CHAPTER

Relationship capital:

Is the value derived from an organization's relationships with customers, suppliers, and others who provide added mutual value for the organization. It includes the organization's goodwill, brand image, and combination of relationships that organizational members have with people outside the organization 19

Open systems

perspective of organizational effectiveness is one of the earliest and most-entrenched ways of thinking about organizations. Indeed, the other major organizational effectiveness perspectives mainly provide more detail to specific sections of the open systems model. The open systems perspective views organizations as complex organisms that "live" within an external environment, Page 17th

Human capital:

refers to the knowledge, skills, and abilities that employees carry around in their heads. It is a competitive advantage because employees are essential for the organization's survival and success, and their talents are difficult to find, to copy, and to replace with technology. Human capital is also a huge risk for most organizations because it literally leaves the organization every day when employees go home! 19

Complexity

refers to the number of distinct and important roles or identities that people perceive about themselves

Canoe

Conscientiousness. Characterizes people who are organized, dependable, goal-focused, thorough, disciplined, methodical, and industrious. People with low conscientiousness tend to be careless, disorganized, and less thorough Agreeableness. Describes people who are trusting, helpful, good-natured, considerate, tolerant, selfless, generous, and flexible. People with low agreeableness tend to be uncooperative and intolerant of others' needs as well as more suspicious and self-focused. Neuroticism. Refers to people who tend to be anxious, insecure, self-conscious, depressed, and temperamental. In contrast, people with low neuroticism (high emotional stability) are poised, secure, and calm Openness to experience. Characterizes people who are imaginative, creative, unconventional, curious, nonconforming, autonomous, and aesthetically perceptive. Those with low scores on this dimension tend to be more resistant to change, less open to new ideas, and more conventional and fixed in their ways.

corporate social responsibility

Consists of organizational activities intended to benefit society and the environment beyond the firm's immediate financial interests or legal obligations. view that companies have a contract with society, in which they must serve stakeholders beyond stockholders and customers. I page 24

Structural capital:

Even if every employee left the organization, some intellectual capital remains as structural capital. It includes the knowledge captured and retained in an organization's systems and structures, such as the documented work procedures, physical layout of production and office space, and the finished products (which can be reverse engineered to discover how they were made 19

Consistency is the second characteristic of an individual's self-concept

High consistency exists when the individual's identities require similar personality traits, values, and other attributes. Low consistency occurs when some self-views require personal characteristics that conflict with attributes required for other self-views. Low consistency exists, for example, in a safety-conscious engineer who also defines himself or herself as a risk-oriented acrobatic snowboarder. Self-concept consistency also depends on how closely the person's identities require personal attributes that are similar to his or her actual attributes. Low consistency exists when an individual's personality and values

Organizational behavior (OB)

Is the study of what people think, feel, and do in and around organizations. It looks at employee behavior, decisions, perceptions, and emotional responses. It examines how individuals and teams in organizations relate to each other and to their counterparts in other organizations. OB also encompasses the study of how organizations interact with their external environments, particularly in the context of employee behavior and decisions. OB researchers systematically study these topics at multiple levels of analysis, namely, the individual, team (including interpersonal), and organization.

self efficacy

Self-efficacy refers to a person's belief about successfully completing a task. Those with high self-efficacy have a "can-do" attitude. They believe they possess the energy (motivation), ability, clear expectations (role perceptions), and resources (situational factors) to perform the task. In other words, self-efficacy is an individual's perception regarding the MARS model in a specific situation. Self-efficacy is often task specific, but it can also be more generalized. People have a general self-efficacy when they believe they can be successful across a variety of situations. People with higher general self-efficacy have a more positive overall self-evaluation

self-fulfilling prophecy

The perceptual process in which our expectations about another person cause that person to act more consistently with those expectations Occurs when our expectations about another person cause that person to act in a way that is consistent with those expectations. In other words, our perceptions can influence reality. Exhibit 3.5 illustrates the four steps in the self-fulfilling prophecy process using the example of a supervisor and a subordinate. The process be-gins when the supervisor forms expectations about the employee's future behavior and performance. These expectations are sometimes inaccurate, because first impressions are usually formed from limited information. The supervisor's expectations influence his or her behavior toward employees. In particular, high-expectancy employees (those expected to do well) receive more emotional support through nonverbal cues (e.g., more smiling and eye contact), more frequent and valuable feedback and reinforcement, more challenging goals, better training, and more opportunities to demonstrate good performance

Sterotyping

The process of assigning traits to people based on their membership in a social category its the perceptual process in which we assign characteristics to an identifiable group and then automatically transfer those features to anyone we believe is a member of that group. 50 The assigned characteristics tend to be difficult to observe, such as personality traits and abilities, but they can also include physical characteristics and a host of other qualities. Stereotypes are formed to some extent from personal experience, but they are mainly provided to us through media images (e.g., movie characters) and other cultural prototypes. Consequently, stereotypes are shared beliefs across an entire society and sometimes across several cultures, rather than beliefs that differ from one person to the next

ethical rules

Utilitarianism .This principle says the only moral obligation is to seek the greatest good for the greatest number of people. In other words, we should choose the option that provides the highest degree of satisfaction to those affected. One problem is that utilitarianism requires a cost-benefit analysis, yet many outcomes aren't measurable. Another problem is that utilitarianism could justify actions that other principles Individual rights .This principle says that everyone has the same set of natural rights, such as freedom of movement, physical security, freedom of speech, and fair trial. The individual-rights principle extends beyond legal rights to human rights that everyone is granted as a moral norm of society. One problem with this principle is that some individual rights may conflict with others. The shareholders' right to be informed about corporate activities may ultimately conflict with an executive's right to privacy, for example. Distributive justice . This principle says that the benefits and burdens of similar individuals should be the same; otherwise they should be proportional. For ex-ample, employees who contribute equally in their work should receive similar rewards, whereas those who make a lesser contribution should receive less. A variation of this principle says that inequalities are acceptable when they benefit the least well off in society. The main problem with the distributive justice principle is that it is difficult to agree on who is "similar" and what factors are "relevant." We discuss distributive justice further in Chapter 5

intellectual capital

a company's stock of knowledge, including human capital, structural capital, and relationship capital 19

power distance

a cross-cultural value describing the degree to which people in a culture accept unequal distribution of power in a society refers to the extent to which people accept unequal distribution of power in a society. Those with high power distance value unequal power. Those in higher positions expect obedience to authority; those in lower positions are comfortable receiving commands from their superiors without consultation or debate. People with high power distance also prefer to resolve differences through formal procedures rather than direct informal discus-sion. In contrast, people with low power distance expect relatively equal power sharing. They view the relationship with their boss as one of interdependence, not dependence; that is, they believe their boss is also dependent on them, so they expect power sharing and consultation before decisions affecting them are made. People in India and Malaysia tend to have high power distance, whereas people in Denmark and Israel generally have low power distance. Americans collectively have medium-low power distance 53

Johari window

a model of mutual understanding that encourages disclosure and feedback to increase our own open area and reduce the blind, hidden, and unknown area this model of self-awareness and mutual understanding divides information about you into four "windows"—open, blind, hidden, and unknown—based on whether your own values, beliefs, and experiences are known to you and to others (see Exhibit 3.6).

locus of control

a person's general belief about the amount of control he or she has over personal life events is defined as a person's general beliefs about the amount of control he or she has over personal life events. Individuals with an internal locus of control believe that life events are caused mainly by their personal characteristics (i.e., motivation and abilities). Those with an external locus of control believe events are due mainly to fate, luck, or conditions in the external environment. Locus of control is a generalized belief, but this belief varies to some extent with the situation. People with an external locus of control generally believe that life's outcomes are beyond their control, but they also believe they have control over the results of tasks they perform often. The individual's general locus of control would be most apparent in new situations, where their ability to control events is uncertain. People with an internal locus of control have a more positive self-evaluation. They also tend to perform better in most employment situations, are more successful in

self verification

a person's inherent motivation to confirm and maintain his or her existing self-concept Individuals try to confirm and maintain their existing self-concept. This process, called self-verification, It stabilizes an individual's self-view, which in turn provides an important anchor that guides his or her thoughts and actions. Employees actively communicate their self-concept so coworkers understand it and provide verifying feedback. For ex-ample, you might let coworkers know that you are a very organized person; later, they compliment you on occasions where you have indeed been very organized. Unlike self-enhancement, self-verification includes seeking feedback that is not necessarily flatter-ing (e.g., "I'm a numbers person, not a people person"). Experts continue to debate whether and under what conditions people prefer information that supports self-enhancement or self-verification. In other words, do we prefer compliments rather than accurate critique about weaknesses that we readily acknowledge? The answer is likely an emotional tug-of-war; we enjoy compliments, but less so if they are significantly contrary to our self-view.Self-verification is associated with several OB topics. First, it affects the perceptual process because employees are more likely to remember information that is consistent with their self-concept and nonconsciously screen out information (particularly negative information) that seems inconsistent with it. Second, people with high self-concept clar-ity will consciously dismiss feedback that contradicts their self-concept. Third, employ-ees are motivated to interact with others who affirm their self-views, and this affects how well they get along with their boss and team members. For instance, new employees are more satisfied and perform better when the socialization process allows them to affirm their authentic self—they can demonstrate and receive support for "who they are"—rather than when the socialization process mainly steers them into the company's image of an ideal employee.

organizational learning

a perspective that holds that organizational effectiveness depends on the organization's capacity to acquire, share, use, and store valuable knowledge HSR human capital structural relationship An organization's intellectual capital develops and is maintained through the four organizational learning processes shown in Exhibit 1.5: acquiring, sharing, using, and storing knowledge Page 19

emotional intelligence

a set of abilities to perceive and express emotion, assimilate emotion in thought, understand and reason with emotion, and regulate emotion in oneself and others Improves performance in many types of jobs. Emotional intelligence includes a set of abilities that enable us to recognize and regulate our own emotions as well as the emotions of other people. This definition refers to the four main dimensions shown Awareness of our own emotions. This is the ability to perceive and understand the meaning of our own emotions. People with higher emotional intelligence have better awareness of their emotions and are better able to make sense of them. They can eavesdrop on their emotional responses to specific situations and use this awareness as conscious information. Management of our own emotions. Emotional intelligence includes the ability to manage our own emotions, something that we all do to some extent. We keep disruptive impulses in check. We try not to feel angry or frustrated when events go against us. We try to feel and express joy and happiness toward others when the occasion calls for these emotional displays. We re-energize ourselves later in the workday. Notice that management of our own emotions goes beyond enacting desired emotions in a particular situation. It also includes generating or suppressing emotions. In other words, the deep acting described earlier requires high levels of the self-regulation component of emotional intelligence.• Awareness of others' emotions. This is the ability to perceive and understand the emotions of other people. It relates to empathy having an understanding of and sensitivity to the feelings, thoughts, and situations of others (see Chapter 3). It includes understanding the other person's situation, experiencing his or her emotions, and knowing his or her needs, even when unstated. Awareness of others' emotions also includes being organizationally aware, such as sensing office politics and the existence of informal social networks.• Management of others' emotions. This dimension of EI refers to managing other people's emotions. It includes consoling people who feel sad, emotionally inspiring team members to complete a class project on time, getting strangers to feel comfortable working with you, and dissipating coworker stress and other dys functional emotions that they experience

service profit chain model

a theory explaining how employees' job satisfaction influences company profitability indirectly through service quality, customer loyalty, and related factors This model shows that job satisfaction has a positive effect on customer service, which eventually benefits shareholder financial returns. The process begins with workplace practices that increase or decrease job satisfaction. Job satisfaction then influences whether employees stay (employee retention) as well as their motivation and behavior on the job. Retention, motivation, and behavior affect service quality, which influences the customer's satis-faction, perceived value of the service, and tendency to recommend the service to others (referrals). These customer activities influence the company's profitability and growth. The service profit chain model has considerable research support. However, the benefits of job satisfaction take considerable time to flow through to the organization's bottom line.

social identity theory

a theory stating that people define themselves by the groups to which they belong or have an emotional attachment. Which says that people define themselves by the groups to which they belong or have an emotional attachment. For instance, someone might have a social identity as an American citizen, a University of Oregon alumnus, and an employee at Boston Consulting Group

High continuance commitment

an individual's calculative attachment to an organization In contrast to the benefits of affective commitment, employees with high levels of continuance commitment tend to have lower performance and are less likely to engage in organizational citizenship behaviors. Furthermore, unionized employees with high continuance commitment are more likely to use formal grievances, whereas employees with high affective commitment engage in more cooperative problem solving when employee-employer relations sour. Although some level of financial connection may be necessary, employers should not rely on continuance commitment instead of affective commitment. Employers still need to win employees' hearts (affective commitment) beyond tying them financially to the organization (continuance commitment

self concept

an individual's self beliefs and self evaluation Refers to an individual's self-beliefs and self-evaluations. It is the "Who am I?" and "How do I feel about myself?" that people ask themselves and that guide their decisions and action Can be described by three characteristics: complexity, consistency, and clarity

deep level diversity

differences in the psychological characteristics of employees, including personalities, beliefs, values, and attitudes revealed when employees have different perceptions and attitudes about the same situation Page 12

EVLN Model

exit-voice-loyalty-neglect (EVLN) model the four ways, as indicated in the name, that employees respond to job dissatisfaction Exit. a theory explaining how employees' job satisfaction influences company profitability indirectly through service quality, customer loyalty, and related factorsExit includes leaving the organization, transferring to another work unit, or at least trying to get away from the dissatisfying situation. The traditional theory is that job dissatisfaction builds over time and is eventually strong enough to motivate employees to search for better work opportunities elsewhere. This is likely true to some extent, but the most recent opinion is that specific "shock events" quickly energize employees to think about and engage in exit behavior. For example, the emotional reaction you experience to an unfair management decision or a conflict episode with a coworker motivates you to look at job ads and speak to friends about job opportunities where they work. This begins the process of visualizing yourself working at another company and psychologically withdrawing from your current employer. Voice. Voice is any attempt to change, rather than escape from, the dissatisfying situation. Voice can be a constructive response, such as recommending ways for management to improve the situation, or it can be more confrontational, such as filing formal grievances or forming a coalition to oppose a decision. In the extreme, some employees might engage in counterproductive behaviors to get attention and force changes in the organization.• Loyalty. In the original version of this model, loyalty was not an outcome of dis-satisfaction. Rather, it predicted whether people chose exit or voice (i.e., high loyalty resulted in voice; low loyalty produced exit) More recent writers describe loyalty as an outcome, but in various and somewhat unclear ways. Generally, they suggest that "loyalists" are employees who respond to dissatisfaction by patiently waiting—some say they "suffer in silence"—for the problem to work itself out or be resolved by others. Neglect. Neglect includes reducing work effort, paying less attention to quality, and increasing absenteeism and lateness. It is generally considered a passive activity that has negative consequences for the organization.How employees respond to job dissatisfaction depends on the person and situation. The individual's personality, values, and self-concept are important factors. For example, people with a high-conscientiousness personality are less likely to engage in neglect and more likely to engage in voice. Past experience also influences which EVLN action is applied. Employees who were unsuccessful with voice in the past are more likely to engage in exit or neglect when experiencing job dissatisfaction in the future. Another factor is loyalty, as it was originally intended in the EVLN model

mars model

motivation, ability, role perceptions, and situational factors—which are represented by the acronym All four factors are critical influences on an individual's voluntary behavior and performance; if any one of them is low in a given situation, the employee would perform the task poorly Motivation, ability, and role perceptions are clustered together in the model because they are located within the person. Situational factors are external to the individual but still affect his or her behavior and performance. The four MARS variables are the direct predictors of employee performance, customer service, coworker collegiality, ethical behavior, and all other forms of voluntary behavior in the workplac page 32

work/life balance

the degree to which a person minimizes conflict between work and nonwork demands occurs when people are able to minimize conflict between their work and nonwork demands. 23 Most employees lack this balance because they spend too many hours each week performing or thinking about their job, whether at the workplace, at home, or on vacation. This focus on work leaves too little time to fulfill nonwork needs and obligations. page 9 and chapter 1&4

emotional labor

the effort, planning, and control needed to express organizationally de-sired emotions during interpersonal transactions. Almost everyone is expected to abide by display rules —norms or explicit rules requiring us within our role to display specific emotions and to hide other emotions. Emotional labor demands are higher in jobs requiring a variety of emotions (e.g., anger as well as joy) and more intense emotions (e.g., showing delight rather than smiling weakly), as well as in jobs where interaction with clients is frequent and longer. Emotional labor also increases when employees must precisely rather than casually abide by the display rules. This work requirement is most common in service industries, where employees have frequent face-to-face interaction with clients

esteem

the extent to which people like, respect, and are satisfied with themselves—represents a global self-evaluation. People have degrees of self-esteem for each of their various roles, such as being a good student, a good driver, and a good parent. From these multiple self-appraisals, people form an overall evaluation of themselves, known as their global self-esteem. People with high self-esteem are less influenced by others, tend to persist in spite of failure, and have a higher propensity to think logically.

surface level diversity

the observable demographic or physiological differences in people, such as their race, ethnicity, gender, age, and physical disabilities page: 11 chap 1

Perception

the process of receiving information about and making sense of the world around us It includes determining which information to notice, as well as how to categorize and interpret it within the framework of our existing knowledge. The perceptual process generally follows the steps shown in Exhibit 3.3. Perception begins when environmental stimuli are received through our senses. Most stimuli that bombard our senses are screened out; the rest are organized and interpreted.

emotional dissonance

the psychological tension experienced when the emotions people are required to display are quite different from the emotions they actually experience at that moment Most jobs expect employees to engage in some level of emotional labor, such as display-ing courtesy to unruly passengers or maintaining civility to coworkers. Often, employees are supposed to show emotions that are quite different from the emotions they actually experience at that moment. This incongruence produces an emotional tension called emotional dissonance.

self-enhancement

to how much a person is motivated by self-interest. This quadrant includes the values categories of achievement (pursuit of personal success), power (dominance over others), The group's status is another important social identity factor because association with the group makes us feel better about ourselves (i.e., self-enhancement). Medical doctors usually define themselves by their profession because of its high status. Some people describe themselves by where they work ("I work at Google") because their employer has a good reputation. Others never mention where they work because their employer is noted for poor relations with employees or has a poor reputation in the community. page 46

counterproductive behavior

voluntary behaviors that have the potential to directly or indirectly harm the organization Organizational behavior is interested in all workplace behaviors, including dysfunctional activities collectively known