MGMT 300
Hallmark Case
"Steppingstone Program" provides MBTI to company leadership, resulting in increased overall communications and improved decision making.
Cisco loses ____ for each talented engineer it loses
$250k
Loss of talented performer ranges from
$250k-500k
Cost to a company of a poor hire
$300K impact
Bristol Meyers Squibb loses ____ for each senior leader lost
$500k
Cost per day to a company operating without a key player
$7,000 per day
Independent Variable
(Inputs) - personality, emotions, work teams, organizational culture
Dependent Variable
(Outputs) - productivity, turnover, absenteeism, deviant behavior, job satisfaction, etc.
Primary Determinants of Personality
1) Genetics are the primary source 2) Family and friends have some impact 3) Traumatic events and/or major life changes
Use of EI by Organizations
1) L'oreal- sales reps selected on EI are 100% more effective than other reps 2) Air Force - recruiters selected based on EI are 300% more effective than other recruiters Recruitment - tell me about a time when, how do you deal with adversity - these are asked to gauge EI
5 most commonly noted factors driving Job Satisfaction
1) Skills Utilization 2) Job Security 3) Compensation 4) Communication 5) Immediate Supervisor Attitude has a very high correlation with job satisfaction
Use of Emotional Labor by Companies
1) Starbucks - baristas encouraged to know frequent customers by name 2) Southwest - flight attendants expected to be enthusiastic, humorous, outgoing 3) Apple - genius bar staff encouraged to be empathetic and use words like "feel"
Other Sources of Emotion/Mood
1) Time of Day 2) Time of Week 3) Weather 4) Exercise
4 Fundamental Tasks Required of Managers
1. Planning (Strategic) 2. Organizing (Logistical) 3. Leading (Leadership) 4. Controlling (Enforcement)
Average number of employees directly influenced by a manager
12.4
Value of top performers in a company
2-4 times the average employee
Percent of employees assigned in most major organizations to do what they do best
20%
Businesses with poor employee engagement experience
30% decrease in operational effectiveness
% Communication via verbal tone
38%
% Communication via facial expression and body language
55%
Average time for a new manager to become productive in a new job
6.2 months
% Non verbal communication
60-70%
% Communication through words we use
7%
IBM Case
Administers MBTI to global managers to promote understanding of team members from different cultures
Jet Blue Case
Administers MBTI training to employees to ensure understanding of both coworkers and customers.
Major sources of emotion & mood come from
All the random activities/events that occur during the course of a day. Personality - genetic predispositions Sleep - affects ability to control emotions/moods Gender - females more emotional (cultural socialization) Social Activities - interaction with ppl is positive Stress - limits our ability to control mood Age - elderly tend to have fewer negative moods
Corporate Diversity Examples
Approximately 80% of the Fortune 500 firms have comprehensive diversity programs. Starbucks - Supplier Diversity Program AT&T - Chief Diversity Officer Johnson & Johnson - Diversity Awards
Applying the Big Five Model
Big Five tends to correlate very well to job performance and success. Big Five uses a positive/negative framework
Three Components of an Attitude
Cognitive - the opinion or belief Affective - the emotion or feeling Behavioral - intention to act a certain way
Fortune "Best Places to Work" Ranking
Companies on the list outperformed S&P 500 by 56% over the past four years.
Watson Wyatt's "Human Capital Index (HCI)"
Companies with a "high" HCI had 17% better return than those with an "average" HCI index, and a 94% greater return than those scoring "low"
Baker/Phillips Survey of Critical CFO Skills
Comprehensive study of CFO's from top companies. Most critical skills required were - communication, management and leadership, financial analysis, people and interpersonal skills, and analytical and critical thinking skills.
Emotional Intelligence Model
Comprised of 4 key elements 1) Self Awareness 2) Self Management 3) Social Awareness 4) Social/relationship management
Most important dimension of Big Five Model
Conscientiousness - highly conscientious people develop more job knowledge, exert greater effort, and have better performance
Inverted U-Curve
Creativity peaks in early adulthood, then tends to gradually decline as we age.
MBTI Assessment
Does not measure - IQ/intelligence, emotions, maturity, happiness/well-being No good or bad type Strong extraversion does tend to correlate with career success.
IQ and Job Effectiveness
Emotional Intelligence twice as important as IQ and/or expertise
Implications of the Big Five Model for Job Performance/Success/Satisfaction
Emotional Stability - related to job satisfaction Extroverts - tend to be happier in their jobs and have good social skills Openness - tend to be more creative, better problem solvers, good leaders Agreeableness - tend to be better in social settings
Controlling
Enforcement
Cultural norms in the US
Extraversion, Sensing, Feeling, and Judging are cultural norms. 44% of population is Sensing/Feeling 10% of population is Intuitive/Thinking 37% of managers are Intuitive/Thinking 8% of managers are sensing/feeling
What makes an effective manager?
Half the time COMMUNICATING and quarter of the time HR MGMT.
6 core universal emotions
Happiness, Anger, Fear, Sadness, Surprise, Disgust
Judging (J) vs. Perceiving (P)
How we deal with the outer world.
Mintzberg
Identified 10 roles fulfilled by effective CEO's. Typically the best managers were the most effective communicators. Interpersonal (figurehead, leader, liaison) - provide info Informational (monitor, spokesperson) - process info Decisional (entrepreneur, negotiator) - use info
Hilton Case Study
Issue - Concerned that the company was not reflecting the diversity of its clientele, specifically in regards to diverse employees upward mobility and improving diversity of hotel owners. Solution - implemented hospitality 101, a series of seminars for minority entrepreneurs encouraging hotel ownership. Formed partnerships with historically African-American colleges - providing jobs, mentoring program where VP's mentor junior managers, supplier diversity tracking program Result - Hilton now has relationships with 4400 female and minority owned suppliers. 61% of new hires minorities. 44% of managers compensation plans are tied to diversity initiatives.
Mattel Case Study
Issue - increase sales in international markets. Company managers not effectively understanding and addressing the needs of customers in foreign markets. Solution - increased recruiting at INTL MBA programs with strong global presence. Partnered with National Black MBA Conference and National Hispanic MBA conference. Representatives from target markets on marketing team. Result - International supplier relationships have improved and 50% of sales from international markets not 60% like hoped for.
Major Job Attitudes
Job Satisfaction Job Involvement Psychological Empowerment - belief in the degree of personal influence over the job and autonomy Organizational Commitment - identifying with a particular organization and its goals Perceived Organizational Support - degree to which employees feel their organization cares for their "well being" Employee Engagement
Leading
Leadership
Big Five Model
Leading personality model that features 5 factors 1) Extroversion 2) Agreeableness - good natured, cooperative, trusting 3) Conscientiousness - responsible, dependable, organized 4) Emotional Stability - calm, confident, secure under stress 5) Openness to Experience - curious, imaginative, artistic, sensitive
Organizing
Logistical
2 dominant frameworks used to describe personality
MBTI Big Five Model
7 Intellectual Dimensions
Memory, Number Aptitude, Verbal Comprehension, Perceptual Speed, Inductive Reasoning, Deductive Reasoning, Spatial Visualization (sports) 7 most commonly accepted types of intelligence
Business Case for why DIVERSITY matters
Organizational Effectiveness, Human Resources/Staffing, Business Development
4 Major Disciplines of Organizational Behavior
Psychology, Social Psychology, Sociology, Anthropology
Can money buy happiness?
Relative income is equally important as actual income in regards to happiness.
Financial Impact of DIVERSITY
S&P 500: Top 100 firms ranked according to their "Diversity" in the S&P 500 average 2.5 times better annual return than the least diverse 100 firms.
What makes a successful manager?
Spent about half of their time NETWORKING. And about a quarter effectively COMMUNICATING.
Planning
Strategic
Common Uses of MBTI
Team building, group dynamics, recruitment/selection, leadership development. 89 of Fortune 100 companies administer the MBTI
Extraversion (E) vs. Introversion (I)
The direction we focus our energy.
Thinking (T) vs Feeling (F)
The way we make decisions.
Sensing (S) vs. Intuition (N)
The way we take in information.
Does salary correlate to job satisfaction?
US Average 40-75K annually leads to job satisfaction California Average 70-90K annually. Small correlation between salary and job satisfaction
Organization
a consciously coordinated social unit composed of TWO OR MORE PEOPLE that functions on a relatively continuous basis to achieve a common goal or set of goals
Organizational Behavior
a field of STUDY that investigates the impact that individuals, groups, and structure have on behavior within organizations, for the purpose of APPLYING such knowledge toward improving the organizations effectiveness.
Diversity
acknowledging, understanding, accepting, valuing, and celebrating differences among people with respect to age, ethnicity, gender, physical and mental ability, race, sexual orientation, spiritual practice, and public assistance status.
Social Psychology
an area within psychology that blends concepts from psychology and sociology and that focuses on the influence of people on one another. Unit of Analysis - Group
Attitude
an evaluative statement or judgment concerning objects, people, or events
Emotional Contagion
catching and feeling emotions that are similar to and/or influenced by those of others. Our natural tendency is to mimic and synchronize facial expression, vocalizations, postures, and movement with others and converge emotionally. Business Applications - group/team dynamics, customer/client interaction, leadership/management
Deep Level Diversity
characterstics that are not readily apparent. Values, personality, intellectual ability (IQ, EI)
Weather
correlation is actually debatable. Might be psychological disorder
Organizational Effectiveness
creativity/innovation, decision-making, productivity (workers 12% more productive if they feel their company is diverse), problem solving, less absenteeism.
Emotional Labor
employee's expression of organizationally required emotions during interpersonal transactions at work.
Outsider Thinking
experts are often restricted by a familiarity with establishing boundaries in their given field of study.
Most effective form of communication
face to face
Introversion
focus their energy and attention inward. Are interested in the inner world of thoughts and reflections
Extraversion
focus their energy and attention outward. Are interested in the world of people and things.
Intuition
go beyond what is real or concrete and focus on meaning, associations, and relationship. Big Picture.
Human Resources/Staffing
job applicants increases, employee retention higher, less internal political debate, fewer legal/compliance issues (harassment, discrimination)
Thinking
making decisions by stepping back from the situation, taking an objective view.
Feeling
making decisions by stepping into the situation, taking an empathetic view.
Time of Week
mood higher towards end of week. Sundays score lowest.
Time of Day
mood highest in midday, lowest in morning and night
Business Development
more customers/clients, better marketing strategy
Myers-Brigg Type Indicator (MBTI)
most commonly used psychometric personality assessment. 4 dimensions of personality preference, use both sides of each dimension but one is our natural preference. Shaped by environmental influences like family, country, and education.
Surface Level Diversity
objective and easily obtained biographical characterstics. Age, gender, race/ethnicity, seniority/tenure, religion, gender identity.
Managers
people who get things done through other people
Sensing
prefer to take in information using their five senses - sight, sound, feel, smell, and taste. Step by Step.
Perceiving
seek to experience the world, not organize it. Spontaneous approach to meeting the deadline with a rush of activity.
Exercise
some endorphins 500 times stronger than morphine. Positive
Diverse "Cross-Functional" Teams
teams featuring individuals with different areas of expertise are often more effective than homogenous teams. Diverse groups tend to be more effective at problem solving and finding creative solutions to address issues.
Psychology
the science that seeks to measure, explain, and sometimes change the behavior of humans and other animals. Unit of Analysis - Individual
Sociology
the study of people in relation to their fellow human beings. Unit of Analysis - Group/Organization
Anthropology
the study of societies to learn about human beings and their activities. Unit of Analysis - Organization
Personality
the sum total of ways in which an individual reacts and interacts with others; the measurable traits a person exhibits.
InnoCentive.com
use crowdsourcing to solve business problems. 30-50% of problems solved within 6 months that stumped "experts"
Judging
want external world to be organized and orderly. Look at the world and see decisions that need to be made.
Cognitive Dissonance
when behavior is not aligned with attitudes, we seek ways to reduce this dissonance in order to reach consistency between behavior and attitudes. Consistency is achieved by changing the attitudes, modifying the behaviors, and/or through rationalization. Desire to reduce dissonance depends on importance, rewards, and/or influence over situation. Ex - Addictions, Copywright infreingement, speeding in traffic, deviant workplace behavior
Emotional Dissonance
when employees must project one emotion while feeling another. Typically very stressful and exhausting, leads to burnout.
Malcolm Baldridge National Quality Award
winners have outperformed the S&P 500 by a margin of 4.4 t0 1
