CH-5-6 Stress – Organizational Behavior: Improving Performance and Commitment in the Workplace : Chapter Notes

This Document Contains Chapters 5 to 6 Instructor’s Manual: Ch.5: Stress CHAPTER OVERVIEW Stress is a psychological response to demands that tax or exceed an individual’s capacity or resources. This chapter describes the difference between challenge and hindrance stressors, and provides suggestions on how to cope with these stressors. In addition, individual differences with regard to stress are discussed, along with the experience of strain. Finally, organizational efforts to manage stress are overviewed. LEARNING GOALS After reading this chapter, you should be able to answer the following questions: 5.1 What is stress, and how is it different than stressors and strains? 5.2 What are the four main types of work stressors? 5.3 How do individual people cope with stress? 5.4 How does the Type A Behavior Pattern influence the stress process? 5.5 How does stress affect job performance and organizational commitment? 5.6 What steps can organizations take to manage employee stress? CHAPTER OUTLINE I. Stress A. Definitions 1. Stress is defined as a psychological response to demands for which there is something at stake and coping with those demands taxes or exceeds a person’s capacity or resources 2. Stressors are the particular demands that cause people to experience stress 3. Strains are negative consequences that occur when demands tax or exceed one’s capacity or resources Try This! For students who have not yet read the chapter and have not yet seen Table 5-1, ask them to guess what some of the least stressful jobs are, and what some of the most stressful jobs are. Write them in two different columns on the board. Then, as you go through the list of challenge and hindrance stressors later in the lecture, keep coming back to your list on the board. Do the least stressful jobs really have lower levels of challenge and hindrance stressors? Which stressors are lowest? Do the most stressful jobs really have higher levels of challenge and hindrance stressors? Which stressors are most salient? II. Why Are Some Employees More “Stressed” Than Others? A. Perception and Appraisal of Stress 1. The transactional theory of stress describes how stressors are appraised. When people first encounter stressors, primary appraisal, or the evaluation of the significance and meaning of those stressors, is triggered a. Job demands that are not considered stressful are called benign job demands B. Types of Stressors 1. Work Hindrance Stressors – work-related stressors that people perceive as hindering their progress toward goals a. Role conflict – conflicting expectations that other people have of us Try This! Ask students to think about their current job, or the job they will pursue as their career after graduation. Have them describe the role conflict inherent in that job. At a minimum, most jobs will have a built-in conflict between quality and quantity that the students can identify. However, sometimes there will be more unique examples, such as strictly adhering to rule following versus providing customers with a uniquely pleasing customer service experience. b. Role ambiguity – lack of information regarding what needs to be done in a role c. Role overload – when the number of roles a person holds is so high that some of the roles are performed less effectively, or not at all d. Daily hassles – relatively minor day-to-day demands that get in the way of accomplishing what we want to do 2. Work Challenge Stressors – work-related stressors that can lead toward development and growth a. Time pressure – the sense that you don’t have enough time to do what needs to be done b. Work complexity – the degree to which the requirements of the work tax or exceed the capabilities of the person doing the work c. Work responsibility – the nature of the obligations a person has to others 3. Non-Work Hindrance Stressors – non-work-related stressors that hinder progress toward goals a. Work-family conflict – when the demands of the family role hinder the demands of the work role and vice-versa b. Negative life events – specific life events, such as the death of a spouse, that are perceived as stressful c. Financial uncertainty – a general uncertainty about loss of livelihood, savings, or the ability to pay expenses OB on Screen: Argo. The clip referenced in the book begins around the 50:00 mark of the film, continuing until about the 1:00:00 mark. The clip depicts many of the stressful demands that confront Tony Mendez as he tries to rescue the American hostages in Iran. The scene opens with Tony getting a visa to enter Iran. Then he makes his way through Iranian airport security. He has to seek approval from an Iranian official to make the movie “Argo” (his cover). He then meets the Canadian ambassador and explains the plan to rescue the hostages. The clip depicts many types of stressors. It’s evident that the plan is risky—it hasn’t been tried before. There are a lot of moving parts that have to come together. There’s great time pressure. It’s also clear that Tony is almost totally responsible for the plan and for the lives of the hostages. One topic for class discussion could center on the stressors Tony faces. You can list these and help students realize that they are a mix of hindrances and challenges. Another topic for class discussion could center on why someone would want to do a job like this. Here students will likely point out that the level of challenge stressors is high. Some students will likely say that they would never want to do it. You could use this type of comment to segue to a discussion of individual differences that might influence how stressors are interpreted and appraised. Note that some of these issues are covered later in the chapter. Try This! Use the Argo clip for a different chapter. The clip provides a good opportunity for discussing emotional intelligence and cognitive ability dimensions in Chapter 10 on Ability. Everyone involved in Tony’s plan will need high levels of verbal ability to recall cover story details and reasoning ability to react to questioning. Emotion regulation and emotion use will also be needed to “play the role” required by the plan. Bonus OB on Screen (from 2nd and 3rd ed): The Devil Wears Prada. The clip referenced in the book begins around the 11:50 mark of the film, continuing until about the 18:00 mark. The clip depicts Andy Sachs on the first day of her new job as “second assistant” to a fashion magazine editor. The scene provides very interesting and vivid examples of hindrance stressors, most notably, role ambiguity and role overload. One way to begin class discussion would be to have students identify the demands that Andy faces and explain how she probably appraises them. Another topic for class discussion is the role of Emily, the editor’s first assistant. Although she isn’t a source of stressful demands, she’s not very supportive either. Class discussion could then turn to means by which Andy could deal with the situation. Some students are likely to say, “just quit”, but there may be other students in class who recognize the instrumental value of stressful jobs, and will offer thoughts about how to manage the situation. Please email Jason Colquitt ([email protected]) if you have any questions about using OB on Screen in your teaching. Bonus OB on Screen (from 1st ed): Pushing Tin. The clip begins around the 12:30 mark of the film, continuing until about the 15:45 mark. The clip depicts a grade school tour of an air traffic control facility in which some fairly shocking statistics regarding strains associated with the job of air traffic controllers are revealed. Later in the scene, an air traffic controller experiences a situation where an error (at this point in the movie it’s unclear whether the error is the fault of the controller) results in a near miss (two airliners nearly collide in mid air). The demands in this scene vividly reveal why the job of an air traffic controller results in such high levels of stress and strains. Discussion could begin by asking students to identify the demands that are depicted in the scene, and also how these demands are likely to be appraised by the controllers. Students will likely identify responsibility and workload as two key demands, and note that these are both classified as challenge stressors. Students may also note that the demands became overwhelming when the controller didn’t see the blip on his radar screen, and at that point, the demands became more like role overload, which is classified as a hindrance stressor. 4. Non-Work Challenge Stressors – non-work-related stressors that are opportunities for growth and development a. Family time demands – the time a person commits to participate in an array of family activities and responsibilities b. Personal development – participation in activities associated with personal development, such as music lessons or sports activities c. Positive life events – specific life events such as pregnancy or the birth of a child, which, although positive, can still be perceived as stressful Try This! Together with your students, create a “university life event scale” for your university, along the lines of Table 5-2. List events on the board, guessing at a stress score for each one. For example, a negative event might be getting a bad grade on an exam, or breaking up with a significant other. A positive event might be winning an important sporting event or planning for graduation. The specific numbers will be guesses of course, but the interesting part will be to make sure the numbers make comparative, relative sense (e.g., that the number associated with the exam make sense relative to the number associated with the breakup. You may also want to use Table 5-2 as a guide for the numbers, meaning that most events listed will be in the thirties or below. C. How Do People Cope With Stressors? 1. Coping refers to behaviors and thoughts that help people manage stressful situations a. Behavioral coping – the set of physical activities that are used to deal with a stressful situation b. Cognitive coping – the thoughts that are involved in trying to deal with a stressful situation c. Problem-focused coping – refers to behaviors and cognitions intended to manage the stressful situation itself d. Emotion-focused coping – refers to the various ways in which people manage their own emotional reactions to stressful demands OB Internationally. This text box discusses the impact of stress on people with expatriate assignments. The main point of the insert box is that many expatriates fail in their assignments because they fail to effectively cope with the associated stress. One additional point to make is that it is not only the expatriate who faces the stress of being overseas, but also his or her family, and this may have a spiraling effect. Focus discussion on this scenario: imagine that you are the trailing spouse of an expatriate manager. What stresses might you encounter when your spouse is moved to another country? How might this stress, in turn, impact your spouse? D. The Experience of Strain 1. Negative Consequences of Stress a. Physiological strains – stress can have an impact on immune system, cardiovascular system, musculoskeletal system, and gastrointestinal systems b. Psychological strains – stress can cause psychological symptoms such as depression and anxiety, which can lead to burnout c. Behavioral strains – alcohol and drug use, teeth grinding, compulsive behaviors, overeating) E. Accounting for Individuals in the Stress Process 1. Reaction to stress depends on whether or not a person exhibits the “Type A Behavior Pattern OB Assessments: Type A. This assessment measures the extent to which students exhibit the “Type A” behavior pattern. When discussing the results with students, it is important to point out that while people who exhibit Type A behaviors tend to be more “stressed” than other people, other factors also come into play – the type of stressors people encounter, the amount of social support they have, etc. It might also be worth pointing out that this was originally developed as a tool by medical doctors to diagnose the predisposition for coronary problems. Please see the Instructor PowerPoints for Bonus Assessments on Challenge Stressors and Hindrance Stressors. Please see the Connect assignment for this chapter for an assessment on Strain. Please email me at [email protected] if you have any questions about using these assessments in your teaching. a. Type A people tend to encounter more stressors than other people, due to the fact that they are hard-driving and competitive b. Type A people are more likely to see demands as being stressful rather than benign c. Type A people are more likely to have coronary artery disease and exhibit other physical and psychological symptoms of strain 2. Social support can help to mitigate reactions to stress, by providing a buffer between stresses and strains a. Instrumental support – help people receive that can be used to address the stressful demand directly b. Emotional support – the help people receive in addressing the emotional distress that accompanies stressful demands III. How Important Is Stress? A. Hindrance stressors have a weak negative effect on job performance, because they reduce the energy and attention people can devote to a job. Challenge stressors, in contrast, have a weak positive effect on job performance, because they trigger positive emotions that can improve the work experience. B. Hindrance stressors have a strong negative effect on organizational commitment, because they make organizational life more dissatisfying. Challenge stressors, in contrast, have a moderate positive effect on job performance, again because they trigger positive emotions within the employee. IV. Application: Stress Management A. Benefits of Managing Stress 1. Levels of stress are directly linked with health care costs and worker’s compensation claims – managing stress keeps these costs down B. Steps in Stress Management 1. Assessment – Determine whether or not stress is a problem in the organization a. Stress audit – asks questions about the nature of jobs to determine if stress is an issue in the organization 2. Reducing Stressors a. Eliminate or significantly reduce stressful demands through programs such as job sharing b. This approach is most beneficial for hindrance stressors Asset Gallery (Emotions, Attitudes, Values/OB Video DVD): The Depressed Employee. This BusinessWeek Weekend video clip talks about how companies like General Electric have begun monitoring employee stress levels, and taking steps to reduce stressors when necessary. OB at the Bookstore: The Power of Habit. This book suggests an almost exclusive focus on doing one thing at a time. On the surface it is a simple suggestion, but there are implications that challenge conventional thinking. As an example, the authors suggest that multitasking is counterproductive. Similarly, they argue that rather than trying to maintain balance in our lives, we should try to achieve imbalance—again, focusing on what’s most important. Class discussion can focus on the advantages and disadvantages with respect to managing stress. Students will likely point out that there will be less role conflict, ambiguity and overload. Others may object, noting that the approach may increase uncertainty and risk. For example, it’s not always clear what the most important thing is. If you’re wrong, you could loose your job! So doing on thing may mean upsetting different people. It’s unclear how you handle this effectively when job performance is so multifaceted. 3. Providing Resources a. Help employees cope with stressful demands by i. providing resources such as training interventions ii. providing supportive practices such as flextime or compressed work weeks to help balance work and nonwork role demands Asset Gallery (Stress/Mgmt Video DVD): Best Buy’s Clockless Office. This BusinessWeek Weekend video clip talks about Best Buy’s Results Only Work Environment (ROWE). It provides a good companion to the opening case, showing how Best Buy has strived to make work more flexible for its employees. 4. Reducing Strains a. Decrease the strains associated with stress through practices such as relaxation techniques and meditation b. Use cognitive-behavioral techniques to help people appraise and cope with stress in a more rational manner c. Improve resistance to stress through health and wellness programs DISCUSSION QUESTIONS 5.1 Prior to reading this chapter, how did you define stress? Did your definition of stress reflect stressors, the stress process, strains, or some combination? Answer: Most students think of stressors when they think of stress – things like not having enough time, unreasonable demands from a parent, significant other, boss or professor, and not having the resources they need (money, books, etc.) As a follow-up to this question, ask students to identify the strains associated with the stressors they mention. What negative outcomes do they associate with their stressors? Before reading the chapter, many people might define stress simply as a feeling of being overwhelmed or under pressure. This basic definition often focuses on the emotional or physical sensations associated with stress, without necessarily considering the underlying causes (stressors), the process through which stress develops (the stress process), or the resulting effects on the body and mind (strains). If someone’s definition included elements like specific challenges or the impact on their health, it might reflect a combination of stressors and strains, but the full complexity of the stress process might not be fully captured in their initial understanding. 5.2 Describe your dream job and then provide a list of the types of stressors that you would expect to be present. Is the list dominated by challenge stressors or hindrance stressors? Why do you think this is? Answer: Answers to this question will vary by student, but consider the student whose “dream job” is to be CEO of his or her own organization. Stressors might include difficulties in dealing with politics in the organization, difficult customers, hassles with employees, the need to develop the organization, the need to learn more skills, and the need to create new products or services for the organization to sell. The first three are hindrance stressors, and the last three are challenge stressors. Dream Job: A creative director at a design firm. Expected Stressors: • Tight project deadlines (challenge) • High client expectations (challenge) • Frequent changes in project scope (hindrance) • Balancing multiple projects (challenge) • Office politics (hindrance) Dominance: The list is dominated by challenge stressors because the role involves dynamic and stimulating work that drives professional growth, though hindrance stressors also exist due to organizational complexities and client demands. 5.3 Think about the dream job that you described in the previous question. How much of your salary, if any at all, would you give up to eliminate the most important hindrance stressors? Why? Answer: Most students would give up a portion of their salary to eliminate these stressors. Students will note that getting rid of hindrances will make their lives easier and more satisfying, and it frees up time to deal with things that are more important. For a dream job like a creative director, I’d be willing to give up up to 10-20% of my salary to eliminate the most important hindrance stressors, such as office politics or frequent changes in project scope. This is because a more manageable and supportive work environment would significantly enhance my job satisfaction, overall well-being, and long-term career fulfillment, making the salary reduction worth it. 5.4 If you had several job offers after graduating, to what degree would the level of challenge stressors in the different jobs influence your choice of which job to take? Why? Answer: Challenge stressors help people to develop, and this is something that most individuals desire. It also makes sense to have jobs with high challenge stressors early on because this is how you grow and develop competence. 5.5 How would you assess your ability to handle stress? Given the information provided in this chapter, what could you do to improve your effectiveness in this area? Answer: Again, student answers will vary, but common responses will include gaining skills in time management, modifying job and/or school requirements, getting more exercise, participating in calming techniques such as meditation, etc. To assess my ability to handle stress, I’d evaluate how well I manage stressors, cope with pressures, and maintain performance under stress. Based on the chapter, to improve effectiveness: 1. Identify Stressors: Recognize specific stressors and assess their impact on me. 2. Develop Coping Strategies: Use strategies such as time management, relaxation techniques, or seeking social support. 3. Enhance Resilience: Build resilience through healthy lifestyle choices and stress management training. 4. Set Realistic Goals: Establish achievable goals to reduce feelings of overwhelm. 5. Seek Feedback: Regularly review how I handle stress and adjust strategies as needed. 5.6 If you managed people in an organization in which there were lots of hindrance stressors, what actions would you take to help ensure that your employees coped with the stressors using a problem focused as opposed to an emotion-focused coping strategy? Answer: The most obvious answer involves getting rid of hindrance stressors whenever possible. To encourage problem-focused coping strategies in the face of hindrance stressors, I would: 1. Identify Stressors: Help employees identify specific hindrance stressors affecting their work. 2. Provide Resources: Offer tools and resources to address and mitigate these stressors, such as training, improved processes, or additional support. 3. Encourage Problem-Solving: Foster a culture of problem-solving by encouraging employees to brainstorm solutions and seek practical ways to overcome obstacles. 4. Promote Open Communication: Create channels for employees to discuss stressors openly and collaboratively work on solutions. 5. Offer Support: Provide mentorship or coaching to guide employees in developing effective strategies to manage stressors. 6. Implement Feedback Mechanisms: Regularly review and adjust strategies based on feedback to ensure they effectively address stressors. CASE: BEST BUY Questions: 5.1 Consider Best Buy’s Results Only Work Environment. What are the major strengths of this program in regards to the management of employee stress? Are there weaknesses of the program in this regard? That is, how could the practice actually increase employee stress? Answer: The primary benefit of the Results Only Work Environment (ROWE) with respect to managing employee stress centers on reducing work-family conflict. Employees can manage their own schedules, which may make it easier to find time to meet both work and family demands. The limitation here is that a large under of demands in one role may begin to impinge on the ability to be effective in the other role. 5.2 What do the comments of the Best Buy CEO and company spokesperson reveal about their beliefs regarding employee stress and the effect it has on employee and organizational outcomes? In what ways are their beliefs justified and unjustified? Answer: The CEO and company spokesperson seem to have the belief that stress is motivational – employees need to feel disposable rather than indispensable – or at the very least, that stress is not as important as being present at the office. The belief may be justified in light of Best Buy’s problems, and the fact that the company needs to increase effectiveness through collaboration and increased effort among employees. At the same time, however, the company needs to consider the detrimental effect that hindrance stressors have on employee motivation, strain, and effectiveness. If there’s an increase in demands that employees appraise as a hindrance, negative consequences will eventually result. 5.3 Describe how individuals who exhibit the Type A Behavior Pattern would likely react to the Energy Pods. What role could social support play in promoting the acceptance of Energy Pods and similar strain-reducing practices? Answer: People with a Type-A behavior pattern would not likely want to use an Energy Pod, even though they might benefit from it. They would likely feel that they don’t have time to waste taking a nap. They would also become upset with people with whom they worked if they were not available because they were using the Energy Pods. Social support in the form of encouragement, especially among people in leadership positions, would be important in promoting the use of Energy Pods. BONUS CASE: GOOGLE (from 3rd ed) If you’re like most people, chances are that it hasn’t been more than a few hours since you’ve used Google to search for something on the Web. In fact, in the United States each month, there are about 12 billion Google searches, a number that represents about 65% of all Web searches conducted. Of course, you may also have used Google to email (Gmail), collaborate (Google Docs), shop (Google Products), or see what something looks like from afar (Google Maps). Google has enjoyed remarkable financial success and growth since its inception in 1998, after co-founders Larry Page and Sergey Brin developed and patented the algorithm that made Web searches efficient and user friendly. Google’s revenues, primarily from advertising, are nearly $30 billion, placing it among the top 100 or so companies in the United States, just ahead of household names such as McDonalds, 3M, and Coca-Cola. If you picture your life as a Googler, chances are you’d have an image in mind that is quite positive. Google is highly innovative, and the nature of the work and work environment at the company create a sense of excitement for its employees. Of course, Google employees put in long hours and are under great pressure to develop the innovations that lead to the new and improved products and services that we all enjoy. So how does Google help its employees cope with these important demands? Employees at Google headquarters and their other offices are treated to a variety of extraordinary perks that make life easier. For example, Google serves free gourmet food in cafes scattered throughout the “Googleplex” (a nickname for their corporate headquarters), which allows employees to work without having to worry about traveling off-site to eat. As another example, Google employees can take care of medical appointments, haircuts, laundry, and oil-changes right at the office, so they don’t have to figure out how to find the time to deal with these non-work responsibilities. As a final example, Google offers perks that help employees cope with the demands of their work directly. For instance, Google provides access to bikes so employees can travel quickly to meet team members in other buildings to collaborate on projects. It shouldn’t surprise you to learn that Google employees take great pleasure in these perks. In fact, Fortune magazine consistently ranks Google to be among the very best places in the United States to work. It also may not surprise you to learn that these perks also encourage Google employees to stay at the office for longer period of time. Unfortunately, however, this prevents Google employees from taking time away from work to “decompress”. Time away from work allows employees to avoid the negative experience of unhealthy strains that accrue over the course of hectic workdays. Although Google offers additional perks to help employees manage these strains—for example, massage, yoga, and meditation—none compare with the MetroNap Energy Pods the company uses. An Energy Pod consists of a reclining chair with an egg shaped cap which folds down to cover the occupant’s head and torso. The occupant listens to music in an isolated cocoon-like environment and drifts off to sleep, and then after a short rest, light and vibration provide gentle cues that it’s time to wake up. The idea is that a short rest of 20 minutes or so helps people recover from the demands of working hard so that they're re-energized for the work that lies ahead. In fact, research has demonstrated that naps can reduce stress, as well as improve cognitive-functioning, memory, and mood. These benefits might be especially important given that people in the United States do not get enough sleep at night, and short naps may help people overcome associated sleepiness. It’s important to note that although naps may be revitalizing, they cannot bring people all the way back to their peak level of health and performance if they continuously overwork and loose sloop at night. Moreover the idea of a company paying people to sleep while at work is likely to seem quite strange. That said, companies spend significant resources on practices that help employees cope with stress and strains, and there are indications that these programs have a positive return on investment. For example, 40 percent of all large companies in the United States spend more than $200,000 a year on programs that promote employee health and wellness, and there’s a reduction of about $1.65 in health care expenses for every dollar an organization invests in these types of programs. Although the Energy Pods retail for approximately $80,000, it’s unknown how much Google paid for them, how much they cost to maintain, and why type of return they expect from this investment. It’s clear, however, that Google is willing to invest in innovations they believe will promote and maintain a health and productive workforce. Sources: Elgin, B. “Google’s leap may slow rival’s growth.” BusinessWeek, July 18, 2005, p. 45. Ferguson, C.H. “What’s next for Google?” Technology Review, January 2005, pp. 38-46. “Fortune 500, 2010.” CNNMoney.com, (n.d.), http://money.cnn.com/ magazines/fortune/fortune500/2010/full_list/101_200.html. Press Release: March 2011U.S. Search Engine Rankings.” comScore, April 20, 2011, http://www.comscore.com/ Press_Events/Press_Releases/2011/4/comScore_Releases_March_2011_U.S._Search_Engine_Rankings. “Google History. Google Corporate Website, (n.d.), http://www.google.com/corporate/history.html. “Investor Relations.” Google Corporate Website, (n.d.), http://investor.google.com/ financial.tables.html. Hof, R.D. “Google: What Goes Up….” BusinessWeek, April 14,2008, pp. 21-22. Hoffman, J. “Napping Gets a Nod at the Workplace” Bloomberg Businessweek, August 26, 2010, http://www.businessweek.com/magazine/content/10_36/b4193084949626.htm. Lashinsky, A. “Search and Enjoy.” Fortune, January 22, 2007, pp. 70-82.“NASA Naps: NASA-supported Sleep Researchers are Learning New and Surprising Things about Naps.” NASA Science: Science News, June 3, 2005, http:// science.nasa.gov/science-news/science-at-nasa/2005/03jun_naps/. Sridharan, V. “Google’s Ginormous Free Food Budget: 7530 Per Googler, $72 Million a Year.” Business Insider, April 23, 2008, http://www.businessinsider.com/2008/4/googles-ginormous-foodbudget-7530-per-googler. “The Google Culture.” Google Corporate Website, (n.d.), http://www.google.com/ corporate/culture.html.“100 Best Companies to Work For, 2011.” CNNMoney.com: Fortune, (n.d.), http://money.cnn.com/magazines/fortune/bestcompanies/2011/ index.html. “Why is Google so Great?” Great Place to Work Institute, Inc., 2007, http:// resources.greatplacetowork.com/article/pdf/why_google_is_no._1.pdf. Yarow, J. “Googlers Take Naps in Bizarre Contraption.” Business Insider SAI, June 17, 2010, http:// www.businessinsider.com/google-sleep-pods-2010-6" . Questions: 5.1 Describe how the work that’s done at Google can result in employees feeling both very stressed and also very positive about their work and the company. In what way do these effects depend on Google being able to hire the “right” kind of employees? Answer: The work at Google is filled with challenge stressors. Demands such as time pressure, work load, complexity and responsibility are important to people and they tax their resources, yet at the same time these demands are satisfying and motivational because they are seen as being beneficial in promoting personal growth and well being. Google’s success depends on being able to attract and hire people who feel energized by these types of stressful demands. 5.2 Describe the different ways that the Energy Pods influence the stress process. Might there be any differences in how employees use the Energy Pods to cope with hindrance stressors as opposed to challenge stressors? Answer: Conceivably, Energy Pods can influence the stress process in a number of ways. Employees could potentially use them to “hide”, thereby reducing stressors. Using the Energy Pod could also energize people in a way that would lead them to appraise demands as being more challenging than hindering. A nap in an Energy Pod could also provide energy needed for problem-focused coping, or a quite place to engage in cognitive problem focused coping. Employees who face challenging demands would likely use the Energy Pod for this purpose. Of course a nap in an Energy Pod could also provide a means of emotion-focused coping. Employees who face hindering demands would likely use the Energy Pods for this purpose. 5.3 Describe how individuals who exhibit the Type A Behavior Pattern would likely react to the Energy Pods. What role could social support play in promoting the acceptance of Energy Pods and similar strain-reducing practices? Answer: People with a Type-A behavior pattern would not likely want to use an Energy Pod, even though they might benefit from it. They would likely feel that they don’t have time to waste taking a nap. They would also become upset with people with whom they worked if they were not available because they were using the Energy Pods. Social support in the form of encouragement, especially among people in leadership positions, would be important in promoting the use of Energy Pods. INTERNET CASE: THE MANY DANGERS POSED BY BURNED OUT DOCTORS By Chase Scheinbaum http://www.businessweek.com/articles/2012-08-22/the-many-dangers-of-burned-out-doctors Questions: 5.1 What are the likely causes of burnout among doctors? To what does Dr. Norcross attribute the increase in burnout? Answer: There are many different demands that doctors have. The article mentions time pressure, workload, role conflict, work family conflict, bureaucracy, and feelings of responsibility. The statement of Dr. Norcross reveals that doctors are interested in getting into medicine because it is a challenge occupation, a calling, but somewhere along the way, the challenges seemed to be overtaken with hindrances that have nothing to do with medicine. 5.2 In what way does this particularly article highlight outcomes of burnout that are not mentioned much in the chapter? Answer: The example makes it clear that there are implications to burnout beyond those symptoms (being mentally, physically, and emotionally exhausted, cynical, lacking efficacy). Burned out doctors probably do not perform at their peak, and thus their patients could experience negative health related consequences. Moreover, if doctors leave the field, it’s more difficult to get appointments, and in some circumstances, it may be impossible to obtain care from a qualified physician. Ultimately, the overall quality of healthcare available to society may suffer. EXERCISE: MANAGING STRESS Instructions: Put students into groups and instruct them to share the 2-3 most important hindrance stressors that they are currently experiencing and to seek feedback from their group members on strategies for managing those stressors. Note that some students may instead list challenge stressors, such as workload or time pressure. That’s OK too. The exercise focuses specifically on hindrance stressors because those have a greater impact on strain, but that restriction need not be enforced. For the life balance portion in Step 2, you may find it helpful to draw your own circles as a demonstration to the class, with one being your current division of your waking hours and the other being your ideal division. You may wish to add categories to the division to fit the characteristics of your particular class. Finally, have students share and critique their current standing on the hardiness factors (relaxation, exercise, and diet). Questions: It is true that many stress management strategies take time, particularly strategies centered around building better life balance or finding more time to relax or exercise. That time requirement makes “stressed” individuals resistant to them, on the logic that “if I had time to do that, I wouldn’t be so stressed out!” However, most stress and health experts would say that stress management strategies save time in the long run. For example, becoming more hardy will allow employees to focus better and think better on the job, getting more done in less time. It will also prevent them from getting sick in response to strain, sparing them from the productivity consequences of illness. Such strategies are particularly important for Type A individuals whose disposition makes them particularly sensitive to the stressors in their lives. OMITTED TOPICS The field of organizational behavior is extremely broad and different textbooks focus on different aspects of the field. A brief outline of topics that are not covered in this text, but which the professor might want to include in his or her lecture, is included below. In cases where these topics are covered in other chapters in the book, we note those chapters. In cases where they are omitted entirely, we provide some references for further reading. • Eustress-Distress. Hans Seyle coined the terms eustress and distress to refer to positive and negative stress respectively. These terms are fairly well-known, and they may appear to be similar to the concepts of challenge stressors and hindrance stressors. Seyle, however, was a medical doctor and his research focused primarily on the physiological effects of stress, rather than work related effects. For more on this see: Seyle, H. The Stress of Life. New York: McGraw Hill, 1956. • Optimal stress levels. It is widely believed that the relationship between the level of stress and outcomes is an inverted U. This perspective suggests that stress is energizing, and therefore is good up to a certain point. However, after that optimal point, stress becomes excessive and is bad. This relationship is most often attributed to the early work of Yerkes and Dodson. For more information see: Yerkes, R. M., & J. D. Dodson. “The relation of strength of stimulus to rapidity of habit-formation. Journal of Comparative Neurology and Psychology, 18(1908). pp. 459-482. Teigen, K. H. “Yerkes-Dodson: A Law for all seasons.” Theory and Psychology, 4(1994), pp. 525-547. • Institute for Survey Research (ISR) Model of Stress. Widely cited general model of stress that considers objective properties of the environment, enduring properties of the person, and interpersonal relationships as factors that impact the psychological interpretation of the environment, and in turn, more distal outcomes (physiological, behavioral, and affective responses). For more on this see: French, J. R. P., and R. L. Kahn. “A programmatic approach to studying the industrial environment and mental health” Journal of Social Issues, 18(1962), pp. 1-47. • Person-Environment Fit. To some degree an extension of the ISR model, but with more explicit attention paid to the idea that stress (strain) is a consequence of the mismatch between person and environment. For more information see: Edwards, J. R. & R. V. Harrison. “Job demands and worker health: Three-dimensional re-examination of the relationship between person-environment fit and strain”. Journal of Applied Psychology, 78(1993). pp. 626-648. French, J. R. P., & R. D. Caplan, and R. V. Harrison. The mechanisms of job stress and strain. Chinchester, England: Wiley. 1982. • Job Demand-Job Control Model. Proposes that high decision latitude (decision authority or job control) attenuates the effects that workload has on strains. The combination of high workload demands and low decision latitude cause the most strains. For more information see: Karasek, R. A. Jr. “ Job Demands, Job Decision Latitude, and Mental Strain: Implications for job Redesign”. Administrative Science Quarterly, 24(1979). Pp. 285-308. Instructor’s Manual: Ch. 6: Motivation CHAPTER OVERVIEW Motivation determines the direction, intensity, and persistency of work-related efforts. This chapter shows how expectancies, goals, and perceptions of equity impact motivation, and identifies empowerment and compensation practices that organizations can use to increase motivation. LEARNING GOALS After reading this chapter, you should be able to answer the following questions: 6.1 What is motivation? 6.2 What is expectancy theory, and what are the three beliefs that help determine how work effort is directed? 6.3 What is goal setting theory? What two qualities make goals strong predictors of task performance? How and when do those effects occur? 6.4 What does it mean for rewards to be “equitable,” and how are perceptions of equity determined? How do employees respond when they feel a sense of inequity? 6.5 What is psychological empowerment? What four beliefs help create a sense of empowerment among employees? 6.6 How does motivation affect job performance and organizational commitment? 6.7 What steps can organizations take to increase employee motivation? CHAPTER OUTLINE I. Motivation A. A set of energetic forces that originates both within and outside an employee, initiates work-related effort, and determines its direction, intensity, and persistence B. A current corporate buzzword for motivation is engagement, with “engaged” employees being those who invest themselves in their job and bring a lot of energy to their work. OB on Screen: Dark Knight Rises. The clip referenced in the book begins around the 26:23 mark of the film, continuing until about the 31:29 mark. The clip depicts a frail and disengaged Bruce Wayne, long retired from his role as the Batman, coming to grips with a new evil in Gotham City. As he hears about the shooting of Commissioner Gordan and the arrival of a mercenary named Bane, Bruce has to consider whether to re-don the cape and cowl. Ask the students why Bruce might—and might not—be motivated to resume his costumed identity. On the one hand, they may point to the renewed need for a hero, as Gotham seems to be on the verge of trouble after years of relative quiet. On the other hand, Bruce’s body is broken and his confidence is shaken. That tension between impact and efficacy is what Bruce must wrestle with during and after the clip. Try This! Use the Dark Knight Rises clip for another chapter. Bruce’s condition provides a good discussion of physical abilities in Chapter 10 on Ability. Although his cognitive abilities seem “up to the job,” the condition of his body does not seem strong enough to don the cape and cowl. One open question is whether Bruce is emotionally intelligent enough to make a valid decision about whether to stay on the sidelines or reengage his superhero identity. Bonus OB on Screen (from 3rd ed): Wall Street: Money Never Sleeps. The clip referenced in the book begins around the 49:20 mark of the film, continuing until about the 54:18 mark. The clip depicts Jake Moore meeting with Bretton James, some time after Moore started a rumor that hurt James’s company. Focus the discussion on what money seems to mean to James, and of the meaning of his one word answer to Moore’s “what’s your number question”? In what ways might James’s greed aid him in his working life? In what ways might it hurt him? Are there ways in which “greed is good?”, in terms of the original Wall Street? What are the limits on that goodness? Please email Jason Colquitt ([email protected]) if you have any questions about using OB on Screen in your teaching. Bonus OB on Screen (from 2nd ed): The Dark Knight. The clip referenced in the book begins around the 53:20 mark of the film, continuing until about the 57:16 mark. The clip depicts Bruce Wayne (a.k.a. the Batman) having a conversation with his butler, Alfred, about the villainous Joker. Focus discussion on the story that Alfred tells Bruce-a story that echoes the difficulties involved in predicting the Joker’s next move. Why does the Joker’s lack of extrinsic motivation make him so difficult to understand? Bonus OB on Screen (from 1st ed): Talladega Nights: The Ballad of Ricky Bobby. The clip referenced in the book begins around the 1:05:10 mark of the film, continuing until about the 1:13:27 mark. The clip depicts Ricky Bobby as he struggles to rejoin the NASCAR circuit after an accident sidelined his career. Ricky Bobby had burst onto the NASCAR scene earlier in the season, displaying an exuberance for driving that faded as prize money and sponsorship deals became his focus. Now, post-accident, Ricky’s father tries to help him rebuild his self-confidence and rediscover his intrinsic love of “going fast.” His father understands that Ricky just needs to be reminded of the enjoyment, personal expression, and sense of accomplishment that speed can give him. That sense of doing what he loves will provide a stronger “pull” back to racing than any trophy or prize money could. II. Why Are Some Employees More Motivated Than Others? A. Expectancy Theory 1. A cognitive process that employees go through to make choices among different voluntary responses 2. Process suggests that choices about behavior depend on three beliefs a. Expectancy i. The belief that exerting a high level of effort will result in the successful performance of some task ii. Expectancy is shaped by self-efficacy – the belief that a person has the capabilities needed to execute the behaviors required for task success. Self-efficacy depends on an analysis of the task and one’s own resources, and can be enhanced through: a. Past accomplishments – the degree to which the person has succeeded on similar tasks in the past b. Vicarious experience – observing others performing the same kinds of tasks c. Verbal persuasion – supportive comments from friends, coworkers, etc. which indicate that an employee can “get the job done d. Emotional cues – feelings of fear or anxiety can decrease expectancy, while feelings of pride or enthusiasm can boost it Try This! Ask the students if there are any current or former athletes in the room. Then ask them to think about the things their coaches would say during practices, before games, or during games. Did those things reflect the sources of self-efficacy, such as past accomplishments, verbal persuasion, or emotional cues? Can any students provide some good example quotes? b. Instrumentality i. The belief that successful performance will result in certain outcomes. ii. Many employees do not see the link between job performance and the rewards they receive c. Valence i. The anticipated value of the outcomes associated with performance Asset Gallery (Motivation & Goal Setting/OB Video DVD): A Motivation Convention in Chicago. This Today show video clip tours a motivation convention, illustrating potential nonmonetary forms of recognition. Focus discussion on whether students will find these rewards to be motivational. ii. Valences are influenced by the specific needs of the employee. Needs studied in OB include existence, relatedness, control, esteem, and meaning needs. iii. Outcomes such as pay, bonuses, promotions, etc., are linked to extrinsic motivation, while outcomes such as enjoyment, interestingness, and accomplishment are linked to intrinsic motivation. iv. The attractiveness of outcomes varies across cultures – different outcomes are more attractive to different people v. Employees underestimate how powerful a motivator pay is to them. Financial incentives almost always have a stronger impact on motivation than other sorts of outcomes. a. Money is relevant to multiple needs b. Money also conveys a sense of esteem – money can have a symbolic meaning, not just an economic one. OB Assessments: Meaning of Money. This questionnaire gives students a sense of the meaning they attach to money. Prior to asking students to take this assessment, ask them if they have ever left a job because they wanted to make more money. If they have, why did they need the money at the time? What did it give them? If they haven’t, what factors kept them on the job? Were other jobs that paid more not available, or were they getting something from the job that was more important than money? Please see the Instructor PowerPoints for Bonus Assessments on Engagement and Self-Efficacy. Please see the Connect assignments for this chapter for assessments on Intrinsic Motivation and Equity Distress. Please email me at [email protected] if you have any questions about using these assessments in your teaching. 3. Motivational Force = E → P × ∑ [(P→O) × V] B. Goal Setting Theory 1. Goal setting theory views goals as the primary drivers of the intensity and persistence of effort a. Specific and difficult goals result in higher performance than no goals, easy goals, or “do your best” goals i. Shape self-set goals – the internalized goals people use to monitor their performance ii. Trigger the creation of task strategies to achieve goals b. Goals should be S.M.A.R.T. – specific, measurable, achievable, results-based, and time sensitive 2. Moderator variables in goal setting a. Feedback – Goals are more effective when people are provided with information about their progress in meeting the goals b. Task Complexity – The effects of specific and difficult goals are twice as strong for simple tasks as they are for complex tasks c. Goal Commitment – Performance is influenced by the extent to which a person accepts the goal and is determined to try to reach it OB Internationally. This box identifies several of the factors that influence the effectiveness of goals in different cultures. If you have a diverse class, ask students from different countries to describe how the organizations in which they have worked handle goal setting, particularly in the performance review process. The box notes that culture influences the types of goals that are set, rewards, and how they are associated with goals, participation in the goal setting process, and the feedback given about goal progress. C. Equity Theory 1. Equity theory suggests that employees create a “mental ledger” that tallies their contributions to the job with the rewards they get from the job a. The ratio in this ledger (outcomes/inputs) is compared to a similar ratio for a comparison other – someone who provides a frame of reference for judging equity i. If positions are equitable, no actions are needed ii. If underreward inequity exists, people try to increase outcomes or shrink inputs iii. If overreward inequity exists, people try to shrink outcomes or grow inputs Asset Gallery (HR Pay and Benefits/HR Video DVD): Gender Gap: Why Do Women Make Less than Men? This Today show video clip explores the magnitude of, and reasons for, the gender pay gap. Focus discussion on which reasons do not represent true inequity, and which reasons do. b. An alternative means of restoring balance in an inequitable situation is to change the comparison other i. internal comparisons occur within the same company ii. external comparisons occur outside the company iii. Table 6-6 provides examples of how comparison others are determined using survey items c. Some companies try to deal with pay equity issues by enforcing pay secrecy policies D. Psychological Empowerment 1. Psychological empowerment is energy rooted in the belief that work contributes to some larger purpose 2. Work is psychologically empowering when it contains: a. Meaningfulness, or an importance relevant to one’s ideals and passions b. Self-determination, or a choice about the imitation and continuation of work c. Competence, or a belief that the person is able to perform the work successfully d. Impact, or the sense that a person’s actions made a difference in fulfilling a larger purpose OB at the Bookstore: Drive. The author describes a new “motivational operating system” that revolves around intrinsic motivation rather than extrinsic motivation. Focus discussion on why autonomy, mastery, purpose, and the like should be more effective on tasks demanding creativity. To get a sense of the creativity the author is talking about, show the students the candle problem and see how many of them can solve it, and how quickly. With respect to the thesis of the book, do the students agree that such motivational building blocks will foster creativity more than traditional “if then” rewards? Do the students see limits to intrinsic drivers--places or times when “if then” rewards are needed? E. Summary: Why Are Some Employees More Motivated Than Others? III. How Important Is Motivation? A. Motivation and Job Performance 1. The motivating force with the strongest performance effect is self-efficacy/competence, because people who feel a sense of internal self-confidence tend to outperform those who doubt their capabilities 2. Difficult goals are the second most powerful motivating force – people who receive such goals outperform those who do not 3. Valences, instrumentalities and expectancies are the next most important variables with regard to motivation 4. Equity perceptions are the next most important issue B. Motivation and Citizenship Behaviors 1. Equity theory research shows the clearest link between motivation and citizenship behaviors – employees who feel a sense of equity are more emotionally attached to their firms and feel a stronger sense of obligation to remain IV. Application: Compensation Systems A. Table 6-7 shows elements that are commonly used in compensation plans. These include: 1. Individual-Focused a. Piece-rate – pay linked to work produced b. Merit pay – pay linked to performance evaluation ratings c. Lump-sum bonuses – one-time bonus given for meeting goals d. Recognition awards – one-time award given to recognize achievement 2. Unit-Focused a. Gainsharing – bonus given to entire group when unit goals are met 3. Organization-Focused a. Profit Sharing – bonus given to entire organization, based on overall profitability of company Try This! Ask students who are currently working or have worked recently to describe the compensation elements that they’ve experienced. How many have experienced piecerate, merit pay, lump-sum bonuses or recognition awards? How many have experienced gainsharing or profit sharing? Which elements do the students find most effective and motivational? B. Compensation Issues 1. Does plan include specific and difficult goals to channel work effort? 2. Is there a link between individual performance levels and individual monetary outcomes in the plan? 3. Are the performance evaluations which drive the system accurate? 4. In what context do performance evaluations occur? DISCUSSION QUESTIONS 6.1 Which of the outcomes in Table 6-2 are most appealing to you? Are you more attracted to extrinsic outcomes or intrinsic outcomes? Do you think that your preferences will change as you get older? Answer: Different students will have different answers to this question, but they may find that extrinsic rewards become less important as they grow older, and intrinsic rewards become more important. I find intrinsic outcomes, such as personal growth, meaningful work, and satisfaction from achieving goals, most appealing. Currently, I’m more attracted to intrinsic outcomes, as they align with my desire for personal fulfillment and development. Over time, my preferences might shift as I accumulate experience and potentially prioritize extrinsic outcomes, like financial stability or career advancement, more. 6.2 Assume that you were working on a group project and that one of your teammates was nervous about speaking in front of the class during the presentation. Drawing on Figure 6-3, what exactly could you do to make your classmate feel more confident? Answer: You could remind your teammate of his or her past accomplishments in the area of speaking (maybe your friend had persuaded an entire group of people to take part in a team activity, for example). You could show your teammate videotapes of effective speakers to give a vicarious experience that would support self-efficacy. You could encourage your teammate, by offering supportive words to show you believe in his or her ability. Finally, you could talk only about the positive aspects of giving the speech; to be sure your friend had the right emotional cues for the job. 6.3 Consider the five strategies for fostering goal commitment (rewards, publicity, support, participation, and resources). Which of those strategies do you think is most effective? Can you picture any of them having potential drawbacks? Answer: The most important strategy for fostering goal commitment is probably participation in the goal setting process, followed by rewards. A person who sets his or her own goals is more likely to be committed to those goals, and a person who is never rewarded for goal attainment is likely to stop setting and/or achieving goals. Publicity may have a potential drawback because it can put undue pressure on an employee to reach a goal, and if the goal is not attained, cognitive dissonance may make the person less committed to achieving the goal in the future. Rewards may also have a drawback, in that if a person is always rewarded for achieving a goal, he or she may come to expect the reward, and be less committed when it is not present. 6.4 How do you tend to respond when you experience overreward and underreward inequity? Why do you respond that way rather than with some other combination in Figure 6-6? Answer: Responses to overreward and underreward inequity may be determined by personality, as well as the situation. Some students, for example, may simply withdraw from the situation when underreward inequity is present. Research suggests that overrewarded employees tend to engage in more team oriented behaviors, rather than simply shrinking inputs. 6.5 Think about a job that you’ve held in which you felt very low levels of psychological empowerment. What could the organization have done to increase empowerment levels? Answer: Organizations can increase psychological empowerment by providing their employees with the resources they need to do their jobs (including training), setting goals with employees and then giving employees the autonomy to chose the ways in which they will meet those goals, providing feedback on the employee’s progress toward meeting goals, and giving employees work that they find meaningful. CASE: NETFLIX Questions: 6.1 To what extent do employees look to their CEOs for motivational signals? Do you think Netflix employees grow to be motivated by the same things that engage Hastings? Answer: As will be described in Chapter 14, employees do often look to leaders for cues about values, goals, and priorities. Leaders can alter the valence of outcomes, the commitment to goals, and the meaningfulness and perceived impact of courses of action. There will always be differences between employees and CEO’s, of course, given their different financial situations and career stages. Employees often look to their CEOs for motivational signals because the CEO's vision and behavior set the tone for the company culture and goals. At Netflix, employees may indeed grow to be motivated by the same things that engage CEO Reed Hastings, such as innovation, high performance, and a focus on results. Hastings' emphasis on freedom and responsibility, as well as a culture of candid feedback and continuous improvement, likely influences employees to value and align with these principles. As they see these values championed at the top, they may become more engaged and motivated by similar goals. 6.2 Which theories seem relevant to customers’ motivations (to pick certain titles), not just employees’ motivations (to perform their tasks well)? Answer: Expectancy theory is relevant to both customer motivation and employee motivation. Customers will work their way through the screens of Netflix’s interface if they believe it will help them experience a valued hour or two. That means that (a) the titles Netflix stocks must be appealing, and (b) customers need to believe they can find what they’re looking for. Without both the instrumentality and expectancy components of that equation, customers will avoid Netflix, eventually letting their memberships lapse. 6.3 When it comes to complex work—like Netflix engineers analyzing data on customer viewing habits—will intrinsic or extrinsic motivators prove more effective? Why? Answer: As the chapter showed, extrinsic motivators can be effective even on complex tasks. It is often intrinsic motivators, however, that most “move the needle” on creativity and innovation tasks, and that provide the persistence needed to conquer complex tasks. For complex work such as analyzing data on customer viewing habits, intrinsic motivators are often more effective. This is because complex tasks typically require deep engagement, problem-solving skills, and sustained effort, which are better supported by intrinsic motivators such as personal interest in the work, a sense of achievement, and intellectual curiosity. Intrinsic motivation helps individuals find personal satisfaction and meaning in their tasks, driving them to explore, innovate, and excel. Extrinsic motivators, like bonuses or promotions, may also play a role, but they often support performance up to a certain level rather than sustaining long-term engagement. Intrinsic motivators are crucial for fostering a high level of commitment and creativity needed for complex, data-intensive tasks. BONUS CASE: ENTERPRISE RENT-A-CAR (from 2nd ed) What do you think of when you hear “Enterprise Rent-A-Car”? Do you think of “We’ll pick you up”—the catchphrase that reflects the company’s willingness to come to your door when your car’s in the shop or you’re ready to take a trip? You probably don’t think “largest rental car company in the United States” or “hires more college grads than any other company.” Both of those descriptions are true, however. The company started in St. Louis when Jack Taylor opened a tiny auto-leasing business and named it after the aircraft carrier on which he’d served. When the company transitioned to car rentals, it retained its downtown locations, focusing on leisure rentals and auto insurer referrals rather than the airport business travelers. This unique business model allowed it to grow beyond the notice of competitors like Hertz, which paid little attention to Enterprise until it began advertising nationally in 1989 with images of that car wrapped in brown paper, on its way to a customer pick up. Enterprise hires 7,000 college graduates a year as management trainees, recruiting from 220 different college campuses. BusinessWeek has included Enterprise in its listing of the 50 best places to launch a career for three years running. One college recruiter sums up what Enterprise looks for in its new hires this way: “The students that fit are highly motivated, positive, energetic, and enthusiastic.” Motivation is key, because the hours are long, and the work isn’t always glamorous. The company describes the standard work week as no more than 49.5 hours, but some employees report a norm that’s closer to 60 hours. And much of that time is spent behind a counter, picking up customers, or washing cars—all while wearing professional business attire. Estimates suggest that about half of the new hires don’t last a year at the company. But those who stick it out do so for two major reasons: a clear career ladder for promotions and an impressive array of incentives. Management training can last 8 to 12 months, giving employees a chance to learn every aspect of the business. Promotions often follow after a year, first to management assistant and then to assistant manager. From there, the best become branch managers, in charge of hiring and firing, the rental car fleet, and finances. The best of those can look forward to positions at corporate headquarters or the chance to be in charge of a whole region of branches. As Enterprise’s vice president for corporate communications points out, “100% of our operations personnel started as management trainees.” Although base pay is low—less than $35,000 a year—performance-based bonuses can add almost $10,000 more to that total. Bonuses can be earned in a variety of ways, from signing customers up for supplemental liability protection to stopping to help a customer who needs roadside assistance. And once employees reach the assistant manager stage, a profit-sharing system kicks in, with rewards linked to the performance of their branch. That structure then extends up the ladder, with regional managers benefitting from the profitability of all of their branches. All these motivational strategies seem to be paying off for Enterprise’s customers; the company usually occupies the top spot in rental car customer satisfaction rankings published by J.D. Power and Associates. The opportunity for promotion is one of the primary motivators at Enterprise. Stephen Cullen, an assistant manager in Fort Pierce, Florida, notes, “Everyone here looks at you as future management potential. Your goal is to get everyone under you promoted.” That promotability, however, depends on both individual and branchlevel factors. On an individual basis, employees are often judged on their ability to sign up customers for supplemental liability protection. The company offers three choices for coverage: a basic damage waiver, a supplemental protection package, and personal accident insurance. The goal is to have customers sign up for all three packages, or “trips,” thereby adding around $25 a day to the customer’s purchase. Management trainees are taught how to sell these packages to customers using role plays and are encouraged to experiment with different methods of persuasion. Those efforts continue until a customer says “no” three times. Employees in a given region compete for bonuses of $50 or $100 based on their “protection stats,” and excelling in this task adds to an employee’s perceived potential. On a branch-wide basis, promotions depend on scores on the Enterprise Service Quality Index, or ESQi. The ESQi is calculated by an independent survey group each month, based on follow-up phone calls to one out of every 15 Enterprise customers. The customers are asked how satisfied they were with their rental experience, on a scale ranging from “completely satisfied” to “completely dissatisfied.” If 50 percent of the respondents for a given branch answer “completely satisfied,” that branch earns an ESQi score of 50. The ESQi average across Enterprise branches typically hovers around 80, signaling that most customers are indeed quite satisfied. If a branch falls below that average, however, its employees are no longer eligible for promotions or transfers. Employees therefore understand that their careers depend on making their branches above average—and keeping them there. Sources: Loomis, C.J. “The Big Surprise Iis Enterprise.” Fortune, July 14, 2006, http://money.cnn.com/magazines/fortune/ fortune_archive/2006/07/24/8381691/index.htm (June 24, 2009). Gerdes, L. “The Best Places to Launch a Career.” BusinessWeek, September 18, 2006, http://www.businessweek.com/magazine/ content/06_38/b4001601.htm (June 24, 2009);. Gerdes, L. “The Best Places to Launch a Career.” BusinessWeek, September 24,2007, pp. 48–-60;. Gerdes, L. “The Best Places to Launch a Career.” BusinessWeek, September 15, 2008, pp. 36–-44. Frankel, A. Punching In. New York: HarperCollins, 2007. Lehman, P. “No. 5 Enterprise: A Clear Road to the Top.” BusinessWeek, September 18, 2006, http://www.businessweek.com/magazine/content/06_38/ b4001609.htm?chan=careers_first+jobs_employers (June 24, 2009). “Enterprise Rent-A-Car Rranks Hhighest on J.D. Power Ssurvey.” St. Louis Business Journal, November 15, 2005, http:// stlouis.bizjournals.com/stlouis/stories/2005/11/14/daily34.html (June 24, 2009). Questions: 6.1 As an Enterprise employee, would you be motivated by bonuses for signing up customers for supplemental liability protection? Why or why not? Answer: Responses to this question may vary. On the one hand, there is clear instrumentality here--successfully selling the protection can bring bonuses and promotion opportunities. And the extensive training that Enterprise provides should provide some self-efficacy and competence for the task. On the other hand, the task may not seem meaningful to many employees, and it may not carry with it many sources of intrinsic motivation. As an Enterprise employee, I might be motivated by bonuses for signing up customers for supplemental liability protection, depending on a few factors: 1. Financial Incentive: The prospect of earning additional bonuses could be motivating, especially if base pay is low. The potential for extra income can drive employees to put extra effort into selling protection packages. 2. Alignment with Goals: If the bonus system aligns with personal or career goals, such as achieving high performance metrics or securing a promotion, it could enhance motivation. 3. Job Satisfaction: Motivation might be influenced by how engaging and fulfilling the task of selling protection packages is. If employees find the work meaningful or enjoyable, they’re more likely to be driven by the bonuses. 4. Perceived Fairness: If the bonus system is perceived as fair and attainable, it will likely be more motivating. Conversely, if employees feel the targets are unrealistic or the incentives are not worth the effort, motivation could decrease. Overall, while bonuses can be a strong motivator, their effectiveness depends on how well they align with employees' values, goals, and perceptions of fairness. 6.2 Would you be motivated by making promotions contingent on your branch’s ESQi score? Why or why not? Answer: Again, responses here may vary. On the plus side, the ESQi score seems less controversial as an incentive tool than selling customers coverage that they may not need. On the negative side, one employee may not be able to have much of an impact on an entire branch’s ESQi score. So an employee could work hard but not receive a promotion. Moreover, some employees can contribute very little but be lucky enough to work in a great branch with great ESQi scores. I might be motivated by making promotions contingent on my branch’s ESQi score, for the following reasons: 1. Clear Performance Metrics: Knowing that promotions depend on the branch’s ESQi score provides clear and measurable performance targets. This can be motivating because it creates a direct link between effort and career advancement. 2. Focus on Customer Satisfaction: The ESQi score emphasizes customer satisfaction, which aligns with the goal of providing excellent service. Being motivated by customer satisfaction can enhance job fulfillment and commitment. 3. Sense of Achievement: Improving the ESQi score and achieving high ratings can be rewarding, both personally and professionally. It provides a tangible goal and a sense of accomplishment when the branch performs well. 4. Team Collaboration: The ESQi-based system encourages teamwork and collaboration, as the entire branch’s performance impacts individual promotions. This can create a positive work environment and foster a collective effort toward achieving high scores. However, motivation might be affected if: 1. External Factors: If external factors beyond employees’ control impact the ESQi score, such as issues with company policies or external market conditions, it could lead to frustration and reduced motivation. 2. Unrealistic Expectations: If the performance targets for the ESQi score are perceived as unrealistic or unattainable, it could lead to discouragement rather than motivation. Overall, making promotions contingent on the ESQi score can be motivating if the goals are clear, achievable, and align with the employees' commitment to customer service. 6.3 Consider these two practices in the context of the theories reviewed in this chapter (expectancy theory, goal setting theory, equity theory, psychological empowerment). Which theories would support the effectiveness of these strategies and which theories might raise doubts about their effectiveness? Answer: The effectiveness of the supplemental coverage incentive would be supported by expectancy theory, so long as the valence of the extrinsic rewards (pay, bonuses, promotions) outweighed the limited intrinsic rewards (enjoyment, lack of frustration). Expectancy theory would be less optimistic about the effectiveness of the ESQi incentive, however, given the low level of instrumentality. Equity theory would also argue against that incentive, for the same reason. That said, unit-level incentives may exist for non-motivational reasons, however, such as the encouragement of collaboration and teamwork. INTERNET CASE: A SIMPLE, SCIENCE-BACKED WAY TO SOLVE THE EMPLOYEE-ENGAGEMENT PROBLEM by Lydia Dishman http://www.fastcompany.com/3019508/work-smart/a-simple-science-backed-way-to-solve-the-employee-engagement-problem Questions: 6.1 Which theories in the chapter would Rajat Paharia, the father of gamification, most espouse? Answer: Judging from the description in the article, he would find value in the intrinsic motivation subset of expectancy theory —especially in terms of outcomes like enjoyment, interestingness, and accomplishment. Goal setting theory would also be valued, though more for the challenge of achieving a goal than for any extrinsic outcome that came from it. Rajat Paharia, as the father of gamification, would most espouse self-determination theory and goal-setting theory. • Self-determination theory emphasizes the importance of autonomy, competence, and relatedness, which are core elements in gamification that enhance intrinsic motivation. • Goal-setting theory focuses on setting clear and challenging goals, which aligns with gamification practices that use rewards and feedback to motivate employees and drive performance. 6.2 Do students believe that gamification would be possible inthe jobs they are pursuing, and would they like it? Answer: Answers to this will vary. For the first part, what’s needed is the availability of real-time objective data in a job, along with a technical infrastructure to feed that data back. For the second part, the question might revolve around whether the game aspect would “get old” after a while, and whether it would somehow cheapen or interfere with more meaning and purpose-driven motivators on the job. Students may find gamification applicable and appealing in their future jobs if it enhances engagement, motivation, and skill development. The suitability of gamification largely depends on the nature of the job: • For roles in fields like sales, marketing, or customer service, gamification can effectively drive performance and employee satisfaction through rewards, challenges, and progress tracking. • In more structured or technical roles, such as engineering or accounting, gamification could still be beneficial if it helps with goal setting, skills development, or team collaboration. Students' preferences for gamification would likely vary based on their personal work styles and job expectations. If they value dynamic, interactive environments and appreciate clear, measurable achievements, they may welcome gamification as a motivating tool. EXERCISE: EXPLAINING PAY DIFFERENCES Instructions: Put students into groups and instruct them to read the scenario and think about why Chris and Pat may be earning different salaries. Remind them that they can focus on legal reasons, illegal reasons, wise reasons, or unwise reasons. Have them focus on the reasons first. They should only consider the relevant theories once they’ve completed their list of reasons. Sample Reasons: Here is a sample of the kind of list the groups might generate, with the relevant theories identified in the parentheses. Pat’s more skilled (EQ, PE) Pat works harder (EX, EQ) Chris’s boss doesn’t like Chris for some reason (EQ) Pat is male and Chris is female (EQ) Pat’s work has more impact on the firm (EQ, PE) Pat makes more important decisions than Chris (EQ, PE) Pat’s got more tenure (EQ) Chris is less politically astute (EQ) Pat hits his targets more than Chris (EX, GS, EQ) Pat negotiated more aggressively when he got the job (EQ) Questions: Equity theory is most relevant to this scenario, which is not surprising given the nature of the scenario. Many of the reasons generated will reflect differences in inputs that are both legal to consider and wise to consider (such as skills or effort). Others will reflect differences in input that are legal to consider but not always as wise (such as tenure). Other reasons will reflect differences that may be illegal to consider (such as gender). Other reasons will reflect differences that are probably not valid inputs, making it unwise to have decisions be affected by them (such as likability or political skill). Still other reasons will reflect differences that are more difficult to label in terms of their wisdom (such as negotiating ability). The relevance of the other theories will depend on what’s listed. Factors that have to do with expectancy differences, instrumentality differences, valence differences, or effort differences are relevant to expectancy theory. Factors that have to do with goal differences are relevant to goal setting theory. Factors that have to do with meaningfulness, selfdetermination, competence, or impact differences have to do with psychological empowerment. It will be difficult to identify a reason that cannot be slotted into any of the four theoretical perspectives, though sometimes that slotting is more of a “stretch”. For example, the last reason above--Pat negotiated more aggressively-may not truly be relevant to equity theory, as it’s difficult to classify negotiation skill as a relevant input (after all, it doesn’t benefit the firm directly, and the person isn’t even a member of the firm yet). Most of the reasons generated will be legal, just because legal reasons come to mind more quickly. Of the reasons listed above, only gender differences could potentially be illegal, depending on whether the differences reflect a true bias. However, the reasons will typically cluster into both wise and unwise categories. Of the reasons listed above, at least five are wise (skill, effort, impact, important decisions, targets) while others may be unwise (likability, gender, tenure, political ability, negotiating ability. Class discussion could center on when potentially unwise reasons could in fact be wise. For example, there are many scenarios where likability may not reflect bias, but rather a true input. OMITTED TOPICS The field of organizational behavior is extremely broad and different textbooks focus on different aspects of the field. A brief outline of topics that are not covered in this text, but which the professor might want to include in his or her lecture, is included below. In cases where these topics are covered in other chapters in the book, we note those chapters. In cases where they are omitted entirely, we provide some references for further reading. • Need Hierarchies – Widely known (but scientifically unsupported) theories by Maslow and Alderfer suggest that individuals’ motivations are driven by universal hierarchies of needs. In the case of Maslow, those needs include physiological, safety, social, esteem, and selfactualization needs. In the case of Alderfer, those needs include existence, relatedness, and growth needs. For more on this, see: Maslow, A. H. “A Theory of Human Motivation.” Psychological Review 50 (1943), pp. 370-96. Alderfer, C. P. “An Empirical Test of a New Theory of Human Needs.” Organizational Behavior and Human Performance 4 (1969), pp. 142-75. • Herzberg’s Two-Factor Theory – This widely known (but scientifically unsupported) theory describes satisfaction and dissatisfaction as two separate concepts. Satisfaction is said to be driven by “motivators” such as promotion opportunities, recognition, and growth opportunities. Dissatisfaction is said to be driven by “hygiene factors” such as pay and the quality of supervision. The hygiene factor classification significantly underestimates the importance of pay and supervision, which are important factors in job satisfaction and motivation. For more on this, see: Herzberg, F. Work and the Nature of Man. Cleveland, OH: World, 1966. • McLelland’s Theory of Needs – Argues that work motivation is influenced by three needs: the need for achievement, the need for power, and the need for affiliation. These needs have much in common with three dimensions of personality discussed in Chapter 9: conscientiousness, extraversion, and agreeableness, respectively. For more in this, see: McLelland, D. C. The Achieving Society. New York: Van Nostrand Reinhold, 1961. • Job Characteristics Model – This model, by Hackman and Oldham, describes how five core job characteristics (variety, identity, significance, autonomy, and feedback) combine to create work that is intrinsically satisfying and motivating. This model is covered in our discussion of job satisfaction in Chapter 4. • Organizational Justice – Equity theory deals with distributive justice, but there are three other facets of justice in organizations: procedural justice, interpersonal justice, and inspirational justice. These justice forms are covered in our discussion of trust and justice in Chapter 7. Instructor Manual for Organizational Behavior: Improving Performance and Commitment in the Workplace Jason Colquitt, Jeffery LePine, Michael Wesson 9780077862565, 9781260261554