Organisational Behaviour PDF

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Organisational Behaviour module notes...

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Organisational Behaviour (work psychology) Using scientific methods to understand how people think, feel and behave and how these behaviours affect individual/company performance Investigates the impact that individuals, groups and structure have on behaviour within organisations for the purpose of applying such knowledge toward improving an organisation’s effectiveness Attitudes of interest Job Satisfaction 

Satisfaction of one’s job experience

Turnover intentions 

A will to leave the organisation

Organisational Commitment   

Psychological bond with an organisational Level of attachment to the organisations goals, values Can improve individual performance if high commitment

Behaviour of interest – Job Performance In-role performance  

Key performance indicators Responsibilities in the job descrip

Extra-role performance 

Behaviours that aid organisational effectiveness but is not required

Evidence Based Management Making decisions through the conscientious, explicit and judicious use of four sources of information    

Best experience you can gather – personal judgement Stakeholder concerns Best organisational evidence Best available scientific evidence – research

Individual Differences

Personalities Psychological qualities that influence an individual’s characteristic behaviour patterns in a stable and distinctive manner The big 5 personality model (OCEAN)     

Openness to experience - Imaginative, cultured, open minded…high = explorer / low = preserver Conscientiousness - Reliability (organised, self-discipline, hard-working) Focused vs Flexible Extraversion - Comfort level with relationships (sociable, ambition, warmth) Extravert vs Introvert Agreeableness - Likability (flexible, trusing, cooperative. Forgiving) Neuroticism - Emotional stability (deal with stress) reactive vs resilient

How do these relate to job performance/which matters most?

Abilities Cognitive abilities -

Intelligence IQ GMA (can predict job performance) indicator G

However, job performance is not dependent on intelligence Motivation x ability = performance Personality is not highly correlated with GMA Emotional Intelligence – The ability to identify, integrate, understand and reflectively manage one’s own and other people’s feelings Dimensions of EI: Self-emotions Appraisal (SEA) 

An individual’s ability to understand his deep emotions and to be able to express emotions naturally

Other’s emotional Appraisal (OEA) 

Perceive and understand the emotions in the people around them

Use of emotions (UOE)

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Use emotions by directing them toward constructive abilities and personal performance

Regulation of emotion (ROE) 

Regulate emotions enabling a more rapid recovery from psychological stress

There are mixed findings on the relationship between EI & Job performance. Therefore, it also depends on the situation.

Self-Concepts Sets of perceptions that we have about ourselves Self-Efficacy – belief about one’s chances of successfully accomplishing a specific task This is one of the strongest motivational factors as it encourages engagement in more active behaviours which increases the chance of obtaining the goal. VICE VERSA Important – how you perceive yourself significantly influences job performance Corse Self evaluation    

Self-esteem Generalised self-efficacy Emotional stability Locus of control  Belief that effects result from one’s own behaviour rather than fate or powerful others  Internal locus – you make things happen  External locus – things happen to you

Motivation A set of energetic forces that originate both within as well as beyond an individual’s being, to initiate work related behaviour and to determine its form, direction (prioritisation), intensity (effort) and duration (persistence) Influences on motivation include – Extrinsic forces (reward systems) and intrinsic forces (individual needs)

Why is motivation important?

Motivation x Ability = Performance Content theories – explain the things which motivate people Maslow, ERG, McClelland’s needs, Herzberg’s two factor Process theories – explain the process of motivating through identifying the relationship between variables Evaluating theories – common sense, empirical support, practical applications, completeness

Maslow’s Hierarchy of Needs Theory  

People are motivated by unfulfilled needs People pursue higher needs once lower needs are fulfilled (basic needs take precedence over higher ones)

Self-actualization – only here can we maximise potential – creativity, problem solving, morality Esteem – self-esteem, confidence, achievement, respect by others Love/belonging needs – friendship, family, sexual intimacy Safety Needs – security of employment, environment, health Physiological Needs – food, water, sleep

Evaluation:   

Difficult to test – lack of consistent empirical support (difficult to apply?) Do needs really exist in a hierarchy Implies that everyone has exactly the same needs in life (cultural differences/individual?)

Alderfer’s ERG Theory People have three forms of needs   

Existence needs – safety/psychological needs Relatedness needs – esteem/social needs Growth needs – self actualisation/esteem needs

Needs exist simultaneously (without hierarchy) but the importance of each need varies on the individual. Frustration regression principle – if higher level needs are not fulfilled, people will regress to lower level needs which are usually easier to fulfil to become motivated/satisfied Principles:

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Employees have multiple needs to satisfy – focusing on one form of need won’t be enough to motivate them to perform well Employees are motivated by different ways If needs aren’t met, organisations should provide support on their lower needs, so they are still motivated

Evaluation  

There is evidence to support the theory Still hard to design an experiment to test the complete theory

McClelland’s Need Theory Three subconscious needs   

Need for achievement – by setting goals, people can maximise potential Need for affiliation – need for other people Need for power – need for control

Principles:   

Managers need to set achievable but challenging goals Integrate people in teams/co-operative environments Offer managerial roles

Evaluation  

Good support that the need for achievement drives better job performance but less on power/affiliation Criticism – needs are subconscious – difficult to identify therefore its difficult to provide strategy for motivation

Herzberg’s two factor Theory Factors that make people satisfied at work are different that factors that make people dissatisfied Motivators – factors that cause satisfaction    

Achievement Growth/promotion opportunities Recognition Responsibility

Hygiene factors – aspects of work which remove dissatisfaction but do not contribute to motivation/performance

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Supervision Relationship with peers Pay Working conditions Security

Evaluation:  

Not well supported empirically Does employee satisfaction really indicate productivity?

Equity Theory Based on the principle of social comparison, individuals seek fairness at work and people are motivated to work if they perceive unfairness in comparison to other people. A perception of unfairness (inequity) creates tension that motivates people to resolve the unfairness. The more “intense” the inequity, the stronger the motivation to act Inputs – assets someone brings to the job (effort, time, ideas) Outputs – benefits derived from the job (pay, recognition) Adams states that people form ratios (comparisons) of inputs to outputs with other people’s ratios where equity of ratios leads to job satisfaction and commitment. Evaluation:    

Some empirical support – strong support for underpayment Not everyone responds in the same way when faced with inequity Short term vs long term unfairness? Perceived inequity can generate resentment

Expectancy Theory People are motivated when they can see a clear effort-reward link – between the effort they put in and getting rewards they desire “behaviour is directed by the expectations that we have about our behaviour leading to the achievement of desired outcomes” e.g. if you need more money and if you expect to get more money for working hard then it can be predicted that you will work hard. Therefore, this theory assumes that our behaviour is determined by the expectancy of achieving our valued goals. Motivational force (F) = Expectancy (E) x Instrumentality (I) x Valence (V) F=ExIxV Expectancy – The perceived relationship between effort and performance – probability that effort will result in a good performance 

0 = no relationship

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1 = strongest possible relationship

Instrumentality – The perceived relationship between performance and attainment of each outcome/reward  

0 = no relationship 1 = strongest possible relationship

Valence – employee’s feelings about job outcomes/rewards  

- 10 to 10 – attractiveness to reward 0 = indifference

If any component is 0 then Motivation will be 0  

Increasing desired outcomes will increase motivation Management can support the effort/performance link through training/resources

Evaluation:   

Some empirical support Assumes behaviour is rational Different value of rewards may change over time

Goal-setting Theory Individuals are motivated to work by the goals they set about their performance    

Challenging goals lead to higher levels of job performance (must be achievable) Must be specific Important for individual feedback Individual participation in goal setting

Evaluation:  

May encourage unethical methods Can people cope with multiple goals?

Challenges for theories of motivation Need to consider when applying motivational theories

Individual Differences  

Competitiveness Self determination (personality factors)

Culture  

Research has been focused on US populations (consider different cultural backgrounds) Importance of needs is different in different cultures

Teamworking 

Are teams motivated in the same way as individuals?

Leadership The power perspective – process of influencing others to understand and agree about what needs to be done and how to do it and the process of facilitating individual and collective efforts to accomplish shared objectives   

Leadership is a social process (occurs in interpersonal contexts) Leadership is about motivating followers’ efforts These efforts should be relayed on accomplishing shared objectives

The representative’s perspective – leaders are those who best represent the values of their followers and are better at solving their followers’ problems and achieving their goals e.g. political leadership

Leadership vs Management Leaders   

Set directions/goals Align people towards these goals Motivate others to achieve these shared goals

Managers   

Planning & budgeting Organizing & staging Controlling & problem solving

Trait Theories

Physical Characteristics (height, appearance, gender) Psychological characteristics (authoritarianism, personality, intelligence) These findings were not conclusive Doesn’t take into account personal experiences

Behavioural Theories (relationship-oriented behaviours) Initiating Structure – captures leader behaviours related to initiating clear guidelines for procedures for followers to achieve goals 

Performance standard e.g. uniforms, scheduling

Positively related to follower performance – emphasis on tasks Consideration – leader behaviours related to reciprocal trust and welfare of followers Positively related to follower satisfaction and morale – emphasis on needs Therefore, the ideal leadership style incorporates both structure and consideration behaviours Criticism because there’s only emphasis on these two qualities

Contingency Theories The effectiveness of leadership traits or behaviours is dependent on the situation e.g. features of the organisation, characteristics of the workplace, the followers Leaders are either task-motivated or relationship-motivated Three dimensions of situational characteristics:   

Quality of leader-follower relationship Clarity of performance goal Amount of authority/power the leader has

Findings: Task-motivated leaders are more effective in extreme situations whereas relationship motivated leaders are more effective in moderately favourable situations

Path-goal Theory (House)

To identify the role and behaviours of effective leaders and to explore the situational contingencies that modify these behaviours A Leader’s role is to align the goals of followers with those of the organisation   

Help followers to realize they have the capabilities to meet their goals Clarifying the path between the effort and goal attainment Ensure that the goals are valuable to followers

Application of the expectancy theory (leaders help followers VIE) House’s four leadership behaviours: Participative leadership behaviour (for followers who’s goals are not aligned with the organisation)   

Includes followers in decision making Enhances motivation by engaging the follower in organisational activities Provides followe with more appreciation between effort and goal achievement

Directive path-goal-clarifying leadership behaviour   

The same as imitating structure Effective when followers don’t have a clear idea about what leads to goal achievement When followers aren’t confident

Supportive leadership behaviour 

Similar to consideration

Achievement oriented leadership behaviour   

Creating challenging and high standard performance goals Effective when followers have low self confidence about their abilities Expressing confidence in followers increases self-efficacy

Substitutes for leadership Illuminates numerous situational variables that influence the leadership outcomes relationship Some situational variables can replace the leadership effects: Neutralizers (Situational factors that minimise/block the effects of leadership) 

Spatial distance e.g. poor communication

Substitutes (similar effects to leadership effects) 

Followers with strong intrinsic motivation may not need a leader to further motivate themselves

Transactional leadership behaviours:

Laissez-faire no management and no leadership behaviours Management by exception Passive - only interrupt followers if they make a mistake. Limited leadership behaviours and enforce punishment due to poor performance Active – leaders warn followers before they make mistakes Contingent Reward rewards good performance through transactions/incentives (wage increase)

Transformational Leadership Idealized Influence  

Leaders’ behaviours that are motivated by what is best for the organization and its members. Through idealised influence Leaders communicate visions for the future and creates a collective sense of mission

Inspirational motivation  

Encourages employees to achieve more that what they thought possible Inspires employees to surmount psychological setbacks and external obstacles

Intellectual stimulation 

Encourages employees to think for themselves,

Individualized consideration 

Pays attention to employees’ personal needs for achievement and development

Difference between transformation and transactional leadership: Transactional leadership facilitates the exchange or resources, transformational leadership facilitates goal alignment. Transformational leaders align employees’ goals with the organisation’s goals through clear visions. Employee success is then identified with the organisation’s success – benefits both

Charismatic Leadership Followers’ belief that the leader possess unusal and exceptional qualities

Charisma is a perceptual concept where it is nothing more than a perception created by followers through the attribution process. (only exist in the eyes of their followers) Specific leader behaviours are charismatic – idealized influence and inspirational motivation

Relational Approach (centric) Focuses on the interpersonal relationship between leaders and followers (mutual influence)

Leader-Member exchange (LMX Theory) The quality of relationships results in more different organizational outcomes A higher quality of relationship will result in a more positive outcome -

Follower satisfaction & commitment Role clarity Performance

Limitations: -

Both parties may perceive their relationship differently Practicality – a leader must develop a high quality relationship with every member

Followership Suggests that followers decide whether they will follow a leader and if so then desirable outcomes will be achieved Romance of leadership Leadership is a social construction created by followers Followers will over-attribute causality for group outcomes to the leader who is the focal point of the group’s attention. Social contagion

Implicit Leadership Theory Followers have their own beliefs for leader behaviours that influence the extent to which they attribute effectiveness and evaluations – good vs bad leader These are formed through follower socialization and past experiences

Group Prototypicality In a group setting, people will consider the person who best represents the groups characteristic as the leader

Leader effectiveness depends on followers’ motivation to cooperate with the leader as well as the leader’s ability to influence followers

Employee Wellbeing (Week 5) Does stress matter? – In what ways does this impact organisations? Stress – A psychological process that arises where work demands of various types and combinations exceed the person’s capacity and capability to cope Stressor – External factors that cause a stress response Strain – Short and long-term effects of the stressor – consequences of stress

Karasek’s Demand-control Model

Dimensions of Stress (Stressors)  

The nature of the job itself (e.g. work overload, risk of danger, long hours, time pressure) Role in organisation – clarity of role can reduce stress - Role ambiguity (unclear role and lack of information) - Role conflict – e.g. incompatible demands from different supervisors

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Career Issues – Job insecurity (zero hour contracts, threat of redundancies, future uncertainty), Promoted too slowly (feeling undervalued, Career plateau,) Promoted too quickly (feel inadequate to perform new role) Organisational Culture/Change (e.g. mergers) /Politics (acting for own self-interest)

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Relations at work Balancing work and home - Time based – conflict between amount of time needed to be spent at work/home - Behaviour based – attitudes/behaviours needed in roles are different (shifting behaviours in different roles) - Strain based – (spillover) where negative feelings from work spillover into home

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Individual differenc...