MGMT 310A Exam 2
Common Types of Incentive Systems
-Salary, raises, promotions -Pay for performance -Profit sharing -Gain sharing -Stock ownership
Four steps involved in Behavioral Modeling
1. Attentional Processes: learner focuses attention on critical behaviors exhibited by the model 2. Retention Processes: learner must remember the behaviors of the model 3. Production Processes: learner must have appropriate skill set and be able to reproduce behavior 4. Reinforcement: learner must view model receiving reinforcement for behavior and then receive it themself
How does learning affect decision making
DM: process of generating and choosing from a set of alternatives to solve a problem More knowledge, skills and abilities results in accurate decisions
How does motivation relate to job performance and organizational commitment?
Daily intrinsic motivation is positively related to job satisfaction and psychological vitality Motivation can help satisfy psychological needs
Self-efficacy
Defined as the belief that a person has the capabilities needed to execute the behaviors required for task success Shapes our expectancy of a particular task
Expectancy Theory
Describes the cognitive processes employees go through when making choices among different voluntary responses Motivation is a function of expectancy, instrumentality, valence
Barriers to Change
Directive: organization is told how it will change Persuasion: people must be on board for change
Potential downside of using cognitive ability
People can perform poorly on cognitive ability tests due to factors outside of actual general mental ability Socioeconomic status Coming from a more disadvantage background
Equity Theory
People evaluate the ratio of inputs they bring to a job (ability, experience, effort, etc.) to the outputs they receive (pay, promotions, etc.)
Social Learning Theory
People have ability to observe others and learn from their behaviors
Learning
Permanent changes in an employee's knowledge or skill that result from experience
Traits and Cultural Values
Personality is a collection of multiple "traits" Cultural values can influence the development of people's personality traits
High valence
Positive: Salary increases, bonuses, and more informal rewards
Different types of Reinforcement
Positive: increases desired behaviors Extinctions: decreases unwanted behaviors Punishment: decreases unwanted behaviors Negative: increases desired behaviors
Moral Judgement
Reflects the process people use to determine whether a particular course of action is ethical or unethical Cognitive Moral Development: Preconventional Conventional Principled
The methods by which employees learn in organizations
Reinforcement: method of encouraging or discouraging continued behavior by creating consequences for the behavior Observation: Social learning theory Goal Orientation: people learn differently as a function of the goals/activities they prioritize
Expectancy
Represents the belief that exerting a high level of effort will result in the successful performance of some task Effort > Performance
Instrumentality
Represents the belief that successful performance will result in some outcomes Performance > Outcomes
Steps organizations can take to foster learning
Training Knowledge Transfer Behavior modeling training Communities of practice Transfer of training Climate for transfer
What shapes personality?
Traits Cultural Values Biological Factors Influences Nature: personality, behavior due to genetics Nurture: personality, behavior due to your environment
How does trust affect job performance?
Trust has a moderate positive effect on performance Employees who are willing to be vulnerable to authorities tend to have higher levels of task performance
How does trust affect organizational commitment?
Trust has a strong positive effect on commitment Employees who are willing to be vulnerable to authorities tend to have higher levels of affective and normative commitment
Locus of Control
Whether one believes the events that occur around him or her are self-driven or driven by the external environment Internal: believe your own behavior dictates events External: events occur because of luck, chance, fate
Theory X vs Theory Y
X: People are inherently lazy, will avoid work if they can Y: Optimistic, positive opinion of their people People need to be monitored/controlled, incentives/punishments are necessary to keep people motivated
Taxonomies used to describe personality
(pg 280) MBTI (Myers-Briggs Type Indicator) RIASEC model
Alderfer's ERG Theory
1. Existence needs 2. Relatedness needs 3. Growth needs
Factors that increase likelihood of trust repair
1. Expression of regret 2. Declaration of repentance 3. Explanation 4. Acknowledgment of responsibility 5. Offer of repair
Why goals work
1. Goals activate a psychological drive to reach the goal 2. Goals direct attention 3. Goals lead people to develop strategies to achieve them 4. Goals increase persistence
4 Beliefs that Help Foster Psychological Empowerment
1. Meaningfulness (value of work/goal, relative to one's values) 2. Self-Determination (choice/initiation to continue pursuing work tasks) 3. Competence (Belief in one's own ability to work hard, perform) 4. Impact (Belief that one's work is "making a difference")
Basics of Motivation
1. Needs theories (Maslow's and ERG) 2. Two-factory theory of motivation 3. Equity theory 4. Goal-setting theory 5. Expectancy theory 6. Psychological empowerment
Big Five
1. Openness 2. Conscientiousness 3. Extraversion 4. Agreeableness 5. Neuroticism
Maslow's Hierarchy of Needs
1. Physiological needs 2. Safety needs 3. Social needs 4. Esteem need 5. Self-actualization needs
3 Possible Forms of Equity Theory
1. Positive inequity (over-rewarded) 2. Equity is (appropriately rewarded) 3. Negative inequity (under-rewarded)
Inputs and Outputs for Equity Theory
1. Ratio of your outcomes and inputs is equal to the ratio of others' outcomes and inputs 2. Ratio of your outcomes and inputs is less than the ratio of others' outcomes and inputs 3. Ratio of your outcomes and inputs is greater than the ratio of others' outcomes and inputs
Three types of ethical behavior
1. Unethical 2. Merely ethical 3. Especially ethical
3 Phases of Change
1. Unfreeze: establish urgency, create vision 2. Change: communicate vision, create short term win 3. Refreeze: strengthen improvement, produce more changes
MBTI (Myers-Briggs Type Indicator)
A personality framework that evaluates people on the basis of four types or preferences: -Extraversion vs Introversion -Sensing vs Intuition -Thinking vs Feeling -Judging vs Perceiving
Corporate Social Responsibility
A perspective that acknowledges that the responsibility of a business encompasses the economic, legal, ethical and citizenship expectations of society
Are personality tests useful for hiring?
A recent survey of Fortune 1000 firms suggest that around a third of those organizations rely on, or plant to implement, some for of personality testing It's possible for people to "fake their way" across that cutoff But experts on personnel selection agree that personality and integrity tests are among the most useful tools for hiring
Motivation
A set of energetic forces that originate within and outside an employee that initiates work-related effort and determines its direction, intensity, and persistence
What dimensions can be used to describe trustworthiness of an authority?
Ability: skills, competencies, expertise Benevolence: belief that authority wants to do good for the trustor Integrity: perception that authority adheres to a set of values/principles that trustor deems acceptable
How does ability differ from personality?
About half of the variation in ability levels is due to genetics
Extrinsic Incentive Bias
An attributional bias according to which people attribute relatively more weight to "extrinsic incentives" such as monetary reward, than to "intrinsic incentives," such as learning a new skill, to others rather than themselves
When do extrinsic reward systems work well
An extrinsic reward is directly related to the job performance of the employees but it is not necessary that employees receive a reward every time they accomplish a task
Equity Sensitivity
An individual's tolerance for negative (others enjoy greater outcomes for same input) and positive inequity (I receive greater outcomes for same input).
RIASEC model
An interest framework summarized by six different personality types: Realistic Investigative Artistic Social Enterprising Conventional
Psychological Empowerment
An intrinsic form of motivation derived from the belief that one's work tasks are contributing to some larger purpose
Moral Awareness
Authority recognizes that a moral issue exists in a situation or that an ethical code or principle is relevant to the circumstance Depends on moral attentiveness and intensity
Moral Intent
Authority's degree of commitment to the moral course of action
Things that affect our "moral fudge factor"
Bad influences around us
3 Types of Equity Sensitivity
Benevolents: higher tolerance for negative inequity Sensitives: motivated to resolve both positive and negative inequity Entitleds: no tolerance for negative inequity (prefer positive)
Types of cognitive ability
Capabilities related to the acquisition and application of knowledge in problem solving Verbal: oral and written comprehension and expression Quantitative: number facility, mathematical reasoning Reasoning: problem sensitivity, deductive reasoning Spatial: orientation and visualization Perceptual: speed, flexibility
Types of emotional ability/intelligence
Capabilities related to the management and use of emotions when interacting with others, enhances social functioning amongst employees Self-awareness: appraisal and expression of emotions in oneself Other awareness: the appraisal and recognition of emotion in others Emotional Regulation: being able to recover quickly from emotional experiences Use of emotions
Basic Assumptions of Needs Theories
Certain fundamental human needs must be met in a hierarchical order to facilitate motivation
How do three paths work together?
Combing evaluations of expectancy, instrumentality, and valence leads to a calculation of motivation Expectancy is a multiplicative effect, if any part of the calculation is zero, expectance is zero and motivation will be zero 1. Can I achieve my desired level of performance? 2. What rewards will I receive if I achieve my desired level? 3. How much do I value the rewards I receive?
How does socioeconomic status play a role?
Coming from a more disadvantaged background means some may not have access to resources to develop cognitive ability
Types of heuristics and biases
Conjunction fallacy: more details increase probability estimates even though laws of probability say otherwise Representativeness heuristic: tendency to base estimates on extent to which outcomes fit with our schemas, prior experiences Phantom recall: recall things that 'sound about right' Availability heuristic Sunk cost fallacy Anchoring and Adjustment bias Framing Effects
In what 3 sources can trust be rooted
Disposition: Trust propensity Affect: Feelings toward trustee Cognitive: Ability, benevolence, integrity
Procedural/Distributive Justice
Distributive justice and procedural justice combine to influence employee reactions. When outcomes are good, people don't spend as much time worrying about how fair the process was When outcomes are bad, procedural justice becomes important
4 Dimensions of Justice
Distributive: are rewards allocated according to proper norm Procedural: voice, correctability, consistency, bias suppression, representativeness, accuracy Interpersonal: respect, propriety Informational: justification, truthfulness
Apologies (Effectiveness)
Effectiveness depends on type of violation, more effective for competence based violations
Motivation's relationship with engagement
Engagement is the term used in contemporary workplaces to summarize motivation levels Behaviors that extend beyond typical or expected in-role behaviors
What type of knowledge can employees gain as they learn?
Explicit: info that is relatively easy to communicate (anything in a training manual) Tacit: can only be learned via experience
Situational
Extrinsic rewards and incentive systems: -Pay for performance Intrinsic rewards and psychological factors: -Opportunities for challenge, growth, etc. -Fairness
How does goal commitment affect feedback?
Feedback gives an employee info about his/her current level of performance can indicate that a change in effort or persistence is needed can also indicate that a new goal is needed
Steps organization can take to become more trustworthy
Focus the organization's attention on corporate social responsibility
Project GLOBE
Global Leadership and Organizational Behavior Effectiveness Examine impact of culture on the effectiveness of leader attributes, behaviors, and practices
Ratio of your outcomes and inputs is less than the ratio of others' outcomes and inputs
Grow your outcomes by talking to boss, stealing from company Shrink outputs by lowering intensity or persistence of effort
Heuristics vs Biases
Heuristic: simple decision rule used to make quick decisions about complex problems Bias: systematic distortion or pattern of error in judgment
How can we use the 'Big Five' to tap into a person's integrity?
High conscientiousness Low neuroticism High agreeableness
What taxonomies can be used to described cultural values
Hofstede's cultural values Project GLOBE
How does goal commitment affect motivation?
In the absence of a specific/difficult goal, employees may not realize what their goals are, set goals that are too easy, etc
Dimensions of Hofstede's cultural values
Individualism-collectivism Power distance Uncertainty avoidance Masculinity-femininity Short-term vs long-term orientation
If the ratio of your outcomes and inputs does not equal the ratio of others' outcomes and inputs
Individuals may: -Increase or decrease inputs -Change their outcomes -Distort perceptions of inputs and/or outcomes -Distort perceptions of others' inputs and/or outcomes -Change the reference others -Leave the organization
Are integrity tests useful for hiring?
Integrity tests can be effective It's possible for people to "fake their way" across that cutoff
3 Components of Motivation
Intensity, Persistence, and Direction
Different Goal Orientations
Learning Orientation: enjoy new tasks, gaining mastery, self-confidence Performance Prove/Avoid: more likely to work on tasks he/she is good at, mixed bag outcomes, lower level of learning and higher anxiety
Interpersonal/Information Justice
Interpersonal and informational justice are essentially free-all they require is time-but they can yield significant economic benefits
Intrinsic vs Extrinsic Sources of Motivations
Intrinsic: Motivation to perform an activity for its own sake and personal rewards Extrinsic: Motivation to perform an activity to earn a reward and avoid punishment
Difficulties with incentive systems
It is difficult to measure performance Incentive systems are difficult to change Can undermine teamwork Can lead to short-term focus
How does trust relate to justice and ethics?
Justice can serve as a behavioral indicator of when trust is violated; ethics tells us when & why authorities are more/less likely to adhere to certain set of rules
Different Dimensions of Corporate Social Responsibility
Legal: follows society's laws Ethical: organizations have an obligation to do what is right, just, fair Social: organizations should contribute resources to improve quality of life
Ethical Behavior
Made up of moral identity and ethical culture
How does personality affect organizational commitment?
Moderate positive effect Conscientious employees have higher levels of affective and normative commitment
How does personality affect job performance?
Moderate positive effect Conscientious employees have higher levels of task performance
How does learning affect job performance?
Moderate positive effect Employees who gain more knowledge tend to have higher levels of task performance
Four Component Model of Ethics
Moral awareness Moral judgement Moral intent Ethical behavior
What role does moral identity and ethical culture play in ethical behavior?
Moral identity: Degree to which person identifies as being a moral person "good apple" Ethical culture: Culture of an organization can endorse doing unethical things, "bad apples"
Goal Setting Theory
Motivation and performance can be maximized by assigning specific levels of performance for workers to attain (As opposed to saying, just do your best) Motivation is fostered when employees are given specific and difficult goals
Two Factor Theory
Motivators: achievement, personal growth, challenging work Hygiene factors: a salary, benefits, sage, and clean working environment Ex: Employee Recognition Programs and Benefits of Programs
Types of tests organizations use to asses cognitive ability
NEO Five-Factor Inventory Personal Characteristics Inventory (Wonderlic) Personality Research Form Hogan Personality Inventory Big Five Inventory
Ratio of your outcomes and inputs is equal to the ratio of others' outcomes and inputs
No action needed
How does cognitive ability affect organizational commitment?
No effect
Striving/Goals Associate with Dimensions of the Big Five
Openness to Experience: Intellectualness, high-culture Conscientiousness: accomplishment striving Extraversion: status striving Agreeableness: communion striving Neuroticism: emotional stability
Two methods employees can used to make decisions
Programmed: 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 Nonprogrammed: decisions made by employees when a problem is new, complex, or not recognized
Personality
Refers to the structures and propensities inside people that explain their characteristics patterns through emotion, and behavior
Basic Tenants of Self-Determination Theory
Reflects a sense of choice in the initiation and continuation of work tasks Employees with high levels of self-determination can choose what tasks to work on, how to structure those tasks, and how long to pursue those tasks
Valence
Reflects anticipated value of the outcomes associated with performance Value of outcome/reward (Highly desirable to highly undesirable)
How does goal commitment affect task complexity?
Reflects how complicated and complex aspects of the goal are: Effects of specific versus difficult goals are almost twice as strong on simple tasks as compared to complex tasks
Ratio of your outcomes and inputs is greater than the ratio of others' outcomes and inputs
Shrink outcomes Grow inputs through more high quality work or through some cognitive distortion
Sources of motivation
Situational or Individual
Individual
Some people are inherently more motivated than others Personality: Need for achievement, power, growth, affilliation
2 Qualities that make goals strong predictors of task performance
Specific and Difficult Goals
Errors in Feedback Appraisals
Stereotyping Halo Effect: giving an employee the same rating on all dimensions Recency Bias: more weight given to recent, in contrast to past events Above-Average Effect: people tend to overestimate their relative performance Unskilled-and-unaware effect: Least skilled people overestimate their competency, high skilled people underestimate it
Types of physical ability
Strength Stamina: exerting oneself over a period of time without giving out Flexibility and coordination Psychomotor: fine manipulative abilities, control movement, response orientation, response time Sensory
How does cognitive ability affect job performance?
Strong positive affect People high on cognitive ability tend to be better at learning and decision making Able to gain more knowledge at a faster rate
Types of Inertia
Structural: Resistance to change due to company structures, systems and processes Cultural: Resistance to change due to shared expectations, norms and values
Ability
The relatively stable capabilities of people for performing a particular range of related activities
Trust
The willingness to be vulnerable to an authority based on positive expectations about the authority's actions and intentions Trust = willing to be vulnerable
If they perceive inequity or imbalance in the equity ratio...
They tend to be less motivated
Trust Repair
Those activities in which a trustee seeks to restore the willingness of the trustor to be vulnerable in the future
20/60/20 Rule
Use top 20 to influence the middle 60 and diminish power of bottom 20 The middle 60 can be moved upward or downward The bottom 20 are the "comfortably miserable" (can do damage)
Difference between veiled and clear purpose integrity tests
Veiled: do not reference dishonesty explicitly but instead assessing more general personality traits associated with dishonest acts Clear: tests that ask about attitudes toward dishonesty, beliefs about the frequency of dishonesty, desire to punish, and confession of past dishonesty
How does learning affect organizational commitment?
Weak positive effect on commitment Employees who gain more knowledge tend to have slightly higher levels of affective commitment
