CH-1-2 Introduction to the Field of Organizational Behaviour – Organisational Behaviour: Emerging Knowledge, Global Insights : Chapter Notes

This Document Contains Chapters 1 to 2 Introduction to the Field of Organizational Behaviour LEARNING OBJECTIVES After reading this chapter, students should be able to: LO1. Define organizational behaviour and organizations, and discuss the importance of this field of inquiry. LO2. Compare and contrast the four current perspectives of organizational effectiveness. LO3. Debate the organizational opportunities and challenges of globalization, workforce diversity, and emerging employment relationships. LO4. Discuss the anchors on which organizational behaviour knowledge is based. CHAPTER GLOSSARY corporate social responsibility (CSR) -- Organizational activities intended to benefit society and the environment beyond the firm’s immediate financial interests or legal obligations. deep-level diversity -- Differences in the psychological characteristics of employees, including personalities, beliefs, values, and attitudes. ethics -- The study of moral principles or values that determine whether actions are right or wrong and outcomes are good or bad. evidence-based management -- The practice of making decisions and taking actions based on research evidence. globalization -- Economic, social, and cultural connectivity with people in other parts of the world. high-performance work practices (HPWP) -- A perspective which holds that effective organizations incorporate several workplace practices that leverage the potential of human capital. human capital -- The stock of knowledge, skills, and abilities among employees that provide economic value to the organization. intellectual capital -- A company’s stock of knowledge, including human capital, structural capital, and relationship capital. open systems -- A perspective which holds that organizations depend on the external environment for resources, affect that environment through their output, and consist of internal subsystems that transform inputs to outputs. organizational behaviour (OB) -- The study of what people think, feel, and do in and around organizations organizational effectiveness -- A broad concept represented by several perspectives, including the organization’s fit with the external environment, internal subsystems configuration for high performance, emphasis on organizational learning, and ability to satisfy the needs of key stakeholders. organizational efficiency -- The amount of outputs relative to inputs in the organization’s transformation process. organizational learning -- A perspective which holds that organizational effectiveness depends on the organization’s capacity to acquire, share, use, and store valuable knowledge. organizations -- Groups of people who work interdependently toward some purpose. relationship capital -- The value derived from an organization’s relationships with customers, suppliers, and others. stakeholders -- Individuals, groups, and other entities that affect, or are affected by, the organization’s objectives and actions. structural capital -- Knowledge embedded in an organization’s systems and structures. surface-level diversity -- The observable demographic or physiological differences in people, such as their race, ethnicity, gender, age, and physical disabilities. values -- Relatively stable, evaluative beliefs that guide a person’s preferences for outcomes or courses of action in a variety of situations. virtual work -- Work performed away from the traditional physical workplace by using information technology. work–life balance -- The degree to which a person minimizes conflict between work and non-work demands. CHAPTER SUMMARY BY LEARNING OBJECTIVE 1-1 Define organizational behaviour and organizations, and discuss the importance of this field of inquiry. Organizational behaviour is the study of what people think, feel, and do in and around organizations. Organizations are groups of people who work interdependently toward some purpose. OB theories help people to (a) make sense of the workplace, (b) question and rebuild their personal mental models, and (c) get things done in organizations. OB knowledge is for every- one, not just managers. OB knowledge is just as important for the organization’s financial health. 1-2 Compare and contrast the four current perspectives of organizational effectiveness. The open systems perspective views organizations as complex organisms that “live” within an external environment. They depend on the external environment for resources, then use organizational subsystems to transform those resources into outputs that are returned to the environment. Organizations receive feedback from the external environment to maintain a good “fit” with that environment. Fit occurs by adapting to the environment, managing the environment, or moving to another environment. According to the organizational learn- ing perspective, organizational effectiveness depends on the organization’s capacity to acquire, share, use, and store valuable knowledge. Intellectual capital consists of human capital, structural capital, and relationship capital. Knowledge is retained in the organizational memory; companies also selectively unlearn. The high-performance work practices (HPWP) perspective identifies a bundle of systems and structures to leverage work- force potential. The most widely identified HPWPs are employee involvement, job autonomy, developing employee competencies, and performance/skill-based rewards. HPWPs improve organizational effectiveness by building human capital, increasing adaptability, and strengthening employee motivation and attitudes. The stakeholder perspective states that leaders manage the interests of diverse stakeholders by relying on their personal and organizational values for guidance. Ethics and corporate social responsibility (CSR) are natural variations of values-based organizations because they rely on values to guide the most appropriate decisions involving stakeholders. CSR consists of organizational activities intended to benefit society and the environment beyond the firm’s immediate financial interests or legal obligations. 1-3 Debate the organizational opportunities and challenges of globalization, workforce diversity, and emerging employment relationships. Globalization, which refers to various forms of connectivity with people in other parts of the world, has several economic and social benefits, but it may also be responsible for work intensification, and reduced job security and work–life balance. Workforce diversity is apparent at both the surface level (observable demographic and other overt differences in people) and deep level (differences in personalities, beliefs, values, and attitudes). There is some evidence of deep-level diversity across generational cohorts. Diversity may be a competitive advantage by improving decision making and team performance on complex tasks, yet it also brings numerous challenges such as dysfunctional team conflict and lower team performance. One emerging employment relationship trend is the call for more work–life balance (minimizing conflict between work and nonwork demands). Another employment trend is virtual work, particularly working from home (tele- work). Working from home potentially increases employee productivity and reduces employee stress, but it may also lead to social isolation, reduced promotion opportunities, and ten- sion in family relations. 1-4 Discuss the anchors on which organizational behaviour knowledge is based. The multidisciplinary anchor states that the field should develop from knowledge in other disciplines (e.g., psychology, sociology, economics), not just from its own isolated research base. The systematic research anchor states that OB knowledge should be based on systematic research, which is consistent with evidence-based management. The contingency anchor states that OB theories generally need to consider that there will be different consequences in different situations. The multiple levels of analysis anchor states that OB topics may be viewed from the individual, team, and organization levels of analysis.  LECTURE OUTLINE (WITH POWERPOINT® SLIDES) Introduction to the Field of OB Slide 1 Opening Vignette – HootSuite Vancouver-based HootSuite is a rapidly growing technology success story through its visionary leadership, adaptability, collaborative and creative culture, and other effective organizational behaviour practices Opening Vignette – HootSuite Slide 2 • • Culture of collaboration and creativity Supports employee morale, wellbeing, and motivation • Relies on developmental coaching, recognition, and meaningful feedback to motivate and train staff The Field of Organizational Behaviour Organizational behaviour (OB) -- study of what people think, feel, and do in and around organizations Organizations -- groups of people who work interdependently toward The Field of Organizational some purpose Behaviour • Collective entities – people interact with each other in an organized way Slide 3 • Organizations have a collective sense of purpose -- e.g. developing Internet products or designing better aircraft Historical Foundations of Organizational Behaviour OB emerged as a distinct field around the early 1940s, but organizations have been studied for centuries • Plato wrote about leadership Historical Foundations of Organizational • Confucius extolled the virtues of ethics and leadership Behaviour • Elton Mayo and his focus, “the human relations” school, laid the Slide 4 foundation for today’s field of organizational behaviour Why Study OB? Slide 5 • Adopt more accurate models of workplace behaviour Helps us to get things done in the workplace • Helps people to get things done—provides knowledge and tools for working with and through others Organizational behaviour is for everyone • Valuable for everyone who works in and around organizations OB and the Bottom Line • OB practices are powerful predictors of the organization’s survival and success Why Study OB? Helps us to make sense of and predict the world in which we live Use OB theories to question our personal beliefs and assumptions Organizational Effectiveness The ultimate dependent variable in OB • The outcome that most OB theories are ultimately trying to achieve Organizational Old and now discredited definition of organizational effectiveness was Effectiveness based on achieving stated objectives Slide 6 • Leadership could set easy goals • Goals might aim the organization in the wrong direction Four Perspectives of Organizational Effectiveness Open systems: firms have a good fit with their external environment Organizational learning: firms are learning organizations Four Perspectives of High-performance work practices: firms have efficient and adaptive internal Organizational subsystems Effectiveness Slide 7 Stakeholders: firms satisfy the needs of key stakeholders Open Systems Perspective Organizations are complex systems that live within a external environment Open Systems External environment – organizations depend on the external Perspective environment for resources e.g. raw materials, job applicants, financial Slide 8 resources, etc. • Place demands on how the organization should operate e.g. laws and cultural norms Internal subsystems – transform outputs into inputs Organizations are effective when they maintain a good “fit” with their external environment • Change products and services as well as how those products are produced • Actively manage their external environment e.g. marketing • Move to a new environment Internal Subsystems Effectiveness – how well the organization transforms inputs to outputs • Organizational efficiency (productivity) • Coordination is vital in the relationship among internal subsystems Organizational Learning Perspective Effective organizations find ways to acquire, share, use, and store knowledge Organizational Learning Need to consider both stock and flow of knowledge Perspective • Stock: intellectual capital Slide 10 • Flow: org learning processes of acquisition, sharing, use, and storage Intellectual Capital A company’s stock of knowledge including human, structural and relationship capital Intellectual Capital Human capital Slide 11 • Stock of knowledge, skills, and abilities among employees that provide economic value to the organization Structural capital • Knowledge embedded in an organization’s systems and structures e.g. documentation of work procedures Relationship capital • Value derived from an organization’s relationships with customers, suppliers, and others who provide added mutual value for the organization e.g. brand image Organizational Learning Processes Knowledge acquisition • Extracting information and ideas from the external environment as well as through insight e.g. hiring people, acquiring companies, when employees Organizational Learning learn from external sources, experimentation Processes Slide 12 Knowledge sharing • Distributing knowledge to others across the organization e.g. structured and informal communication, various forms of learning, intranets Knowledge use • Applying knowledge in ways that add value • Requires awareness that knowledge is available, autonomy to apply knowledge, and a culture that supports learning Knowledge storage • Processes to maintain organizational memory Organizational Memory The storage and preservation of intellectual capital Retain intellectual capital by: Organizational Memory 1. Keeping knowledgeable employees Slide 13 2. Systematically transferring knowledge to other employees 3. Transferring human capital to structural capital (e.g. documentation) Organizational unlearning – successful companies also unlearn • Unlearn routines and patterns of behaviour • Removes knowledge that no longer adds value High Performance Work Practices (HPWPs) Effective organizations incorporate several workplace practices that leverage the potential of human capital High-Performance Work Practices (HPWP) Perspective Slide 14 1. Employee involvement 2. Job autonomy Four HPWPs recognized in most studies: • Both of these strengthen employee motivation, improve decision making, organizational responsiveness, and commitment to change – together often take the form of self-directed teams 3. Employee competencies • Recruit and select people with relevant skills, knowledge, values and other personal characteristics • Invest in employee training and development 4. Performance/skill-based rewards • Link performance and skill development to financial and non-financial rewards valued by employees Note: Organizations excel by introducing a bundle of systems and structures that leverage the potential of their workforce HPWP Limitations • Provides an incomplete picture of organizational effectiveness • Gaps are mostly filled by the stakeholder perspective Corporate Social Responsibility at MTN At MTN Group, Africa’s largest mobile (cell) phone company, employees help the community and environment through the company’s awardwinning “21 Days of Y’ello Care” program. This photo shows MTN Corporate Social Responsibility at MTN employees painting schools during a recent Y’ello Care event. Slide 15 Stakeholder Perspective • Employees, shareholders, suppliers, labour unions, government, Slide 16 communities, etc. Personalizes the open-systems perspective • Identifies specific people and social entities • Stakeholder relations are dynamic i.e. can be managed Challenges with stakeholder perspective: • Stakeholders have conflicting interests • Firms have limited resources to satisfy stakeholders Stakeholders: Values • Relatively stable, evaluative beliefs that guide our preferences for and Ethics outcomes or courses of action in various situations Slide 17 • Shared values – similar values held by groups of people Ethics • Study of moral principles/values, determine whether actions are right/ wrong and outcomes are good or bad • Rely on ethical values to determine “the right thing to do” Stakeholders and CSR Stakeholder perspective includes corporate social responsibility (CSR) • Benefit society and the environment beyond the firm’s immediate financial interests or legal obligations Stakeholders and CSR • Organization’s contract with society—serve stakeholders beyond Slide 18 shareholders and customers Triple-bottom-line philosophy • Economic – survive and be profitable • Society – maintain or improve conditions • Environment – becoming “greener” Integrative Model of OB • Individual inputs and processes influence individual outcomes which have a direct effect on the organization’s effectiveness • Team inputs influence team processes which then affect team Integrative Model of OB performance and other outcomes Slide 19 • Team processes and outcomes affect individual processes and outcomes • Organizational inputs and processes have macro-level influence on both teams and individuals Contemporary Challenges for Organizations 1. Globalization Economic, social, and cultural connectivity with people in other parts of Globalization the world Slide 20 • Actively participate in other countries and cultures • Increased globalization due to improved information technology and transportation systems Effects of Globalization on Organizations • Benefits – larger markets, lower costs, greater access to knowledge and innovation • Increases work intensification, reduces job security, and work/life balance • Requires additional knowledge and skills e.g. global mindset 2. Increasing Workforce Diversity Surface-level diversity • Observable demographic or physiological differences in people (e.g. race, ethnicity, gender, age, physical disabilities) Increasing Workforce Diversity Slide 21 • Increasing surface-level diversity in Canada and other countries Deep-level diversity • Differences in the psychological characteristics of employees (e.g. personalities, beliefs, values, and attitudes) • Example: Generational differences Consequences of diversity – opportunities and challenges • Diverse knowledge, make better decisions on complex problems, higher financial returns (at least in the short run) • Challenges of diversity (e.g. team development, conflict) • Surface-level diversity is a moral and legal imperative 3. Emerging Employment Relationships Work-life balance • Degree to which a person minimizes conflict between work and nonwork demands Emerging Employment Relationships Slide 22 • One of the most important employment issues over the past decade Virtual Work • Work performed away from the traditional physical workplace by using information technology • Telework attracts job applicants and improves work-life balance for most people; can improve employee productivity, allows employees to remain productive when weather or natural disaster block access to the office • Telework has environmental and financial benefits and reduces employee costs • Telecommuting issues include social isolation, reduced promotion opportunities, emphasis on face time • Telecommuting better suited to people who are self-motivated, organized, work effectively with technology, and fulfil social needs elsewhere Organizational Behaviour Anchors Systematic research anchor • OB knowledge should be based on systematic research involving forming research questions, collecting data, and testing hypotheses Organizational Behaviour Anchors Slide 23 • Produces evidence-based management – making decisions and taking actions on research evidence i.e. researchers rely on scientific method (rather than accepting fads and other knowledge that lacks sufficient evidence) Multidisciplinary anchor • OB should welcome theories and knowledge in disciplines e.g. psychology (individual and interpersonal behaviour); sociology (team dynamics, organizational power); communications; marketing; information systems, etc. • May result in a “trade deficit” and leave OB vulnerable to a lack of common identity Organizational Behaviour Anchors (cont’d) Contingency anchor • A particular action may have different consequences in different situations – no single solution is best all the time Organizational Behaviour Anchors (cont’d) Slide 24 • Need to understand and diagnose the situation and select the strategy most appropriate under those conditions Multiple levels of analysis anchor 1. Individual e.g. personality, motivation, etc. 2. Team (including interpersonal relations) e.g. team norms, cohesion, etc. 3. Organizational • OB topics usually relevant at all three levels of analysis Introduction to the Field of Organizational Behaviour Slide 25 Individual Behaviour, Personality, and Values LEARNING OBJECTIVES After reading this chapter, students should be able to: LO1. Describe the four factors that directly influence individual behaviour and performance. LO2. Summarize the five types of individual behaviour in organizations. LO3. Describe personality and discuss how the “Big Five” personality dimensions and four MBTI types relate to individual behaviour in organizations. LO4. Summarize Schwartz’s model of individual values and discuss the conditions where values influence behaviour. LO5. Describe three ethical principles and discuss three factors that influence ethical behaviour. LO6. Describe five values commonly studied across cultures, and discuss the diverse cultures within Canada. CHAPTER GLOSSARY ability -- The natural aptitudes and learned capabilities required to successfully complete a task. achievement-nurturing orientation -- A cross-cultural value describing the degree to which people in a culture emphasize competitive versus cooperative relations with other people. collectivism -- A cross-cultural value describing the degree to which people in a culture emphasize duty to groups to which they belong, and to group harmony. conscientiousness -- A personality dimension describing people who are organized, dependable, goal-focused, thorough, disciplined, methodical, and industrious. counterproductive work behaviours (CWBs) -- Voluntary behaviours that have the potential to directly or indirectly harm the organization. extraversion -- A personality dimension describing people who are outgoing, talkative, sociable, and assertive. five-factor model (FFM) -- The five broad dimensions represent- ing most personality traits: conscientiousness, emotional stability, openness to experience, agreeableness, and extraversion. individualism -- A cross-cultural value describing the degree to which people in a culture emphasize independence and personal uniqueness. mindfulness -- A person’s receptive and impartial attention to and awareness of the present situation as well as to one’s own thoughts and emotions in that moment. moral intensity -- The degree to which an issue demands the application of ethical principles. moral sensitivity -- A person’s ability to recognize the presence of an ethical issue and determine its relative importance. motivation -- The forces within a person that affect his or her direction, intensity, and persistence of voluntary behaviour. Myers-Briggs Type Indicator (MBTI) -- An instrument designed to measure the elements of Jungian personality theory, particularly preferences regarding perceiving and judging information. neuroticism -- A personality dimension describing people who tend to be anxious, insecure, self-conscious, depressed, and temperamental. organizational citizenship behaviours (OCBs) -- Various forms of cooperation and helpfulness to others that support the organization’s social and psychological context. personality -- The relatively enduring pattern of thoughts, emotions, and behaviours that characterize a person, along with the psychological processes behind those characteristics. power distance -- A cross-cultural value describing the degree to which people in a culture accept unequal distribution of power in a society. presenteeism -- Attending scheduled work when one’s capacity to perform is significantly diminished by illness or other factors. role perceptions -- The degree to which a person understands the job duties assigned to or expected of him or her. uncertainty avoidance -- A cross-cultural value describing the degree to which people in a culture tolerate ambiguity (low uncertainty avoidance) or feel threatened by ambiguity and uncertainty (high uncertainty avoidance). CHAPTER SUMMARY BY LEARNING OBJECTIVE 2-1 Describe the four factors that directly influence individual behaviour and performance. Four variables—motivation, ability, role perceptions, and situational factors—which are represented by the acronym MARS, directly influence individual behaviour and performance. Motivation represents the forces within a person that affect his or her direction, intensity, and persistence of voluntary behaviour; ability includes both the natural aptitudes and the learned capabilities required to successfully complete a task; role perceptions are the extent to which people understand the job duties (roles) assigned to them or expected of them; and situational factors include conditions beyond the employee’s immediate control that constrain or facilitate behaviour and performance. 2-2 Summarize the five types of individual behaviour in organizations. There are five main types of workplace behaviour. Task performance refers to goal-directed behaviours under the individual’s control that support organizational objectives. Organizational citizenship behaviours consist of various forms of cooperation and helpfulness to others that support the organization’s social and psychological context. Counterproductive work behaviours are voluntary behaviours that have the potential to directly or indirectly harm the organization. Joining and staying with the organization refers to agreeing to become an organizational member and remaining with the organization. Maintaining work attendance includes minimizing absenteeism when capable of working and avoiding scheduled work when not fit (i.e., low presenteeism). 2-3 Describe personality and discuss how the “Big Five” personality dimensions and four MBTI types relate to individual behaviour in organizations. Personality is the relatively enduring pattern of thoughts, emotions, and behaviours that characterize a person, along with the psychological processes behind those characteristics. Personality traits are broad concepts about people that allow us to label and understand individual differences. Personality is developed through hereditary origins (nature) as well as socialization (nurture). The “Big Five” personality dimensions include conscientiousness, agreeableness, neuroticism, openness to experience, and extroversion. Conscientiousness and emotional stability (low neuroticism) predict individual performance in most job groups. Extraversion is associated with performance in sales and management jobs, whereas agreeableness is associated with performance in jobs requiring cooperation, and openness to experience is associated with performance in creative jobs. Based on Jungian personality theory, the Myers-Briggs Type Indicator (MBTI) identifies competing orientations for getting energy (extraversion vs. introversion), perceiving information (sensing vs. intuiting), processing information and making deci- sions (thinking vs. feeling), and orienting to the external world (judging vs. perceiving). The MBTI improves self-awareness for career development and mutual understanding but is more popular than valid. 2-4 Summarize Schwartz’s model of individual values and discuss the conditions in which values influence behaviour. Values are stable, evaluative beliefs that guide our preferences for outcomes or courses of action in a variety of situations. Com- pared to personality traits, values are evaluative (rather than descriptive), more likely to conflict, and formed more from socialization than heredity. Schwartz’s model organizes 57 values into a circumplex of 10 dimensions along two bipolar dimensions: openness to change to conservation and self-enhancement to selftranscendence. Values influence behaviour when the situation facilitates that connection and when we actively think about them and understand their relevance to the situation. Values congruence refers to how similar a person’s values hierarchy is to the values hierarchy of another source (organization, person, etc.). 2-5 Describe three ethical principles and discuss three factors that influence ethical behaviour. Ethics refers to the study of moral principles or values that deter- mine whether actions are right or wrong and outcomes are good or bad. Three ethical principles are utilitarianism, individual rights, and distributive justice. Ethical behaviour is influenced by the degree to which an issue demands the application of ethical principles (moral intensity), the individual’s ability to recognize the presence and relative importance of an ethical issue (moral sensitivity), and situational forces. Ethical conduct at work is supported by codes of ethical conduct, mechanisms for communicating ethical violations, the organization’s culture, and the leader’s behaviour. 2-6 Review five values commonly studied across cultures and discuss the diverse cultures within Canada. Five values commonly studied across cultures are individualism (valuing independence and personal uniqueness); collectivism (valuing duty to in-groups and to group harmony); power distance (valuing unequal distribution of power); uncertainty avoidance (tolerating or feeling threatened by ambiguity and uncertainty); and achievementnurturing orientation (valuing competition vs. cooperation). Canada consists of several cultures in addition to those brought by new Canadians. Anglophones and Francophones differ in their values, although these values have almost reversed over the past several decades. Aboriginal values also differ from others in Canada. Canadians and Americans also have noticeably different values, although North America might be divided into four clusters that cross national boundaries. LECTURE OUTLINE (WITH POWERPOINT® SLIDES) Individual Behaviour, Personality, and Values Slide 1 Opening Vignette: SNC-Lavalin (SNCL) Charges including conspiracy to commit fraud, forgery, and money laundering were laid against former executives and representatives at SNCL, one of Canada’s largest engineering and construction firms SNC-Lavalin (SNCL) Slide 2 Motivation, role perceptions, and misguided personal values explain the alleged bribery, money laundering, and other illegal activities by several SNC-Lavalin executives and employees. • Executives being highly motivated by bonuses and promotions for winning contracts, recent CEOs turning a blind eye to the wrongdoing, and SNCL staff detaching their behaviour from their personal values MARS Model of Individual Behaviour An individual’s voluntary behaviour and performance is influenced by motivation, ability, role perceptions, and situational factors represented by the acronym MARS MARS Model of Individual Behaviour Slide 3 • Need to understand all four factors to diagnose and influence individual behaviour and performance Employee Motivation Internal forces (cognitive and emotional conditions) that affect a person’s voluntary choice of behaviour • Direction – motivation is goal-directed, not random Employee Motivation Slide 4 • Intensity – amount of effort allocated to the goal • Persistence – continuing the effort for a certain amount of time Employee Ability Natural aptitudes and learned capabilities required to successfully complete a task • Aptitudes – natural talents that help people learn specific tasks more Employee Ability Slide 5 quickly and perform them better • Learned capabilities – skills and knowledge • Improve performance/wellbeing through person-job matching Person-job matching occurs by: 1. Selecting applicants with the required abilities 2. Providing training to develop required abilities 3. Redesigning the job so it matches employee’s abilities, then introduce more tasks as the employee gains skills Role Perceptions Role perceptions are clearer (role clarity) when we: Slide 6 • understand which tasks or consequences we are accountable • understand the priority of tasks and performance expectations • understand the preferred behaviours/procedures for tasks Benefits of clear role perceptions: • More accurate/efficient job performance (due to clearer direction of effort) • Better coordination with others • Higher motivation due to clearer link between effort and outcomes Situational Factors Environmental conditions beyond the individual’s immediate control that constrain or facilitate behaviour and performance • Constraints – e.g. time, budget, work facilities, consumer preferences, Situational Factors Slide 7 economic conditions • Cues – clarity and consistency of cues provided by the environment to employees regarding their role obligations e.g. lack of signs of nearby safety hazards Types of Individual Behaviour Slide 8 Types of Individual Behaviour (five categories) Task performance • Goal-directed behaviours under the individual’s control that sup- port organizational objectives • Involve working with people, data, things, and ideas • Performance includes: ➡ Proficiency -- working efficiently ➡ Adaptability -- responding to, coping with, and supporting new circumstances and work patterns ➡ Proactivity -- anticipates and initiates new work patterns aligned with environmental changes Organizational citizenship behaviours (OCBs) • Various forms of cooperation and helpfulness to others that support the organization’s social and psychological context • Directed toward: ➡ individuals -- e.g. adjusting work schedule to accommodate coworkers ➡ organization -- e.g., supporting the company’s public image • OCBs are not necessary “discretionary” behaviours (employees don’t have to perform them) because: ➡ (a) employees believe some OCBs are part of their job ➡ (b) companies consider some OCBs a condition of employment • OCBs increase individual/team performance (due to mutual support), but may contribute to work-family conflict and limit career progress Types of Individual Behaviour (cont’d) Slide 9 Counterproductive work behaviours • Voluntary behaviours that have the potential to directly or indirectly harm the organization -- e.g. harassing co-workers, creating unnecessary conflict, avoiding work obligations Joining & staying with the organization • Forming the employment relationship and staying with the organization Maintaining work attendance • Absences due to situation (weather), motivation (avoiding stressful workplace) • Presenteeism – attending scheduled work when one’s capacity to perform is significantly diminished by illness or other factors Defining Personality Slide 10 Personality in Organizations Defining Personality Relatively enduring pattern of thoughts, emotions, and behaviours that characterize a person, along with the psychological processes behind those characteristics • External traits – observable behaviours • Internal states – infer thoughts, values, and emotions from observable behaviours Personality traits -- categories of behaviour tendencies caused by internal characteristics (not environment) Traits apparent across situations, but situation may suppress behaviour tendencies • e.g. talkative people may talk less in a library where “no talking” rules are explicit and enforced Nature vs Nurture of Personality Slide 11 Nature vs Nurture of Personality Nature: Heredity explains about 50 percent of behavioural tendencies and 30 percent of temperament preferences • e.g. Minnesota studies found that some types of twins have similar personalities not due to similar environments Nurture: Socialization, life experiences, and other interactions with the environment also affect personality Personality stabilizes in young adulthood (about age 30, possibly older) • We form a clearer and more rigid self-concept as we get older • Executive function (part of the brain that manages goal-directed behaviour) tries to keep our behaviour consistent with self-concept Five-Factor Model of Personality (CANOE or OCEAN) Conscientiousness • High: organized, dependable, goal-focused, thorough, disciplined, methodical, and industrious Five-Factor Personality Model (CANOE) • Low: careless, disorganized, and less thorough Slide 12 Agreeableness • High: trusting, helpful, good-natured, considerate, tolerant, selfless, generous, and flexible • Low: uncooperative, intolerant of others’ needs, more suspicious, selffocused Neuroticism • High: anxious, insecure, self-conscious, depressed, and temperamental • Low (high emotional stability): poised, secure, and calm Openness to experience • High: imaginative, creative, unconventional, curious, nonconforming, autonomous, and aesthetically perceptive • Low: resistant to change, less open to new ideas, and more conventional and fixed in their ways Extraversion • High: outgoing, talkative, energetic, sociable, and assertive • Low (Introversion): quiet, cautious, and less interactive with others Five Factor Personality & Individual Behaviour Conscientiousness and emotional stability (low neuroticism) • Strongest personality predictors of individual performance for most jobs Five-Factor Personality & Individual Behaviour Slide 13 Extroversion • Higher performance in sales and management jobs • Contributes to social interaction and persuasion -- useful where employees must interact with and influence people Agreeableness • Higher performance in jobs where employees are expected to be helpful and cooperative e.g. teams, customer relations Openness to experience • More creative and adaptable to change Five-factor dimensions cluster around: • Getting Along (many org citizenship behaviours) -- Agreeableness, conscientiousness, emotional stability (and maybe extraversion) • Getting ahead (task performance, innovation) -- Openness to experience, extraversion, conscientiousness, and emotional stability But need to avoid “linear correlation” assumption that higher of each dimension is better -- more likely an optimal level for each Jungian Personality Theory Swiss psychiatrist Carl Jung proposed that personality is primarily represented by the individual’s preferences regarding perceiving and judging information Jungian Personality Theory Slide 14 Myers-Briggs Type Indicator (MBTI) • Estimates Jungian personality types • Most widely used personality test • Improves self-awareness and mutual understanding -- i.e. good for career counselling and executive coaching • Poor at predicting job performance, effective leadership, or team development Myers-Briggs Type Indicator (MBTI) Slide 15 Myers-Briggs Type Indicator (MBTI) Extroversion versus introversion (E – I) • Similar to five-factor dimension Perceiving information (S – N) • Sensing – perceiving information directly through the five senses to acquire factual and quantitative details • Intuition – relies on insight and subjective experience Judging i.e. making decisions (T – F) • Thinking – rely on rational cause-effect logic and systematic data collection to make decisions • Feeling – rely on emotional responses to the options as well as how those choices affect others Orientation toward the outside world (P – J) • Perceiving – open curious, flexible, adapt spontaneously to events, prefer to keep options open • Judging – prefer order and structure; want to resolve problems quickly Jungian and Myers- Briggs Types Slide 16 Jungian and Myers-Briggs Types (See notes in previous slide for details) Personality Testing in Organizations • MBTI is mostly used for team building and career development • The five-factor model is commonly found in scholarly research, but is increasingly used to assess job applicants • Personality testing has regained acceptance – studies report that specific traits correlate with specific indicators of job performance. However, work samples and past performance may be better predictors of performance • Assumption that “more is better” for each trait – ideal range is closer to the middle e.g. extremely high conscientiousness may become perfectionism • May unfairly discriminate against certain groups of people • Most are self-report scales – applicants may “fake” answers • Might convey an unfavourable image of the company – may alienate some applicants Values in the Workplace Stable, evaluative beliefs that guide our preferences for outcomes or courses of action in a variety of situations • Define right/wrong, good/bad Values in the Workplace Slide 17 • Tell us what we “ought” to do (moral compass) • Direct our motivation and, potentially, our decisions and behaviour Value system -- hierarchy of preferences which is relatively stable and long-lasting Values differ from personality traits • Values are evaluative (what we ought to do); personality traits are descriptive (what we tend to do) • Values conflict with each other (e.g. valuing excitement conflicts with valuing stability); personality traits have minimal conflict • Values affected more by nurture (socialization, reinforcement) than nature (heredity); personality about equally affected by nature and nurture Schwartz’s Values Model Slide 18 Clusters 57 specific values into 10 broad value categories which are further clustered into four quadrants • Openness to change -- Extent to which a person is motivated to pursue innovative ways • Conservation -- Extent to which a person is motivated to preserve the status quo • Self-enhancement -- How much a person is motivated by self-interest • Self-transcendence -- Motivation to promote the welfare of others and nature Schwartz’s Values Model Dominant model of personal values was developed and tested by social psychologist Shalom Schwartz and many others Personal Values and Behaviour Values direct our motivation, so guide our decisions, behaviour, and performance Personal Values and Behaviour Slide 19 But there is a “disconnect” between values and behaviour because: • Situation -- may prevent or discourage people from acting consistently with their values (both opportunity and counter motivation effects) • Awareness (salience) -- we apply values when we actively think about them and understand their relevance to the situation -- problem is that values are abstract, so their relevance isn’t obvious To increase values-consistent behaviour: • Maintain work environment that supports and is consistent with personal and organizational values (e.g., resources, rewards) • Remind employees of their (and company’s) most important values • Improve employee sensitivity to values relevance (i.e., increase moral sensitivity -- see ethics discussion below) Values Congruence at VanCity Vancouver City Savings Credit Union (VanCity) is one of Canada’s truly values-driven organizations. It hires staff whose personal values are aligned with financial institution’s values and offers a payout to new staff Values Congruence at who discover their values differ from VanCity’s. VanCity Slide 20 Values Congruence Slide 21 Person-organization values congruence • Person’s values are similar to the organization’s dominant values Espoused-enacted values congruence • Consistency between the values apparent in our actions – enacted values and what we say we believe in (espoused values) • Especially important for people in leadership positions because any gap undermines their perceived integrity Organization-community values congruence • Similarity of an organization’s dominant values with the values of the community or society in which it conducts business * Note: We use “values” (plural) because values operate as a set, not individually, and because “value” is easily confused with the economic concept of worth of something relative to price Values Congruence* Values congruence – how similar a person’s values hierarchy is to the values hierarchy of the organization, a co-worker, or another source Ethical Values and Behaviour Ethics is the study of moral principles or values that determine whether actions are right or wrong and outcomes are good or bad Three Ethical Principles Three Ethical Principles Slide 22 Utilitarianism • Seek the greatest good for the greatest number of people • Focuses on the consequences of our actions, not on how we achieve those consequences Individual rights principle • Reflects the belief that everyone has entitlements that let her or him act in a certain way e.g. freedom of speech, fair trial • Problem of conflicting rights e.g. right to privacy conflicts with another’s right to know Distributive justice principle • People who are similar should receive similar benefits and burdens e.g. two employees who contribute equally in their work • Inequalities are acceptable when they benefit the least well off Influences on Ethical Conduct Slide 23 principles Moral sensitivity (ethical sensitivity) • A person’s ability to recognize the presence of an ethical issue and determine its relative importance • Enables quicker and more accurate estimation of an issue’s moral intensity • Moral sensitivity increases with the person’s 1. empathy 2. subject expertise 3. direct experience with these moral dilemmas 4. mindfulness • Mindfulness -- A person’s receptive and impartial attention to and awareness of the present situation as well as to one’s own thoughts and emotions in that moment ➡ Involves actively monitoring the environment, so increases moral sensitivity Situational influences • External forces to act contrary to moral principles and personal values Supporting Ethical Behaviour Corporate code of ethics • Statement about desired practices, rules of conduct, and philosophy about the organization’s relationship to stakeholders and the Supporting Ethical Behaviour Slide 24 environment • Problem: Limited effect on ethical conduct Training • Train employees in proper ethical conduct Systems for communicating/investigating wrongdoing • Anonymous employee reporting -- e.g., hotline, website • Impartial investigation -- e.g. ombuds officers Ethical leadership and shared values • Ethical conduct and vigilance of corporate leaders – role model ethical standards that employees are more likely to follow Values Across Cultures Five values that have cross-cultural significance are individualism, collectivism, power distance, uncertainty avoidance, and achievementnurturing orientation Individualism Slide 25 Individualism A cross-cultural value describing the degree to which people in a culture emphasize independence and person uniqueness Highly individualist people value personal freedom, self-sufficiency, control over their own lives, and appreciation of their unique qualities Collectivism Highly collectivist people define themselves by their group memberships, Slide 26 emphasize their personal connection to others in their in-groups, and value the goals and well-being of people within those groups Note: Contrary to popular belief, individualism is not the opposite of collectivism – the two concepts are unrelated (both horizontally and vertically) High power distance Power Distance • Accept and value unequal power Slide 27 • Value obedience to authority • Comfortable receiving commands from superiors without consultation • Prefer to resolve conflicts through formal rules rather than directly Low power distance • Expect relatively equal power sharing • View relationship with boss as interdependent, not dependence • Expect power sharing and consultation in decisions affecting them Uncertainty Avoidance Slide 28 Uncertainty Avoidance Degree to which people tolerate ambiguity or feel threatened by ambiguity and uncertainty Low uncertainty avoidance • Tolerate ambiguity and uncertainty High uncertainty avoidance • Feel threatened by ambiguity and uncertainty • Value structured situations, clear documentation, and direct rather than indirect or ambiguous communications Achievement-Nurturing Slide 29 Achievement-Nurturing Reflects a competitive versus cooperative view of relations with other people High achievement orientation • Value assertiveness, competitiveness, materialism • Appreciate people who are tough and favour acquisition of money and material goods Nurturing orientation • Emphasize relationships and the well-being of others • Focus on human interaction and caring rather than competition and personal success Diversity of Canadian Values Slide 30 Diversity of Canadian Values Francophone and Anglophone cultural clusters are still easily identifiable as a form of deep-level diversity • Francophones have lower scores than Anglophones on respect for patriarchal authority and tend to have more tolerant or morally permissive opinions regarding marriage, sexual activity, and nonmarried parenthood • Some evidence that Anglophone and Francophone values are converging First Nations Values • Organizations with aboriginal leaders/founders tend to have: ➡ Strong collectivist value ➡ Low power distance ➡ Low uncertainty avoidance ➡ Relatively nurturing rather than achievement orientation Canadian vs. American Values Slide 31 Canadian vs. American Values Despite close associations, values held by people in Canada and the U.S. are more divergent today than in the past. Canadians are: • Significantly higher tolerance or moral permissiveness • More willing to allow collective rights over individual rights • Less accepting of large wealth differences within society • More likely to question authority and value autonomy • Less likely to be associated with a religious institution • More likely to believe that organizations work better without a single leader • Less value placed on patriarchal authority i.e. less likely to believe that the father should be the master of the home Individual Behaviour, Personality, and Values Slide 32 Individual Behaviour, Personality, and Values Instructor Manual for Organisational Behaviour: Emerging Knowledge, Global Insights Steven McShane, Mara Olekalns, Alex Newman, Angela Martin 9781760421649, 9780071016261