Lecture 02 5.

Open systems
Introduction to OB - Environment and feedbacks
Organisations
- Coordinated social unit
- Composed of two or more people, works independently, towards the common goal

Organisational Behavior
- The science of behavior in organisations
- The study of how people 1)Think 2)Do 3)Feel
- In and around organisations

Why study OB
- Knowledge - understand org events
- Forecast - predict -
- Control - influence
OB trends/challenges
Five anchors of OB - Globalization
1. Systematic research - New org structural
- Keep other factors constant, look at relationships, causes and effects - Competitions, mergers, work intensification
- Evidence based management decisions based on research evidence than intuition - Diff forms of communication
- Preconceived notions ≠ facts - Workforce diversity
- Aim to predict behaviors - Gender, age,race, religion, national
2. Multidisciplinary - Benefit
- Interdisciplinary social science implementation - Creativity
- Psychology mainly, also sociology - Diligence
- OB theories are also related with other disciplines - Hard working
3. Contigency - Challenges
- Condition based - Miscommunication
- Diagnose the situation and select best strat under the condition - Discrimination
4. Multiple levels of analysis - conflict
- Individual, team, organisation -> their relationships - work/life balance
- Technological advances -> min work hour alter in non systematic way
- Workforce expectations -> wlb >job security for employee priority

- Technology & Virtual work

- Remote job performance
- Telework
- Work from home, internet connection to the office
- Virtual teams
- Operate across space, time, org boundaries
- Communicate with members that communicate through electronic
technologies
Personality & values - Value system : hierarchy of values
Personality - Freedom >< equality
- Individual differences in characteristic patterns of thinking, feeling, and behaving - Values are important as
- Pattern of relatively enduring ways in which an individual reacts to and interacts with others - Ethical decision making
- Guide employee behavior
Personality determinants - Globalization raises awareness of value differences
- Types of values
Big five personality dimensions - CANOE - Espoused
1. Conscientiousness - Org state that it believes in, Desired values
- Strongest personality predictor of performance - Enacted
- Measure parameters: careful, dependable - Org members perceive to be valued by the organization, Reality
2. Agreeableness -> courteous, caring - Value congruence
- Cooperation and helpfulness - Compatibility of value systems
- Teams, customer relations, conflict handling situations - Person-organization
- Measure parameters: Critical, quarrelsome - Espouse-enact
3. Neuroticism - Organization - society
- Relates to life satisfaction, job satisfaction, low stress level - Problems of incongruence
- Measure parameters: anxious, hostile - Incompatible decisions
4. Openness to experience - Lower satisfaction and commitment
- Measure parameters: curious, flexible - Ubcreased stress and turnover
5. Extroversion National culture values
- Social interaction and persuasion Individualisam Collectivism
- Sales and management performance
- Measure parameters: outgoing talkative, extraverted, enthusiastic, reserved quiet - Independent actors - Inseparable from their groups
- Values individual achievement, freedom, and - Value group harmony, cohesiveness, and
MARS model of individual behavior competition consensus
- Motivation - Encourage debate and expression - Saving face
- Internal forces that affect a person’s voluntary choice of behavior
- Direction, Intensity, Persistence
Power distance
- Ability
- Natural and learnt aptitudes, skills, knowledge, and other characteristics required for Egalistarian Hierarchical
task completion and performance
- Role perceptions - Lower power distance - High power distance
- The extent to which people understand the job duties assigned to /expected of them - Bottom up - Top down
- Situational factors - Status have little effect on interaction - Status differences matter
- Environmental conditions beyong the individual’s short term control that constrain - More participative
or facilitate behavior
Communication style

Direct Indirect

- Low context - High context

- Communication primarily explicit, blunt, - implicit m non-verbal and indirect
Values in the workplace verbal and direct communication, Context necessary
- stable , evaluative beliefs that guide our preferences and judgement - Task focused - Relationship based
- Define right or wrong, good or bad (in our eyes)
Perception & learning Attribution theory
Perception - Attribution process
- Attribute causes of event to people or situation
- The process of receiving information about and make sense of the world around us
- Assign credit or blame
- Selecting
- Internal vs external attribution
- Organizing
- interpreting Internal attribution External attribution
Selective attention
Perception that person’s behavior is due to Perception that behavior is due to
- Cocktail party effect
motivation/ability rather than situation or situation/fate rather than the person
- We see only a subset of the perceivable information
fate

Perceptual Process Model

Covairation model of attribution
- The 3 rules/types of information we used when we evaluate a behavior
1. Distirnctiveness
- Does the behavior vary across diff situations
2. Consistency
- Does he/she usually behave this way
3. Consensus
- Do most people engage in this behavior in this situation

Mental models
- Broad world views or templates
- Assumptions and expectations
- Help us to quickly make sense of situations
- May block recognition of new/unfamiliar information

Person perceptions Attribution Errors

- Stereotyping Fundamental attribution error
- Develop social categories and assign traits to people based on their group - The tendency to explain other’s behabior based on internal factors (the person) rather than
membership external factors (the situation)
- People are more likely to interact with stereotypical person from the culture group - Why does it occur
- Outgroup homogeneity effect - Underestimate the power of the situation in producing behavior
- The tendency for people to overestimate the similarity within groups to - Overlook or unaware of situational constraint information
which they do not belong - Fully taking the situation into account requires cognitive resources, which may be scarce
- Where do stereotype come from - Our first assumption is that behavior reflects dispositions
- Cultural upbringing We only adjust this assumption to include external, situational factors if necessary
- Media images - Self serving bias
- Personal experience - The tendency to attribute our success to internal factors and our failure to external
- Why do stereotype occur factos
- Energy saving process to simplify sense making
Self fulfilling prophecy Learning
- Our expectations about another person influence our behaviors towards that person, which - A relatively permanent change in behaviro that occurs as a results of a person’s interaction
in turn cause that person to act in a way that is consistent with our expectation with the environment
- Two major learning perspectives
- Behavior modification
- We operate on the environment
- Alter behavior to maximize positive and minimize adverse ocnsequences
- Learning through reinforcement
- Also known as operant conditioning
- Human thoughts are views as unimportant
- Types of reinforcement
Social identity theory
- How people define themselves in terms of group membership: an important source of pride
and self esteem
- Emotional attachment
- People’s responses are understood in terms of subject beliefs about different groups and the - Behavior modification in practice
relations between them - Managers have many ways of reinforcing good employee performance
- Assigning more favorable characteristics to our own groups -> in group bias through incentive plans, bonuses, disciplinary procedure, and the threat of
- Arbitrary and meaningless groups termination as behavior modification techniques

Positive reinforcement Negative refinforcement

Providing a reward (reinforcing stimulus) for a Removing an unpleasant consequence when

desired behavior the desired behavior occurs
-
Improving perceptions Punishment extinction
- Im- perception is very powerful but imperfect
Positive Withholding reinforcement of a behavior to
- Recognize your biases Applying an averse consequence after an cause its cessation
- Stereotype, attribution errors, undesired bavior is exhibited
- self fulfilling prophecy, in group biases
- Meaningful interaction Negative
- less stereotyping with more interaction Removing a pleasant consequence to
eliminate an undesirable behavior
- Evaluate and hire people systematically
- Apply Johari window -
- Social learning theory
Johari window - Behavioral modeling
- A model of mutual understanding that encourages disclosure & feedback between - Observing and modelling behavior of others
peers/coworkers to increase the open area & reduce the blind, hidden and unknown areas - Learning behavior consequences
- Observing consequences that others experience
Perspective taking - Self - reinforcement
- Stepping outside of one’s own experience and imagining the emotions, perceptions, and - Reinforcing our own behavior with consequences within our control
motivations of another individual
- Decreasing stereotype expression, stereotype accessibility and in group favoritism
Attitudes 2. Organizational commitment
Definition - The degree to which an employee identifies with a particular organization and its
- Evaluation of a target goal and wish to maintain membership in the organization
- Represents an overall assessment of whether a target is positive or negative - It develops slowly over time
Affective commitment Continuance commitment Normative commitment
People can do and hold attitdues about just anything
Three components of attitudes I want to I need to I should
-
Emotional attachment to, Calculative attachment, beliefs that Feelings of obligation
Cognitive componnet Affective components Behavioral identifaction with, and staying with the organsiation serves
componnent involvement in an org your personal interests

Beliefs feelings Behavioral

intentions Building organzational commitment

What one knows How one feels about The way attitudes
what the attitdue the attitude target we have influences
target how we act or
The feelings the behave
The facts and beliefs attitude target
one has about the arouses in the person
target
How scary is the
Spider is scary spider
Attitudes change - Cognitive dissonance theory
Cognitive dissonance
Attitudes in OB
- Any conflict or disharmony between two or more attitudes or between behaviros and
1. Job satisfaction
attitudes
- A person’s overall evaluation of his or her job and work context
- Any form of disharmony is uncomfortable
- Workers with higher job satisfaction are somewhat more productive workers, but
Individuals will attempt to reduce the discomfort
- General attutdue is a poor predictor of specific behaviros
- Seek to reduce the dissonance
- Job satisfaction affects motivation but may have little effect in jobs with little
Most common when behavior is
employee control
- Know to others
- For high complexity jobs the correlation between satisfaction and
- Done voluntarily
performance is highr than for jobs of low to moderate complexity
- Cant be undone
- In times of high unemployement (external factors)
3 ways of reducing cogntitive dissonance
- Job satisfaction increases customer satisfaction and proditability
- ∆ cognition (how you think about the situation)
- Job satisfaction affects mood, leading to positive behaviors towards
- ∆ behavior
customers
- Add consonant cognition (add new thoughts and viewpoints)
- Less employee turnover, resulting in more consistent and familiar service
 Emotions
Definition of emotion
Emotions
- Physiological, behavioral, and psychological episodes experienced toward an object, person,
or event that create a state of readiness
Moods
- Less intense, not directed towards a particular target

High EI people
- Accurately perceived emotions in faces
- Know how to use emotional epsiodes to promote specific types of thinking
- - Sadness -> analytical thoughts
- Understand the meanings that emotions convery
- Know how to manage their own and others’ emotions
Emotion recognition & expression - Rated more favourably by their coworkers
Felt emotions - More likely to get what they need
- An individuals actual emotions - A high EI is an important quality for business leaders and managers to have
Displayed emotions People like vulnerability
- Emotions that are organizationally required and considered appropriate in a given job
Display rules Improving emotional intelligence
- Display of emotions that is culturally appropriate - Emotional intelligence is a set of competencies (aptitudes, skills) that can be learned to some
- E.g. russians think laughter is stupid if its not genuine extent
- Training programs, personal coaching, practice, feedback
- EI increases with age -> maturity
Emtional intelligence
The ability to identify and manage one’s own and other people’s emotions
Stress - Psychological and sexual harassment
Definition - Work overload
- An adaptive response to a situation that is perceived as challenging or threatening to the - Hours of work
person’s well being (fight vs flight) - Intensity of work
- Low task control
- Worse when coupled with high responsibility
Distress Eustress

Physiological, psychological, and behavioral Good stress, activitates and movitates Individual differences in stress
deviation from healthy functioning people to achieve goals - Resisiteance thresholds
- Coping strategies
- Levels of resilience
- Personality traits
- E.g extraversion, neuroticism
- Choose the right task to fit your personality
- Competencies
- Emotional intelligence
- Learn before your meeting, preparation so that you have something to say

Stress management
- Receive social support
- Emotional and informational
- Control stress consequences
- Relaxation and meditation
- fitness and wellness programs
- get enough sleep
- Change stress perceptions
Emotional labor
- Effort, planning and control needed to express organizatonally desired emotions during At work In organisations
interpersonal transactions (e.g. kingtergarden teacher)
Remove the stressor (permannet removal) Assign jobs that match skills and preferences
- Emotional labor higher when job requires
Withdraw from stressors (temporary removal) Reduce excessive workplace noise
- Frequent and long duration display of emotions - Lunch break, take a walk, sabbaticals Complaint system and actions against harrasment
- Displaying a variety of emotions Give employees control over work processes
- Displaying more intense emotions
- Difficult to display expected emotions accurately & hide true emotions
- Emotional dissonance
- Conflict between true & required emotions
- Two types of emotional labor
Surface acting Deep acting

When a person has to fake emotions to A person trying to feel a specific emotion
meet certain social or work rules that they are think about in their mind

Work-related stress
Major stressors at work
- Harassment and incivility
Motivation - Challenging jobs, learning opportunities
Basic concepts of motivation -
Use chatgpt to generate some vague questions to try to identify which theory it is Contributions limitations
Definition
- The process that account for an individual’s direction, intensity, & persistence of effort - Encourages viewing ourselves as a - Lack of scientific support
towards attaining a goal whole person that is greater than - Needs may change rapidly with
the ∑our parts situation
How to measure / observe motivation
- Encourages self exploration - Primary needs arent always lowest
- Direction: Towards a goal - Adopts holistic approach to human in hierarchy
- Intensity: Level of effort existence - Needs hierarchy might vary from
- Persistence: Amount of time one person to the next
-
Major theories of motivation 2. Goal - setting theory
1. Maslow’s needs hierarchy theory - The process of motivating employees and clarifying their role perceptions by
establishing performance objectives
- Increase intensity of efforts
- Increase persistence of efforts
- Clarify role perceptions
- Setting
- A specific & difficult goal, with feedback (than general, vague and easy goals)
- Lead to
- Motivation, commitment & higher performance
`
3. Reinforcement theory
- Behavior is a function of its consequences
-
- Operant conditioning
- Hierarchy of five needs
- Learning by building connections between behaviors and
- Lower order needs
consequences
- Physiological, safety, social
- Higher order needs
- Esteem, and self actualization
- Self actualization
- The drive to become what one is capable becoming through creativity,
intellectual growth, and social progress
- Self esteem
- Overall evaluation on self -
- People tend to take tasks that increase their self esteem
- After getting poor performance, people tend to seek alternative ways to
restore self esteem
- Self enhancement
- Motivation to maintain/increase a good/high self esteem
- Maslow hierarchy needs at work
- Appropriate salaries, breaks and eating opportunities
- Job security, safe and hygienic work environment
- Teamwork, social events
- Job rank, positions, rewards
 - Motivation can be affected through an individual’s perception of fair
treatment in social exchanges
- A theroy of how people develop perceptions of fairness in the distribution
Extrinsic motivation Intrinsic motivation
and exchange of resources
A construct that pertains Doing of an activity for its inherent - Individuals compare their job inputs and outcomes with comparison others
whenever an activity done in orer satisfaction rather than for some and then respond to eliminate any inequities
to attain some separable outcome separable consequences - Three elements of equity theory
- Outcome/input ratio
4. Expectancy theory - inputs -- what employee contributes (e.g., skill, effort,loyalty)
- Rational decision model of employee motivation - outcomes -- what employee receives (e.g., pay, recognition,
- Work effort is directed towards behaviors that people believe will lead to desired reputation)
outcomes - Comparison other
- All three of the pracitices need to work together for the theory to work - person/people against whom we compare our ratio
- Equity evaluation
- compare outcome/input ratio with the comparison other
- Case study
- MBA students would prefer situation where the pay is the same rather than
higher pay but other people get even higher
- Equity equations

-
- Increasing effort - to - performance expectancy
- Train employees to use ability - Overreward vs underreward inequity
- Select people with required competencies - People actively try to correct inequity
- Provide role clarification
- Provide sufficient resources

- Increasing performance - to - outcome expectancy

- Meausre performance accurately
- Distribute valued rewards to hig performer
- Link specific rewards to specific past performance (to set up the reward
expectation)
- Increasing outcome valence
- Individualize rewards vs standardiszed rewards
- Ensure rewards are valued
-
5. Equity theory / procedural justice overreward underreward
1) Equity theory
 - E.g. policeman
Both over reward and under reward induce discomfort and averse feelings
- E.g., a university fund-raising call center.
Feeling of guilt Feeling of anger - Autonomy
- The degree to which the job provides substantial freedom and
discretion to the individual in scheduling the work and in
- Organizational justice determining the procedures to be used in carrying it out.
- E.g., Call-center personnel have no scripts and no time limits at
Distributive justice Procedural justice
Zappos.
Perceived fairness of the amount Perceived fairness of the process to - Feedback
and allocation of rewards among determine the distribution of - The degree to which carrying out the work activities required by a
individuals rewards job results in the individual obtaining direct and clear information
- Procedural justice about the effectiveness of his or her performance.
- People don’t only care about distributive justice (fairness of - Negative feedback – does it affect the performance of the worker?
outcomes/rewards) - Personality
- They also care about procedural justice: fairness of decision-making - The way how the feedback is delivered
processes - Job characteristics model
- Bias vs. neutrality in collecting information, establishing standards, -
and determining decisions
- Participation vs. exclusion
- More evidence for procedural justice
- Company lost two big clients and needed to cut salaries at two
plants
- Condition: inadequate explanation
- Result: Procedural justice reduced turnover and employee left
- What else matters? International justice
- What determines whether patients sue their doctors for
malpractice?
- Quality of medical care received
- Interpersonal treatment received
- How can we design the job to motivate employees - Risks of the models
- Job characteristics model - Risk #1: Threatening Autonomy
- Skill variety - Rewards can undermine feelings of autonomy
- The degree to which a job requires a variety of different activities. - Lead people to feel their behavior is externally controlled
- Eg multimedia designers - rather than freely chosen
- E.g., sales clerks who serve customers might be assigned to the - Lead people to feel manipulated & insulted
additional duties of stocking inventory and changing storefront - Need to be delivered in a supportive and flexible way, rather than controlling
displays - Not with threats, deadlines, pressured evaluation, and imposed
- Task identity goals
- The degree to which the job requires completion of a whole and - Risk #2: Overjustifying effort/undermining interest
identifiable piece of work. - Study: participants played fun games
- Ie copywrited - Experimenters started giving rewards for success Took away rewards
- E.g., a cabinet maker who puts his/her name on a piece of work participants stopped playing
- Task significance - The “overjustification effect”: justified effort in terms of
- The degree to which the job has a substantial impact on the lives or extrinsic rewards rather than intrinsic interest
work of other people. - Decided they were playing only for rewards
 - Rewards can lead people to focus only on extrinsic incentives
- Decreased task enjoyment and motivation
- Risk #3: Reward A while hoping for B
- Push to increase quality control in their plants
- Paid employees a bounty for each insect found on the conveyor belt
- Employees began smuggling in insects to get the bounty
- More bugs, not less!
- Remember money isn’t everything...
- Not all rewards work for everyone
- Need a variety in any one organization
- Challenge, praise, status, meaningfulness, belongingness are all important, too
- Remember intrinsic motivation

- Implications for Managers

- Recognize individual differences (maslow)
- Provide a balanced opportunity for employees to fulfill drives (maslow)
- Link rewards to performance (expectancy theory)
- Use goals and feedback (goal setting theory)
- Check the system for equity (equity theory)
- Allow employees to participate in decisions that affect them (procedural justice)
- Use a variety of motivational tools (intrinsic motivation, extrinsic motivation)