Unit 2 – Module 2/Values

B Y : J Y O T H I PA R I H A R
 Values

Values are defined in Organizational Behavior

as the collective conceptions of what is
considered good, desirable, and proper or
bad, undesirable, and improper in a culture.

According to M. Haralambos, “A value is a

belief that something is good and desirable.”
According to T. W. Hippie, “Values are
conscious or unconscious motivators and
justifiers of the actions and judgment.”
 Characteristics of Value

These are extremely practical, and valuation

requires techniques and an understanding of the
strategic context.
These can provide standards of competence and
morality.
These can go beyond specific situations or
persons. Personal values can be influenced by
culture, tradition, and a combination of internal
and external factors.
These are relatively permanent.
These are more central to the core of a person.
Most of our core values are learned early in life
from family, friends, neighborhood schools, the
mass print, visual media, and other sources
within society.
Values are loaded with effective thoughts about
ideas, objects, behavior, etc.
They contain a judgmental element in that they
carry an individual’s ideas as to what is right,
good, or desirable.
Values can differ from culture to culture and
even from person to person.
Values play a significant role in the integration
and fulfillment of man’s basic impulses and
desires stably and consistently appropriate for
his living.
 Types of Values

Termi
Instru
mental
nal
Values. Value
s.
Terminal Values Terminal Values are
most desirable to humans, and
Instrumental values are views of how
human desires should be achieved. These
are values that we think are most
important or desirable. Terminal Values
refer to desirable end-states of existence,
the goals a person would like to achieve
during his or her lifetime. They include
happiness, self-respect, recognition,
inner harmony, leading a prosperous life,
and professional excellence.
1, Terminal versus Instrumental Values : Milton Rokeach created
the Rokeach Value Survey (RVS). It consists of two sets of values, each
containing 18 individual value items. One set, called
Terminal values These are the goals a person would like to achieve
during his or her lifetime. (Desirable end-state) eg. Prosperity and
economic success, Freedom, Health and well-being, World peace,
Social recognition, and Meaning in life.
Instrumental values refers to preferable modes of behavior, or
means of achieving the terminal values. Self-improvement, Autonomy
and self-reliance, Personal discipline, kindness, Ambition, and Goal-
orientation.
EXECUTIVES UNION MEMBERS
Terminal Instrument Terminal Instrumental
al
Family security Responsible
Self-respect Honest
Family security Responsible Freedom Honest
Freedom Capable Happiness Courageous
A sense of Ambitious Self-respect Independent
accomplishment
Happiness Independent Mature love Capable
 Generational Values : Contemporary Work Cohorts
Mean Value Ranking Executives, Union Members, and
Activists (Top Five Only)
Researchers have integrated several recent analyses of work
values into four groups that attempt to capture the unique
values of different cohorts or generations in the U.S. workforce.

Cohort Entered Approximate Dominant Work Values

the
Boomers 1965– Mid-40s to mid- Success, achievement, ambition,
1985 60s dislike of authority; loyalty to
Career
Xers 1985– Late 20s to Work/life balance, team-oriented,
2000 early 40s dislike of rules; loyalty to
relationships
Nexters 2000 to Under 30 Confident, financial success,
present selfreliant
but team-oriented; loyalty
to both self and relationships
 Ethics

WHAT IS
ETHICS ???
Ethics in organizational behavior, also
known as business ethics, are the values
and principles that guide how people in an
organization behave.

 These ethics are a company's code of

conduct, which impacts every aspect of
the business, from leadership to how
employees interact with customers.
 Importance of Ethics in Organisational
Behaviour

Ethical behavior can bring benefits to organization as

it as it attract customers to organization products
thereby boosting sales and profit.
Ethical culture make employees to work more for
organization reduce labor turnover and therefore
increase productivity.
Ethical culture attract more employees wanting to
work for the organization thereby reducing
recruitment cost and enable organization to get the
most talented employee.
Ethical behavior attract more investors and keep the
company price high thereby protect the business from
takeover.
By applying ethics many social evils can be
eliminated like child labor and harassment to
employees.
Organization ethics helps in building openness,
integrity and a sense of oneness amongst all
employees. Employees feel motivated as they feel
strong alignment between their values and that of
organization.
Ethics ensures the employees that all the policies
are legal and all employees are treated equal in the
organization.
Strong organization ethics often encourages
managers to show appreciation for an employee
hard work as a result team member may be more
royal to the organization and strive to be more
productive.
 Attitude

The way that you think, feel or behave

According to Gordon Allport, “An attitude is a

mental and neural state of readiness,
organized through experience, exerting a
directive or dynamic influence upon the
individual’s response to all objects and
situations with which it is related.”
 Characteristics of Attitude

Attitudes are the complex combination of things we call

personality, beliefs, values, behaviors, and motivations.
It can fall anywhere along a continuum from very
favorable to very unfavorable.
All people, irrespective of their status or intelligence,
hold attitudes.
An attitude exists in every person’s mind. It helps to
define our identity, guide our actions, and influence
how we judge people.
Although the feeling and belief components of attitude
are internal to a person, we can view a person’s
attitude from their resulting behavior.
Attitude helps us define how we see situations
and define how we behave toward the situation
or object.
It provides us with internal cognitions, beliefs,
and thoughts about people and objects.
It can also be explicit and implicit. Explicit
attitude is those that we are consciously aware
of an implicit attitude is unconscious but still
affect our behaviors.
Attitudes cause us to behave in a particular way
toward an object or person.
An attitude is a summary of a person’s
experience; thus, an attitude is grounded in
direct experience and predicts future behavior
more accurately.
The cognitive component of attitudes
refers to the beliefs, thoughts, and
attributes that we would associate with
an object.

It is the opinion or belief segment of an

attitude. It refers to that part of the
attitude that is related to the general
knowledge of a person.

Typically these come to light in

generalities or stereotypes, such as ‘all
babies are cute’, ‘smoking is harmful to
 Affective Component

The affective component is the emotional or

feeling segment of an attitude. It is related to
the statement which affects another person.
It deals with feelings or emotions that are
brought to the surface about something, such
as fear or hate. Using the above example,
someone might have the attitude that they
love all babies because they are cute or that
they hate smoking because it harms health.
 Behavioral Component

The behavior component of an attitude

consists of a person’s tendencies to behave in
a particular way toward an object. It refers to
that part of attitude that reflects the intention
of a person in the short-run or long run.
Using the above example, the behavioral
attitude may be ‘I cannot wait to kiss the
baby,’ or ‘we better keep those smokers out
of the library, etc.
 Major Job Attitude

The following are the major job attitudes:

 Job Satisfaction.

 Job Involvement.

 Psychological Empowerment.

 Organizational Commitment.

 Perceived Organizational Support (POS)

 Employee Engagement
 A. Job Satisfaction

Job Satisfaction is a positive feeling about the

job resulting from an evaluation of its
characteristics.
A person with a high level of job satisfaction
holds positive feelings about the job, while a
person with a low level job satisfaction holds
negative feelings about the job.
 b. Job Involvement

Job involvement is the degree to which an

employee identifies with a job, actively
participates in it, and considers performance
is important to self-worth.
Employees with a high level of job involvement
strongly identify their work and care about it.
High level of job involvement is also related to
reduced absences and lower resignation
rates.
 c. Psychological Empowerment.

Psychological Empowerment is the belief of

employees in the degree to which they affect
their work environment, their competence,
the meaningfulness of their job, and their
perceived autonomy in their work.
Good leaders empower their employees by
involving them in decisions, making them feel
their work is important.
 d. Organizational Commitment.

 The organizational commitment is the degree to which an

employee identifies with particular organization and its goals
and wishes to maintain membership in the organization.
There are three dimensions to this job attitude – affective,
continuance commitment, and normative

 Affective
 – Emotional attachment to organization

 Continuance Commitment
 – Economic value of staying

 Normative
 – Moral or ethical obligations
Employees who are committed will be
less engage in work withdrawal even if
they are dissatisfied, because they are
loyal to the organization.
On the other hand, employees who are
not committed are less loyal to the
organization and show lower levels of
attendance at work across the board.
 e. Perceived Organizational Support
Perceived organizational support (POS)

 POS is the Degree to which employees believe that

an organization values their contribution and cares
about their well-being.

 POS is higher when rewards are fair, employees

are involved in decision making, and supervisors
are supportive.

 High POS is related to higher OCBs

(Organizational Citizenship Behavior),lower level of
tardiness (unpunctuality) and better customer
service
 g. Employee Engagement

An individual’s involvement with,

satisfaction with, and enthusiasm for the
work he or she does. We might ask
employees whether they have access to
resources and the opportunities to learn
new skills, whether they feel their work is
important and meaningful, and whether
their interactions with co-workers and
supervisors are rewarding.
 Motivation at Work

We define motivation as the processes that

account for an individual’s intensity,
direction, and persistence of effort toward
attaining a goal. While general motivation is
concerned with effort toward any goal, we’ll
narrow the focus to organizational goals in
order to reflect our singular interest in
work-related behavior.
Intensity : describes how hard a person
tries. This is the element most of us
focus on when we talk about motivation.
Direction : Effort directed toward, and
consistent with, the organization’s goals
is the kind of effort we should be
seeking.
Persistence : This measures how long a
person can maintain effort. Motivated
individuals stay with a task long enough
to achieve their goal.
 Theories of employee motivation

Hierarchy of Needs Theory (Abraham

Maslow’s hierarchy of needs) :
1. Physiological. Includes hunger, thirst,
shelter, sex, and other bodily needs.
2. Safety. Security and protection
from physical and emotional harm.
3. Social. Affection, belongingness,
acceptance, and friendship.
4. Esteem. Internal factors such as
self-respect, autonomy, and
1. achievement, and external factors
such as status, recognition,
and attention.
5. Self-actualization. Drive to become
what we are capable of becoming;
includes growth, achieving our
potential, and self-fulfillment.
Theory X and Theory Y (Douglas McGregor)

 Theory X , managers believe employees inherently dislike work

and must therefore be directed or even coerced into performing it.

 Theory Y , in contrast, managers assume employees can view

work as being as natural as rest or play, and therefore the average
person can learn to accept, and even seek, responsibility.

 Two-Factor (Theory motivation hygiene theory) : A theory that

relates intrinsic factors to job satisfaction and associates extrinsic
factors with dissatisfaction. Also called motivation hygiene theory.

 Intrinsic factors (Satisfaction) such as advancement,

recognition, responsibility, and achievement seem related to job
satisfaction.
 HERZBERG’S MOTIVATION— HYGIENE
THEORY

Fredrick Herzberg and his associates

developed Motivation Theory based on two
main factors in late 1950’s. This theory is also
known as Two Factor Theory.

Mo Mai
tiva nte
tion nan
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(a) Motivational Factors:

There is a set of job conditions, which operates primarily

to build strong motivation and job satisfaction. These
factors are called motivational factors.
They are intrinsic in nature and help increase one’s output.
These factors have positive effect on morale,
productivity, and job satisfaction and over all efficiency of
the organization.
 These factors are as under:
Achievement
Advancement
Possibility of Growth
Recognition.
Work Itself
Responsibility
(b) Maintenance Factors:

There are some job conditions which operate primarily to

dissatisfy employees .These factors are also called hygiene
factors. When these factors are present they do not motivate
in a strong way, when absent they dis-satisfy, That is why
these factors are called dissatisfies.

These factors are.

• Company Policy and administration.
• Technical supervision.
• Interpersonal relationship with superiors.
• Interpersonal relationship with peers.
• Interpersonal relationship with subordinates.
• Salary.
• Job security.
• Personal Life.
• Working condition.
• Status.
Note: To Hertzberg, the data suggest that the opposite of
satisfaction is not dissatisfaction, as was traditionally believed.
Removing dissatisfying characteristics from a job does not
necessarily make the job satisfying.

Extrinsic factor (hygiene factors) : When these factors are

adequate, people will not be dissatisfied. Factors—such as
company policy and administration,
supervision, and salary—that, when adequate in a job,
placate workers. Therefore,
managers who seek to
eliminate factors that can
create job dissatisfaction
may bring about peace,
but not necessarily
motivation.
McClelland’s theory of needs : A theory
that states achievement, power, and
affiliation are three important needs that
help explain motivation.
need for achievement (nAch) The drive
to excel, to achieve in relationship to a set
of standards, and to strive to succeed.
need for power (nPow) The need to make
others behave in a way in which they would
not have behaved otherwise.
need for affiliation (nAff) The desire for
friendly and close interpersonal
relationships.
High achievers perform best when they
perceive their probability of success as
0.5—that is, a 50–50 chance. They dislike
gambling with high odds because they get
no achievement satisfaction from success
that comes by pure chance. Similarly, they
dislike low odds (high probability of
success) because then there is no
challenge to their skills. They like to set
goals that require stretching themselves a
little.
 Contemporary Theories of Motivation

1, Self-determination theory which proposes

that people prefer to feel they have control over
their actions, so anything that makes a previously
enjoyed task feel more like an obligation than a
freely chosen activity will undermine motivation.
Example “It’s strange,” said Marcia. “I started
work at the Humane Society as a volunteer. I put in
15 hours a week helping people adopt pets. And I
loved coming to work. Then, 3 months ago, they
hired me full-time at $11 an hour. I’m doing the
same work I did before. But I’m not finding it
nearly as much fun.”
A theory of motivation that is concerned with
the beneficial effects of intrinsic motivation and
the harmful effects of extrinsic motivation.
Intrinsic factors - such as advancement,
recognition, responsibility, and achievement seem
related to job satisfaction.
Extrinsic factors, such as supervision, pay,
company policies, and working conditions.
When people are paid for work, it feels less like
something they want to do and more like
something they have to do. Self-determination
theory also proposes that in addition to being
driven by a need for autonomy, people seek ways
to achieve competence and positive connections
to others.
2, Job engagement : The investment of an
employee’s physical, cognitive, and emotional
energies into job performance.
When nurse Melissa Jones comes to work, it
seems that everything else in her life goes
away, and she becomes completely absorbed
in what she is doing. Her emotions, her
thoughts, and her behavior are all directed
toward patient care. In fact, she can get so
caught up in her work that she isn’t even
aware of how long she’s been there. As a
result of this total commitment, she is more
effective in providing patient care and feels
uplifted by her time at work. Melissa has a
high level of job engagement.
 3.Goal-setting theory

Goal-setting theory, developed by Edwin

Locke and Gary Latham, focuses on how
setting specific and challenging goals can
enhance performance and motivation.
In simple words, goals indicate and give
direction to an employee about what
needs to be done and how much efforts are
required to be put in.
 Features of goal-setting theory

Specificity: Goals should be clear and specific. For

example, “increase sales by 20%” is more effective than
“do your best.”
Challenge: Goals should be challenging yet achievable.
Difficult goals tend to lead to higher performance
compared to easy ones, as long as the individual has the
capability to reach them.
Commitment: Individuals need to be committed to
their goals. This often involves personal investment and
belief in the goal's importance.
Feedback: Providing feedback helps individuals gauge
their progress toward the goal, allowing them to adjust
their efforts as needed.
Task Complexity: For complex tasks, it's
important to set goals that are not only
specific and challenging but also consider
the learner’s current skill level and the
support available.
Participation: Involving individuals in the
goal-setting process can increase
commitment and motivation.
 Goal setting theory has certain
eventualities such as:

Self-efficiency- Self-efficiency is the

individual’s self-confidence and faith that he
has potential of performing the task.

Higher the level of self-efficiency, greater will

be the efforts put in by the individual when
they face challenging tasks.
While, lower the level of self-efficiency, less will
be the efforts put in by the individual or he
might even quit while meeting challenges.
Goal commitment- Goal setting theory
assumes that the individual is committed
to the goal and will not leave the goal.
The goal commitment is dependent on the
following factors:
 Goals are made open, known and
broadcasted.
 Goals should be set-self by individual
rather than designated.
 Individual’s set goals should be consistent
with the organizational goals and
 Advantages of Goal Setting Theory

Goal setting theory is a technique used to

raise incentives for employees to complete
work quickly and effectively.
Goal setting leads to better performance by
increasing motivation and efforts, but also
through increasing and improving the
feedback quality.
 Limitations of Goal Setting Theory

At times, the organizational goals are in conflict

with the managerial goals. Goal conflict has a
detrimental effect on the performance if it
motivates incompatible action drift.
Very difficult and complex goals stimulate riskier
behavior.
If the employee lacks skills and competencies to
perform actions essential for goal, then the goal-
setting can fail and lead to undermining of
performance.
There is no evidence to prove that goal-setting
improves job satisfaction.
4, Self-Efficiency Theory :

An individual’s belief that he or she is capable of

performing a task.
 The higher your self-efficacy, the more confidence you
have in your ability to succeed. So, in difficult situations,
people with low self-efficacy are more likely to lessen
their effort or give up altogether, while those with high
self-efficacy will try harder to master the challenge.
 Self-efficacy can create a positive spiral in which those
with high efficacy become more engaged in their tasks
and then, in turn, increase performance, which increases
efficacy further.
 Individuals high in self-efficacy also seem to respond to
negative feedback with increased effort and motivation,
while those low in self-efficacy are likely to lessen their
effort after negative feedback.
 Job Design

Job design is a process that companies use to create

a new job or add duties to an existing job.

Job design may involve developing a new position or

simply adjusting the set of tasks that a current
position encompasses.
For example, a company may add duties to a graphic
design position that extend slightly beyond design
work. It essentially entails integrating necessary
duties and qualifications to perform a particular task
or project for increased value and maximized
performance.
 Approaches to Job Design

Job Rotation: Moving employees between different

tasks to enhance variety and reduce boredom.
Job Enlargement: Expanding the scope of a job by
adding more tasks at the same level of responsibility.
Job Enrichment: Increasing the depth of a job by
adding responsibilities and opportunities for personal
growth.
Flexible Work Arrangements: Implementing options
like remote work or flexible hours to accommodate
employee needs.
Team-Based Structures: Organizing work into teams
to promote collaboration and shared responsibility.
 Work Arrangements

Work arrangements refer to the various ways

in which work is organized and performed
within an organization. With the evolving
nature of work, especially in response to
technological advancements and employee
preferences, different work arrangements
have emerged
 Employee Involvement

Employee involvement refers to the ways in

which employees are encouraged to
participate in decision-making processes and
contribute to the organization’s success. It
aims to foster a culture of collaboration,
engagement, and shared responsibility.
 Rewards and Benefits

Rewards and benefits are essential

components of an organization’s
compensation strategy, aimed at attracting,
retaining, and motivating employees
 Types of Rewards

1.Monetary Rewards:
Salary: Base pay that employees receive for
their work.
Bonuses: Additional financial incentives
based on performance, company profitability,
or achievement of specific goals.
Commission: Pay based on sales or other
performance metrics, common in sales roles.
2. Non-Monetary Rewards:
 Recognition Programs: Acknowledging
employee achievements through awards, shout-
outs, or recognition events.
 Career Development: Opportunities for training,
promotions, and skill development that enhance
career growth.
 Work-Life Balance Initiatives: Flexibility in
work hours, remote work options, and wellness
programs.
 Types of Benefits

 Health and Wellness Benefits:

 Health Insurance: Medical, dental, and vision
coverage for employees and their families.
 Wellness Programs: Initiatives that promote
physical and mental health, such as fitness
challenges or mental health resources.
 Retirement Benefits:
 401(k) Plans: Retirement savings plans that may
include employer matching contributions.
 Pension Plans: Defined benefit plans that provide
employees with a fixed amount upon retirement.
 Paid Time Off (PTO):
 Vacation Days: Paid time off for leisure.
 Sick Leave: Paid time off for health-related
issues.
 Parental Leave: Paid leave for new
parents, including maternity and paternity
leave.
 Flexible Benefits:
 Cafeteria Plans: Allowing employees to
choose from a variety of benefits to meet
their individual needs.
 Flexible Spending Accounts (FSAs): Pre-
tax savings accounts for medical expenses.
 Employee Assistance Programs (EAPs):

 Confidential counseling services for personal

issues, stress management, and work-life balance.
 Importance of Rewards and Benefits

Attraction and Retention: Competitive rewards

and benefits help attract top talent and reduce
turnover rates.
Employee Motivation: Well-structured rewards
can boost morale and motivate employees to
perform at their best.
Job Satisfaction: A comprehensive benefits
package contributes to overall employee
satisfaction and engagement.
Organizational Culture: Rewards and benefits
can reflect an organization’s values and culture,
promoting a positive workplace environment.