organisational behaviour 2

Module IIBasic psychological process − Perception − Factors

influencing perception − Attribution theory − Specific applications in organizations − Learning − Theories of

learning − Using learning concepts for self management − implications for performance and satisfaction −

Remembering − Basic motivational concepts − Theories of motivation − Implication for performance and satisfaction

Topics under PERCEPTION

• Basic psychological process • Perception• Factors influencing perception• Attribution theory• Specific applications in organizations

Basic psychological process

• Learning• Memory• Motivation• Personality• Perception• Attitude

Definition of Perception • A process

by which • individuals organize

and interpret their sensory impressions

• in order to give meaning to their environment.

So perception means…

• It is the process of receiving information– about the world around us– and making sense out of it

• It involves: – deciding which information to notice, – how to categorize this information and – how to interpret it within the framework of existing

knowledge Why is it Important?

Because people’s behavior is based on their perception of what reality is, not on reality itself.

•

Receiving Stimuli(External & Internal)

Selecting StimuliExternal factors : Nature,

Location,Size,contrast,Movement,repetition,similarityInternal factors : Learning,

needs,age,Interest,

Organizing Figure Background ,Perceptual Grouping( similarity, proximity,closure, continuity)

ResponseCovert: Attitudes ,

Motivation,Feeling

Overt: Behavior

Perceptual Process

Interpreting Attribution ,Stereotyping,

Halo Effect, Projection

The Perceptual Process

1. Sensation/ receive

–An individual’s ability to detect stimuli in the immediate environment.

2. Selection

–The process a person uses to eliminate some of the stimuli that have been sensed and to retain others for further processing.

3.Organization– The process of

placing selected perceptual stimuli into a framework for “storage.”

4.Translation/ interpret– The stage of the

perceptual process at which stimuli are interpreted and given meaning.

PRINCIPLES OF ORGANISATION

• Figure and Ground• Principle of Similarity• Principle of Proximity• Principle of Continuity• Principle of Closure• Principle of Symmetry

Organizational Behavior8

Organizational Behavior9

Figure and groundFigure and ground

Humans' ability to separate elements based upon contrast

Organizational Behavior

Gestalt Approach

FigureGround

Background demonstration

-A vase... or

Two profiles of faces??

IF YOU WANT TO REALLY TOUCH SOMEONE, SEND THEM A LETTER

(advertisement for the Australian postal service )Figure-Ground Principle

Similarity Proximity

Continuity

Closure Symmetry

Similarity: Health Unlimited logo (Save mothers’ lives, improve basic health services, Prevent the spread of HIV/AIDS )

-- the similarity between the cross and the moving person is easily spotted-- Though each of the shapes between the first and the last are slightly different, our minds still sees enough of a resemblance to unite them together-- The use of the solid black color for each of the shapes also serves to link each shape to the others.

• Principle of similarity: when objects of similar shape, size or colour tend to be grouped together

• Eg: all employees who wear tie- perceived as executives

• All employees with yellow hats- belong to the production floor

• Principle of proximity: tendency to perceive stimuli which are near one another as belonging together

• Eg: several workers working on a machine are perceived to be one group and – the group as a whole is held responsible for any failure

in the machine

• Principle of closure: a person has a tendency to perceive as whole when none exists-- to close the gaps which are unfilled

• A manager facing a complex decision may be able to develop a fairly accurate understanding of the issues even though some details are missing

• Based on experience and imagination, the manager can fill in the missing pieces needed to make a decision

• Principle of continuity: tendency to perceive objects as continuing patterns

Organizational Behavior16

ILLUSIONS- refers to false interpretation of sensory information

(The Vertical lines are both the same) )length.

CONTRAST PRINCIPLE OF PERCEPTION

The center circles are both the same size.

PERCEPTUAL AMBIGUITY

Organizational Behavior 17

PERCEPTUAL AMBIGUITY

Organizational Behavior 18

Factors Influencing Perception:

1.) Perceiver

2.) Target

3.) Situation

• Factors influencing Perception

Factors in the perceiver• Attitudes• Motives• Interests• Experience• Expectations

Perception

Factors in the Target• Novelty• Motion• Sounds• Size• Background• Proximity• Similarity

Factors in the situation• Time• Work Setting• Social Setting

FACTORS THAT INFLUENCE PERCEPTION• How do we explain the fact that people can perceive the same thing differently? • A number of factors act to shape and sometimes distort perception• These factors can reside in the perceiver; in the object, or target, being perceived; or in

the context of the situation in which perception occurs.• The Perceiver: when an individual looks at target and attempts to interpret what

he/she sees, the individual personal characteristics will heavily influence interpretation(attitudes, personality, motives, interests, experiences and expectations)

• The Target: the characteristics of the target being observed can also affect what is perceived

– Loud people are more likely than quiet people to be noticed in a group. – So, too, are extremely attractive/ unattractive individuals. Because targets aren't looked at in isolation, the

relationship of a target to its background and our tendency to group close/similar things together also influences perception

• The Situation: the context (time, location, light, heat, color etc. ) in which we see objects/ events can influence attention

Attribution Theory

• Our perception of people differ from our perceptions of objects because we make inferences about the behaviors of people that we don’t make about objects.

• Objects don't have beliefs, motives, or intentions; like people

• The result: when we observe an individual behaviour, we try to develop explanations of why they behave in certain ways.

• Our perception and judgment of a person's action, therefore, will be significantly influenced by assumptions we make about the person

Attribution Theory

Two Types of Causes:

1) Internal

2) External

• Attribution theory was developed to explain how we judge people differently depending on the meaning we attribute to a given behavior.

• Basically, the theory suggests that whenwe observe an individual's behavior, we attempt to determine whether it was internally or externally caused

• Internally caused behaviors are those that are believed to be underthe personal control of the individual.

• Externally caused behavior results from outside factors; that is, the person is forced into the behavior by the situation.

• The determination, depends on 3 factors: distinctiveness, consensus and consistency

Three Factors of the Attribution Theory:

1.) Distinctiveness

2.) Consensus

3.) Consistency

• Distinctiveness: the extent to which the person behaves in the same way in similar situations.

• Consensus: the extent to which other people behave in the same way in a similar situation.

• Consistency: the extent to which the person behaves like this every time the situation occurs.

Let’s look at an example

• Our subject is called Tom. His behavior is laughter. Tom is laughing at a comedian.

• 1. Consensus: Everybody in the audience is laughing. Consensus is high. If only Tom is laughing consensus is low.

• 2. Distinctiveness: Tom only laughs at this comedian. Distinctiveness is high. If Tom laughs at everything distinctiveness is low.

• 3. Consistency: Tom always laughs at this comedian. Consistency is high. Tom rarely laughs at this comedian- consistency is low.

Attribution Theory When individuals observe behavior, they attempt to determine whether it is internally

or externally caused.

Observation Interpretation Attribution of cause

Consistency

Consensus

Distinctiveness

Individual behavior

Internal

External

Internal

External

Internal

ExternalH

L

H

L

H

L

H –high L- Low

Distictiveness Does this person

behave in this manner

in other situation

Yes:High

ConsistencyNo:Low

Consistency

No:Low

Consensus

Yes:High

Consensus

YES:Low

DistinctivenessNO:High

Distinctiveness

ConsensusDo other person

Behave in the Same manner?

ConsistencyDoes this person

behave in this same

manner at other times ?

Internal Attribution

ExternalAttribution

Shortcuts in Judging Others:

1.) Selective Perception 2.) Halo Effect 3.) Contrast Effects 4.) Projection 5.) Stereotyping 6) Fundamental Attribution Error

Shortcuts in judging others• Selective Perception : People selectively interpret

what they see on the basis of their interests, background, experience and attitudes.

• Eg: we are more likely to notice cars like our own• Halo Effect : Drawing a general impressions about an

individual on the basis of a single characteristic.

Eg: a teacher awarding more marks to a well-liked student

Information from a ‘professional’ tends to be overrated and that from an ordinary person tends to be discounted

• Contrast Effect : Evaluation of a person’s characteristics that are

effected by comparisons with other people recently encountered who rank higher or lower on the same characteristics.– Could be better or worse depending on what it is compared to• All judgments are relative

• The contrast effect is a phenomenon that occurs when one's perception of the differences of two things is exaggerated depending on the order in which they are presented.

• For example, "if you lift a light object and then a heavy object, you will judge the second object heavier than if you had lifted it first or solo"

• Projection : Attributing one's own characteristics to other people. Eg: an individual who is not very energetic may see

others as lazy, anda dishonest person may be suspicious of others

• Stereotyping : Judging someone on the basis of one’s perception of

the group to which that person belongs. Eg: People in Kerala don’t speak good English• Fundamental Attribution Error: the tendency to

underestimate the importance of external factors and overestimate the importance of internal factors when making attributions about the behaviours of others

Specific Applications in Organizations:

1.) Employment Interview

2.) Performance Expectations (Self Fulfilling Prophecy)

3.) Performance Evaluation

4.) Employee Effort

• Employment interview- Managing impressions to prospective employers– Impression management: efforts by individuals to

improve how they appear to others• Performance evaluation/ appraisal: the

process of evaluating employees on various work-related dimensions

Self-fulfilling prophecy• It occurs when our expectations about another person cause

that person to act in a way that is consistent with those expectations

• Eg: if a supervisor believes a new employee will not be able to perform the job, this expectation influences the supervisor’s behaviour towards the employee and without realizing it, may cause the new hire to perform the job poorly

• Consequently, the supervisor’s perception, even if originally incorrect, is confirmed

• To block such negative self-fulfilling prophecy (= Golem effect), firms need to fight negative stereotypes and avoid first impressions

• Positive self-fulfilling prophecy= Pygmalion effect

Topics under LEARNING

• Learning• Theories of learning• Using learning concepts for self management• Implications for performance and satisfaction• Remembering

Learning

• A relatively permanent change in knowledge or observable behavior that results from practice or experience

• With learning comes change, a relatively permanent one

• Learning is an ongoing process in everyone’s life, both on and off the job

• Employees must learn how to perform tasks and duties, and how to

effectively interact with others

Learning

• Intentional vs. incidental learning • Intentional: it is acquired after a deliberate

attempt- a careful search for information- eg: to buy a brand new laptop

• Incidental: (we learn even when we are not trying) acquired by accident without much effort- getting exposed to the Vodafone TV ad while reading a newspaper article or magazine rather than watching the TV

Theories of Learning

• Classical conditioning theory• Operant conditioning theory• Social learning theory• Cognitive learning theory

Classical Conditioning Theory- Ivan Pavlov• By Ivan Pavlov, a Nobel Prize-winning psychologist from

Russia• The first type of learning to be discovered and studied

within the behaviorist tradition (hence the name classical).

• a process in which a previously neutral stimulus acquires the ability to elicit a response by repeated association with a stimulus that naturally produces a similar response

• Unconditioned Stimulus (UCS) elicits Unconditioned Response (UCR)

• The Neutral/Orienting Stimulus (NS) is repeatedly paired with the Unconditioned/Natural Stimulus (UCS).

Classical Conditioning

Unconditioned stimulus (UCS)

Conditioned stimulus (CS)

Conditioned stimulus (CS)

Unconditioned Response (UCR)

Conditioned Response (CR)

AFTER REPEATED PAIRINGS:

Pavlov’s experiment

Classical Conditioning Theory

•Pavlov was studying the digestive system of dogs and became intrigued with his observation that dogs deprived of food began to salivate when one of his assistants walked into the room. • The Neutral Stimulus (NS) is transformed into a Conditioned Stimulus (CS)• That is, when the CS is presented by itself, it elicits or causes the CR (which is the same involuntary response as the UCR.• The name changes because it is elicited by a different stimulus• This is written CS elicits CR.

Notes of this theory

• When the dog was presented with a piece of meat (UCS or US), there was salivation– Salivation in response to food is natural, unlearned response (UCR)-

a reflex• When he rang a bell without meat, there was no salivation• Now, meat was given + ringing the bell• After repeatedly hearing the bell before getting the food, there

was salivation after the bell rang• After repetitions of this procedure, there was salivation (CR)

merely at the sound of the bell (CS), without presentation of meat

• The dog LEARNT to respond (salivate) to the bell

Operant conditioning/ instrumental conditioning– B. F. Skinner

• A type of learning in which the consequences of behaviour lead to changes in the probability of that behaviour’s occurrence

• Behaviours with positive consequences are acquired• Behaviours with negative consequences are

eliminated• According to this theory, people learn by connecting

the consequences of their behaviour with their behaviour itself

OPERANT CONDITIONING PROCESS

Antecedents

(conditions leading to the bhvr)

Behaviour (activity performe

d)

Consequences

(results of the bhvr)

Manager shows

employee how to do a job

Employee

performs job

properly

Manager praises employ

ee

Antecedent -- the stimulus that precedes the behavior- instructions/ rules/ goalsBehavior -- the behavior emitted in response to the stimulusConsequence -- the positive or negative consequence of the behavior

EXAMPLE

Meaning of Operant conditioning

A type of conditioning in which desired voluntary behavior leads to a reward or prevents a punishment focuses on associations between work behaviors (such as

job performance, absenteeism, etc.) and consequences provided by an employee’s

environment (supervisor, co-workers). Example of desired consequences are pay and verbal

praise Examples of undesired consequences are reprimands

(criticisms) and demotions.

Examples of Operant Behaviors and Their Consequences

BEHAVIORS

• works and

• is late to work and

• enters a restaurant and

• enters a football stadium and

• enters a grocery store and

CONSEQUENCES

• is paid

• is deducted pay

• Eats

• watches a football game

• buys food.

THE INDIVIDUAL

Types of Reinforcement/ The 4 contingencies of reinforcement

Positive reinforcement: Providing a reward for a desired behavior. Potential positive reinforcers: Pay, Bonuses, Promotions, Verbal praise, Awards

Negative reinforcement/ avoidance: Removing an unpleasant consequence when the desired behavior occurs- warning, demotion, terminationEg:Staying late night at office to finish an important task to avoid shouting from the boss

Punishment: Applying an undesirable condition to eliminate an undesirable behavior.Being shouted at for long tea breaks, reduces the time taken for the same

Extinction: Withholding reinforcement of a behavior to cause its cessation.

Negative Reinforcement vs. Punishment

• Punishment reduces the probability of an undesired behavior(excessive web surfing during company time, dangerous operation of heavy equipment, sexual harassment and excessive absenteeism)

• Negative reinforcement increases the probability of a desired behavior

• Extinction and punishment are used to ensure that employees learn to avoid performing undesired behaviors.

• Extinction: when a response that was once rewarded is no longer rewarded, it tends to weaken and eventually EXTINGUISH

• Eg: giving lift to a female colleague- thanked.. continue..denies- no longer praised for your generosity- behaviour dies out/ extinguishes

Rewards Used by Organizations

MATERIAL REWARDSPayPay raisesStock optionsProfit sharingBonuses/bonus plansIncentive plans

SUPPLEMENTAL BENEFITSCompany automobilesHealth insurance plansPension contributionsVacation and sick leaveRecreation facilitiesChild care supportClub privilegesMaternity/ Paternity leaves

STATUS SYMBOLSCorner officesOffices with windowsCarpetingPaintingsPrivate restrooms

SOCIAL/INTER-PERSONAL REWARDSPraiseFeedbackSmiles, pats on the back, and other nonverbal signalsRequests for suggestionsInvitations to coffee or lunch

REWARDS FROMTHE TASKSense of achievementJobs with more responsibilityJob autonomy/self-directionPerforming important tasks

SELF-ADMINISTEREDREWARDSSelf-congratulationSelf-recognitionSelf-praiseSelf-development through expanded knowledge/skillsGreater sense of self-worth

Potential Negative Effects of Punishment

Fear ofmanager

Recurrenceof undesirable

employee behavior

Undesirableemotional reaction

Aggressive,disruptivebehavior

Apathetic,noncreative

performance

High turnoverand absenteeism

But leads to

long-term

Short-termdecrease infrequency

ofundesirableemployeebehavior

Punishmentby

manager

Undesirableemployeebehavior

Antecedent

Which tendsto reinforce

How to Make Punishment Effective

• Use the principles of contingent punishment, immediate punishment, and punishment size

• Praise in public, punish in private• Develop alternative desired behavior• Balance the use of pleasant and unpleasant events• Use “positive discipline” (i.e., change behavior through

reasoning, with an emphasis on personal responsibility or “self control,” rather than by imposing increasingly severe punishments)

Managers should:

Social Learning Theory/ vicarious learning/ Observational learning

• The ability of an individual to learn by observing others• Learner learns a behavior by watching the model perform

the behavior

• Examples– Role playing

– Demonstrations

– Training films• Attention Retention Practice Motivation• The greater the attention, the more effective the learning

Social learning process

Model

Behaviour

Imitate the model’s behavour

Practise model’s behaviour

Pay attention to the model/ remember

what the model did

Motivated to imitate

the model?

Observer

Conditions Required for Vicarious Learning

• Learner observes the model when the model is performing the behavior

• Learner accurately perceives model’s behavior

• Learner must remember the behavior• Learner must have the skills and abilities

to perform the behavior• Learner must see that the model receives

reinforcement for the behavior in question

• To take advantage of vicarious learning in organizations, managers should ensure that good performer models are available for others to learn from.

• Models that are most likely to be imitated by others tend to be

• 1) organizational members who are highly competent in the behavior and may even have a reputation as an expert,

• 2) individuals with high status in the organization, • 3) models who receive reinforcers that the learner

desires, and • 4) models who engage in desired behaviors in a

friendly manner.

Cognitive process of learningPeople draw on their experiences and use past learning as a basis for present behaviour

Prior

learning

Behavioural

choice

Perceived consequences

Feedback

Using learning concepts for self management

The 2 approaches to apply learning in organisations are:

• Training• Practicing systematic use of rewards and

punishments– Organisational behaviour management– Discipline

• Training: process of systematically teaching employees to acquire and improve job-related skills and knowledge

Types of training• Classroom Training: process of teaching people how to do their

jobs by explaining various job requirements and how to meet them

• Apprenticeship programs: formal training programs involving both OJT and classroom training, over a long period, for training in the skilled trades

• Cross-cultural training (CCT): a systematic way of preparing employees to live and work in another country

• Corporate universities: centres devoted to handling a company’s training needs on a full-time basis

• Executive training programs: sessions in which companies systematically attempt to develop their top leaders, either in specific skills or general managerial skills

• E-training: training based on disseminating information online- through internet or intranet

4 major principles of learning

• Principles of learning: the set of practices that make training effective: participation, repetition, transfer of training and feedback

• Participation: active involvement in the process of learning; more active participation leads to more effective learning

• Repetition: the process of repeatedly performing a task so that it may be learned

• Transfer of training: the degree to which the skills learned during training sessions may be applied to performance of one’s job

• Feedback: knowledge of the results of one’s behaviour

Implications of learning for performance and satisfaction

• Practicing rewards• Behaviours that are rewarded tend to be strengthened and

repeated in the future• Administer rewards selectively to reinforce behaviours that we

wish to be repeated in future• Practicing punishments– through discipline- eliminates

undesirable organisational behaviours• Discipline: the process of systematically administering

punishments• Organisational behaviour management: the practice of altering

behaviour in organisations by systematically administering rewards

Remembering

• Remembering is ‘being able to recall the message received’

• How much you can store what you have learned and apply in your work

Motivation

• A need or desire that causes a person to act; to have initiative, spirit or be enterprising

or• The set of processes that arouse, direct and

maintain behaviour toward attain some goal• Basic components of motivation: motivation

involves arousal, direction and maintenance of behaviour toward a goal

Basic motivational concepts

• Motivation and job performance are not synonymous- just because someone performs a task well doesn’t mean that he/she is highly motivated

• Motivation is multifaceted- being as productive as possible to please the boss might provoke coworkers

• People are motivated by more than just money- eeg: the prospect of performing jobs that are interesting and challenging, recognition, responsibility etc.

Employee’s Personal Motivation

• The feeling that ‘We are making a contribution’

• Supervisor’s praise• Respect of colleagues and peers• Being informed of happenings • Having meaningful & interesting work

2 types of Motivation

• Intrinsic (Belonging to a thing by its very nature)– actually

performing the behavior

– Behavior performed for its own sake

• Extrinsic (arising or originating from the outside)– Based on

acquisition of material or social rewards

• Employees can be intrinsically motivated, extrinsically motivated, or both.

• When employees are extrinsically motivated, managers should make a link between – the behaviors the organization wants

employees to perform and – the outcomes or rewards employees desire.

Theories of Motivation

• Need Theory• There are four need theories:

– Maslow’s hierarchy of needs, – Alderfer’s ERG theory,– McClelland’s learned needs theory, and– Herzberg’s two-factor (motivator-hygiene theory)

• Non-need theories• Expectancy Theory

– Victor Vroom– Porter Lawler

• Equity Theory• Theory X and Theory Y

I. Abraham Maslow’s Hierarchy of Needs

• Physiological needs: hunger, thirst, shelter and other bodily needs

• Safety: security and protection from physical and emotional harm

• Social: affection, belongingness, acceptance and friendship• Esteem: internal esteem factors (self-respect, autonomy

and achievement) and external esteem factors (status, recognition and attention)

• Self-actualisation: the drive to become what one is capable of becoming; growth, achieving one’s potential and self-fulfillment

II. Clayton Paul Alderfer’s ERG theory

Table Alderfer’s ERG Theory

Need Level Description

Growth Needs Needs for self-development and productive work

Relatedness Needs Needs to have good interpersonal relations

Existence Needs Basic needs for human survival

Distinction between the 2 Need Theories

• Maslow’s Hierarchy of Needs

– 5 universal needs– Hierarchy of importance– Once satisfied, need no longer motivates

• Alderfer’s ERG Theory

– 3 universal needs– Hierarchy of importance– Flexible movement amongst levels

N o tes

• A need is a requirement for survival and well-being. • Need theory is actually a group of theories about work

motivation• Focuses on employees’ needs as the sources of

motivation.• Need theories propose that employees seek to satisfy

many of their needs at work and that their behavior at work is therefore oriented toward need satisfaction.

• Managers must determine what needs an employee is trying to satisfy on the job

• And then ensure that an employee can satisfy his or her needs by engaging in behaviors that contribute to organizational effectiveness.

III. David McClelland’s theory of needs/ 3 need theory/ Learned needs theory

David McClelland

• This theory proposes that an individual’s specific needs are acquired over time and are shaped by one’s life experiences

• 3 needs: nAch, nPow and nAff• Need for achievement: the drive to excel, to achieve in

relation to set standards and to strive to succeed– People with high need of achievement (nAch) seek to excel

and thus tend to avoid both low-risk and high-risk situations– High nAch individuals prefer work that has a moderate

probability of success, say 50% chance– They prefer either to work alone or with high achievers

• Need for power: desire to make an impact, be influential and control others– nPow: personal power needs and institutional/social power needs– Personal power: want to direct others– Institutional power: want to organise the efforts of others to further

the goals of the organisation. Mangers who possess this are more effective than those with personal power

• Need for affiliation: desire for friendly and close interpersonal relationship– nAff: need harmonious relationship with other people and need to feel

accepted by other people– High nAff: prefer work that provides significant personal interaction– They perform well in customer service and client interaction situations

IV. Frederick Herzberg

Frederick Herzberg’s Two Factor theory/ Motivation-Hygiene theory

• Dissatisfiers or hygiene factors, not motivators: presence or existence of these factors does not motivate, but their absence would result in dissatisfaction

• Satisfiers or motivators: related to job content- presence of these factors yield feelings of satisfaction

Maintenance factors/ hygiene factors or dissatisfiers Motivational factors or satisfiers

• Job context• Company policy and administration• Quality of supervision• Relations with supervisors• Work conditions• Pay• Peer relations• Personal life• Relations with subordinates• Status• Job security

• Job content• Achievement• Recognition• Work• Responsibility• Advancement• Possibility of growth

Herzberg’s classification of maintenance & motivational factors

• Non-need theories

V. Equity Theory- J. Stacy Adams

• What?• Equity theory was developed by J. Stacy

Adams in the 1960s. • Equity theory is based on the premise that

an employee perceives the relationship between outcomes and inputs.

– Compare inputs to outcomes

• To motivate employees to contribute inputs that the organization needs, managers need to administer outcomes to employees based on their inputs.

• Additionally, managers must ensure that different employees’ outcome/input ratios are approximately equal so that employees who contribute more inputs receive more outcomes and vice versa.

Equity Theory

• Inputs– Special skills– Training– Education– Work experience– Effort on the job– Time

• Outcomes– Pay– Fringe benefits/perk – Job satisfaction– Status– Opportunities for

advancement– Job security

Equity Theory

• Inputs lead to outcomes• Objective level of outcomes does not

determine work motivation, i.e : It is not the objective level of outcomes and inputs that is important in determining work motivation.

• But the way an employee perceives his or her outcome/input ratio compared to the outcome/input ratio of another person.

Referent

• This other person is called a referent. • A referent is another employee or group of

employees perceived to be similar to oneself. • The referent can also be oneself at a different

place of time or it could be one’s expectations. • Regardless of the referent an employee chooses,

it is the employee’s perceptions of the referent’s outcomes and inputs that are compared

Table: Conditions of Equity and Inequity

• Equity exists when an individual’s outcome/input ratio equals the outcome/input ratio of the referent.

• Inequity exists when outcome/input ratios are not proportionally equal. Inequity creates tension and unpleasant feelings inside an employee and a desire to restore equity.

• Inequity motivates the individual to try to restore equity by bringing the two ratios back into balance.

• There are two types of inequity: – overpayment inequity and underpayment inequity.

• Overpayment inequity exists when an individual perceives that his or her outcome/input ratio is greater than that of a referent.

• Underpayment inequity exists when a person perceives that his or her outcome/input ratio is less than that of a referent.

(VI). Victor Vroom’s Expectancy theory

Expectancy Theory• According to this theory, motivation

depends on the desired goal and the strength of your expectation to achieve the goal

• This theory was developed by Victor Vroom in the 1960s.

• According to this theory, an employee will be motivated to exert a high level of effort when he or she believes that effort will lead to a good performance appraisal– and that a good appraisal will lead to organizational

rewards such as a bonus, a salary increase or a promotion– and that the rewards will satisfy the employee’s personal

goals• Hence, the theory focuses on 3 relationships:• Individual effort Individual Performance

Organisational rewards Personal goals

Expectancy Theory

• Arrow 1: effort-performance relationship– the probability perceived by the individual that exerting a given amount of effort will lead to performance

• Arrow 2: Performance-reward relationship– the degree to which the individual believes that performing at a particular level will lead to the attainment of a desired outcome

• Arrow 3: Rewards-personal goals relationship– the degree to which organizational rewards satisfy an individual’s personal goals or needs and the attractiveness of those potential rewards for the individual

• Effort Performance Rewards • Three major factors determine an employee’s

motivation:• Expectancy: Effort → Performance (E→P)• Instrumentality: Performance → Outcome (P→O)• Valence: V(R)

• Valence- V(R): Valence: the value the individual places on the rewards. Factors associated with the individual's valence for outcomes are values, needs, goals, preferences – How desirable is an outcome? How highly do I value the work outcomes?

• Instrumentality- Probability (P→O) (Performance Outcome)• Instrumentality is the belief that a person will receive a reward if the

performance expectation is met. This reward may come in the form of a pay increase, promotion, recognition or sense of accomplishment.– What is the connection between job performance and an outcome? What work

outcomes will be received as a result of the performance?• Expectancy- Probability (E→P)• Expectancy is the belief that one's effort (E) will result in attainment of

desired performance (P) goals. Usually based on an individual's past experience, self confidence, and the perceived difficulty of the performance standard or goal.– What is the connection between effort and job performance? Can I achieve the

desired level of task performance?

Difference between need theories and expectancy theory

• Need theories try to explain what motivates employees• Expectancy theory focuses on how employees decide which

specific behaviors to perform and how much effort to exert. • In other words, expectancy theory is concerned with how

employees make choices among alternate behaviors and levels of effort.

• It assumes that employees are motivated to receive positive outcomes and to avoid negative outcomes.

• It assumes that – employees are rational processors of information and that

– they use information about their jobs, abilities and desires to decide what they will do on the job and

• how hard they will do it

• Valence can be positive or negative and vary in size or magnitude- measured on a scale of -1 to +1.

• The valence refers the value the individual personally places on the rewards. -1 →0→ +1

• -1= avoiding the outcome, 0= indifferent to the outcome, +1=welcomes the outcome

• An instrumentality of +1 means that an employee perceives that performance definitely will result in obtaining the outcome.

• Expectancy is a probability and varies from 0 to 1 and reflects the chances that putting forth a certain amount of effort will result in a certain level of performance.

• An expectancy of 1 signifies that an employee is absolutely certain that his or her effort will lead to a certain level of performance.

Figure- Expectancy Theory

If just one of these three factors is zero, motivation will be zero.

VII. Porter and Lawler Model of Expectancy theory

• Lyman W. Porter and Edward E. Lawler: studied the relationship between motivation, satisfaction and performance

• Performance is a function of three important factors: i. If an employee wants to perform, he must be motivatedii. Motivation alone does not ensure performance and hence a person

must have the necessary abilities and skills as welliii. An employee must have an accurate knowledge of the requirements

of the jobKey variables in this model:EffortPerformanceRewardSatisfaction

The Porter-Lawler model of motivation

VIII. Douglas McGregor

Theory X & Y

McGregor’s Theory X and Theory Y

• Theory X assumptions: – The typical person dislikes work and will avoid it– He lacks responsibility, has little ambition and seeks security about all– Most people must be forced, controlled and threatened with

punishment to get them to work• Theory Y assumptions:

– People view work as being as natural as rest or play– They exercise self-direction and self-control if they are committed to

the organisational objectives– The average person can learn to accept or seek responsibility– People are not inherently lazy– They have potential, imagination and creativity which can be applied

to work

Implication of motivation for performance and satisfaction

• Job design: an approach to motivation suggesting that jobs can be created so as to enhance people’s interest in doing them

• Job enlargement: the practice of expanding the content of a job to include more variety and a greater number of tasks at the same level

• Job enrichment: the practice of giving employees a high degree of control over their work from planning, organization & implementing the jobs and evaluating the results

2 Case discussions

• Submit as assignment• Deadline: 18.4.2013• Internal marks will be based on theoretical

support of answers.

CASE STUDY 1- PERCEPTION AND INDIVIDUAL DECISION MAKING

• Mahesh loves what he does. He just isn’t crazy about how others see him. He is the owner of RR Automotive Sales, a used car dealership in Karol Bagh, Delhi, with about 30 cars on his lot at any time.

• Used car dealers deal with a pretty bad reputation,? says Mahesh. Just why, he isn’t sure. He didn’t realize there was such a stigma attached to used-car dealers until he opened his dealership in 2007. At Diwali, when family members would ask what I was doing, I’d tell them, and they’d ask me why I’d want to do that?

• Regardless of the public’s impression of used-car dealers, Mahesh loves his business. He enjoys being his own boss. He likes being the sole salesman on his lot. He relishes the diversity of his work, he does everything from buying the vehicles, to fixing them up to sell, to helping buyers arrange financing. And, very importantly, he likes the opportunity to work with customers. There are a thousand guys out there selling cars who are better at selling than I am,? Mahesh says. I’m more interested in having a relationship.

• One of the Mahesh’s strengths is that he loves cars. It’s in his blood- his father worked for a new-car dealer and frequently traded the family’s cars. Mahesh believes his intimate knowledge of cars makes it easier from him to sell them. I can tell you whether the car has 75% of its brake pad left or if the brake pads are new, because I did it.?

• To build a meaningful relationship with a customer, Mahesh has to overcome the stereotype of a used-car salesman. He thinks this might be coming from the hard-sell techniques used by some in his business. “I don’t think it would take a customer long to get jaded if they are out shopping for a car. That is a hard thing to overcome”.

• It’s frustrating to Mahesh when potential customers see him as just another shady salesman. Because he works hard to build a customer’s trust, it hurts him when he realizes that he’s failed. If they (customers) question my integrity, that is the hardest thing”.

Questions• Explain how you think the stereotype of used-car dealers

developed?• What, if anything different, can Singh do to counter this

stereotype?• In what ways might this stereotype be beneficial to Singh? To

potential customers?

• Case discussion 2: Motivation

Motivating nurses at a hospital

You have been hired by the director of a large hospital to help resolve problems of poor morale that have been plaguing the nursing staff. Unfortunately, the nurses don’t find their jobs particularly interesting. As a result, turnover and absenteeism have been high, and patient care is at an all-time low. The problem is apparent to everyone; both doctors and patients have been complaining

Question #1

• After interviewing the nurses, you found that they believed that no one cared how well they were doing.

• What theories could help explain this problem?

• Applying the theories you quoted, what would you recommend the hospital should do to resolve this problem?

Question #2

• Hospital officials tell you that nurses are well paid, adding to your surprise about the low morale.

• However, your interviews reveal that the nurses themselves feel otherwise. Why might this occur and why is this a problem?

• What could be done to help?

Q# 3

• “I’m bored with my job”, one highly experienced nurse tells you, and you believe she speaks for many within the hospital. What could be done to make their jobs more interesting?

• What are the limitations of your plan?• Would it work equally well for other members

like clerical and janitorial staff?

End of Module II

References:• Behaviour in Organisations, Jerald Greenberg

and Robert Baron, Pearson Education• OB, K. Aswathappa, HPH