Discussion week 2

Human Relations in Business

Week 2 Discussion

Learning Objectives

Identify the major work attitudes that affect work behaviors

List the key set of behaviors that matter for organizational performance

Understand the link between work attitudes and ethics

Understand cross-cultural differences in job attitudes and behaviors at work

Chapter 4 Individual Attitudes and Behaviors

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Work Attitudes

AttitudeJob

SatisfactionOrganizational Commitment

Positive Work Attitudes

Personality

Person-Environment Fit

Job Characteristics

Psychological Contract

Organizational Justice

Work Relationships

Stress

Work-Life Balance

Job

Satisfaction

Organizational

Commitment

Assessing Work Attitudes in the Workplace

The SAS Institute is a leader

in the art of treating

employees well. The privately

owned software company

headquartered in Cary, North

Carolina, is famous for its free

medical care, sports facilities,

subsidized on-site child care,

flexible work hours, and true

dedication to work life

balance.

Assessing Work Attitudes in the Workplace

Systematic Attitude Tracking

Attitude Surveys

Exit Interview

• What is the difference between job satisfaction and organizational commitment? Which do you think would be more strongly related to turnover?

• Do you think making employees happier at work is a good way of motivating people? When would high satisfaction not be related to high performance?

• How important is pay in making people attached to a company and making employees satisfied?

• Do you think younger and older people are similar in what makes them happier at work and committed to their companies? Do you think there are male-female differences?

Discussion

Work Behaviors

Job Performance

Organizational Citizenship Behavior

Absenteeism

Turnover

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OCB and Absenteeism

Organizational citizenship behaviors are voluntary

actions beyond the scope of normal job duties

that contribute to the effective functioning of an

organization. On the other hand, absenteeism

costs companies an estimated $74 billion

annually.

Turnover

Employees leave

their jobs for many

reasons, including:

PerformanceJob

dissatisfaction

Personality Age

Company tenure

Factors That Have the Strongest Influence Over Work Behaviors

Job

Performance

Citizenship Absenteeism Turnover

General mental

abilities

Treatment at

work

Health problems Poor

performance

How we are

treated at work

Personality Work/life

balance issues

Positive work

attitudes (-)

Stress Positive work

attitudes

Positive work

attitudes (-)

Stress

Positive work

attitudes

Age of the

employee

Age of the

employee (-)

Personality

Personality Age and tenure

of the employee

(-)Note: Negative relationships are indicated with (-)

• Are citizenship behaviors always beneficial to the company? If not, why not? Can you think of any citizenship behaviors that employees may perform with the intention of helping a company but that may have negative consequences overall?

• In some companies, managers are rewarded for minimizing the turnover within their department or branch. A part of their bonus is tied directly to keeping the level of turnover below a minimum. What do you think about the potential effectiveness of these programs? Do you see any downsides to such programs?

Discussion

Job Attitudes, Behavior, and Ethics

Ethical work

environment

Happier

employees

Strong

organizational

commitment

Employees less

likely to recognize

and report

unethical behavior

Learning Objectives

Understand the role of motivation in determining employee performance

Classify the basic needs of employees

Describe how fairness perceptions are determined and consequences of these perceptions

Understand the importance of rewards and punishments

Apply motivation theories to analyze performance problems

Chapter 5 Theories of Motivation

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Performance

Performance Motivation Ability Environment

Performance at Trader Joe’s

What is Trader Joe’s?

Unique shopping experience

Located in 22 states

Chain food store with a niche market

What’s different?

Upbeat, helpful employees

Best paid employees in the industry

Promotes from within

Employees & managers “pitch-in”

Quarterly performance evaluation and feedback

Employee autonomy

Employees are knowledgeable of the store’s products

http://upload.wikimedia.org/wikipedia/en/2/27/Traderjoes_facade.JPG

Maslow Hierarchy of Needs

Self

Actualization

Esteem

Social

Safety

Physiological

http://www.bnet.com/2422-13724_23-182940.html

ERG Theory

Existence

RelatednessGrowth

Two-Factor Theory

Hygiene Factors

• Company policy

• Supervision and relationships

• Working conditions

• Salary

• Security

Motivators

• Achievement

• Recognition

• Interesting work

• Increased responsibilities

• Advancement and growth

Acquired-Needs Theory

Need for achievement

Need for affiliation

Need for power

Acquired-Needs Theory

The Thematic

Apperception

Test (TAT)

assesses a

person’s

dominant needs

by presenting

subjects with an

ambiguous

picture and

having them write

a story about it.

The story you create based on this

picture might give away the dominant

needs that motivate you.

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Equity Theory

Person Referent Other

Outcomes = Outcomes

Inputs Inputs

Reaction to Unfairness

Reactions to Inequity Example

Distort perceptions Changing one’s thinking to believe that the referent

actually is more skilled than previously thought.

Increase referent’s inputs Encouraging the referent to work harder.

Reduce own input Deliberately putting forth less effort at work. Reducing

the quality of one’s work.

Increase own outcomes Negotiating a raise for oneself or using unethical ways

of increasing rewards such as stealing from the

company.

Change referent Comparing oneself to someone who is worse off.

Leave the situation Quitting one’s job.

Seek legal action Suing the company or filing a complaint if the

unfairness in question is under legal protection.

Differences in Equity Perception

Equity Sensitivity

BenevolentsEntitleds

Justice

Procedural Justice

Interactional Justice

Distributive Justice

Justice

Procedural Justice

The degree to which fair decision-making

procedures are used to arrive at a decision

Interactional Justice

The degree to which people

are treated with respect, kindness, and

dignity in interpersonal interactions

Distributive Justice

The degree to which

outcomes received from

the organization

are fair

Expectancy Theory

Effort RewardsPerformance

Expectancy ValenceInstrumentality

1) Will my effort

lead to high

performance?

2) Will performance

lead to outcomes?

3) Do I find the

outcomes

desirable?

Expectancy

• Make sure employees have proper skills, abilities, and knowledge

• Ensure that the environment facilitates performance

• Encourage employees so they believe their effort makes a difference

Instrumentality

• Reward employee performance

• Inform people in advance about the rewards

• Try to eliminate non-performance influence over rewards

Valence

• Find rewards that are desirable to employees

• Make sure that rewards are viewed as fair

• Give employees choice over rewards

Influencing Expectancy, Instrumentality, and Valence

Reinforcement Theory

Manager

praises the

employee

Manager

demotes the

employee

Manager

stops nagging

the employee

Manager

ignores the

behavior

Positive Reinforcement

• Positive behavior followed by positive consequences

Negative Reinforcement

• Positive behavior followed by removal of negative consequences

Punishment

• Negative behavior followed by negative consequences

Extinction

• Negative behavior followed by removal of positive consequences

Organizational Behavior Modification (OB Mod)

Step 1

• Identify behavior to be modified

Step 2

• Measure the baseline level

Step 3

• Analyze its antecedents and outcomes

Step 4

• Intervene

Step 5

• Evaluate & maintain

Motivation and Ethics

Reinforcement theory has

been particularly

successful in explaining

ethical behavior.

Unethical Behavior

RewardMore

Unethical Behavior

Motivation and Culture

Developing

Nations

Financial satisfaction was a

stronger predictor of overall

life satisfaction (compared to

industrialized nations)

Industrialized

Nations

Satisfaction with esteem

needs was a more powerful

motivator (compared to

developing nations)

Learning Objectives

Describe the history of job design approaches

Understand how to increase the motivating potential of a job

Understand why goals should be SMART

Set SMART goals

Give performance feedback effectively

Describe individual, team, and organization based incentives that can be used to motivate the workforce

Chapter 6 Designing a Motivating Work Environment

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Scientific Management and Job Specialization

Scientific Management

• Based on ideas from Frederic Taylor’s 1911 book, “Principles of Scientific Management”

• Among the most influential books of the 20th century

Job Specialization

• Break down jobs into their simplest components

• Assign tasks so each employee performs a select number of tasks in a repetitive manner

Scientific Management and Job Specialization

This Ford panel assembly line in Berlin,

Germany, is an example of specialization.

Each person on the line has a different job.

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Alternatives to Job Specialization

Job Rotation

Moving employees from

job to job at regular intervals

Job Enrichment

Allowing workers more control over

how they perform tasks

Job Enlargement

Expanding the tasks performed by employees to add more variety

Job Characteristics Model

Core Job Characteristics

Psychological States

Outcomes

• Skill Variety

• Task Identity

• Task Significance

• Autonomy

• Feedback

• Meaningfulness

• Responsibility

• Knowledge of Results

• Motivation

• Performance

• Satisfaction

• Absenteeism

• Turnover

Calculate Motivation Potential Score (MPS)

MPS

x Autonomy x Feedback

Skill Variety +

Task Identity +

Task Significance

((

3

Empowerment

Structural Empowerment

Decision

authority

Leadership

styles

Organizational

Structure

Access to

information

Organizational

climate

Felt Empowerment

Meaningful

work

Feeling

confident

about

performing

the job

Having discretion

and autonomy at

work

Ability to

influence how

the company

operates

Goal-Setting Theory

…is one of the most

influential and

practical methods of

motivation. It has

been rated as the

most important (of 73

theories), supported

in over 1,000 studies,

and is used by

thousands of

organizations.

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SMART Goals

S Specific

M Measurable

A Aggressive

R Realistic

T Time-Bound

Why Do SMART Goals Motivate?

SMART Goals

Energize

Give Direction

Provide Challenge

Make You Think

Outside the Box

When Are Goals More Effective?

Feedback AbilityGoal

Commitment

Downsides to Goal Setting

Learning

decreases

Adaptability

declines

Narrow

thinking may

develop

Ethical

problems

increase

1. A call center is using the metric of average time per call

when rewarding employees. In order to keep their average

time low, employees are hanging up on customers when

they think that the call will take too long to answer.

2. In a department store, salespeople are rewarded based

on their sales volume. The problem is, they are giving

substantial discounts and pressuring customers to make

unnecessary purchases.

What are the reasons for the negative consequences of

these bonus schemes? Modify these schemes to solve the

problems.

Discussion

Management by Objectives

Use corporate strategy to set company wide

goals

Determine team-and department-

level goals

Collaboratively set individual-level

goals that align with corporate strategy

Develop an action plan

Periodically review performance and

revise goals

Performance Appraisal

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Many companies

have a formal,

companywide process

of providing feedback

to employees.

Performance Appraisal Questions

How often?

What is the

purpose?

Who is the

rater?

What makes

an effective system?

Absolute versus Relative Ranking Appraisals

• Rating based on a standard that is applied equally to everyone

• Scores are based solely on individual performance

Absolute

• Rating is based on rank within all ratings

• Final score is dependent on individual performance measured against another individual’s performance

Relative

Viewed more negatively

by employees

Bias in Performance Appraisals

Liking

Leniency

Stereotypes

Unfair

Appraisal

Performance Incentives

Piece Rate System

Individual Bonuses

Merit Pay

Sales Commissions

Awards Team Bonuses

Gainsharing Profit Sharing Stock Options

Performance Incentives

Properly designed sales commissions are widely used to motivate sales employees

The blend of straight salary and commissions should be carefully

balanced to achieve optimum sales volume, profitability, and

customer satisfaction © 2010 Jupiterimages Corporation

Motivating Employees and Ethics

When goal

accomplishment is

rewarded, and when

rewards are desirable,

employees will have two

basic options:

Work hard to

reach goals

Cheat to

reach goals

Motivating Employees around the Globe

Goals

perceived

as

extremely

difficult

Motivation

American

employees Chinese

employees