MGMT 3101 Notes - Elizabeth Klock PDF

Preview

Summary

Elizabeth Klock...

Description

1-22 Class Notes ● What is organizational behavior (OB)? ○ A field of study devoted to understanding, explaining, and ultimately improving the attitudes and behaviors of individuals and groups in organizations ■ HR management ■ Strategic management ○ Interdisciplinary field dedicated to better understanding and managing people at work ○ Examines how and why people think, feel, and act the way they do in organizational settings ● Individual outcomes→ ○ Job performance ○ Organizational commitment ● Individual mechanisms→ ● Individual characteristics→ ● Group mechanics→ ● Organizational mechanisms ● Study 1: Hiselid, M.A., 1995 ○ Found 1 unit increase in proportion of workforce engaging in HR practices led to decrease in turnover, increase in sales per employee etc ● Study 2: Welbourne, T.M. and Andrews, 1990 ○ Found coded for 136 firms ■ 81/ 136 survived ■ OB helped 19% survive Lecture 1 PPT ● What is organizational behavior ○ A field of study devoted to understanding, explaining, and ultimately improving the attitudes and behaviors of individuals and groups in organizations ■ Human Resource (HR) management ■ Strategic management ○ “Interdisciplinary field dedicated to better understanding and managing people at work” ○ “The study of OB examines how and why people think, feel, and act the way they do in organizational settings” ● Organizational mechanisms ○ Organizational culture ○ Organizational structure ● Group mechanisms ○ Leadership styles and behavior ○ Leadership power and negotiation ○ Teams processes and communication ○ Teams characteristics and diversity ● Individual characteristics ○ Ability

●

●

●

●

○ Personality and cultural values Individual mechanisms ○ Job satisfaction ○ Stress ○ Motivation ○ Trust, justice, and ethics ○ Learning and decision making Individual outcomes ○ Job performance ○ Organizational commitment Does it matter? ○ “An organization, no matter how well designed, is only as good as the people who live and work in it” Why is OB important? ○ Study 1- the impact of HR management practices on turnover, productivity, and corporate financial performance ■ Findings: 1 unit increase in the proportion of the workforce engaging in these practices was associated with ● 7% decrease in turnover ● $27,000 more in sales per employee ● $18,000 more in firm market value ● $3,800 more in profit ○ Study examined the prospectus filed for each of 136 firms in 1988, coding for language indicative of the firm valuing OB practices ■ By 1992, 81 of the 136 firms survived (~60%) ■ Firms valuing OB had a 19% higher survival rate than firms that did not

1-27 Class Notes ● Putting People First article ○ Implementation difficulties ■ Short-term managerial pressures ■ Organizations destroy competence ■ Insufficient delegation ■ Norms of “good management” ● History ● The Human Relations Movement ○ Legalization of union management collective bargaining- 1930s ○ Behavioral scientists called more attention to the human factor ■ Elton Mayo and Colleagues- Western Electric Hawthorne study ● The Hawthorne Studies ○ Large-scale set of studies on workplace factors and worker performance (19241932) ○ Employee performance can be improved by attending to things like: individual needs, supportive supervision, and group dynamics

○

●

●

●

The “Hawthorne Effect”- people will change their behaviors/ attitudes based on if someone is watching them observing them doing that thing ■ Subjects improve or modify their behavior due to the mere presence of an observer How do we research OB? ○ Methods of knowing ■ Experience ■ Intuition ■ Authority ■ Science ● Psychology ● Social psychology ● Sociology ● Political science ● Anthropology How do we know things about OB? ○ How do we know about what causes■ People to stay healthy ● Sleep, the right food, less stress, etc ○ Based off of research, experience, intuition ■ Can be conflicting studies done etc ○ Deductive research= start with theory ■ Theory (collection of assertions that specify how and why variables are related) → ■ Hypotheses (written predictions that specify relationships among variables) → ■ Data (collection and observation of behaviors and outcomes related to the hypotheses) → ■ Verification (use of statistical methods to determine whether or not a hypothesis can be disconfirmed) ○ Inductive research= start with data ■ Data (collection and observation of behaviors and outcomes related to the hypotheses) → ■ Verification (use of statistical methods to determine whether or not a hypothesis can be disconfirmed) → ■ Theory (collection of assertions that specify how and why variables are related) → ■ Hypotheses (written predictions that specify relationships among variables) Correlation does not imply causation ○ In OB: job satisfaction is correlated with job performance ○ Proving causation requires ■ Correlation ● A must proceed B

○ ○ ○

● Temporal precedence ● Elimination of alternative explanations Meta-analysis is helpful for “aggregating” correlations OB provides useful principles rather than cookbook perfection In reality: balance science with other learning methods

Intro to Case 1 ● Case 1○ Main characters ■ Paul Nasr (senior manager), Rob Parson (star employee) ○ Setting ■ Morgan Stanley ○ Purpose ■ Understand the complexities of performance evaluations ○ Deliverables ■ 1 paper per team due 2/10 ■ Teams 2,6,7 present ● 8 minute overview of your answers to questions ● 2 minutes to answer questions 1-29 OB Outcomes: Performance ● Review from previous classes ○ HR focuses on firm level outcomes while OB focuses on team/ individual outcomes to get results ○ Strategy focuses on firm level variables (CEO tenure, etc), what makes the firm a firm vs OB= team/ individual level and outcomes ○ Hawthorne studies (1930s)= if you improve HR then job performance will improve ■ Hawthorne effect ○ How is OB researched ■ Intuition, research, science, authority ○ Correlation doesn’t always imply causation, but causation implies correlation ■ Need temporal precedence and elimination of alternative explanations ● Job performance ○ “The value of the set of behaviors (not necessarily results) that contribute to organizational goal accomplishment” ■ Ex.- an employee has a really good pitch but they don’t go with it, still good job performance ● What are the components of job performance ○ Task performance and citizenship behaviors can positively affect job performance ○ Counterproductive behaviors can negatively affect job performance ● Task performance ○ Behaviors directly involved in transforming organizational resources into the goods or services an organization produces

○

●

●

●

Routine- well known responses to demands that occur in a normal, routine, or otherwise predictable way ■ flight attendants having to give protocol safety procedures before takeoff ○ Adaptive- responses to task demands that are novel, unusual, or at the very least, unpredictable ■ flight attendant having to evacuate the airplane ○ Creative-degree to which individuals develop ideas or physical outcomes that are both novel and useful ■ flight attendant coming up with idea of how to more efficiently board the aircraft What behaviors constitute task performance ○ Job analysis ■ Generate a list of activities involved in the job ■ Subject matter experts (SMEs) rate activities according to frequency and importance ■ Highest rated activities are used to define what task performance looks like In class activity ○ 3 most important activities for the job we pick to analyze ■ Marketing consultant ● Responding to emails ● Drafting proposals ● Keeping contact with subcontractors work ● Paid advertising ● Running advertising campaigns ● Making sure clients get exposure ● Run billboard advertisements ● Approve video productions ○ Ranked: ■ 1. Responding to emails/ communication ■ 2. Paid advertising/ content exposure ■ 3. New proposals/ drafting new proposals ○ What onetoneline says ■ Make lists describing products/ services ■ Evaluate financial aspects ■ Develop market strategy Citizenship behaviors ○ Positively influence job performance ○ Voluntary activities may or may not be rewarded but that contribute to the organization by improving the quality of the setting where work occurs ○ Organizational behavior ■ Speaking up, participating in the org ■ Voice, civic virtue, boosterism ○ Interpersonal

●

●

●

■ Helping employees, teaching new skills ■ Helping, courtesy, sportsmanship Counterproductive behaviors ○ Employee behaviors that intentionally hinder organizational goal accomplishment ○ Negatively influences job performance ■ Intentional, hinder organizational goals ○ Have minor and serious organizational and interpersonal behaviors ■ CWB (counter-productive work behavior) ■ Spectrum between minor and serious ○ Serious organizational: property deviance, sabotage, theft ○ Minor organizational: production deviance, wasting resources, substance abuse ○ Serious interpersonal: personal aggression, harassment, abuse ○ Minor interpersonal: political deviance, gossiping, incivility How do we measure job performance ○ Informal checkups with superiors to show progress and so that they’re easily accessible to answer questions etc ■ That way it doesn’t pile up and seem so daunting ○ Performance evaluations differ from company to company Measuring performance ○ Management by objectives ■ Bases an employees evaluation on whether employee achieves certain goals ■ Bases evaluation on whether certain goals have been achieved ■ Define objectives that both employees and managers agree on ● Having goals and agreeing on them ● Measurable and specific ○ Behaviorally anchored rating scales (BARS) ■ Directly assess job performance behaviors ■ Short descriptions of ineffective and effective behaviors (critical incidents) ● Rating scales (numbers and categorize what the numbers mean) ■ Could be difficult to put an employee into just one certain category vs having more flexible definitions (subjective according to how the person grading it interprets the meanings) ■ Regression towards the mean- rank them towards the average levels so as to motivate them to try harder to get to the higher levels of ranking ○ 360 degree feedback ■ Includes performance information from anyone who has firsthand experience with an employee- including subordinates, peers, and customers ■ Anyone who has firsthand experience with the employee ■ Feedback from peers, customers, direct reports, managers ■ Could be retribution depending on rankings within the organization ■ Important for it to be anonymous ○ Forced ranking

■ ■ ■

●

●

Rank and yank Dead man’s curve Have top performing employees and bottom ranking employees ● Let the bottom 10% go ● 20% of Fortune 500 companies use some variation of this curve ■ Even if everyone is performing about equally, some people will still be slotted into the top percentages and especially into the bottom percentages → letting go employees who aren’t necessarily doing anything wrong (other competitors can pick them up and use them against you) ■ Different companies rank employees differently→ curve is set up differently but still have to put people at the top and at the bottom ■ Can be a waste of resources→ increased turnover ● If increased job performance reviews, and always did this method, would end up firing a lot of people ■ Hyper competitiveness ● Can increase motivation for employees to stay in top 20% ■ Bad evaluations to good employees (spreading rumors etc about coworkers to try to get ahead) The Performance Management Revolution ○ Performance reviews have gone back and forth between numerical rankings to subjectivity over the years ○ Ways to evaluate performance differ for every organization ■ Sales vs health care ○ Numberless evaluations ■ Hard for employees to tag a number to an employee ■ The numbers don’t tell the whole story ■ Even if you can do the task perfectly, might not receive a perfect score ■ Vs ● Numbers are objective ○ Changes in management ● Numbers standardize things ● Relying just on numbers can take the context out of things Review ○ Behavioral anchored rating scales ■ Set a scale to measure performance with numbers and the specifications that the number requires (critical incidents/ critical task behaviors) ○ Management by objectives ■ Manager and employee define clear objectives ○ Forced ranking ■ Dead man’s curve ■ Ranking on a bell shaped curve ■ Let go bottom performing employees

○

360 degree feedback ■ Performance evaluation from anyone who directly interacted with the employee

2-3 ●

● ●

Paper airplane activities ○ Debrief ■ Forced ranking/ bell curves force into choosing people for top performances etc even if everyone is working the same amount, put in the same effort, etc ■ In BARS- you can give everyone 5’s (doesn’t force you to make criticisms) ■ In this activity- things were more short term so tough to see if people are dialed in, focused, contributing consistently etc ■ Can set boundaries or objectives for an “employee” to accomplish when making your own way to evaluate performance Read GE case Review: ○ What is performance? ■ The behaviors associated with how well someone is completing a task ● Task performance+citizenship behaviors- counterproductive behaviors ○ Task performance ■ Routine- everyday ■ Adaptive- responding to unpredictable activities ■ Creative- coming up with new ways to accomplish things ○ Citizenship behaviors ■ Participating in the company ■ Voluntary ■ Improves quality of setting of work ■ Helping people in the company ○ Counterproductive behaviors ■ Minor-serious range ● Stealing someone’s property ● Wasting time ● Harassment ○ Measuring performance ■ BARS- rating people on a scale ■ 360 degree- getting feedback from anyone that the employee may have interacted with and evaluate from each point of view ■ Management by objectives ● Employee and manager agree on objectives and evaluate if those were accomplished

■ ●

Forced ranking ● Bell curve

Case 1 ○ 1 paper per team ■ Memo format- organize thoughts ● Heading: Paul Nasr ○ Subheading: goals during meeting ■ Analysis of subheading

2-5 Commitment and Withdrawal Behavior ● Organizational Commitment ○ Scenario ■ Deloitte ● They treat you well and you like it but another company reaches out and offers you more money ○ Factors to consider: ■ Relocation ■ Benefits ■ Opportunities for advancement/ career development ■ Culture ■ Money (a lot of the time, other factors outweigh money) ● Organizational commitment ○ A desire on the part of an employee to remain a member of an organization ● Affective commitment (want to) ○ A desire on the part of an employee to remain a member of an organization because of an emotional attachment to, or involvement in, that organization ■ Engage in more OCBs ■ What would you feel if you left anyway? ● Might feel sad (detaching from something they like) ■ One of the strongest forms of commitment ● Managing the links ○ The Erosion Model (Johns, 2001) ■ The employee with the least amount of ties in an organization is the most likely to leave ○ The Social Influence model (Turner, 1991) ■ More people around you who are turning over and leaving→ you might also consider doing that ● Continuance Commitment (need to) ○ A desire on the part of an employee to remain a member of an organization because of an awareness of the costs associated with leaving ■ Embeddedness increases or alternatives decreases= CC increases

■

●

●

What would you feel if you left anyway? ● scared/ anxious because you don’t know what’s coming next (less alternatives) ○ Costs of leaving are way higher than the benefits ○ embeddedness= I’ve worked here for such a long time, my job utilizes my skills well, I don’t want to move, etc etc ○ Managing embeddedness ■ Links for the organization ● I’ve worked her for such a long time ● I’m serving on so many teams and committees ■ Fit for the organization ● My job utilizes my skills and talents well ● I like the authority and responsibility I have at this company ■ Sacrifice for the organization ● The retirement benefits provided by the organization are excellent ● I would sacrifice a lot if I left this job ■ Links for the community ● Several close friends and family live nearby ● My family’s roots are in this community ■ Fit for the community ● The weather where I live is suitable for me ● I think of the community where I live as home ■ Sacrifice for the community ● People respect me a lot in my community ● Leaving this community would be very hard Normative Commitment (ought to) ○ A desire on the part of an employee to remain a member of an organization because of a feeling of obligation ■ You stay because you ought to ■ Can create feelings of obligation by ● Increasing perceived indebtedness to organization ● Becoming a charitable organization ■ What would you feel if you left anyway? ● guilty Managing the Psychological Contract ○ As organizational inducements exceed requisite contributions from the individual, the individual likely will experience increased normative commitment ○ Doesn’t have to be spoken things ○ Contract between employee and organization on what they’re going to give each other ○ Individual contributions ■ Effort, ability and skills, time etc ○ Organizational inducements ■ Pay and benefits, job security, prestige, etc

●

●

●

● ●

Organizational commitment ○ Is felt in reference to one’s: ■ Company ■ Top management ■ Department ■ Manager ■ Work team ■ Specific coworkers ○ Leads to ■ Overall organizational commitment Predictors and outcomes of Organizational Commitment (won’t be tested on) ○ Significant predictors ■ Affective: age (+), organizational support (+), self-efficacy (believing in yourself, +), transformational leadership (+) ■ Normative: positive tenure (+), organizational support (+), transformational leadership (+) ■ Continuance: transferability of education and skills (-), organizational/ positive tenure (+) ○ Significant outcomes: ■ Affective: job satisfaction (+), WB (+), OCB (+), stress (-) ■ Normative: job satisfaction (+), turnover/ WB (-) ■ Continuance: work/ family conflict (+) Exit-Voice-Loyalty-Neglect Framework ○ A framework that includes potential responses to negative events ■ Exit: an active, destructive response where the employee removes him/herself from the situation ■ Voice: an active, constructive response, where the employee tries to change the status quo ■ Loyalty: a passive, constructive response, where the employee maintains public support for the company, but privately hopes for an improvement ■ Neglect: a passive, destructive response, leading to a decline in interest and effort on the job ○ High task performance & high organizational commitment= stars ○ High TP & low OC= lone wolves ○ Low TP & high OC= citizens ○ Low TP & low OC= apathetics ○ Constructive and passive= loyalty ○ Constructive and active= voice ○ Destructive and passive= neglect ○ Destructive and active= exit Ex.- Bain fostering commitment Withdrawal behavior ○ A set of actions performed to avoid the work situation ■ One study found that 51% of employees’ time was spent working

■

●

●

●

●

The other 49% was allocated to coffee breaks, late starts, early departures, and personal things Withdrawal behavior ○ Psychological withdrawal (neglect)- actions that provide a mental escape from the work environment ■ Daydreaming ■ Socializing ■ Looking busy ■ Cyberloafing ■ Moonlighting ○ Physical withdrawal (exit)- actions that provide a physical escape from the environment ■ Tardiness ■ Missing meetings ■ Quitting ■ Long breaks ■ Absenteeism Withdrawal behavior and organizational commitment ○ The more organization commitment, the less withdrawal behaviors you’ll engage in 3 Things Employees Really Want ○ Career, community, cause ■ How you rank these throughout your life might change based on experiences, skillsets, etc ○ ...