CH-5-6 Stress – Organizational Behaviour: Improving Performance and Commitment in the Workplace : Book Guide

This Document Contains Chapters 5 to 6 Chapter 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 OUTCOMES 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 do individuals differ in their handing of stress? 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 OB on Screen: The Devil Wears Prada. If you have access to this movie, please play it for your students during class. This scene 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. Try This! Use the Devil Wears Prada clip for a different chapter. The clip provides a good demonstration of low levels of the core job characteristics in Chapter 4 on Job Satisfaction, and low levels of psychological empowerment in Chapter 6 on Motivation. Andy’s plight also vividly illustrates low levels of expertise, and low levels of both explicit and tacit knowledge, from Chapter 8 on Learning and Decision Making. Finally, the boss’s behaviour also illustrates low levels of consideration in the Leadership: Styles and Behaviour chapter. Bonus OB on Screen (from 1st ed): Pushing Tin. Chapter 4 of the DVD (beginning at 12:30 and ending at 15:45 for a total running time of 3 minutes, 15 seconds) begins with 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. 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 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 behaviours and thoughts that help people manage stressful situations a. Behavioural 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 behaviours 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. Behavioural strains – alcohol and drug use, teeth grinding, compulsive behaviours, overeating) E. Accounting for Individuals in the Stress Process 1. Reaction to stress depends on whether or not a person exhibits the “Type A Behaviour Pattern.” Note that the Type B Behaviour Pattern is essentially the exact opposite of Type A Behaviour Pattern (thus knowing about Type A tells you about Type B, only reflected) OB Assessments: Type A. This assessment measures the extent to which students exhibit the “Type A” behaviour pattern. When discussing the results with students, it is important to point out that while people who exhibit Type A behaviours 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. 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 3. Providing Resources a. Help employees cope with stressful demands by i. providing resources such as training interventions ii. providing supportive practices such as flexitime or compressed work weeks to help balance work and non-work role demands 4. Reducing Strains a. Decrease the strains associated with stress through practices such as relaxation techniques and meditation b. Use cognitive-behavioural 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, I defined stress as a state of mental or emotional strain resulting from challenging or adverse situations. My definition reflected a combination of stressors (the challenging situations), the stress process (how individuals perceive and react to these situations), and strains (the resulting effects on well-being). 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: Strategic consultant in consumer behavior and market analysis. Stressors: • Challenge Stressors: High expectations, tight deadlines, need to stay updated, pressure for accurate recommendations. • Hindrance Stressors: Bureaucratic obstacles, company politics, managing workloads. Dominance: Challenge stressors dominate because the job involves engaging and growth-oriented tasks. 5.3 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. The level of challenge stressors would significantly influence my job choice, as I seek roles that offer opportunities for growth, creativity, and problem-solving. I would prioritize positions with challenging but fulfilling stressors, as they align with my desire for personal and professional development. 5.4 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. I assess my ability to handle stress as good, but there's room for improvement. To enhance effectiveness, I could practice stress management techniques such as mindfulness, time management, and regular exercise. Additionally, seeking social support and developing resilience skills would help better cope with stress. 5.5 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 in a high hindrance stress environment, I would: 1. Provide Clear Communication: Ensure clarity around goals, expectations, and processes to reduce uncertainty. 2. Foster a Supportive Environment: Offer resources and support for skill development and task management. 3. Empower Decision-Making: Give employees autonomy to find solutions and make decisions. 4. Encourage Collaboration: Promote teamwork to collectively address challenges and find solutions. 5. Provide Training: Offer workshops on problem-solving techniques and stress management. These actions focus on addressing the sources of stress directly, helping employees to take proactive steps rather than simply managing their emotional responses. 5.6 Go online and find three examples of wellness programs used in work settings. How do each of these programs relate to the stress process? Which one do you like the best? Why? Answer: Again, student answers will vary, but common responses should map to the general ideas presented in the text. Look for some creative ideas. Rather than simply have students describe what is done or offered to employees, have them analyze the underlying logic or reasoning – explaining why these programs might work (have them reference the material presented in the chapter). 1. Employee Assistance Programs (EAPs): Provide counseling and support for personal or work-related issues, helping employees manage stress and prevent escalation. 2. On-Site Fitness Facilities and Classes: Offer physical activity options like yoga or Zumba to reduce stress and improve mood through exercise. 3. Corporate Wellness Apps: Track physical activity, provide health tips, and offer rewards, promoting healthier lifestyles and reducing stress. Favorite: On-site fitness facilities and classes, as they offer a physical outlet for stress and foster community among employees. CASE: DO NURSES “EAT THEIR YOUNG?” Questions: 5.1 Put yourself in the shoes of a new nurse. What stressors (and types of stressors) are you most likely to encounter? What role issues might you have to deal with (e.g., conflict, ambiguity, and overload)? Answer: New nurses are likely exposed to a number of work-related stressors. Although nurses will have acquired explicit technical knowledge and skills from their college/university training, they may be lacking the tacit knowledge that can only be gleaned from actual job experience (see Chapter 8 for more discussion on these different types of knowledge). Thus, the first year or so will potentially be a time of high role ambiguity and role overload. And it is entirely possible that they might also experience role conflict if mixed messages are coming from senior nurses or clinical instructors (e.g. trainers). In addition to these work-related hindrance stressors, new nurses may a number of work-related hindrance stressors, including excessive time pressure, highly complex work, and feelings of enormous responsibility. If their non-work stressors, either hindrance (e.g., work-family conflict, financial uncertainty) or challenge (e.g., family demands), are elevated it will only compound the problem and increase stress levels. 5.2 Put yourself in the shoes of a seasoned nurse. What stressors (and types of stressors) might you have to deal with? What kind of stressor(s) do the new nurses represent, and why? Answer: Unlike new nurses, seasoned nurses should have a well-developed understanding of their role and will have acquired the necessary knowledge, skills, and ability to perform in a safe and efficient manner. Thus, they are unlikely to experience role conflict or role ambiguity. If they do experience challenge stressors, such as time pressure or work complexity, in all likelihood they should be able to cope using behavioural or cognitive problem-focused methods. The effect will be to reduce the press of this category of stressor. Working with new nurses potentially presents a source of stress for seasoned nurses, in terms of increasing their workload, responsibility, and complexity. As was the case with new nurses, if the seasoned nurses experience elevated stressors in their nonwork lives (hindrance or challenge), then the overall level of stress might produce strain responses. 5.3 What coping strategy (or strategies) would you recommend to new nurses? Seasoned nurses? Answer: For both of these cohorts, a blend of problem-focused and emotion focused strategies would be recommended. New nurses must learn and adjust to the realities of working in a health-care environment, and therefore, an active behavioural response would be best way to reduce the level of hindrance and challenge stressors. In addition, dealing constructively with the various emotions will be beneficial, either behaviorally or cognitively (e.g., reappraising). Seasoned nurses, like the new nurses, should use active and cognitive strategies for reducing the potency of the work and non-work stressors. 5.4 What does the model in Figure 5-3 tell us about what is likely to happen in this situation? What are the likely effects for new and seasoned nurses? Do you think CREW training would work? Explain how this type of intervention might reduce stress on nursing units? Answer: New or seasoned nurses who exhibit the Type A behaviour pattern will be more sensitive to the various stressors, and will be more likely than their Type B counterparts to experience physiological, psychological and/or behavioural strains. Figure 5-3 also points out the importance of strong social support as a way of ameliorating the negative effects of work and non-work stressors. We know, for instance, that when people have strong social and emotional support they are less likely to experience harmful stress reactions than those who do not have these supports. Programs such as CREW attempt to build positive and healthy relationships within nursing units (based on civility and respect), which, in turn, can be leveraged to make a stressful occupation/situation a little more tolerable. 5.5 Do you think that the concept of nurses “eating their young” applies to other occupations? Explain with some examples. Answer: Yes. Student answers will vary, but discussion should reveal a few example where this occurs (e.g., trades; professional accountants). The dynamic between experience and new workers can be explored – to some extent this might reflect generational differences (e.g., Gen X versus Gen Y). Another issue concerns respect, and when should respect happen? Should it occur after an individual has earned it, or should this be offered early in the relationship? Yes, the concept of "eating their young" applies to other occupations, where seasoned professionals undermine newcomers. Examples: • Law: Senior lawyers may give juniors trivial tasks or harsh critiques. • Tech: Experienced engineers may dismiss new ideas from new hires. • Academia: Tenured professors may harshly review junior faculty's research, impacting their career progression. This behavior can create a toxic work environment, leading to high turnover and decreased morale. BONUS CASE: CANADIAN IDOL (from 1st ed) There are few experiences in this life more stressful than a job interview or audition. In fact, for many people, just the thought of being evaluated and compared to others makes us feel stressed out. Telltale signs of stress include a racing heartbeat, profuse perspiring, and feeling nauseous, which in turn, can cause us to freeze, panic, chatter aimlessly, or lose our train of thought—the very things that can undermine our chances of winning that job or opportunity. Most interviews are conducted in the privacy of a manager’s office, or in front of several observers in a room. But what if that “interview” wasn’t so private? What if your family and friends, and millions of strangers, could watch you perform— and then, had a say in how well you did? What if your “interview” was featured on a hit television show that was watched coast to coast? Selection of the next Canadian Idol involves a very public and stressful high stakes competition.1 Performers sing a song of their choice, and have the opportunity to accompany themselves on guitars, pianos, and any other instrument they so choose. Auditions are open to all Canadians between the ages of 16 and 28. A four-member judging panel determines a “Top 200” from thousands of competitors who compete in regional auditions in 11 cities across Canada. This group is eventually whittled down to approximately 20 semi-finalists. Over the next three weeks, semi-finalists demonstrate their talent for a television audience, with viewers voting for their favourite candidate. Each week, candidates with the fewest votes are eliminated, leaving ten finalists at the end of the third week. The following weeks see the stakes increase dramatically as the top ten are narrowed to only two finalists, who are left to square off in the Canadian Idol grand finale. At stake for the winner is a guaranteed major recording contract with Sony BMG Music Canada—and instant stardom! 2 When Canadian Idol premiered in 2003, few would have predicted that it would become Canada’s most-watched (English-language) Canadian series since the advent of electronic measurement—a record the series continues to hold. When Hamilton’s Brian Melo was revealed as the 2007 Canadian Idol champion in the final minutes, a remarkable 2.75 million Canadians were watching.3 Backstage Idol What really happens behind the scenes at Canadian Idol? According to Sheri Block, a reporter with CTV, the answer is . . . plenty! As stressful as the competition is for the thousands of Idol hopefuls who brave long lines and leave disappointed, can you imagine how it feels to be a backstage production assistant who helps run the city-by-city auditions? Day one of the competition starts with a call time of 7:00 a.m. With more than 100 people already in line, Sheri and the other production assistants take their positions at the registration desk and, one by one, begin the tedious task of processing each competitor (e.g., checking that forms are completed properly, making sure that age requirements are met). After several hundred (often more) competitors are registered and assigned a number, they are organized into groups of five. Then they wait to be called. By the time a group is called, the competitors are usually very anxious and have lots of questions, desperately looking to production assistants for advice (e.g., song selection, their outfits), reassurance, and help to remain calm—anything that might get them through to the next round. But the competition rules are very strict, and production assistants are forbidden to provide information that may give one person an advantage over another. The five competitors of each group are then escorted to the Tier 1 holding trailer where they wait, again, for their audition. The Tier 1 audition room is small and stuffy with wood panelled walls—a far cry from a glitzy television studio. The five competitors come in and are told to stand at the back wall. They look absolutely terrified! The producer tells them to project their voice and personality. The first competitor is called and nervously comes up to sing. She darts her eyes between the producer and the production assistant, trying to read their faces as to what her fate will be. “All we can do is smile and nod in encouragement,” says Sheri Block. The auditions continue like this, one by one, until the end, when the producer decides who will stay behind to sing another song. Most competitors are asked to leave, and handed over to the production assistant. Some competitors leave the room crying, while others tell us they’ll just try again next year. After the group is thanked for their participation, the production assistant gets another group of five. The search for the next Canadian Idol continues. Source: http://www.ctv.ca/idol/gen/Home.html; Sheri Block, “Day in the Life of a Production Assistant,” Canadian Idol website, April 28, 2008. Retrieved February 7, 2009, at www.ctv.ca/servlet/ArticleNews/story/CTVNews/20080428/CI6_ Day_in_life_PA_080428/20080918?s_name=idol2008&no_ads=. Questions: 5.1 Why do people allow themselves to go through a process like this, given the risks to self-esteem? Answer: First, competitors may not have a full and realistic appreciation of what is involved in the Canadian Idol competition. Thus, their initial appraisal of the situation is likely to be deficient or distorted. Because the stakes are so high, inexperienced competitors may under-estimate the demands of this competition (e.g., extreme time pressure; role ambiguity) and how this affects performance, and they may under-estimate the odds of success (much like we do when lottery tickets are purchased). Second, competitors may not have a full and realistic appreciation of their own talent, and how it compares with others. Keep in mind that most of the contestants are young, with very little experience. It is one thing for your parents and friends to say you have talent, but quite another thing for hard-nosed talent agents - who see thousands of acts - to say you have talent. In fact, this fact is often exploited in the television show when naïve contestants are exposed to the ruthless evaluations of celebrity judges. Even if contestants are aware of the potential harm to self-esteem, it may be worth the risk if they believe that Canadian Idol is a legitimate way of entering show business. To the extent that the perceived benefits out-weigh the risks, people will continue to go through this process. 5.2 Put yourself in the shoes of a production assistant. How might you cope with the anxiety and emotional distress of the competitors? Answer: If we consider the different coping strategies presented in Table 5.3 production assistants will likely use the cognitive/emotion focussed strategies listed in the lower right-hand quadrant. Although production assistants do not have to compete, they do have to deal, first-hand, with the hundreds of people who do. To cope with the stress of managing the logistics of processing many people in a short period of time, and the wide range of emotions expressed by contestants, a reasonable approach would be to depersonalize the situation (e.g., treat people as a “number” rather than an individual full of hope; “I’m just doing my job”), disengage emotionally, and ignore or avoid contestants. Alternatively, production assistants could look for the positive in a negative situation (e.g., this experience should help them next year) 5.3 Can you recommend some ways to reduce the level of stress experienced by competitors? Do you think your ideas would improve the selection process? Explain. Answer: Competitors may wish to use behaviourally-oriented, problem-based coping (see upper left-hand quadrant in Table 5.3). Examples would be working harder (e.g., practice your act), seeking assistance (e.g., find a competition coach), or acquire additional resources (e.g., simulate the competition context and pressures during practice sessions; video-tape performances for training and feedback; hire professional trainers to work with you and the coach; using relaxation and “self-talk’ techniques to reduce strain). These strategies might help competitors maximize their abilities and talents. Although the results of the competition will depend on who else is competing, and the decision of judges, using these strategies may help competitors cope positively with the disappointment of a less-than-great outcome (i.e., knowing that you gave it your best shot). Given that all but one of the contestants will fail to reach their goal, if more people come away from this process with an intact self-esteem then the overall selection process will be improved. 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. Chapter 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 three factors help determine work effort, according to expectancy theory? 6.3 What two qualities make goals strong predictors of task performance, according to goal setting theory? 6.4 What does it mean to be equitably treated according to equity theory, and how do employees respond to inequity? 6.5 What is psychological empowerment, and what four beliefs determine empowerment levels? 6.6 How does motivation affect job performance and organizational commitment? 6.7 How do organizations use compensation practices 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. 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 behaviour 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 behaviours 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 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. OB on Screen: The Dark Knight. If you have access to this movie, please play it for your students during class. This scene 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? Try This! Use the Dark Knight clip for another chapter. The detective work that Bruce engages in illustrates a number of different cognitive abilities in Chapter 10 on Ability, including reasoning and perceptual abilities. It also reflects a mix of intuitive and nonprogrammed decisions from Chapter 8 on Learning and Decision Making. With respect to Chapter 13 on Leadership: Power and Negotiations, Batman possesses a certain level of expert (and perhaps referent) power that gives him some authority when dealing with the police, despite his lack of legitimate authority. Bonus OB on Screen (from 1st ed): Talladega Nights: The Ballad of Ricky Bobby Chapters 16-17 of the DVD (beginning at 1:05:10 and ending at 1:13:27 for a total running time of 8 minutes, 17 seconds) show 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. 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? 3. Motivational Force = (E → P) x Σ[(P → O) x 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 Teaching Tip: Students may require clarification between assigned versus self-set goals. The core motivational concept in this theory is one’s “goal” or intention. Experience and research studies have shown that people do what they intend to do, that they devote attention and effort to activities they intend to perform, that they pursue their personal or self-set goals. Thus, to motivate someone you need to alter or change their intentions of self-set goals. Of course, one way of influencing internal goals is to assign an external one. Goal-setting theory has developed around this basic idea, and the practice of “assigning goals” has become a well-documented motivational technique. The point, however, is that assigned goals will only work if they are internalized as internal goals. Having said that, there are other ways to change personal or self-set goals, such as increasing the valence of high performance (by providing performance contingent rewards) and social pressure (we discuss the role of workgroup norms in Chapter 10). 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 Try This! Before going over the specifics of equity theory, focus the class on professional athletes who are particularly highly paid, yet disparities exist. Have the class identify players (e.g., NHL hockey) who have recently signed exceptionally lucrative contracts. Ask the students whether they believe this player feels guilty that his contract pays him more than his teammates? They’ll likely answer “no,” but the key question is “why?” Guide the discussion toward the issue of the value of the player’s inputs (being among the best in the world at what he does) and the likely “comparison other” that this individual focuses on (other professional athletes). 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 under reward inequity exists, people try to increase outcomes or shrink inputs iii. If over reward inequity exists, people try to shrink outcomes or grow inputs 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 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 Behaviours 1. Equity theory research shows the clearest link between motivation and citizenship behaviours – 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 piece-rate, 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. The most appealing outcomes from Table 6-2 for me are intrinsic outcomes, such as personal growth, job satisfaction, and meaningful work. I find these outcomes fulfilling because they align with my desire for intellectual and emotional engagement. While extrinsic outcomes like salary and benefits are important, I prioritize intrinsic rewards for long-term motivation and fulfillment. As I get older, my preferences might shift to value extrinsic outcomes more, especially for financial security and work-life balance. However, the importance of meaningful and satisfying work is likely to remain significant. 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 the description of self-efficacy, 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 over reward and under reward inequity? Why do you respond that way rather than with some other combination in Figure 6-5? Answer: Responses to over reward and under reward inequity may be determined by personality, as well as the situation. Some students, for example, may simply withdraw from the situation when under reward inequity is present. Research suggests that overrewarded employees tend to engage in more team oriented behaviours, rather than simply shrinking inputs. When experiencing over-reward inequity, people may feel guilt and may adjust their behavior to restore balance, often by increasing effort or contribution to match the perceived excess reward. Conversely, under-reward inequity typically triggers feelings of frustration or dissatisfaction, leading individuals to either reduce their effort or seek to address the imbalance through negotiation or external actions. These responses are motivated by the desire to achieve fairness and balance, as outlined in equity theory. 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 choose 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: ENTERPRISE RENT-A-CAR Questions: 6.1 Is it a good idea to make 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. Making promotions contingent on your branch’s ESQi (Employee Satisfaction and Quality Index) score can be a good idea if it aligns with your goals of improving employee satisfaction and performance. However, it may also have drawbacks, such as creating pressure that could lead to unhealthy competition or focusing too much on the score rather than overall performance and development. It’s important to balance ESQi with other factors to ensure a fair and comprehensive approach to promotions. 6.2 Consider the motivational practices used at Enterprise (clear career paths; performance-based incentives) 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 motivational scheme at Enterprise is essentially a “carrot game”. For management trainees, the “carrot” is promotion to assistant manager. We know that substantial rewards only come when the individual is promoted to the level of assistant manager, with the rewards increasing as the assistant manager is promoted, in turn, to branch manager. The rub here is getting promoted! To get promoted, trainees have to not only work hard themselves, but they have to ensure their store is a top performer in relation to other stores. The effectiveness of this “carrot game” would be supported by expectancy theory, so long as the valence of the promotion to assistant manager outweighed the limited intrinsic rewards (enjoyment, lack of frustration). If, at any point, valence begins to wane, motivation will decline due to lower expectancy and instrumentality (i.e., beliefs regarding the link between one’s effort and desired outcomes). Equity theory offers another perspective. On the surface, reward allocations are not fair – the harder trainees work, the more money assistant managers and branch managers make. The “carrot game” has produced with trainees a state of under-reward inequity, but has managing their response to this inequity by laying out the link between working hard and promotion (and reward). Once promoted, an assistant manager might temporarily experience an over-reward inequity in relation to trainees, but will likely justify the reward differential, believing that is was earned from superior inputs. Only when they shift their focus to branch managers will feelings of under-reward inequity emerge. Goal setting theory is probably consistent with the motivational practices used at Enterprise. The company sets difficult goals for its employees and then attaches substantial rewards if goals are achieved. As long as promotion is associated with valued rewards, employees may bring their internal goals in line with company goals. 6.3 Enterprise is obviously a very successful company. What recommendations, if any, would you provide to strengthen the ties between employee motivation and either job performance or organizational commitment? Answer: In its present form the system is geared towards people, at the lower levels, chasing promotions, which, in turn, make the company successful. Given the uncertainties regarding the promotion process, the risk is higher than-expected turnover among management trainees. At some point, they may just give up and leave the company – even if they are high performers. Strengthening the expectancy and instrumentality of promotion would help. It would also help to have trainees share in some of the commissions on sales. This would help to sustain their motivation to pursue promotion, and compensate them for their hard work and frustration – restoring some balance to the input-output equation. BONUS CASE: BECAUSE OWNERS CARE (from 1st ed) When WestJet first took to the sky 12 years ago, it was destined to play an important role in the Canadian airline industry. Founded in 1996 by a team of Calgary entrepreneurs headed by Clive Beddoe, WestJet began operations as a western Canadian regional carrier, with 200 employees and three aircraft servicing five cities.1 Today, WestJet is Canada‘s leading high-value low-fare airline, offering scheduled service to 47 destinations in Canada, the United States, Mexico, and the Caribbean.2 Discussions are currently underway with U.S.-based Southwest Airlines (an airline built on the same business model) to start a code-share partnership that will greatly enhance each airline’s capability to transport passengers anywhere in North America.3 In 2007, the company reported revenues in excess of $2.1 billion, with net earnings coming in at a record $192.8 million.4 In a year when many of its industry competitors faced difficulties, WestJet continued to perform well. Since 2001, WestJet has spent over $2 billion upgrading its fleet to the more fuel-efficient Boeing next-generation 737-series aircraft. It now has 74 of these new aircraft in operation, giving WestJet one of the youngest and most fuel-efficient fleets in North America. Emissions from these aircraft are 30 percent lower on a per-person basis than the fleet of 200-series aircraft that the company replaced.5 Other cost-saving innovations include the required navigation performance (RNP) approach technology to land aircraft. RNP utilizes global positioning system satellites to allow aircraft to fly more direct, precision approaches to airports. This in turn shortens flight time and miles flown, reducing fuel burn and emissions.6 Why do cost savings matter so much? The answer is simple— because owners care! Who are these owners? On September 26, 2005, WestJet launched the Owners campaign.7 You may have heard this slogan on television: “Why do West Etters care so much? Because we’re also Westjet owners.” Today, approximately 80 percent of WestJet’s 6,700 employees allocate 12 percent of their base salary toward the purchase of company shares. Since the program began, “owners” have been rewarded with over $142 million in profit-sharing dollars. Not only has the reward system produced tangible results for employees, but it has also impacted how employees feel about their company. As one WestJet Ter put it, “The best sentiment we can convey to our guests is the pride we feel for our company. Our dedication is evident in the way we perform our jobs and the way we extend our renowned hospitality towards our guests.”8 West Etters love being West Etters, and their caring commitment to their guests and to each other has earned the company, as was featured in Chapter 1, a coveted Most Admired Culture award in 2005, 2006, and 2007. WestJet has not only challenged the conventional wisdom in the way an airline should be run but also has demonstrated an understanding that people are an important source of sustainable competitive advantage. To support a culture that motivates and empowers its members, the company has developed a compensation plan that rewards employees for their collective efforts and results. As “owners,” employees seem to personally identify, and emotionally connect, with the goals and challenges faced by the organization. The airline industry is currently going through very turbulent times. In spite of the heavy investments in a state-of-the-art fleet, the rising cost of jet fuel is a huge consideration given the recent price of crude oil on world markets. A weaker North American economy will no doubt have an effect on discretionary air travel. With the potential of lower revenues combined with higher costs, the risk for “owners” is that the company may not be as profitable as it has been in the past. To the extent this scenario is accurate, incentive systems built on profit-based payments will be adversely affected—employees and investors may not benefit from these reward systems as they have in the past. Moreover, as revenues level off or diminish there will be pressure on the organization to reduce all forms of costs (including labour), and increase its level of high-value service to attract and retain a shrinking pool of customers. Endnotes 1 http://c3dsp.westjet.com/guest/media/investorMedia.jsp?id=Facts 2 Ibid. 3 Southwest plans Canada pact with WestJet, Reuters, July 8, 2008 (Bill Rigby and Derek Caney) 4 WestJet Annual Report 2007; http://c3dsp.westjet.com/guest/media/investorMedia.jsp?id=Facts# 5 http://c3dsp.westjet.com/guest/media/investorMedia.jsp?id=Facts 6 Ibid. 7 Ibid. 8 Ibid Questions: 6.1 Analyze this case from the perspective of expectancy and equity theories. Do you think the motivation of individual employees will increase or decrease? Explain. Answer: This is an interesting case because common sense would say that when profit-sharing payments decline, due to the worldwide economic downturn, so should employee motivation. However, when we analyze the case from the perspective of expectancy and equity theories a different story emerges. Let’s start with equity theory. Clearly, inputs will remain high and perhaps increase to preserve a shrinking customer base. What will definitely change are the financial outcomes received (i.e., profit sharing incentives flowing from the Owners program). But we also know, after reading this chapter, that individuals evaluate the fairness of their input outcome ratios in relation to others. For the employees at WestJet, the most likely referent group would be their counterparts in other domestic airlines. To the extent that WestJet is better positioned to weather this economic storm than her rival airlines, and all else equal (e.g., inputs), it seems reasonable to expect that the outcomes received by Westers will be more favourable that those received by comparable employees in other airlines. Thus, during these challenging times, an over-reward inequity should be perceived – and motivation should increase rather than decrease. Turning now to expectancy theory, all three components should hold. Expectancy and the attractiveness of profit-sharing payments should remain unchanged. As long as the profit-sharing formula is not altered, the perceived link between one’s effort/performance and valued outcomes should remain unchanged – even though the actual dollar value of the payments will be lower to reflect lower company profits. In fact, during these uncertain periods outcomes other than profit-sharing rewards may take on more importance (e.g., holding on to one’s job). According to both theories, the prediction would be that employee motivation should either be enhanced or remain relatively constant in this economy. 6.2 In the context of lower profit-sharing rewards, what would you do to keep motivation high? Answer: Draw attention to how employees in other airlines are doing, especially those employees working for rival companies who do the same work but are not as well-equipped to handle the economic downturn. This should help to reinforce favourable equity comparisons. Draw attention to a wide range of outcomes, not just the profit-sharing program. This would be especially true for rewards that are attainable through hard work (e.g., praise from the team leader when extraordinary effort is demonstrated). Build confidence by explaining to employees how the airline will weather the storm and come out of this ahead – leading to more profits and payouts down the road. 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. 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, self-determination, 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 behaviour 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 self-actualization 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 Behaviour 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. Solution Manual for Organizational Behaviour: Improving Performance and Commitment in the Workplace Jason A Colquitt, Michael J. Wesson, Jeffery A LePine, Ian Gellatly 9780071051620, 9781259066566