BUS103 Organisational Behaviour
Study Units 1 to 6

SU-2 Individual Differences

Personality
🅾 Personality is the sum total of ways in which an individual reacts to and interacts with others, describes the traits a person exhibits.


Measurement
1. Personality tests - used for hiring
2. Self-reporting surveys - evaluate yourselves on a series of factors
3. Observer ratings - another person will evaluate you

🅾 Big Five Personality Model (EACEO)
1. Extraversion - relational approach toward the social world
experience and freely express positive emotions, sociable, gregarious and assertive


2. Agreeableness - the propensity to defer to others
good-natured, cooperative and trusting


3. Conscientiousness - measure personal consistency and reliability
responsible, dependable, persistent and organized


4. Emotional stability - person's ability to withstand stress
positive - calm, self-confident, secure under stress
negative - nervous, depressed, insecure under stress


5. Openness to experience - range of interests and fascination with novelty
curious, imaginative, artistic and sensitive

Major Personality Attributes
1. Self-monitoring

  • personality trait that measures an individual's ability to adjust behaviour to external/situational factors

2. Core Self Evaluations (CSEs)

  • Bottom line conclusions about their capabilities, competence and worth
    - positive and see them as being in control
    - negative and see them as powerless over environment

3. Proactive Personality

  • identifies opportunities, shows initiative, takes action and perseveres until meaningful change occurs

Values
🅾 Values represent convictions that 'a mode of conduct or end state that is personally or socially preferable'. They are deep held belief systems and contain judgmental elements.

Personality & Values and the Workplace
1. Person-Job fit (John Holland's Personality-Job fit theory)
- Six personality types: realistic, investigative, social, conventional, enterprising, artistic

  • people in job congruent with personality should be more satisfied and have lower turnover

2. Person-Organisation fit

  • organisation culture vs. employees' values/personalities
  • mismatch will result in turnover, refer to Big Five
    e.g. personal who places great importance on imagination, independence and freedom is likely to be poorly matched with organization that seeks conformity

🅾 Hofstede's Five Value Dimensions
1. Power distance
magnitude to which people accede to the unfair distribution of power in organisations


2. Individualism vs collectivism
act in an isolated manner vs as 'members of groups'


3. Masculinity vs feminity
extent to which culture favours traditional masculine roles e.g. achievements
men and women are treated equally in a high femininity culture


4. Uncertainty avoidance
planned vs unplanned scenarios/circumstances


5. Long-term vs short-term orientation
long-term - preparation for the future via thrift, saving and persistence, ability to adapt to new environments/situations
short-term - focuses on 'the past and the present', emphasises respect for tradition and fulfilling social obligations

Perception
🅾 A process by which individuals organise and interpret their sensory impressions in order to give meaning to their environment


People's behaviour is based on their perception of what reality is, not on reality itself

Factors that influence perception

🅾 The Four Perceptual Shortcuts
1. Selective Perception
People selectively interpret what they see on the basis of their interests, background, experience and attitudes


2. Contrast Effects
Evaluation of a person's characteristics that are affected by comparisons with other people recently encountered who rank higher/lower on the same characteristics


3. Halo Effect
general impression about an individual based on a single characteristic


4. Stereotyping (gender, race, weight)
judging someone based of one's perception of the group to which that person belongs.
relying on too much generalisations

Factors in the perceiver - interpretation of what we see is influenced by personal characteristics (sometimes we hear what we want to hear)

  • attitudes
  • motives
  • interests
  • experience
  • expectations

Factors in the target - relationship of a target to its background influences perception

  • novelty
  • motion
  • sounds
  • size
  • background
  • proximity
  • similarity

Factors in the situation/context - influences our attention

  • time
  • work setting
  • social setting

🅾 Making judgment about others (Perception errors)
1. Attribution Theory

  • whether a person's behavior is internally/externally caused depending on:
    (1) distinctiveness - displaying different behaviors in different situations?
    (2) consistency - responding same way over time? the more consistent the behavior, the more we're inclined to attribute to internal causes
    (3) consensus - everyone who faces a similar situation responds in a same way

2. Fundamental Attribution Error

  • underestimate influence of external factors and overestimate influence of internal factors when judging others
  • blame person first, not the situation

3. Self-Serving Bias

  • attribute own successes to internal factors, blame external factors for failures

🅾 What determines Personality? (usually asked with a situation)
1. Heredity

  • "Heredity Approach" argues that genes (chromosomes) are the source of personality
  • Factors determined at conception: physical stature, facial attractiveness, gender, temperament, muscle composition & reflexes, energy level and biological rhythms

2. Environment
e.g. culture, friends/family

Workplace Attitudes (Components)

Behaviour
Intention to behave in a certain way (action)
e.g. refusing to stay in same dept as colleague

🅾 Attitudes
Evaluative statements/judgments
(high overlap between different job attitudes)

5. Employee Engagement
Involvement with, satisfaction with, and enthusiasm for organisation

  • access to resources and opportunities to learn new skills, meaningfulness of work, rewarding interactions with co-workers

4. Perceived Organisational Support (POS)
Degree to which employees believe the organisation values their contribution and cares about them and well-being

  • may be perceived as supportive when rewards are fair, voices are heard in decisions, supervisors supportive

3. Organisational Commitment
Identifying with organisation and goals, maintain membership in organisation


  • committed employees less likely to engage in work withdrawal despite of dissatisfaction, working hard out of loyalty

2. Job Involvement
Identifying with job, actively participating in decisions, considering performance important to self-worth


See also - psychological empowerment
Employees' beliefs in degree to which they influence their work environment, competencies, meaningfulness of job and autonomy

1. Job Satisfaction
Collection of positive &/or negative feelings towards job


Measurement
1. Single global rating
e.g. (1 to 5) how satisfied are you in your job
2. Summation of job facets
specific details; deals directly with the job dissatisfaction

🅾 Responses of Job Dissatisfaction

  • Voice & Loyalty - constructive behaviors that help us understand situations
  • Exit & Neglect - concerned with this

Voice

  • actively and constructively attempts to improve conditions
  • suggesting improvements, discuss problems (union activity)

Loyalty

  • passively waiting for conditions to improve
  • speaking up to external criticism, trusting organisation to do the right thing

Exit

  • leaving the organisation
  • looking for new position or resigning

Neglect

  • allowing conditions to worsen
  • absenteeism, lateness, reduced effort and increased error rate

Affective
Emotional/feeling
e.g. snake vs cat

Cognitive
Opinion/belief (thinking)

SU-3 Motivation

SU-4 Group Behaviour

SU-5 Organisational Communication

SU-6 Organisational Change and Stress Management

Motivation
🅾 The processes that account for an individual's intensity, direction, and persistence of effort toward attaining an organisational goal.


Three key elements
1. Intensity - how hard a person tries
2. Direction - effort channeled towards, and consistent with organizational goals
3. Persistence - how long a person can maintain effort

Maslow's Hierarchy of Needs Theory

  1. Lower-Order Needs - satisfied externally (Physiological, Safety)
  2. Higher-Order Needs - satisfied internally (Social, Esteem, Self-Actualization)

Internal vs external esteem
Internal - Prestige, feel a sense of achievement, self respect, freedom that we want
External - People to give us attention, status, recognition

🅾 McClelland's Theory of Needs
1. Need for Achievement (nAch)

  • drive to excel, achieve in relation to a set of standards, strive to succeed
  • high achievers like to work alone

2. Need for Affiliation (nAff)

  • desire for friendly and close interpersonal relationships
  • usually are social workers/counsellors

3. Need for Power (nPow)

  • need to make others behave in a way that they would not have behaved otherwise

► Individuals have different levels of needs, and these levels drive their behaviour
► Achievers prefer jobs that offer - personal responsibility, feedback, moderate risks

🅾 Contemporary Motivation Theories

Equity theory

  • comparing ratios of outcomes-to-inputs of relevant others

1. Job inputs e.g. effort, experience, education, competence
2. Outcomes e.g. salary levels, raises, recognition


► state of equity exists when ratios are equal (fairness) - no tension
► ratio are unequal (unfairness) - tension

Expectancy theory (Victor Vroom)
The strength of a tendency to act in a certain way depends on strength of an expectation that the act will be followed by a given outcome and on the attractiveness of the outcome to the individual.



Individual effort (1)→ Individual performance (2)→ Organisational rewards (3)→ Personal goals
(1) Effort-performance relationship - Expectancy
(2) Performance-reward relationship - Instrumentality
(3) Rewards-personal goals relationship - Valence


► individual must feel that if they try, they can perform
► if they perform, they will be rewarded
► when they are rewarded, it will be something they care about

Goal-setting theory (Edwin Locke)

  • goals tell employees what needs to be done and how much effort is needed


  • specific goals increase perfections

  • difficult goals result in higher performance
  • feedback on progress leads to higher performance

Three other factors influencing the goals-performance relationship:

  1. Goal commitment
  2. Task characteristics
  3. National culture

Tension motivates people to act to bring their situation into equity/reactions to inequity:

  • change inputs (slack off)
  • change outcomes (increase output by producing quantity, without quality
  • distort/change perceptions of self & others
  • choose a different referent person
  • leave the field (quit)

Model of Organisational Justice

  • overall perception of what is fair in the workplace

1. Distributive Justice
fairness of the outcome e.g. received pay raise that was deserved


2. Procedural Justice
fairness of process used to determine outcome e.g. process, rules, provide good explanation of why pay was raised


3. Interactional Justice
sensitivity to quality of interpersonal treatment


- Informational Justice
providing explanations for key decisions, informing important organizational matters
- Interpersonal Justice
treating with dignity and respect e.g. when telling employee news of pay raise

🅾 Motivating by Job Design

Job Characteristics Model (JCM)

Job Redesign
Repetitive jobs provide little variety, autonomy or motivation

Core job dimensions → Critical psychological states → Personal and work outcomes

Skill variety
Task identity
Task significance

Experienced meaningfulness of work

Autonomy

  • High internal work motivation
  • High quality work performance
  • High satisfaction with work
  • Low absenteeism and turnover

Experienced responsibility for outcome of work

Feedback

Knowledge of actual results of work activities

Employee growth need strength

2. Job Enrichment

  • high level responsibilities to increase sense of purpose, direction, meaning and intrinsic motivation
  • enriched job organizes tasks to allow work to do a complete activity
  • increases depth
  • gives employees greater freedom, independence, responsibility and feedback

3. Job Enlargement

  • increasing the number and variety of tasks
  • makes job varied and reduce dullness

1. Job Rotation

  • cross-training
  • period shifting from one task to another
    - strengths: reduces boredom, increases motivation, helps employees better understand their work contributions
    - weaknesses: creates disruptions, requires extra time for questions & training, reduced efficiencies

4. Relational Job Design

  • make jobs more prosocially motivating
  • connect employees with the beneficiaries of their work
  • employees' actions affect a real person and their jobs have tangible consequences - emotional connection, foster higher levels of commitment

Other ways of motivating employees
1. Alternative work arrangements

  • flextime
  • job sharing
  • telecommuting

🅾 2. Employee Involvement and Participation
A participative process that uses employees' input to increase their commitment to organisation's success
(a) Participative Management

  • joint decision making through surveys/informal consultations
  • enhance motivation through trust and commitment
  • reduces negative effects of job insecurity on satisfaction and turnover intentions

(b) Representative Participation

  • redistributes power within the organisation, putting labour's interests on a more equal footing with interests of management and stockholders by including a small group of employees as participants in decision making
    e.g. work counsils (group of nominated/elected employees), board representatives (employees who sit on a company's board directors and represent employees' interests)

3. Benefits/Extrinsic and intrinsic rewards

Group
🅾 Two or more individuals, interacting and interdependent, who have come together to achieve a particular goal or objective


- Formal group
Designated work group defined by organisation's structure
- Informal group
neither formally structured nor organizationally determined, usually appears in response to the need for social contact

Reasons of joining groups

  • Social Identity Theory proposes that people have emotional reactions to failure/success of their group (self-esteem tied to performance)

Characteristics make a social identity important to a person:
1. Similarity - same values, characteristics, demography
2. Distinctiveness - show how they are different from other groups
3. Uncertainty reduction - identify who they are and how they fit into the world
4. Status - generally interested in linking themselves in high status groups

🅾 Stages of Group Development (The Punctuated-Equilibrium Model)
for temporary groups with finite deadlines


(1) The first meeting sets the group’s direction
(2) the first phase of group activity is one of inertia and thus slower progress
(3) a transition takes place exactly when the group has used up half its allotted time,
(4) this transition initiates major changes,
(5) a second phase of inertia follows the transition
(6) the group’s last meeting is characterized by markedly accelerated activity


forming, storming, norming, and performing stages occur at phase one
a second performing and conforming stage occur in the second phase,
following a short period of reforming group norms and expectations



Capture

6 Group Properties
(1) Roles
(2) Norms
(3) Status
(4) Size and Dynamics
(5) Cohesiveness
(6) Diversity

(3) Status
A socially defined position or rank given to groups/members


Status Characteristics Theory
differences in status characteristics create status hierarchies within groups


Status is derived from 1/3 sources:
► the power a person wields over others
► a person's ability to contribute to a group's goals
► an individual's personal characteristics

(4) Size and Dynamics
group size affects group's overall behavior

  • large groups are good for gaining diverse input
  • small groups are better with productivity with the input

social loafing - tendency to expend less effort when working collectively than alone

  • diffusion of responsibility

(2) Norms
Acceptable standards of behavior within a group that are shared by group's members


Conformity
Adjusting one's behavior to align with norms of group
e.g. Asch Studies


Defying norms
A. Positive norms

  • CSR (to hold normative sway over employees
  • PC (political correctness norms?)

B. Negative norms

  • CWB (counter productive work behavior)
  • actions that intentionally violate established norms, result in negative consequences
  • antisocial behavior/workplace incivility

(5) Cohesiveness
the degree to which group members are attracted to each other and are motivated to stay in the group

(1) Roles
A set of expected behavior patterns attributed to someone occupying a given position e.g. information giver/coordinator


Role expectations
How others believe a person should act in a given situation


Role perception
Individual's view of how he/she is supposed to act


Role conflict
A situation in which an individual is confronted by divergent role expectations
e.g. making group profit vs. distribute profits

🅾 (6) Diversity

  • increases conflict in early stages
  • surface level diversity alerts people to more deep level diversity
  • possible side effect: fault lines/perceived divisions e.g. sex, age, race
  • studies are mixed, groups can perform better if they can get over the conflict

High productivity

Moderate productivity

Low productivity

Moderate - low productivity

Cohesiveness
High | Low

Performance norms
High


Low

Group Decision Making
1. Strengths

  • more complete info
  • increased diversity of views
  • higher quality of decisions
  • increased acceptance of solutions

2. Weaknesses

  • more time consuming
  • increased pressure to conform
  • possible domination by one or a few members
  • can have ambiguous responsibility
  • groupthink/group shift

Team
🅾 Two or more individuals interacting and interdependent, with special skills and/or knowledge, who have come together to achieve a particular objective (positive synergy)


Workgroup vs work teams

  • Share info ← Goal → Collective performance
  • Neutral (sometimes negative) ← Synergy → Positive
  • Individual ← Accountability → Individual and mutual
  • Random and varied ← Skills → Complementary

🅾 Potential problems of Group Decision Making
1. Groupthink
A phenomenon in which the norm for consensus overrides the realistic appraisal of alternative courses of action
2. Group shift
A shift can be toward either conservatism or greater risk, but is generally toward a more extreme version of the group's original position

Type of Teams

1. Problem-solving

  • permanent teams meeting at a regular time to address quality standards
  • rarely have authority to implement suggestions unilaterally

2. Self-managed

  • perform highly related or independent jobs/supervisory responsibilities e.g. planning, scheduling, assigning tasks, make operating decisions
  • select members who evaluate each other's performances

3. Cross-functional

  • same hierarchical level but different work areas who come together to accomplish a task

(1) power shifts will occur when different expertise is needed because the members are at roughly the same level in the organization, which creates leadership ambiguity. A climate of trust thus needs to be developed before shifts can happen without undue conflict.
(2) early stages of development are often long because members need to learn to work with higher levels of diversity and complexity
(3) it takes time to build trust and teamwork, especially among people with different experiences and perspectives.

4. Virtual

  • computer technology to unite physically dispersed members and achieve a common goal

how to ensure effectiveness:
(1) trust established among members
(2) progress is monitored closely (doesn’t lose sight of goals and disappearing team members)
(3) efforts and products of team publicized throughout the organization

5. Multi team systems

  • tasks become more complex → teams size increase → higher coordination demands → creates tipping point where member additions could cause harm
  • collection of two or more interdependent teams that share a superordinate goal aka team of teams

🅾 Team Effectiveness Model

  • (1) teams differ in form and structure.
  • (2) the model assumes that teamwork is preferable to individual work.
  • (3) team effectiveness includes objective measures of the team’s productivity, managers’ ratings of the team’s performance, and aggregate measures of member satisfaction.

2. Team composition

  • Abilities of members
  • Personality
  • Allocating roles
  • Diversity
  • Cultural differences
  • Size of teams
  • Member preferences

3. Process variables

  • Common purpose
  • Specific goals
  • Team efficacy
  • Team identity
  • Team cohesion
  • Mental models
  • Conflict levels
  • Social loafing

1. Contextual influences

  • Resources (adequate)
  • Leadership & structure
  • Climate of trust
  • Performance evaluation and reward systems

🅾 Shaping Team Players

  • 1. Selecting employees with appropriate skills & knowledge


  • 2. Training employees to become team players


    workshops on communication, negotiation, problem solving, patience, conflict management, coaching


  • 3. Reworking reward system to encourage cooperative efforts while continuing to recognise individual contributions

The Communication Process
Communication is the transfer and understanding of meaning


[ Sender ] → Channel → [ Receiver ]
[ Message to be sent → Encoding message ] → Channel → [ Message received → Message decoding ]

Noise

Feedback

  • (1) sender initiates a message by (2) encoding a thought
  • (3) message e.g. speech, writing, gesture
  • (4) formal/informal channel

A. formal channel - established by organisation, transmit messages related to the professional activities of members
B. informal channel - spontaneous, subject to individual choice


  • (5) receiver is the person to whom the message is directed, who first translate the symbols into understandable form - (6) decoding
  • (7) noise represents communication barriers that distort the clarity of message e.g. perceptual problems, info overload
  • (8) feedback is the check on how successful we have been in transferring our messages, whether understanding has been achieved

Direction of Communication
1. Downward

  • managers assign tasks, explain policies/procedures, highlight problems or give feedback
  • give reasons for decisions made (getting commitment from staff)
  • disadvantage: one-way nature

2. Upward

  • feedback to higher level staff
  • update on progress; highlight issues
  • use headlines/agenda to get bosses' attention

3. Lateral

  • same level/workgroup (peers)
  • saves time and coordination
  • can create dysfunctional conflicts

Automatic vs Controlled processing of persuasive messages
1. Automatic
a relatively superficial consideration of evidence and information

  • takes little time and low effort, but it lets us be easily fooled by a variety or tricks e.g. cute jingle or glamorous photo

2. Controlled
a detailed consideration of evidence and info relying on facts, figures and logic

  • requires effort and energy, but harder to fool someone who engages in it


Determining the choice of processing

  • interest level (high interest in outcome of decision → more likely to process info carefully)
  • prior knowledge (more likely to use controlled if they are well informed about subject area)
  • personality (high need for cognition → more likely to be persuaded by evidence and facts)
  • message characteristics (lean communication channels → little opportunity for user interaction → encourage automatic processing)
    ∴ match message to the audience

Barriers to effective communication

  • Filtering (manipulating info)
  • Selective perception (based on needs, motivations, experience, background)
  • Information overload
  • Emotions (interpretation)
  • Language (age and context)
  • Silence
  • Communication Apprehension
  • Lying

Conflict and Negotiation

Conflict
A process that begins when one party perceives that another party has negatively affected, or is about to negatively affect, something that the first party cares about.

Negotiation
Process in which two or more parties exchange goods or services and attempt to agree upon the exchange rate for them

Types of Conflict
1. Task conflict - content and goals of the work
2. Relationship conflict - focuses on interpersonal relationships
3. Process conflict - how the work gets done

Loci of Conflict
1. Dyadic conflict - between two people (e.g. co-workers, spouses)
2. Intragroup conflict - within a group/team (e.g. families, tribes)
3. Intergroup conflict - between groups/teams (e.g. ethnic groups)

Conflict Process

Stage I
Potential opposition or incompatibility

Stage II
Cognition and personalization

Stage III
Intentions

Stage IV
Behavior

Stage V
Outcomes

Antecedent conditions

  • Communication
  • Structure
  • Personal variables

Perceived conflict

Felt conflict

Conflict handling intentions

  • Competing
  • Collaborating
  • Compromising
  • Avoiding
  • Accommodating

Overt conflict

  • Party's behavior
  • Other's reaction

Increased group performance

Decreased group performance

  • Competing: seeks to satisfy own interests regardless of impact on other party in conflict
  • Collaborating: desire to fully satisfy the concerns of all parties, cooperating and searching for a mutually beneficial outcome - clarifying differences rather than accommodating various points of view
  • Compromising: no winner/loser, willingness to rationalize the object of conflict and accept solution with incomplete satisfaction of concerns
  • Avoiding: withdraw or suppress conflict
  • Accommodating: place interests above their own, sacrifice to maintain the relationship

Distributive vs Integrative Bargaining
Goal: Get as much of the pie as possible 😡 Expand the pie so that both parties are satisfied
Motivation: Win-lose 😡 Win-win
Focus: Positions ("can't go beyond this point on this issue") 😡 Interests "can you explain why this issue is so important to you?")
Interests: Opposed 😡 Congruent
Information sharing: Low (sharing info will only allow other party to take advantage) 😡 High (sharing info will allow each party to find ways to satisfy interests)
Duration of relationship: Short-term 😡 Long-term

How individual differences influence negotiations

1. Personality traits

  • predicting opponent's negotiating tactics based on their personality?

2. Moods/emotions

  • influences negotiation but depends the type of negotiation

3. Culture

  • people from different cultures negotiate differently
  • negotiation more effective within cultures than between them
    when in cross-cultural negotiations:
  • important to be high in openness
  • emotional dynamics

4. Gender differences

  • some merit to popular stereotype that women are more cooperative, pleasant and relationship-oriented in negotiations than men
  • gender differences can be lessened at both organisational and individual level