Test 1 Review

Identify and explain problems in the decision making process that can influence employee decisions.

o Limited formation · Most employees are subject to bounded rationality - decision makers simply do not have the ability or resources to process all available information and alternatives to make an optimal decision · Satisficing: when decision makers select the first acceptable alternative considered o Faulty perceptions · Although perceptions can be very useful, they can often become distorted versions of reality · Selective perception: the tendency for people to see their environment only as it affects them as it is consistent with their expectations · Projection bias: people project their own thoughts, attitudes, and motives onto other people · Social identity theory: people identify themselves by the groups to which they belong and perceive and judge others by their group memberships · Stereotype: assumptions are made about others on the basis of their membership in a social group · Heuristics: simple, effective, rules of thumb that allow us to make decisions more easily · Availability bias: the tendency for people to base their judgments on information that is easier to recall o Fault attributions · Fundamental attribution error: people have a tendency to judge others' behaviors as due to internal factors · Self-serving bias: when we attribute our own failures to external factors and our own successes to internal factors o Escalation of commitment · Escalation of commitment: the decision to continue to follow a failing course of action

Provide examples of task performance, citizenship behavior, and counterproductive behavior.

-Task Performance i. Routine task performance: involves well-known responses to demands that occur in a normal, routine, or otherwise predictable way (Starting a car) ii. Adaptive task performance, or more commonly "adaptability," involves employee responses to task demands that are novel, unusual, or, at the very least, unpredictable. (Avoiding a stalled vehicle) iii. Creative task performance refers to the degree to which individuals develop ideas or physical outcomes that are both novel and useful -Citizenship Behavior i. Interpersonal (Helping, courtesy, sportsmanship) ii. Organizational (Voice, Civic virtue, boosterism) -Counterproductive behavior i.Property Deviance refers to behaviors that harm organizations assets and possessions. (Sabotage, Theft) ii. Production Deviance focuses specifically on reducing the efficiency of work output. (Wasting Resources, Substance Abuse) iii.Political Deviance refers to behaviors that intentionally disadvantage other individuals rather than the larger organization. (Gossiping, Incivility) iv.Personal Aggression defined as hostile verbal and physical actions directed toward other employees. (Harassment, Abuse)

Explain and apply three main theories of motivation:

1. Expectancy theory - describes the cognitive process that employees go through to make choices among different voluntary responses 2. Goal setting theory - views goals as the primary drivers of the intensity and persistence of effort 3. Equity theory - acknowledges that motivation doesn't just depend on your own beliefs and circumstances but also on what happens to other people

Describe motivation's effect on job performance and organizational commitment.

1. Psychological empowerment - an intrinsic form of motivation derived from the belief that one's work tasks are contributing to some larger purpose Fostered by four beliefs: · Meaningfulness - captures the value of a work goal or purpose, relative to a person's own ideas and passions · Self-determination - reflects a sense of choice in the initiation and continuation of work tasks · Competence - captures a person's beliefs in his or her capability to perform work tasks successfully · Impact - reflects the sense that a person's actions "make a difference" that progress is being made toward fulfilling some important purpose Motivation has a strong positive relationship with job performance and a moderate positive relationship with organizational commitment. Of all the energetic forces subsumed by motivation, self-efficacy/competence has the strongest relationship with performance. Organizations use compensation practices to increase motivation. Those practices may include individual-focused elements (piece-rate, merit pay, lump-sum bonuses, recognition awards), unit-focused elements (gain sharing), or organization-focused elements (profit sharing).

How does trust affect job performance and organizational commitment?

Corporate Social Responsibility: a perspective that acknowledges that the responsibilities of a business encompass the legal, ethical, and citizenship expectations of society. Maintains the belief that the foundation of any business is profitability, because organizations must fulfill their economic responsibilities to their employees and stakeholders. However, the social responsibility lens supplements that belief by arguing that they company's obligations do not end with profit maximization. Legal Component: argues that the law represents society's codification of right and wrong and must therefore be followed. Fulfilling this component speaks to the integrity of the organization and suggests that it has reached the conventional level of moral development Ethical Component: argues that organizations have an obligation to do what is right, just, and fair and to avoid harm. Fulfilling this component is relevant to the benevolence and integrity of the organization and suggests that it has reached the principled level of moral development Citizenship Component: argues that the organization should contribute resources to improve the quality of life in the communities in which they work. Sometimes this component involves philanthropic efforts, in which donations of time or cash are given to charitable groups

What are the bases for making decisions about how trustworthy an authority is?

Disposition-Based: your personality traits include a general propensity to trust others. It mostly has to do with the trustor and less to do with a particular authority. · Trust Propensity: a general expectation that the words, promises, and statements of individuals and groups can be relied on. The importance of this is most obvious in interactions with strangers, in which an acceptance of vulnerability would amount to blind trust. As with all traits, trust propensity is a product of both nature and nurture. It may be one of the first personality traits to be developed. It continues to develop throughout life. Cognition-Based: trust rooted in a rational assessment of the authority's trustworthiness · Trustworthiness: the characteristics or attributes of a trustee that inspire trust. Track record 1. Ability: the skills, competencies and areas of expertise that enable an authority to be successful in some specific area. Listing a specific area is a key component of the ability definition. Considered on a number of levels 2. Benevolence: the belief that the authority wants to do good for the trustor, apart from any selfish or profit-centered motives 3. Integrity: the perception that the authority adheres to a set of values and principles that the trustor finds acceptable. When authority has integrity, they have sound character and have good intentions and strong moral discipline. Also conveys an element between words and deeds (walk the walk and talk the talk) Affect-Based: it depends on the feelings toward the authority that go beyond any rational assessment. Although ability, benevolence and integrity provide three good reasons to trust authority, this form isn't rooted in reason; it is more emotional than rational. We trust because we have feelings for the person in question. Those feelings are what prompt us to accept vulnerability to another person. We trust them because we like them. In new relationships, trust depends solely on our own trust propensity. In most relationships, that propensity eventually gets supplemented by knowledge about ability, benevolence, or integrity, at which point cognition-based trust develops. *Taken together, all three trusts provide three completely different sources of trust in a particular authority. - Disposition trust states that our willingness to be vulnerable has little to do with authority and more with our genes and early life experiences - Affect trust states that our willingness to be vulnerable has little to do with a rational assessment of the authority merit and more to do with our emotional fondness of the authority - ONLY IN THE COGNITION-BASED TRUST do we rationally evaluate the pluses and minuses of an authority in terms of its ability, benevolence, and integrity

Know how job satisfaction is related to job performance and organizational commitment.

Effects of Job Satisfaction on Performance and Commitment: · Job Satisfaction has a moderate positive effect on Job Performance. People who experience higher levels of job satisfaction tend to have higher levels of Task Performance, higher levels of Citizenship Behavior and lower levels of Counterproductive Behavior. · Job Satisfaction has a strong positive effect on Organizational Commitment. People who experience higher levels of job satisfaction tend to feel higher levels of Affective Commitment and higher levels of Normative Commitment. Effects on Continuance Commitment are weaker. o Organizations can assess and manage job satisfaction using attitude surveys such as the Job Descriptive Index (JDI), which assesses pay satisfaction, promotion satisfaction, supervision satisfaction, coworker satisfaction, and satisfaction with the work itself. o It can be used to assess the levels of job satisfaction experienced by employees, and its specific facet scores can identify interventions that could be helpful.

Define job satisfaction and identify the facets of job satisfaction.

Job satisfaction: is a pleasurable emotional state resulting from the appraisal of one's job or job experiences. In other words, it represents how you feel about your job and what you think about your job. Overall Job Satisfaction: Employees consider a number of specific facets when evaluating their job satisfaction. · Pay satisfaction: refers to employees' feelings about their pay, including whether it's as much as they deserve, secure, and adequate for both normal expenses and luxury items. o Pay satisfaction is based on a comparison of the pay that employees want and the pay they receive. · Promotion satisfaction: refers to employees' feelings about the company's promotion policies and their execution, including whether promotions are frequent, fair, and based on ability. o Unlike pay, some employees may not want frequent promotions because promotions bring more responsibility and increased work hours. · Supervision satisfaction: reflects employees' feelings about their boss, including whether the boss is competent, polite, and a good communicator (rather than lazy, annoying, and too distant). · Coworker satisfaction: refers to employees' feelings about their fellow employees, including whether coworkers are smart, responsible, helpful, fun, and interesting as opposed to lazy, gossipy, unpleasant, and boring. · Work itself satisfaction: reflects employees' feelings about their actual work tasks, including whether those tasks are challenging, interesting, respected, and make use of key skills rather than being dull, repetitive, and uncomfortable. o Whereas the previous four facets described the outcomes that result from work (pay, promotions) and the people who surround work (supervisors, coworkers), this facet focuses on what employees actually do

What determines the fairness of decisions?

Justice: provides that sort of behavioral evidence, because authorities who treat employees more fairly are usually judged as more trustworthy. Employees can judge the fairness of an authority's decision making along four dimensions 1. Distributive Justice: the perceived fairness of decision-making outcomes. Employees gauge this by asking whether decision outcomes, such as pay, rewards, evaluations, promotions, and work assignments, are allocated using proper norms. In most business situations, the proper norm is equity, with more outcomes allocated to those who contribute more inputs. However, other norms become appropriate where goals are crucial a. Team Based: building harmony and solidarity in work groups can become just as important as individual productivity. So, the EQUALITY NORM, in which all group members receive exactly the same grade, regardless of individual productivity 2. Procedural Justice: the perceived fairness of decision-making process. It is fostered when authorities adhere to rules of fair process. One of those rules is VOICE, or giving employees a chance to express their opinions and views during the course of decision making. CORRECTABILITY provides workers with a chance to request an appeal when a procedure seems to have worked inefficiently. Aside from voice and correct ability, procedural justice is fostered when authorities adhere to four rules that serve to create equal employment opportunity. Consumer reports serve as a good example of procedural justice in action. Procedural justice stronger driver than distributive justice. 3. Interpersonal Justice: the perceived fairness of the treatment received by employees from authorities. Fostered when authorities adhere to two rules. Interpersonal-Injustice: Rude/disrespectful a. Respect Rule: whether authorities treat employees in a dignified and sincere manner b. Propensity Rule: whether authorities refrain from making improper or offensive remarks 4. Informational Injustice: the perceived fairness of the communications provided to employees from authorities a. Justification Rule: mandates that authorities explain decision-making procedures and outcomes in a comprehensive and reasonable manner b. Trustfulness Rule: required that those communications be honest and candid Abusive Supervision: the sustained display of hostile verbal and nonverbal behaviors, excluding physical contact

Define motivation.

Motivation - a set of energetic forces that originates both within and outside an employee, initiates work-related effort, and determines its direction, intensity and persistence. · Direction - what do you do? · Intensity - how hard do you do it? · Persistence - how long will you do it?

Equity theory

Outcomes include pay, seniority benefits, fringe benefits, status symbols, etc. Inputs include effort, performance, skills and abilities, education, experience, etc. · Comparison other - some person who seems to provide an intuitive frame of reference for judging equity · Equity distress - an internal tension that can only be alleviated by restoring balance to the ratios · Cognitive distortion - a reevaluation of the inputs an employee brings to a job often occurring in response to equity distress

Understand the two types of withdrawal behavior.

Psychological withdrawal consists of actions that provide a mental escape from the work environment. ("warm-chair attrition") (daydreaming, socializing, looking busy, moonlighting, cyberloafing) Physical withdrawal consists of actions that provide a physical escape, whether short term or long term, from the work environment. (tardiness, long breaks, missing meetings, absenteeism, quitting)

Explain the concepts of trust and justice; explain how trust is related to justice.

Reputation: prominence of its brand in the minds of the public and the perceived quality of its goods and services. An intangible asset that can take a long time to build, but as Ben Franklin once noted, can be cracked as easily as glass or china. An organization's reputation matters not just to potential consumers but also to potential employees. Trust: reputations most important factors. The willingness to be vulnerable to a trustee based on positive expectations about the trustee's actions and intentions. Justice: reflects the perceived fairness of an authority's decision making. Concepts can be used to explain why employees judge some authorities to be more trustworthy than others. Ethics: reflects the degree to which the behaviors of an authority are in accordance with generally accepted moral norms.

Define and name the three dimensions of job performance.

Task performance: includes employee behaviors that are directly involved in the transformation of organizational resources into the goods or services that the organization produces Citizenship behavior defined as voluntary employee activities that may or may not re rewarded but that contribute to the organization by improving the overall quality of the setting or context in which work takes place. Counterproductive behavior defined as employee behaviors that intentionally hinder organizational goal accomplishment.

Identify ways organizations can foster a sense of commitment among employees.

The Changing Employee-Employer Relationship · Psychological contracts: reflect employees' beliefs about what they owe the organization and what the organization owes them. v These contracts are shaped by the recruitment and socialization activities that employees experience, which often convey promises and expectations that shape beliefs about reciprocal obligations · Transactional contracts: are based on a narrow set of specific monetary obligations (e.g., the employee owes attendance and protection of proprietary information; the organization owes pay and advancement opportunities) · Relational contracts: that are based on a broader set of open-ended and subjective obligations (e.g., the employee owes loyalty and the willingness to go above and beyond; the organization owes job security, development, and support). v Seeing one's coworkers downsized can constitute a "breach" of an employee's psychological contract, and research suggests that psychological contract breach leads to psychological and physical withdrawal. v However, trends such as downsizing, use of temporary workers, and outsourcing may also cause employees to define their contracts in more transactional (as opposed to relational) terms." Commitment Initiatives · Perceived organizational support reflects the degree to which employees believe that the organization values their contributions and cares about their well-being Organizations can do a number of things to be supportive, such as: o providing adequate rewards o protecting job security o improving work conditions o minimizing the impact of politics

Explain how values affect job satisfaction.

Values: are those things that people consciously or subconsciously want to seek or attain. Employees are satisfied when their job provides the things that they value. Commonly Assessed work values are: pay, promotion, supervision, coworkers, work itself, altruism, status, environment. · Different people value different things and that your values may change during the course of your working life. Value-percept theory: argues that job satisfaction depends on whether you perceive that your job supplies the things that you value. Dissatisfaction = (V want - V have) x (V importance) In this equation, V want reflects how much of a value an employee wants, V have indicates how much of that value the job supplies, and V importance reflects how important the value is to the employee.

Explain how characteristics of the job itself can create a sense of satisfaction.

What kinds of work tasks are especially satisfying? Research suggests that three "critical psychological states" make work satisfying. 1. Believing in the meaningfulness of work, which reflects the degree to which work tasks are viewed as something that "counts" in the employee's system of philosophies and beliefs. 2. Perceiving responsibility for outcomes, which captures the degree to which employees feel that they're key drivers of the quality of the unit's work. 3. Knowledge of results, which reflects the extent to which employees know how well (or how poorly) they're doing.

Understand the four primary responses to negative events at work.

Withdrawal Behaviors (EVLN Model) · Explains employees' responses to negative work events o Exit - active, destructive response by which an individual either ends or restricts organizational membership. o Voice - an active, constructive response in which individuals attempt to improve the situation. o Loyalty - a passive, constructive response that maintains public support for the situation while the individual privately hopes for improvement. o Neglect - defined as a passive, destructive response in which interest and effort in the job declines.

Expectancy theory

i. Motivation is fostered when the employees believe that effort will result in performance, that performance will result in outcomes and that those outcomes will be valuable ii. Expectancy - represents the belief that exerting a high level of effort will result in the successful performance of some task iii. Instrumentality - represents the belief that successful performance will result in some outcomes iv. Valance - reflection of the anticipated value of the outcomes associated with performance a. Needs - cognitive groupings or clusters of outcomes that are viewed as having critical psychological or physiological consequences b. Extrinsic motivation - motivation that is controlled by some contingency that depends on task performance (pay, bonuses, praise, support) c. Intrinsic motivation - desire to put forth work effort due to the sense that task performance serves as its own reward (enjoyment, personal expression, skill development) v. Self-efficacy - belief that a person has the capabilities needed to execute the behaviors require for task success a. Past accomplishments b. Vicarious experience c. Verbal persuasion d. Emotional cues Meaning of money - the degree to which they view money as having symbolic, not just economic, value (achievement, respect, freedom)

Understand the two methods by which individuals make decisions.

o Programmed decisions: decisions that become somewhat automatic because people's knowledge allows them to recognize and identify a situation and the course of action that needs to be taken o Non-programmed decision: when a situation arises that is new, complex and not recognized

Name and explain the three types of organizational commitment.

· Affective commitment - a desire to remain a member of an organization due to an emotional attachment to, and involvement with, that organization. · You stay because you want to. · Emotional connection/stay because you want to · Continuance commitment - a desire to remain a member of an organization because of an awareness of the costs associated with leaving it. · You stay because you need to. · Normative commitment - a desire to remain a member of an organization due to a feeling of obligation. · Sense that staying is the right or moral thing · You stay because you ought to.

Understand correlation coefficient.

· Correlation: o Between social recognition behaviors and drive-through times, as well as the correlation between social recognition behaviors and employee turnover. o Can be positive or negative. Range from 0 to (+/-) 1. o In OB research, a .50 is "strong" a .30 is "moderate" and .10 is "weak" o Scatterplot

Goal-setting theory

· Goals - objective or aim of an action and typically refer to attaining a specific standard of proficiency, often within a specific time limit · Specific and difficult goals result in higher levels of performance · Self-set goals - internalized goals that people use to monitor their own task progress · Task strategies - learning plans and problem-solving approaches used to achieve successful performance · Feedback - updates on employee progress toward goal attainment · Task complexity - reflection of how complicated the information and actions involved in a task are, as well as how much the task changes · Goal commitment - the degree to which a person accepts a goal and is determined to try to reach it · SMART goals: Specific, Measurable, Achievable, Results-Based and Time-Sensitive

Understand various methods of assessing job performance.

· Management by objectives (MBO) is a management philosophy that bases an employee's evaluations on whether the employee achieves specific performance goals. - Best suited for managing the performance of employees who work in contexts in which objective measures of performance can be quantified. · Behaviorally anchored rating scales (BARS) assess performance by directly assessing job performance behaviors.

Understand role of OB and evidence in making strategic decisions to garner sustainable and positive change.

· Method of Experience: people hold firmly to some belief because it is consistent with their own experience and observations. · Method of Intuition: people hold firmly to some belief because it "just stands to reason" - it may seem obvious or self-evident. · Method of Authority: people hold firmly to some belief because some respected official, agency, or source said it is so. · Method of Science: people accept some belief because scientific studies have tended to replicate that result using a series of samples, settings, and methods. · The Scientific Method: o Theory—collection of assertions—both verbal and symbolic - that specify how and why variables are related, as well as the conditions in which they should and should not be related. o Hypotheses—written predictions that specify relationships between variables. o Data o Verification

Understand "organizational behavior" and origins of evidence in OB.

· Organizational behavior (OB) is a field of study devoted to understanding, explaining, and ultimately improving the attitudes and behaviors of individuals and groups in organizations. · Resource based view: describes what exactly makes resources valuable. · RESOURCE VALUE increase withà 1. Rare 2. Inimitable (( History: collective pool of experience, wisdom, and knowledge that benefits the organization. Numerous Small Decisions: captures the idea that people make many small decisions day in and day out, week in and week out Socially Complex Resources: not always clear how they came to develop (culture, teamwork, trust, reputation)). · Research Evidence

Define organizational commitment and withdrawal behavior; explain how these are related.

· Organizational commitment is defined as the desire on the part of an employee to remain a member of the organization. o Organizational commitment influences whether an employee stays a member of the organization (is retained) or leaves to pursue another job (turns over). Employees who are not committed to their organizations engage in withdrawal behavior, defined as a set of actions that employees perform to avoid the work situation— behaviors that may eventually culminate in quitting the organization.