,000, with higher salaries not necessarily leading to greater satisfaction. Additionally,
those with positive self-evaluations tend to be more satisfied, seeing their work as fulfilling,
while those with negative evaluations often remain in less engaging roles.

IMPACT OF JOB SATISFACTION

When employees like their jobs, they typically exhibit positive responses, while those who
dislike their jobs may respond in various ways. The exit–voice–loyalty–neglect framework
categorizes these responses:
1. Exit: Actively leaving the organization, such as resigning or seeking new positions.
2. Voice: Constructively attempting to improve conditions, like suggesting changes or
discussing issues with management.
3. Loyalty: Passively waiting for improvement while maintaining a positive outlook
about the organization.
4. Neglect: Allowing conditions to worsen through absenteeism, reduced effort, or
increased errors.
Happy employees tend to be more productive, and there is a strong correlation between job
satisfaction and job performance. Satisfied workers are also more likely to engage in
organizational citizenship behaviors (OCBs), such as helping colleagues and positively
representing the organization. This connection is influenced by fairness perceptions, social
support, personality traits, and mood, with satisfied employees often fostering a supportive
work environment.

Core – Self Evaluation - Bottom-line conclusions individuals have about their capabilities,
competence, and worth as a person.
Job Satisfaction and Customer Satisfaction
Employee satisfaction significantly impacts customer satisfaction, especially in service
roles. Satisfied employees tend to enhance customer loyalty and satisfaction. For instance,
Zappos promotes a fun workplace culture that empowers employees to exceed customer
expectations. Conversely, low employee morale at organizations like US Airways can lead to
negative customer experiences.
Job Satisfaction and Absenteeism
There is a moderate negative correlation between job satisfaction and absenteeism;
dissatisfied employees are more likely to miss work. However, other factors, such as
generous sick leave policies and available job alternatives, can influence this relationship.
Job Satisfaction and Turnover
The link between job satisfaction and turnover is stronger than with absenteeism.
Employees are more likely to leave if they are dissatisfied and have alternative job
opportunities. High "human capital" workers (with better education or skills) are also more
likely to translate dissatisfaction into turnover due to perceived job options.
Job Satisfaction and Workplace Deviance
Dissatisfaction can lead to counterproductive behaviors, such as theft, tardiness, or
substance abuse. These deviant behaviors signal broader workplace issues. Addressing the
root causes of dissatisfaction is crucial for reducing undesirable outcomes.
Managers Often “Don’t Get It”
Despite the clear connection between job satisfaction and organizational performance—
evidenced by higher stock prices in companies with satisfied employees—many managers
misjudge employee satisfaction levels. Regular surveys can help bridge the gap between
management perceptions and employee feelings, allowing for necessary improvements.
Chapter 4 – Emotions and Moods
Emotions play a crucial role in workplace behavior, yet organizational behavior (OB) research
has historically overlooked them. This oversight can be attributed to two main reasons:
1. Myth of Rationality: Traditionally, the workplace aimed to suppress emotions,
emphasizing a rational and emotion-free environment. Employees were discouraged
from expressing feelings like frustration or joy, as these were viewed as contrary to
professionalism.
2. Perceived Disruption: Many researchers focused primarily on negative emotions,
particularly anger, viewing them as disruptive to work performance. Emotions were
rarely seen as constructive forces that could enhance productivity and collaboration.

EMOTIONS AND MOODS

In analyzing workplace behavior, it's essential to differentiate between three interconnected
concepts: affect, emotions, and moods.
1. Affect: A broad term encompassing the full range of feelings people experience,
including both emotions and moods.
2. Emotions: Intense feelings directed at someone or something, often triggered by
specific events. Emotions are typically fleeting; for example, feeling angry after a rude
interaction can dissipate quickly.
3. Moods: Less intense feelings that can last longer and often arise without a specific
trigger. Moods aren't usually directed at a person or event. For instance, a bad mood
might leave you feeling dispirited without a clear reason.
Key Differences:
• Duration: Emotions are more transient, while moods can persist for hours or days.
• Direction: Emotions are usually linked to a specific object or event (e.g., anger toward
a colleague), whereas moods are more generalized.
• Expression: Emotions often show through facial expressions, while moods are less
visibly expressed.
Interaction:
Emotions and moods influence each other. A positive event (like landing a dream job) can
create joy, leading to a good mood. Conversely, being in a bad mood can heighten emotional
responses, making you react more intensely to minor events.
THE BASIC EMOTIONS
The question of how many emotions exist is complex, as there are numerous feelings ranging
from anger and fear to joy and love. Researchers have sought to identify a fundamental set
of basic emotions, though there is ongoing debate about the validity of this approach.
Key Points:
1. Numerous Emotions: Common emotions include anger, contempt, happiness, love,
fear, and sadness, among many others.
2. Basic Emotions Debate: Some argue that it's unhelpful to limit emotions to a basic
set, while others seek to identify universal emotions. René Descartes identified six
fundamental passions: wonder, love, hatred, desire, joy, and sadness.
3. Facial Expressions: Psychologists often study emotions through facial expressions,
but some emotions, like love, are complex and difficult to convey visually.
4. Cultural Influences: Cultural norms shape how emotions are expressed and
interpreted. For example, a smile may indicate happiness in one culture but could
also imply attraction in another.
 5. Universal Emotions: Despite the debates, many researchers agree on six universally
recognized emotions: anger, fear, sadness, happiness, disgust, and surprise. These
can be plotted along a continuum, indicating that emotions closer together are more
likely to be confused with one another.
Conclusion
While the exact number and definition of basic emotions remain debated, understanding the
nuances of emotions and their cultural contexts is essential for comprehending human
behavior in various settings, including the workplace.

THE BASIC MOODS: POSITIVE AND NEGATIVE AFFECT

Moods can be classified into two main categories: positive and negative affect. This
classification helps us understand how emotions influence our overall mood states.
Key Points:
1. Positive vs. Negative Emotions:
o Positive Emotions: Joy, gratitude, and excitement reflect favorable
evaluations or feelings.
o Negative Emotions: Anger, guilt, and anxiety reflect unfavorable evaluations.
2. Mood States:
o Positive and negative emotions can be grouped into mood states. For
example:
▪ High Positive Affect: Excitement
▪ Low Positive Affect: Boredom
▪ High Negative Affect: Nervousness
▪ Low Negative Affect: Relaxation
3. Influence of Moods:
o Moods color perceptions, affecting behavior and interactions. For example, a
flight attendant in a bad mood may perceive passengers negatively, which can
influence their interactions.
4. Recall of Emotions:
 o Negative emotions tend to be more memorable, with individuals dwelling on
negative experiences longer than positive ones. This contributes to a general
tendency to recall negative events more readily.
5. Positivity Offset:
o Most people experience a mildly positive mood when nothing specific is
happening, suggesting that positive moods are somewhat more common than
negative ones.
6. Cultural Variations:
o Emotional experiences vary across cultures. For instance:
▪ Chinese: Report fewer and less intense emotions.
▪ Taiwanese: Experience more positive emotions compared to Mainland
Chinese.
o While people globally interpret emotions similarly, certain cultures may value
specific emotions differently. For example, pride is viewed positively in
Western cultures but negatively in some Eastern cultures.
Conclusion
Understanding the dimensions of positive and negative affect is crucial for recognizing how
emotions impact mood, behavior, and interactions in the workplace and beyond. Cultural
context also plays a significant role in shaping emotional experiences and perceptions.

The Function of Emotions

Do Emotions Make Us Irrational?
The common belief that emotions conflict with rationality is being challenged by research.
Here are key points to consider:
1. Historical Perspectives:
o The idea that emotions undermine rational thinking is prevalent. Carl Sagan
suggested that strong emotions can lead to self-deception, while some argue
that displaying emotions at work can be detrimental to one’s career.
2. Case Study: Phineas Gage:
o Phineas Gage's story illustrates the importance of emotions in rational
thinking. After a severe brain injury that left him emotionless, he became
unable to make sound decisions, despite retaining cognitive abilities. His
erratic behavior highlighted that emotions are intertwined with rational
thought.
3. Emotions as Informational Tools:
o Emotions provide essential information that influences our understanding of
the world. For instance, in decision-making scenarios—such as firing an
employee—considering emotional aspects leads to better outcomes.
Do Emotions Make Us Ethical?
Recent research suggests that emotions significantly impact moral decision-making:
1. Moral Emotions:
o Emotions like sympathy, guilt, anger at injustice, contempt for unethical
behavior, and disgust at moral violations play a crucial role in shaping ethical
attitudes.
2. Emotional vs. Rational Responses:
 o Ethical decisions are often driven by feelings rather than solely by logical
reasoning. For example, people tend to respond emotionally to tragic events,
like natural disasters, and feel compelled to help others.
3. Personal Reflection:
o Reflecting on personal experiences—such as feeling guilt for hurting someone
or anger towards unfair treatment—highlights how emotions can prompt
ethical actions. Such emotional responses often lead to positive behaviors
like helping others or making amends.
Conclusion
Emotions are not merely obstacles to rational thinking; rather, they are integral to both
decision-making and ethical behavior. Understanding the interplay between emotions and
rationality can enhance decision-making processes in personal and professional contexts.

SOURCES OF EMOTIONS AND MOODS

1. Personality: Individuals differ in affect intensity; some experience emotions more
deeply than others.
2. Day of the Week/Time of Day: Moods tend to be worse early in the week and better
later. Positive affect peaks mid-day.
3. Weather: Contrary to belief, weather has minimal impact on mood; perceived
correlations are often illusory.
4. Stress: Daily stressors negatively affect mood, and chronic stress can worsen
emotional states over time.
5. Social Activities: Engaging socially boosts positive mood; both positive moods and
social interactions influence each other.
6. Sleep: Poor sleep quality leads to negative emotions like irritability and fatigue.
7. Exercise: Regular physical activity improves mood, especially beneficial for those
with depression.
8. Age: Negative emotions decrease with age; older individuals tend to experience more
prolonged positive moods.
9. Sex: Women express emotions more intensely, while men report more powerful
emotions. Stereotypes influence perception of emotional expressions.
Understanding these influences can enhance emotional awareness and management.
EMOTIONAL LABOR IN THE WORKPLACE
1. Definition: Emotional labor refers to the requirement for employees to express
emotions that align with organizational expectations during interpersonal
interactions.
2. Examples:
o Flight attendants are expected to be cheerful.
o Funeral directors should appear somber.
o Most jobs require courtesy, even if personal feelings differ.
3. Emotional Dissonance: When employees must project one emotion while feeling
another, it can lead to emotional exhaustion and burnout.
4. Felt vs. Displayed Emotions:
o Felt Emotions: Actual emotions experienced by an individual.
o Displayed Emotions: Emotions that organizations expect employees to
show.
5. Surface Acting vs. Deep Acting:
o Surface Acting: Hiding true feelings (e.g., forcing a smile).
o Deep Acting: Modifying inner feelings to align with display rules (e.g.,
genuinely trying to feel empathy).
6. Stress and Exhaustion: Surface acting is more stressful and can lead to burnout,
whereas deep acting is less taxing.
7. Employee Well-Being: Allowing breaks for relaxation helps employees recharge,
enhancing effectiveness and reducing burnout.
8. Impact on Performance: Organizations that manage emotional labor well can
improve employee satisfaction and productivity.

AFFECTIVE EVENTS THEORY (AET) AND JOB PERFORMANCE

1. Overview: AET explains how emotions influence job performance and satisfaction by
focusing on employees' emotional reactions to work events.
2. Work Environment: The surrounding job factors (task variety, autonomy, demands)
create work events, which can be either hassles (e.g., unfair workload, conflicting
directions) or uplifting (e.g., achieving goals, receiving support).
3. Emotional Reactions:
o Events trigger emotional responses, influenced by employees' personalities
and current moods.
o Individuals with low emotional stability tend to react more strongly to negative
events.
4. Impact on Job Outcomes: Emotions affect various performance and satisfaction
metrics, including:
o Organizational citizenship behavior
o Commitment to the organization
o Effort levels
o Intent to quit
o Workplace deviance
5. Key Insights from AET:
o Emotional episodes are sequences of experiences stemming from a single
event.
o Current emotions and past emotional history together influence job
satisfaction.
o Moods and emotions fluctuate, impacting performance variably over time.
o Emotion-driven behaviors are typically brief and highly variable.
o Emotions, even positive ones, can negatively influence job performance when
incompatible with required job behaviors.
6. Example:
o If an aeronautical engineer learns about potential layoffs, the fear and
insecurity can trigger emotional ups and downs. These fluctuations can
distract from work, leading to decreased job performance and satisfaction.
7. Takeaways:
o Emotions provide critical insights into how work events affect performance.
o Both employees and managers should pay attention to emotional responses,
even to seemingly minor events, as they can accumulate and have significant
effects.
EMOTIONAL INTELLIGENCE
Definition: EI is the ability to perceive, understand, and regulate emotions in oneself and
others.
Components:
• Perceiving Emotions: Recognizing emotions in oneself and others.
• Understanding Emotions: Comprehending the meaning of these emotions.
• Regulating Emotions: Adjusting one’s emotional responses appropriately.
Importance: High EI is linked to effective job performance. Studies show that individuals
with higher EI:
• Utilize emotional brain centers for decision-making.
• Distinguish their feelings effectively, leading to better choices (e.g., investment
decisions).
• Exhibit traits seen in successful leaders (e.g., communication, political skill).
The Case for Emotional Intelligence (EI)
1. Intuitive Appeal: High EI individuals excel in business, enhancing social interactions
and revenue generation.
2. Predictive Power: EI correlates with better job performance across various roles and
enhances perceived value in organizations.
3. Biological Basis: EI is neurologically distinct from cognitive intelligence, with
impairments in emotional processing linked to lower EI scores.
The Case Against Emotional Intelligence (EI)
1. Lack of Consensus: Definitions of EI vary, leading to confusion about its true nature.
2. Measurement Challenges: Many EI tests lack rigor, relying on questionable self-
report measures.
3. Overlap with Personality: EI may not offer unique insights beyond established
personality traits.
4. Skepticism About Impact: Claims of EI's significant role in leadership performance
lack strong research validation.
Conclusion
While EI is popular in organizational contexts, debates about its definition, measurement,
and unique contributions persist.

EMOTION REGULATION
Emotion regulation involves identifying and modifying your feelings, using strategies like:
• Reappraisal: Changing how you view a situation.
• Distraction: Diverting attention to more pleasant thoughts.
• Relaxation: Engaging in techniques to calm down.
Key Points:
• Variability in Skills: Not everyone is equally skilled at regulating emotions. Those
with high neuroticism or low self-esteem may struggle more.
• Effort and Exhaustion: Attempting to change emotions can be tiring and may even
intensify negative feelings, especially through suppression.
 • Effective Strategies: Reappraising situations is generally more effective for boosting
positive emotions than simply suppressing negative ones.
• Seeking Positivity: Actively seeking out positive experiences (like chatting with
friends) is more effective for improving mood than avoiding negative situations.
Conclusion
While emotion regulation can be beneficial, it requires effort and may sometimes backfire.
Finding effective strategies, particularly reappraisal and positive engagement, is key.

APPLICATIONS OF EMOTIONS AND MOODS

Emotions and Moods in Organizations
Understanding emotions and moods can enhance various organizational processes:
Selection
• Emotional Intelligence (EI): Employers are increasingly using EI in hiring, especially
for roles requiring social interaction. For example, high-EI recruiters in the U.S. Air
Force were 2.6 times more successful, and L’Oréal's salespeople with high EI
outperformed others significantly.
Decision Making
• Positive Emotions: Facilitate quicker, more effective decision-making by enhancing
problem-solving skills. Conversely, negative emotions, like depression, can slow
information processing and lead to poorer decisions.
Creativity
• Mood Influence: Good moods generally enhance creativity, leading to more ideas
and originality. However, some argue that overly positive moods might reduce critical
thinking. Active moods (positive or negative) tend to foster creativity, while
deactivating moods do not.
Motivation
• Mood and Performance: Positive moods enhance motivation and performance. For
instance, participants in a good mood performed better on puzzles. Positive feedback
reinforces this cycle, leading to improved outcomes.
Leadership
 • Emotional Appeal: Effective leaders leverage emotional expression to inspire and
energize their teams. Emotions linked to a compelling vision can foster acceptance
of change and enhance employee interactions.
Negotiation
• Emotional Dynamics: Negotiators can use emotions strategically, such as feigning
anger to gain an advantage. However, negative emotions can hinder future
negotiations and cooperation.
Customer Service
• Emotional Contagion: Employees’ moods can transfer to customers, impacting
satisfaction and repeat business. Positive employee emotions enhance customer
experiences, while negative emotions can lead to service issues.
Job Attitudes
• Mood Spillover: Work-related moods often affect personal life. A bad day at work can
lead to negative interactions at home, but these effects typically dissipate by the next
day.
Deviant Workplace Behaviors
• Negative Emotions: Feelings like envy and anger can lead to workplace deviance,
such as backstabbing or aggression. Negative emotions often escalate and affect
team dynamics.
Safety and Injury
• Mood and Safety: Negative moods can increase workplace injuries. Workers in bad
moods may be less attentive to safety protocols, making it crucial for employers to
monitor emotional states during potentially dangerous tasks.
Conclusion
Emotions and moods are integral to various organizational functions, affecting everything
from hiring practices to leadership effectiveness. By recognizing and managing these
emotional dynamics, organizations can enhance performance and workplace satisfaction.

HOW MANAGERS CAN INFLUENCE MOODS

1. Use Humor: Sharing funny content can lighten the atmosphere and improve
employee moods.
 2. Tokens of Appreciation: Small gestures of recognition, like gifts or verbal praise, can
enhance morale.
3. Leaders’ Moods Matter: When managers exhibit positive emotions, it fosters a
cooperative and upbeat environment among team members.
4. Select Positive Team Members: Choosing team members who naturally have
positive dispositions can create a contagion effect, where their happiness spreads
and enhances overall team performance.
By actively promoting positive moods, managers can improve employee satisfaction and
productivity.
Chapter 5 – Personality and Values
Personality refers to the consistent ways individuals react and interact with others,
influenced by both heredity and environment.
It is measured through self-report and observer-ratings surveys, with a combination
offering the best insights for predicting job success.
Heredity - Factors determined at conception; one’s biological, physiological, and inherent
psychological makeup.
Heredity plays a significant role, as seen in twin studies, though personality can change,
particularly in adolescence, and stabilizes in adulthood.
Personality traits - Enduring characteristics that describe an individual’s behavior.
Key personality traits like shy, aggressive, or ambitious help describe behavior patterns.
Tools like the Myers-Briggs and Big Five are used to classify these traits effectively.

THE MYERS – BRIGGS TYPE INDICATOR (MBTI)

The Myers-Briggs Type Indicator (MBTI) is a personality assessment tool designed to
classify individuals into one of 16 personality types based on their responses to a series of
questions. The test measures people across four dichotomies:
1. Extraversion (E) vs. Introversion (I):
o Extraverts (E) are sociable, outgoing, and assertive.
o Introverts (I) are more reserved, quiet, and shy.
2. Sensing (S) vs. Intuition (N):
o Sensing (S) types focus on practical information, routine, and details.
o Intuitives (N) rely on abstract information, patterns, and the "big picture."
3. Thinking (T) vs. Feeling (F):
o Thinking (T) types approach problems with logic and reason.
o Feeling (F) types consider personal values and emotions when making
decisions.
4. Judging (J) vs. Perceiving (P):
o Judging (J) types prefer structure, order, and control.
 o Perceiving (P) types are more adaptable, spontaneous, and flexible.
The test assigns one trait from each dichotomy, resulting in a four-letter personality type like
INTJ, ESTJ, or ENTP. Each type has distinct characteristics:
• INTJs are visionary, determined, and independent.
• ESTJs are realistic, logical organizers.
• ENTPs are innovative, resourceful problem-solvers.
While the MBTI is widely used in organizations for self-awareness and career development,
it has faced criticism regarding its validity. Critics argue that the test forces individuals into
strict categories without acknowledging the fluidity between traits. Additionally, its results
do not consistently correlate with job performance, limiting its utility in recruitment or
selection processes.
Despite these criticisms, the MBTI remains popular for helping individuals explore their
personalities and potential career paths.

THE BIG 5 PERSONALITY TYPES

The Big Five Personality Model identifies five fundamental dimensions of human
personality that are well-supported by research and are effective in predicting behavior in
real-life situations:
1. Extraversion: Sociable, assertive, and energetic vs. reserved and quiet.
2. Agreeableness: Cooperative, warm, and trusting vs. cold and antagonistic.
3. Conscientiousness: Responsible, organized, and reliable vs. disorganized and
unreliable.
4. Emotional Stability (Neuroticism): Calm, secure, and confident vs. anxious,
insecure, and depressed.
5. Openness to Experience: Creative, curious, and open to new ideas vs. conventional
and comforted by routine.
Research shows that these traits predict job performance, with conscientiousness being
the most consistently related to high job performance and learning. Emotional stability
correlates with life satisfaction, and extraversion is linked to leadership and social
interactions. However, extreme levels of these traits can have downsides, such as
impulsivity in extraverts or lower adaptability in highly conscientious individuals. The Big Five
model holds cross-cultural validity, although some differences arise between individualistic
and collectivistic cultures.
OTHER PERSONALITY TRAITS
1. Core Self-Evaluation (CSE)
• Definition: Refers to a person’s fundamental evaluation of their own worthiness,
competence, and capability.
• Positive CSE: Individuals with positive core self-evaluations see themselves as
capable and in control, leading to higher job satisfaction and performance. They set
ambitious goals and persist longer in achieving them.
• Negative CSE: Those with negative CSEs doubt their abilities and feel powerless over
their environment, which can hinder job performance and satisfaction.
2. Machiavellianism
• Definition: A personality trait characterized by manipulation, emotional detachment,
and a belief that ends justify the means.
• High Machs: Individuals high in Machiavellianism excel in situations that involve
face-to-face interaction, minimal rules, and competition. They tend to manipulate
others and are more likely to engage in deviant work behavior.
• Low Machs: Tend to be more ethical and empathetic but may struggle in highly
competitive or bargaining-focused environments.
3. Narcissism
• Definition: A trait marked by a grandiose sense of self-importance, entitlement, and
a desire for admiration.
• Narcissistic Individuals: Tend to emerge as leaders due to their charisma and
confidence but are often rated poorly by supervisors due to their arrogance,
selfishness, and exploitative behavior. They are more likely to treat others as inferior
and seek constant validation.
4. Self-Monitoring
• Definition: The ability to adjust behavior according to external, situational factors.
• High Self-Monitors: Adapt easily to different social situations, which often leads to
better performance ratings, leadership roles, and career mobility.
• Low Self-Monitors: Are more consistent in their behavior across situations and tend
to show their true selves, which can limit their flexibility and political skills in
organizational settings.
5. Risk-Taking
• Definition: Reflects an individual’s willingness to take chances, influencing how
quickly decisions are made and how much information is gathered.
• High Risk-Takers: Make faster decisions with less information, which can be
advantageous in high-stakes roles such as stock trading but may be detrimental in
positions requiring precision, like auditing.
• Low Risk-Takers: Are more cautious and deliberate in decision-making.
6. Proactive Personality
• Definition: Describes individuals who take initiative and create change, rather than
merely reacting to situations.
 • Proactive Individuals: Are seen as leaders and agents of change. They are more
satisfied with their jobs and build better relationships. They are also more likely to
leave organizations to start their own ventures if they feel constrained.
7. Other-Orientation
• Definition: Reflects the extent to which a person is concerned with the well-being
and feelings of others versus their own self-interest.
• High Other-Oriented Individuals: Are more likely to help others out of obligation and
put in more effort in helping behaviors. This trait influences prosocial behavior and
may have organizational benefits, although more research is needed to fully
understand its role.
These traits, though distinct, significantly impact workplace dynamics, leadership, and
interpersonal interactions. They also contribute to an individual's career success or failure
based on how they align with specific job roles and organizational cultures.

VALUES
Key Points on Values:
1. Nature of Values:
o Values are foundational beliefs that define what individuals perceive as right,
good, or desirable.
o They consist of content (importance of the conduct) and intensity (how
important it is), forming a personal value system.
2. Stability of Values:
o Values are generally stable and established early in life through influences
from parents, teachers, and peers.
o While questioning values can lead to change, they are often reinforced rather
than altered.
3. Impact of Values in Organizations:
o Values shape attitudes, motivations, and perceptions within organizations,
influencing how individuals respond to policies and practices.
o Misalignment between personal values and organizational values can lead to
dissatisfaction and reduced effort.
4. Types of Values:
 o Terminal Values: Desired end-states (e.g., prosperity, freedom).
o Instrumental Values: Preferred modes of behavior to achieve terminal values
(e.g., self-discipline, ambition).
5. Rokeach Value Survey:
o Created by Milton Rokeach, it categorizes values into terminal and
instrumental, revealing similarities and differences among various groups.
6. Generational Values:
o Values can change across generations, influenced by societal shifts and
experiences.
o Baby Boomers: Value achievement and material success.
o Generation X: Seek flexibility, job satisfaction, and prioritize relationships.
o Millennials: Have high expectations, seek meaningful work, and are
comfortable with diversity and technology.
7. Limitations of Generational Analysis:
o While generational categorizations provide insights, they often lack rigorous
research support and may overgeneralize differences.
Conclusion:
Values significantly influence individual behavior and organizational dynamics, and while
they can change, they are often deeply ingrained and reflect a person's upbringing and
experiences. Understanding these values, particularly across generations, is essential for
fostering effective workplace relationships and environments.

PERSONALITY AND VALUES LINK TO WORKPLACE

Person–Job Fit:
• John Holland’s Personality–Job Fit Theory:
o Proposes six personality types that correlate with job satisfaction and turnover
rates.
o Vocational Preference Inventory: A tool used to assess personality profiles
based on preferences for different occupations.
o Hexagonal Model: Shows compatibility between different fields; adjacent
fields are more compatible, while diagonally opposite ones are less so.
 o Conclusion: Greater alignment between personality and job leads to higher
satisfaction and lower turnover.

Person–Organization Fit:
• Emphasizes the importance of aligning employees' personalities with the
organizational culture.
• People are more likely to be attracted to organizations that share their values, leading
to increased job satisfaction and reduced turnover.
• Big Five Personality Traits:
 o Extraversion: Fits well in aggressive, team-oriented cultures.
o Agreeableness: Aligns better with supportive organizational climates.
o Openness to Experience: Suits innovative organizations over standardized
ones.

INTERNATIONAL VALUES
Hofstede's Cultural Dimensions
1. Overview:
o Developed in the late 1970s by Geert Hofstede through surveys of IBM
employees in 40 countries.
o Identifies five key value dimensions that influence national culture and
workplace behavior.
2. Five Value Dimensions:
o Power Distance:
▪ Measures the acceptance of unequal power distribution in institutions.
▪ High power distance indicates a tolerance for large inequalities (e.g.,
caste systems), while low power distance favors equality and
opportunity.
o Individualism vs. Collectivism:
▪ Individualism values personal independence and individual rights,
while collectivism emphasizes group loyalty and social frameworks
where individuals rely on group support.
o Masculinity vs. Femininity:
▪ Masculinity focuses on achievement and traditional gender roles,
whereas femininity values gender equality and less differentiation in
roles.
o Uncertainty Avoidance:
▪ Measures how comfortable a culture is with uncertainty and ambiguity.
High uncertainty avoidance leads to a preference for structured
situations, while low scores indicate a higher tolerance for ambiguity
and change.
 o Long-term vs. Short-term Orientation:
▪ Long-term orientation values persistence, thrift, and tradition, while
short-term orientation emphasizes immediate results and respect for
tradition.
3. Cultural Insights:
o The United States is highly individualistic, low in power distance, and relatively
low in uncertainty avoidance.
o Countries exhibit regional trends, with poorer nations often showing higher
power distance and Asian cultures typically exhibiting long-term orientations.
4. Critiques of Hofstede's Framework:
o Based on data over 30 years old from a single organization (IBM), making it
potentially less relevant today.
o Criticism of methodology and simplification of cultural values to five
dimensions, which may not capture the complexities of cultures.
o Some results are counterintuitive (e.g., Japan’s average collectivism score).
GLOBE Framework
1. Introduction:
o Established in 1993 as a comprehensive cross-cultural research program
investigating leadership and organizational culture across 825 organizations
in 62 countries.
2. Key Dimensions:
o Nine cultural dimensions identified, some overlapping with Hofstede’s:
▪ Power Distance
▪ Individualism/Collectivism
▪ Uncertainty Avoidance
▪ Gender Differentiation (similar to Masculinity vs. Femininity)
▪ Future Orientation (similar to Long-term vs. Short-term Orientation)
o Added dimensions include:
▪ Humane Orientation: Rewards for altruism and kindness.
 ▪ Performance Orientation: Encouragement for performance
improvement and excellence.
3. Comparison to Hofstede:
o GLOBE builds on Hofstede’s work, confirming many of his findings while
offering a more nuanced understanding of cultural differences.
o The debate continues over which framework is superior, with Hofstede’s
dimensions being more established.
Chapter 6 – Perception and Individual Decision Making
Perception is a process by which individuals organize and interpret their sensory
impressions in order to give meaning to their environment.
People’s behavior is based on their perception of what reality is, not on reality itself. The
world as it is perceived is the world that is behaviorally important.

FACTORS THAT INFLUENCE PERCEPTION

Individuals perceive the same thing differently due to factors related to the perceiver, the
target, and the context. Personal traits like attitudes, motives, and expectations shape
interpretation, as do characteristics of the target, such as being loud or physically
distinctive. The context, including time and setting, also influences perception. For example,
someone’s outfit might go unnoticed at a nightclub but stand out in a classroom. These
factors all contribute to how we interpret and perceive our surroundings.\
ATTRIBUTION THEORY
Attribution Theory - An attempt to determine whether an individual’s behavior is internally
or externally caused.
Attribution theory explains how we judge people based on the causes we attribute to their
behavior, either internal (personal control) or external (situational factors). Three key factors
determine our judgment:
1. Distinctiveness: Does the person behave differently in various situations? Unusual
behavior suggests an external cause.
2. Consensus: Do others in the same situation behave similarly? High consensus points to
an external cause.
3. Consistency: Does the person behave the same way over time? High consistency
suggests an internal cause.
These factors help us understand whether a person's actions are due to personal factors or
external circumstances.
Fundamental Attribution Error - The tendency to underestimate the influence of external
factors and overestimate the influence of internal factors when making judgments about the
behavior of others.
Self-Serving Bias - The tendency for individuals to attribute their own successes to internal
factors and put the blame for failures on external factors.
Attribution theory research reveals that biases distort our judgments about others. The
fundamental attribution error leads us to overestimate personal factors and
underestimate external influences when explaining others' behavior. For instance, a
manager might blame a salesperson's poor performance on laziness rather than market
competition.
Additionally, the self-serving bias causes people to credit successes to internal factors (like
ability) and blame failures on external ones (like bad luck). Cultural differences also
influence attributions, with Western cultures focusing on individuals and Asian cultures
emphasizing group or institutional responsibility.

COMMON SHORTCUTS IN JUDGING OTHERS

Judging others often involves mental shortcuts that help us make quick decisions but can
lead to distortions. Here are key concepts:
 1. Selective Perception: We focus on what stands out and filter information based on
our interests, experiences, and background, which can lead to biased conclusions.
2. Halo Effect: Our overall impression of a person is influenced by a single
characteristic, such as appearance or intelligence, affecting how we perceive them
in other areas.
3. Contrast Effect: We judge people relative to others. For example, an average
candidate may seem better if preceded by poor candidates.
4. Stereotyping: Generalizing about someone based on their group identity (e.g.,
gender, race) can simplify decision-making but often results in inaccurate or unfair
conclusions.
These shortcuts can mislead us when they oversimplify complex realities, leading to flawed
judgments.

SPECIFIC APPLICATIONS OF SHORTCUTS IN ORGANIZATIONS

In organizations, perception shortcuts impact key decisions:
1. Employment Interviews: Snap judgments are made within seconds, with early
impressions dominating, especially negative ones.
2. Performance Expectations: The Pygmalion effect (Expectations become reality)
shows that employees perform according to managers' expectations, whether high
or low.
3. Performance Evaluations: Evaluations, often subjective, are influenced by biases
like selective perception and halo effects, which distort the fairness of the
assessment.
These biases affect hiring, employee performance, and career growth.

DECISION MAKING IN ORGANIZATIONS

Rational Decision Making: In theory, decision makers should make value-maximizing
choices based on complete information, using a six-step rational model. However, in
practice, most decisions are not optimal but satisfactory due to real-world constraints.
Individuals tend to make decisions by simplifying complex problems and choosing "good
enough" solutions rather than ideal ones.
Bounded Rationality: Since people can't process all the necessary information for optimal
decisions, they simplify problems and satisfice—choosing the first satisfactory option rather
than the best one. This approach, while not always optimal, is often more practical due to
time, energy, and information constraints.
Intuitive Decision Making: Intuition is an unconscious process based on experience. While
not strictly rational, it can complement rational analysis. Intuition is quick, emotionally
charged, and developed through accumulated experience, but it's crucial to balance it with
evidence and judgment to avoid relying solely on instinct.

COMMON BIASES AND ERRORS IN DECISION MAKING

Decision-makers often rely on shortcuts that lead to biases, undermining rationality:
1. Overconfidence Bias: People tend to overestimate their abilities and the accuracy of
their knowledge, leading to poor decisions. Even experts are prone to this, often being
less accurate than they believe.
2. Anchoring Bias: Initial information, or an "anchor," overly influences decisions, even
when subsequent data contradicts it.
3. Confirmation Bias: Decision-makers seek out information that supports their beliefs
and ignore contradictory evidence, reinforcing pre-existing views.
4. Availability Bias: People base judgments on information that is more readily
available or memorable, like vivid or emotional events, often leading to skewed
perceptions.
5. Escalation of Commitment: Individuals continue investing in failing decisions to
avoid admitting mistakes, increasing their losses.
6. Randomness Error: People try to find patterns in random events, leading to
superstitious or irrational decisions.
 7. Risk Aversion: Decision-makers prefer sure outcomes over riskier but potentially
higher rewards, sometimes leading to stagnation in innovation and growth.
8. Hindsight bias is the false belief, after an event occurs, that we could have predicted
it. It makes outcomes seem obvious in retrospect, limiting our ability to learn from
past mistakes and fostering overconfidence.

Application: Financial Decision Making

Decision-making errors like overconfidence and confirmation bias significantly

contributed to the 2008 financial crisis. Lenders issued risky loans due to overconfidence,
while both borrowers and experts misjudged financial outcomes. This led to decreased
consumer spending, worsening the crisis. Additionally, confirmation bias caused investors
to ignore negative information about investments. To avoid future crises, it’s essential to
align confidence with reality and actively seek contrary information.

INFLUENCES ON DECISION MAKING

1. Personality:
o Conscientiousness: Achievement-striving individuals may escalate
commitments; dutiful people are less likely to. High self-esteem individuals
often use self-serving bias.
2. Gender:
o Women tend to ruminate more than men, leading to overanalysis and
potential depression. This tendency diminishes with age.
3. Mental Ability:
o Higher intelligence aids in problem-solving but does not prevent biases like
overconfidence. Informed individuals can learn to avoid logical errors.
4. Cultural Differences:
o Decision-making styles vary by culture, influencing how problems are
identified and addressed, with some cultures emphasizing rationality more
than others.

Organizational Constraints

1. Performance Evaluation: Managers often avoid negative information due to

evaluation criteria.
2. Reward Systems: Organizations can promote risk-averse behavior through rewards.
3. Formal Regulations: Rules limit decision-making freedom.
4. Time Constraints: Deadlines pressure managers, restricting information gathering.
5. Historical Precedents: Past decisions shape current choices, creating a context
that influences future actions.
ETHICS IN DECISION MAKING

Three Ethical Decision Criteria

1. Utilitarianism: Focuses on outcomes to achieve the greatest good for the most
people. While it promotes efficiency and profit, it can overlook individual rights,
especially for minorities.
2. Rights-Based Approach: Centers on fundamental liberties, protecting individuals
from unethical practices. It safeguards whistle-blowers but may create a legalistic
environment that hampers productivity.
3. Justice: Emphasizes fairness and equitable distribution of benefits and costs,
supporting underrepresented individuals. However, it can encourage entitlement
and reduce innovation.

Each criterion has its pros and cons, with utilitarianism often dominating in business but
facing criticism for neglecting rights and social justice. Balancing these ethical
considerations can be complex.

Whistle-Blowers - Individuals who report unethical practices by their employer to

outsiders.

Improving Creativity in Decision Making

Creativity enhances decision-making by generating novel and useful ideas, enabling a

deeper understanding of problems.

Creative Potential: While exceptional creativity is rare, most people possess creative
potential. Traits like intelligence, openness, independence, and risk-taking can boost
creativity. Exposure to diverse cultures further enhances creative thinking.

Research indicates that fewer than 1% are exceptionally creative, 10% are highly creative,
and about 60% are moderately creative, suggesting that many can unlock their creativity with
the right experiences.

Three-Component Model of Creativity

Organizations can enhance employee creativity through three key components:

 1. Expertise: A strong knowledge base in a field boosts creative potential.
2. Creative-Thinking Skills: Traits like analogical thinking and the ability to view
problems differently enhance creativity. Positive moods help, while negative
emotions, especially fear, can hinder it. Collaborating with creatively diverse peers
can also inspire innovation.
3. Intrinsic Task Motivation: Genuine interest in work fosters creativity. A supportive
environment that encourages idea sharing and trust among team members is crucial.

Additionally, organizations must consider cultural differences in ethics, adapting principles

to maintain high standards globally.

SUMMARY AND IMPLICATIONS FOR MANAGER

Perception

• Behavior is shaped by individual perceptions rather than actual conditions.

• Employee judgments on management effectiveness are based on their perceptions.
• Factors like pay and working conditions are evaluated subjectively; understanding
these perceptions is essential for productivity.
• Reactions like absenteeism and turnover reflect interpretations of the work
environment.
• Managers should address discrepancies between perceptions and reality.

Individual Decision Making

• People often rely on reasoning before acting, but many decisions are complex,
leading to biases and intuition.
• To improve decision-making, managers should:
1. Analyze the Situation: Adapt to cultural and organizational contexts.
2. Be Aware of Biases: Recognize and minimize their impact.
3. Combine Rational Analysis and Intuition: Use both for better decisions.
4. Enhance Creativity: Seek new solutions and remove barriers to creative
thinking.
Chapter 7 – Motivation Concepts
Motivation encompasses the processes that drive an individual's intensity, direction, and
persistence in achieving a goal, particularly within organizational contexts.
1. Intensity: This refers to how hard a person works. While high intensity is important, it
must align with organizational goals to be effective.
2. Direction: Effort should be focused on activities that benefit the organization,
ensuring that energy is directed toward meaningful tasks.
3. Persistence: This measures the duration of effort. Motivated individuals remain
committed to tasks long enough to accomplish their goals.

HIERARCHY OF NEEDS THEORY

Abraham Maslow's hierarchy of needs is a well-known motivational theory that categorizes

human needs into five levels:
1. Physiological Needs: Basic requirements like hunger, thirst, and shelter.
2. Safety Needs: Security and protection from physical and emotional harm.
3. Social Needs: Affection, belongingness, and friendships.
4. Esteem Needs: Internal (self-respect, autonomy) and external (status, recognition)
factors.
5. Self-Actualization: The drive to realize one's full potential and achieve personal
growth.
Key Concepts:
• Progression: Once a lower-level need is substantially satisfied, the next higher need
becomes the primary motivator.
• Order of Needs: Lower-order needs (physiological and safety) are primarily satisfied
externally, while higher-order needs (social, esteem, self-actualization) are satisfied
internally.
• Cultural Variations: Different cultures may prioritize needs differently. For example,
in cultures with high uncertainty avoidance, safety needs may be prioritized.
Critique:
• Despite its intuitive appeal and recognition among managers, Maslow’s theory lacks
empirical validation. Research has not consistently supported the hierarchical
structure of needs or the idea that satisfied needs cease to motivate.
• Some attempts have been made to integrate Maslow's concepts with evolutionary
psychology, suggesting different needs may relate to the maturity of biological
systems.

THEORY X AND THEORY Y

Douglas McGregor's Theory X and Theory Y present two contrasting views of human behavior
in the workplace:
1. Theory X:
o Assumption: Employees inherently dislike work and must be directed or
coerced to perform.
o Management Style: Authoritarian, with a focus on control and supervision.
2. Theory Y:
o Assumption: Employees view work as a natural activity and can seek
responsibility.
o Management Style: Participative, encouraging collaboration and
empowerment.
Connection to Maslow’s Hierarchy:
• Theory Y aligns with the idea that higher-order needs (social, esteem, self-
actualization) motivate individuals, while Theory X reflects a focus on lower-order
needs (physiological, safety).
Critique:
• McGregor believed Theory Y was more valid, advocating for participative decision-
making and responsible jobs to enhance motivation.
• However, empirical evidence supporting either theory is lacking, similar to critiques
of Maslow's hierarchy.

TWO-FACTOR THEORY
Frederick Herzberg's Two-Factor Theory, also known as motivation-hygiene theory, explores
what individuals seek from their jobs. Herzberg's research focused on people's experiences
of job satisfaction and dissatisfaction, leading to key insights:
1. Intrinsic Factors (Motivators):
o Elements such as advancement, recognition, responsibility, and
achievement contribute to job satisfaction.
o Satisfied employees attribute their feelings to these intrinsic factors.
2. Extrinsic Factors (Hygiene Factors):
o Factors like supervision, pay, company policies, and working conditions
relate to job dissatisfaction.
o Removing these dissatisfying factors can lead to a neutral state but does not
necessarily create satisfaction.
Key Insights:
• Dual Continuum: The theory proposes that job satisfaction and dissatisfaction are
not opposites. Instead, the opposite of satisfaction is "no satisfaction," and the
opposite of dissatisfaction is "no dissatisfaction."
• Management Implications: To truly motivate employees, managers should focus on
enhancing intrinsic factors related to the job itself rather than merely eliminating
dissatisfaction.
Criticisms:
1. Methodological Limitations: The reliance on self-reports can skew perceptions of
job satisfaction and dissatisfaction.
2. Interpretation Reliability: Different interpretations of responses may affect the
consistency of findings.
 3. Overall Satisfaction Measure: Lack of a comprehensive measure means employees
might dislike aspects of a job yet still find it acceptable overall.
4. Assumed Link to Productivity: Herzberg's theory presumes a strong correlation
between satisfaction and productivity, which is not thoroughly substantiated.

MCCLELLAND’S THEORY OF NEEDS

David McClelland's Theory of Needs identifies three primary motivations that influence
behavior in the workplace:
1. Need for Achievement (nAch):
o This is the drive to excel and achieve based on a set of standards.
o High achievers prefer tasks where they have a 50% chance of success. They
seek challenges that stretch their abilities but avoid both very easy and overly
difficult tasks.
2. Need for Power (nPow):
o This reflects the desire to influence or control others' behavior.
o Managers with a high need for power often excel in leadership roles.
3. Need for Affiliation (nAff):
o This is the desire for friendly, close relationships.
o While important, a high need for affiliation can hinder managerial
effectiveness, as it may conflict with the need for power and decision-making.
Key Insights:
• High Achievers: They thrive in environments with personal responsibility, feedback,
and moderate risk. They are often successful in entrepreneurial roles but may not be
effective in large organizational management, where a high need for power is more
beneficial.
• Cultural Context: The theory is influenced by cultural attitudes towards risk and
performance. It aligns well with cultures that are more achievement-oriented and
willing to accept moderate risks (e.g., the U.S., Canada).
Criticisms:
 • Measurement Challenges: McClelland's needs are largely subconscious and
difficult to quantify. The most common assessment involves storytelling about
pictures, which is time-consuming and costly.
• Practical Application: Despite strong research support, the practical application of
McClelland's theory is limited in organizations due to the complexities of measuring
these needs.

SELF-DETERMINATION THEORY
Self-Determination Theory (SDT) posits that people are motivated by a need for autonomy,
competence, and positive connections with others. It explains why Marcia's shift from
volunteering to being paid decreased her motivation despite doing the same work.
Key Concepts:
1. Intrinsic vs. Extrinsic Motivation:
o Intrinsic Motivation: The internal desire to perform a task for its own sake
(e.g., enjoyment, interest).
o Extrinsic Motivation: Engaging in a task to earn a reward or avoid punishment
(e.g., salary, recognition).
2. Cognitive Evaluation Theory:
o This theory suggests that extrinsic rewards can undermine intrinsic
motivation. When people start perceiving a task as an obligation rather than a
choice, their enjoyment and motivation decrease.
3. Autonomy, Competence, and Connection:
o Autonomy: The desire to have control over one’s actions.
o Competence: The drive to master skills and achieve goals.
o Connection: The need for positive relationships with others.
4. Impact of Extrinsic Rewards:
o Rewards can enhance intrinsic motivation if they are perceived as supportive
rather than controlling. For example, verbal praise or constructive feedback
can increase a sense of competence.
5. Self-Concordance:
 o This concept refers to how aligned a person's goals are with their intrinsic
interests and values. Pursuing goals that resonate with one’s core values leads
to higher satisfaction and better performance.
Implications for Individuals and Organizations:
• For Individuals: Choose careers and goals based on intrinsic motivations rather than
solely for extrinsic rewards. This fosters greater satisfaction and fulfillment.
• For Organizations: Managers should balance intrinsic and extrinsic incentives. They
should create engaging work environments, recognize achievements, and support
personal growth. When employees feel they have control over their work, their
motivation and commitment to the organization improve.
Conclusion:
Self-Determination Theory highlights the importance of intrinsic motivations in the
workplace. It suggests that fostering autonomy and aligning tasks with personal interests
leads to higher satisfaction and performance.

JOB ENGAGEMENT
Definition: Job engagement is the full investment of an employee's physical, cognitive, and
emotional energies into their job performance. Engaged employees, like nurse Melissa
Jones, feel absorbed and committed to their work, often losing track of time due to their
focus.
Key Insights:
1. Importance of Engagement:
o Engaged employees are more effective and derive satisfaction from their work.
o Higher levels of engagement correlate with improved productivity, fewer safety
incidents, and reduced turnover.
2. Measurement:
o The Gallup organization uses 12 questions to assess employee engagement,
finding significant links between engagement and positive organizational
outcomes.
3. Factors Influencing Engagement:
 o Meaningfulness: Employees are more likely to engage when they find their
work meaningful, which is influenced by job characteristics and available
resources.
o Value Alignment: A strong alignment between individual values and
organizational values enhances engagement.
o Inspirational Leadership: Leaders who inspire a sense of mission can boost
employee engagement.
4. Critiques and Challenges:
o Some argue that engagement overlaps with other job attitudes like
satisfaction and stress. However, engagement focuses on motivation and task
absorption.
o Engagement may better predict work outcomes than traditional measures of
job satisfaction.
o There is a potential "dark side" to engagement, where high levels may lead to
work–family conflict as employees become overly absorbed in their roles.
Conclusion:
Job engagement is a crucial driver of performance and satisfaction in the workplace. By
fostering a meaningful work environment, aligning values, and encouraging inspirational
leadership, organizations can enhance employee engagement while being mindful of the
potential drawbacks. Further research into the relationship between engagement and
negative outcomes is needed to fully understand its implications.

GOAL-SETTING THEORY
Overview: Goal-setting theory, proposed by Edwin Locke in the late 1960s, emphasizes that
clear, specific, and challenging goals significantly enhance motivation and performance.
The theory highlights how intentions to work towards goals can drive an individual’s
motivation.
Key Insights:
1. Specificity and Challenge:
o Specific goals yield higher performance compared to vague goals like "do your
best."
o Challenging goals, when accepted, result in greater performance than easier
goals.
2. Mechanisms of Motivation:
o Attention: Challenging goals focus our attention and direct effort.
o Energizing Effect: Difficult goals require more effort, motivating individuals to
work harder.
o Persistence: People are more likely to continue striving for difficult goals.
o Strategy Development: Struggling with challenging tasks often leads to
discovering better methods.
3. Feedback:
o Receiving feedback helps individuals assess their progress and identify gaps
between current performance and goals.
o Self-generated feedback is typically more effective than external feedback.
4. Goal Commitment:
o Commitment to goals enhances performance, particularly when goals are
made public or are self-set.
o Factors influencing commitment include belief in goal achievability and
internal locus of control.
5. Task Characteristics:
o Specific and difficult goals are more effective for simple and well-learned
tasks. For complex tasks, group goals may be preferable.
6. Cultural Considerations:
o Most research on goal-setting has been conducted in individualistic cultures
(like the U.S. and Canada). In collectivist cultures, moderate, achievable goals
may be more motivating than challenging ones.
7. Potential Downsides:
o Goals can narrow focus and hinder adaptation, especially in creative or
learning contexts. Performance goals may lead to unethical behavior or
neglecting long-term objectives.
o Goals may cause emotional exhaustion, particularly for individuals with lower
conscientiousness and emotional stability.
8. Subconscious Goals:
 o Recent research suggests that goals can be set subconsciously, influencing
behavior even when individuals are not consciously aware of these goals.
Conclusion:
Goal-setting theory demonstrates the power of specific, challenging goals in enhancing
motivation and performance. However, it's essential to consider the context, task
characteristics, and potential negative consequences of goal-setting practices. Effective
goal-setting should align with organizational objectives and foster both performance and
ethical behavior.

SELF-EFFICACY THEORY
Definition: Self-efficacy refers to an individual’s belief in their capability to perform a task. It
significantly influences motivation, effort, and perseverance when facing challenges.
Key Insights:
1. Impact of Self-Efficacy:
o Individuals with high self-efficacy are more likely to persist and exert effort in
difficult situations, while those with low self-efficacy may give up more easily.
o High self-efficacy can lead to a positive cycle: increased engagement results
in better performance, which in turn boosts self-efficacy.
2. Response to Feedback:
o Individuals with high self-efficacy tend to respond positively to negative
feedback by increasing their effort. In contrast, those with low self-efficacy
may reduce their effort after receiving criticism.
3. Integration with Goal-Setting Theory:
o Self-efficacy and goal-setting theory complement each other. Difficult goals
set by managers can enhance employees' self-efficacy, leading to higher
personal performance goals and outcomes.
4. Sources of Self-Efficacy (as identified by Albert Bandura):
o Enactive Mastery: Gaining relevant experience with the task boosts
confidence. Success in the past reinforces the belief in future success.
o Vicarious Modeling: Observing others successfully perform a task can
increase confidence, especially if the observer sees themselves as similar to
the model.
 o Verbal Persuasion: Encouragement from others can enhance self-efficacy.
Effective motivational speaking can convince individuals of their capabilities.
o Arousal: Arousal can enhance performance by energizing individuals, but it
must be appropriate to the task at hand.
5. Implications for Organizational Behavior:
o Training Programs: Effective training increases self-efficacy by allowing
individuals to practice and gain mastery over their skills.
o Pygmalion and Galatea Effects: Managers can boost self-efficacy through
positive expectations and beliefs, creating a self-fulfilling prophecy where
employees perform better as a result of being believed in.
o Role of Personality: Intelligence and personality traits like conscientiousness
and emotional stability can also influence self-efficacy levels.
6. Critiques and Considerations:
o Some researchers argue that self-efficacy is more a by-product of intelligence
and personality rather than a standalone construct. However, Bandura
maintains that self-efficacy is a critical determinant of behavior and
motivation.
Conclusion:
Self-efficacy theory emphasizes the importance of individuals' beliefs in their capabilities
and highlights strategies for enhancing these beliefs in organizational settings. By fostering
self-efficacy through training, supportive feedback, and goal-setting, managers can
significantly improve employee motivation and performance.

REINFORCEMENT THEORY
Overview: Reinforcement theory emphasizes that behavior is conditioned by its
consequences, focusing on environmental influences rather than internal thoughts.
Key Concepts:
1. Operant Conditioning: Developed by B.F. Skinner, this principle states that
behaviors are learned through positive reinforcement (rewards) and negative
reinforcement (removing adverse conditions), while punishment decreases
undesirable behaviors.
2. Immediate Reinforcement: The effectiveness of reinforcers increases when applied
immediately after the desired behavior.
 3. Social-Learning Theory: Extends reinforcement theory by highlighting observational
learning, where individuals learn by watching others. Key processes include:
o Attention: Noticing the model's behavior.
o Retention: Remembering the behavior.
o Reproduction: Translating observation into action.
o Reinforcement: Motivation based on observed rewards.
4. Practical Applications: Understanding reinforcement can help managers effectively
shape employee behavior through rewards and consequences.
5. Limitations: The theory often overlooks internal factors like emotions and
motivations, which also influence behavior.
Conclusion:
Reinforcement theory offers valuable insights into behavior management, emphasizing the
role of environmental factors, but should be integrated with cognitive and emotional
considerations for a holistic approach to motivation.

EQUITY THEORY AND ORGANIZATIONAL JUSTICE

Overview: Equity theory posits that employees evaluate their job satisfaction by comparing
their input-outcome ratio (effort, experience, pay) to that of others. This comparison
influences their motivation and perceptions of fairness.
Key Concepts:
1. Equity and Inequity:
o Equity: When an employee perceives their input-outcome ratio as equal to
that of peers, they feel satisfied.
o Inequity: When they perceive themselves as under- or over-rewarded, it
creates tension, motivating them to restore equity.
2. Referent Comparisons: Employees choose referents for comparison based on
personal experiences and perceptions:
o Self-inside: Experiences within the same organization.
o Self-outside: Experiences outside the organization.
o Other-inside: Comparisons with peers in the organization.
o Other-outside: Comparisons with individuals outside the organization.
3. Responses to Inequity: Employees may respond by:
o Changing inputs (effort level).
o Changing outcomes (performance).
o Distorting perceptions of self or others.
o Choosing different referents.
o Leaving the job.
4. Organizational Justice:
o Distributive Justice: Fairness in the distribution of rewards.
o Procedural Justice: Fairness in the processes that lead to outcomes;
includes the perceived control over decisions and clear explanations.
o Interactional Justice: Perception of being treated with respect and dignity.
5. Cultural Considerations: Equity perceptions can vary across cultures. Collectivist
cultures may focus more on group needs rather than individual performance,
influencing how equity is perceived.
Practical Implications:
• Managerial Strategies: To enhance perceptions of equity:
o Clearly communicate the criteria for rewards.
o Maintain consistency in decision-making.
o Allow employees to express grievances to reduce feelings of injustice.
• Impact of Justice: Fair treatment correlates with higher job satisfaction,
commitment, and trust in management, while perceived injustices can lead to
dissatisfaction and withdrawal.
Conclusion:
Equity theory emphasizes the importance of perceived fairness in the workplace.
Understanding both equity and organizational justice can help managers create a more
motivated and committed workforce.

EXPECTANCY THEORY
Overview: Victor Vroom's expectancy theory explains that motivation is influenced by the
belief that effort leads to performance, which leads to rewards that satisfy personal goals.
Key Relationships:
1. Effort–Performance: The likelihood that effort results in effective performance.
2. Performance–Reward: The belief that performance will yield desired rewards.
3. Rewards–Personal Goals: The extent to which rewards meet individual needs.
Motivation Implications:
• Employees need to affirmatively answer:
1. Will my effort be recognized?
2. Will a good appraisal lead to rewards?
3. Are the rewards attractive to me?
Example:
Stock analysts avoid sell ratings to minimize risks, as they perceive more favorable outcomes
from positive ratings.
Critique:
Some argue the theory has limited applicability, especially in organizations where
performance isn’t clearly linked to rewards.
Conclusion:
Expectancy theory highlights the importance of perceived connections between effort,
performance, and rewards in driving employee motivation.
Chapter 9 – Foundations of Group Behavior
A group is defined as two or more individuals interacting to achieve specific objectives.
Formal groups are created by the organization with designated tasks, while informal groups
form naturally for social interaction, like coworkers meeting for lunch. Both types influence
behavior and performance.

SOCIAL IDENTITY THEORY

People form groups to fulfill emotional and psychological needs, which is explained by social
identity theory. This theory suggests that individuals derive part of their self-esteem from the
success or failure of the groups they belong to. When a group succeeds, individuals bask in
the reflected glory, while group failures can harm self-esteem, leading some to dissociate
from the group. Social identity also helps reduce uncertainty about one’s role and place in
the world.
Several factors influence the importance of social identity:
1. Similarity – People identify more with groups where members share similar values or
characteristics.
2. Distinctiveness – Unique traits or roles within a group increase identification,
especially when those traits distinguish them from other groups.
3. Status – Individuals are more likely to associate with high-status groups to boost self-
esteem.
4. Uncertainty reduction – Group membership helps individuals clarify their identity
and sense of belonging.

THE 5 STAGE GROUP DEVELOPMENT MODEL

The five-stage group development model outlines the typical progression of group formation:
1. Forming: Members experience uncertainty as they explore the group's purpose and
structure.
2. Storming: Intragroup conflict arises as individuals resist constraints and compete for
control.
3. Norming: Cohesiveness develops, and members establish a common
understanding of acceptable behavior.
4. Performing: The group becomes fully functional and focuses on task completion.
5. Adjourning: For temporary groups, activities are concluded, and members prepare
to disband.
Groups don’t always follow this exact sequence, and performance varies based on purpose,
strategy, and social dynamics.

PUNCTUATED – EQUILIBRIUM MODEL

An alternative model, the punctuated-equilibrium model, applies to temporary groups with

deadlines. It describes an initial period of inertia, followed by a transition at the midpoint,
leading to a burst of activity before a final stage of rapid completion. This model highlights
how awareness of time can drive group behavior, focusing on revolutionary changes at key
moments.
GROUP PROPERTIES
Group Property 1: Roles
Roles in Groups: Individuals take on different roles, with expectations shaped by their
position. Conflicts arise when roles clash, like balancing work and family demands.
• Role Perception: How individuals think they should act.
• Role Expectations: How others expect them to act, forming a psychological contract
between employers and employees.
Zimbardo’s Prison Experiment showed how quickly people adopt extreme behaviors in
assigned roles. Guards became abusive, and prisoners became passive. A BBC follow-up
found that public monitoring reduced role abuse, highlighting the impact of oversight on
behavior.
Role Conflict occurs when fulfilling one role makes it hard to satisfy another. This is
especially significant when managing work-family demands or during organizational
changes like mergers.

Group Property 2: Norms

Norms in Groups: Norms are shared standards of behavior that guide group members. They
dictate acceptable actions, such as how hard to work or how to interact socially and can
influence individual performance and group dynamics.
• The Hawthorne Studies: Demonstrated how group norms affect productivity.
Workers increased output when they felt special or observed, but group norms often
limited performance to avoid repercussions, like layoffs or raised expectations.
• Conformity: People conform to group norms to gain acceptance. Solomon Asch’s
experiments showed that individuals often align with group opinions, even when they
know they are wrong.
• Deviant Workplace Behavior: This involves actions that violate organizational
norms, such as spreading rumors or harassment. Group norms can foster such
behaviors, leading to lower morale and performance. Group anonymity can also
increase unethical behaviors like lying and cheating.
Group Property 3: Status
Status is a socially defined rank given to individuals or groups. It influences behavior, roles,
and group dynamics, especially when there's a disparity between perceived and actual
status.
What Determines Status?
Status is derived from three main sources:
1. Power over others – Those controlling resources or outcomes hold higher status.
2. Contribution to group goals – Individuals who significantly impact group success
gain status.
3. Personal characteristics – Valued traits like intelligence or charisma can elevate
someone's status.
Status and Norms
High-status individuals have more leeway to deviate from norms and resist conformity
pressures. They enjoy greater freedom and are less constrained by social expectations.
Status and Group Interaction
High-status members tend to dominate discussions, while lower-status members
participate less. This can hinder group creativity and performance, as valuable insights from
low-status individuals may go unused.
Status Inequity
Unequal status within groups can cause dissatisfaction, reduced performance, and
increased intentions to leave. Perceived inequities, where rewards don't match
contributions, lead to resentment and corrective behavior.
Cultural Differences
Status criteria vary across cultures. For instance, in the U.S. and Australia, status is often
based on individual accomplishments, while in Latin America and Asia, it's tied to family
position or formal roles.

Group Property 4: Size

• Smaller Groups: Faster at completing tasks; individuals perform better.
• Larger Groups: Better for diverse input and problem-solving, but productivity per
individual declines (social loafing).
 • Social Loafing: Individuals may reduce effort in groups due to a perceived lack of
accountability or belief others aren't contributing equally.
• Solutions to Social Loafing: Set clear group goals, encourage intergroup
competition, and implement peer evaluations.

Group Property 5: Cohesiveness

• Cohesiveness measures group unity and member attraction.
• Impact on Productivity: Cohesive groups are more productive when performance
norms are high, but low cohesiveness with high norms can also boost productivity.
• Ways to Increase Cohesiveness: Reduce group size, encourage common goals,
increase interaction, and offer group-based rewards.

Group Property 6: Diversity

• Short-term Effects: Increases conflict and reduces satisfaction due to surface-level
differences.
• Long-term Effects: Can improve problem-solving, creativity, and open-mindedness
if managed well.
• Leadership Role: Effective leadership and team-oriented practices can mitigate
conflicts and enhance performance in diverse groups.
GROUP DECISION MAKING
Benefits of Group Decision-Making:
1. Enhanced Information and Knowledge: Groups gather more comprehensive
information by combining individual insights.
2. Diverse Perspectives: Increased diversity of views allows for more alternative
solutions.
3. Greater Acceptance: Group members who contribute to decisions are more likely to
support and implement them.
Drawbacks of Group Decision-Making:
1. Time Consumption: Groups typically take longer to reach decisions.
2. Conformity Pressures: Members may suppress dissenting opinions to fit in, leading
to less critical evaluations.
3. Dominance by Certain Members: Lower ability individuals may overshadow more
competent voices.
4. Ambiguous Responsibility: Accountability is diffused among group members.
Effectiveness vs. Efficiency
• Effectiveness: Group decisions can be more accurate than those of the average
individual but may not surpass the best individual's judgment.
• Speed: Individuals are generally faster in decision-making.
• Creativity and Acceptance: Groups excel in creative tasks and achieving
consensus.
Managerial Considerations: Managers should weigh the benefits of group effectiveness
against the costs in efficiency when deciding on group versus individual decision-making.

GROUPTHINK AND GROUPSHIFT

Groupthink:
• Definition: A phenomenon where the desire for consensus leads to poor decision-
making as dissenting opinions are suppressed.
• Symptoms:
1. Rationalization of decisions despite contradictory evidence.
 2. Direct pressure on dissenters to conform.
3. Members keeping doubts to themselves.
4. Illusion of unanimity.
• Prevention Strategies:
1. Monitor group size (ideally under 10).
2. Encourage impartial leadership.
3. Appoint a devil’s advocate.
4. Discuss risks before discussing gains.

Groupshift (Group Polarization):

• Definition: The tendency for group discussions to lead members toward a more
extreme version of their initial positions, whether more cautious or riskier.
• Causes:
1. Increased comfort leads to the expression of extreme views.
2. Diffusion of responsibility allows for taking bolder stances.
3. Members may adopt extreme positions to differentiate from the outgroup.
Key Takeaways
• Group decision-making has distinct advantages in terms of input and support but can
be hampered by time inefficiency, conformity, and accountability issues.
• Groupthink and groupshift are critical factors affecting decision quality and can lead
to a lack of objective evaluations.
• Effective management strategies can mitigate these challenges to harness the
benefits of group dynamics.

GROUP DECISION-MAKING TECHNIQUES

Group decision-making can vary in effectiveness depending on the method used. Here are
some common techniques, their processes, strengths, and weaknesses.
1. Interacting Groups
• Description: Traditional face-to-face meetings where members communicate
verbally and nonverbally.
• Strengths: Facilitates direct interaction, leading to immediate feedback and
discussion.
• Weaknesses: Prone to groupthink, conformity pressures, and dominance by a few
members can stifle creativity and independent thought.

2. Brainstorming
• Process:
1. A leader presents a clear problem.
2. Participants generate as many ideas as possible within a set timeframe.
3. No criticism is allowed during the idea generation phase; all ideas are
recorded for later evaluation.
• Strengths: Encourages creativity and idea generation without immediate judgment,
promoting an open environment.
• Weaknesses: Often less efficient; research indicates individuals working alone may
produce more ideas due to “production blocking” (where simultaneous contributions
hinder thought flow).

3. Nominal Group Technique (NGT)

• Process:
1. Members independently write down their ideas.
2. Each member presents one idea in turn; no discussion occurs until all ideas
are shared.
3. Ideas are discussed for clarity and evaluated collectively.
4. Members rank the ideas silently, and the one with the highest ranking is
selected.
• Strengths: Reduces pressure to conform, allowing independent thinking. Generally
leads to better outcomes than brainstorming.
 • Weaknesses: May feel less collaborative compared to open discussion methods.

4. Electronic Meetings
• Description: Combines NGT with technology. Participants use laptops to submit
ideas and rank them anonymously.
• Strengths: Reduces social pressures, allows for anonymity, and enables
simultaneous input from many participants, leading to faster processing of ideas.
• Weaknesses: Early studies indicate decreased effectiveness, longer task
completion times, and lower satisfaction compared to face-to-face interactions.